The Centre for Policy Dialogue (CPD) on Wednesday underscored the need for continuing the reform measures initiated by the interim government, stressing that policy continuity would be crucial for restoring macroeconomic stability and sustaining growth momentum.
“The current moment is a critical juncture for policy recalibration, where sustained macroeconomic discipline is essential to ensure stability and inclusive, resilient growth,” said Dr Fahmida Khatun, executive director of CPD.
She made the comments at a roundtable titled “Looking into Bangladesh’s Development: Priorities for the Newly Elected Government in the Short to Medium Term”, jointly organised by CPD and The Daily Star at the BRAC Centre Inn in Dhaka.
Dr Khatun observed that the Bangladesh economy has faced heightened instability in recent years, reflected in elevated inflation, constrained fiscal space, sluggish private investment, fragility in the monetary sector, mounting public debt, stress in the energy sector and political uncertainty during the transition period.
According to her, the newly elected government has assumed office with a renewed mandate to restore macroeconomic balance, reinforce institutional governance, rebuild investor confidence and generate employment.
She emphasised that restoring stability requires coordinated monetary and fiscal policy actions.
Interest rate adjustments, exchange rate management and prudent public expenditure must complement each other to contain aggregate demand pressures and anchor inflation expectations, she added.
Highlighting structural challenges, she pointed to supply-side bottlenecks, including inadequate storage and transportation facilities, and called for strengthening strategic food reserves and market monitoring mechanisms.
Dr Khatun also stressed the importance of maintaining a market-reflective and stable exchange rate regime, expanding targeted social safety net programmes, accelerating banking sector reforms and ensuring the independence of the central bank.
Speaking at the event, Mahfuz Anam, editor and publisher of The Daily Star, said the effectiveness of any policy framework ultimately depends on implementation.
“You can plan as much as you want; ultimately, it depends on execution,” he said.
He noted that bureaucratic delays and excessive procedural complexities often undermine sound policies, leading to time and cost overruns in public projects. In many instances, projects initially estimated at Tk 1,000 crore eventually escalate to Tk 1,500–2,000 crore due to delays, he added.
Mr Anam suggested enhanced digitalisation across ministries and the formation of sector-based advisory groups to improve coordination and efficiency, observing that collective efforts would be essential in navigating the prevailing global economic uncertainties.