Bangladesh faces simultaneous pressure from the IMF program and revenue reforms. Currently, effective PFM reform is not just a development strategy -- it is essential for economic stability.
When leaders fail to rise above personal impulses, nations suffer in ways that cannot be easily repaired. Economies falter, social bonds weaken, and the future becomes a battleground of unresolved grievances. History offers no shortage of warnings.
The timing could not be more appropriate. With election dates announced, the country has slipped into a familiar trance. What is striking is not what is being said, but what is being omitted. There is almost no sustained conversation about how Bangladesh will pay its bills, grow its industries, or persuade its own citizens to invest in their own country again.
The average citizen is no longer buying the old nationalistic slogans. They are tired of inefficiency, corruption, and delay. They have reached a pragmatic conclusion: they do not care who owns the cranes; they care about how fast the ships turn around.
As we chart our future as an innovating nation, we must ask ourselves: Will we continue to be a nation that tolerates and even encourages heresy, heterodoxy and esoterism, or will we ignore the lessons of history and become a closed society, one that is hostile to new ideas?
It is possible to create an economy that works for everyone. All that is needed is the vision and the political will to see it through.
The interim government has done a creditable job stabilizing the economy and fixing the mess it inherited. But the incoming government is still going to have its work cut out for it, and we will need very safe hands to ensure that Bangladesh gets back on track.
Orthodox macroeconomic policies are having desired effects, with the exchange rate and the central bank’s stock of reserves stabilizing even as import restrictions have been lifted. Higher interest rates have had a dampening effect on economic activities, but very strong remittances have supported household consumption, while exports and public demand also contributed to growth. The economic recovery had started by summer, though pockets of weakness remain, particularly in private investment consumption.
