Bangladesh approved just 79 development projects in the fiscal year 2024-25, the lowest number in two decades, as political upheaval and a change of government slowed decision-making.

Data from the Planning Commission show that the Executive Committee of the National Economic Council (ECNEC) cleared 75 projects worth Tk 984.98 billion, while another 14 were endorsed separately by the Planning Adviser and former planning minister under delegated authority.

The figure marks a sharp fall from the previous year, when 243 projects were approved. On average, between FY2020-21 and FY2023-24, annual approvals ranged from 207 to 290.

Officials said the decline reflected the interim government’s tighter scrutiny of project necessity and costs, part of an effort to ensure better use of public money. Planning Adviser Prof Wahiduddin Mahmud has described the cautious approach as a way to prevent waste, though he acknowledged the importance of fresh projects to sustain economic momentum.

Economists warned that slowing approvals risk undermining development activity. The number of projects in the current Annual Development Programme (ADP) has dropped to 996—down 26% from the 1,345 in the revised ADP last year.

Former Bangladesh Institute of Development Studies head Dr Mustafa K Mujeri noted that construction-related projects account for the bulk of ADP spending, providing income to poorer households and supporting industries. With fewer projects, both cash flow and private investment could suffer.

IMED data show nearly 300 projects were completed last year, with another 291 scheduled for completion this year. Analysts caution that without new approvals, continuity of development may be at risk.