Going forward, Bangladesh needs strong commitment to economic reforms, especially in the financial and fiscal sectors, which remained under stress, said the Policy Research Institute Bangladesh (PRI) at a discussion on Monday.
“On the stabilization issue, we achieved notable progress, but growth momentum has remained precarious due to uncertainty and instability in the domestic and international arena,” experts further said.
The PRI, in collaboration with the Department of Foreign Affairs and Trade (DFAT) of the Australian Government, organized a roundtable discussion titled “Macroeconomic Insights: An Economic Reform Agenda for the Elected Government” at the Hotel Amari, Dhaka.
Therefore, the political government that is expected to take over from the mid-February, must commit boldly to key reforms within the fiscal and financial sector, they surmised.
Finance Adviser Salehuddin Ahmed, speaking as chief guest, said: “The interim government set some priorities from the very beginning and then tried to initiate action on them. Ensuring policy continuity from here on will be crucial, and the political parties have reassured us on this point. They understand that without delivering results, they will not get away, as before, with vague narratives. If meaningful changes are not on the way, people will once again take to the streets and strip them of power.”
“Please do not blame the government alone; the lack of compliance is also a major hindrance to reform. The private sector needs adequate incentives from the government. That is what the elected government should focus on most,” he added.
PRI chairman Zaidi Sattar said that the Bangladesh- Japan Economic Partnership Agreement was a historical moment and monumental achievement.
“We have to give credit to the interim government for executing this over a short time with commitment and dedicated work that the team did in the past year and a half. This is a game changer.”
NBR is blocking economic progress. Though the long-due issue of keeping revenue policy and implementation departments together has been addressed, the actual work of bifurcation has not yet been structured. Bangladesh’s tax system is highly dependent on indirect taxes, with a ratio of 70:30 compared to direct taxes. Indirect taxes are regressive in nature, which makes the overall tax system regressive, he further said.
Fahmida Khatun, Executive Director, Centre for Policy Dialogue (CPD), emphasized that meaningful reforms in employment and social protection, particularly education and health must be at the core of the reform agenda, reflecting key demands from the July uprising.
She highlighted the need to overhaul labor market policies, particularly through quality, job-oriented education and skills development, to ensure sustainable employment generation.
KAS Murshid, former director general, BIDS, remarked: “We often overlook the macro–micro link in Bangladesh’s development, and reforms have too often been driven by IMF conditionality rather than domestic ownership. Real reform requires focusing a few core areas and delivering visible success, rather than spreading efforts too thin. Two critical gaps remain: the absence of an independent policy and regulatory reform commission, and a weak bridge between economic analysis and policy action. Effective reform must identify winners and losers, address binding constraints, and be grounded in political economy realities.”
Clinton Pobke, deputy high commissioner, High Commission of Australia, said: “Recent reform steps are encouraging, but the real challenge for an elected government will be to lock in these gains and sustain momentum. Australia stands ready to support Bangladesh in this next chapter of its democratic and economic journey.”