Thousands of development professionals across Bangladesh are grappling with sudden unemployment and growing financial uncertainty following the suspension of Usaid funding and subsequent project shutdowns that began earlier this year.
Amid mass layoffs from the Usaid funding halt and project shutdown instructions under the Trump administration, around a hundred affected development professionals gathered for a consultation meeting on Thursday in a public venue in Dhaka.
It brought together around a hundred unemployed development professionals who were either former employees of Usaid-funded projects or were indirectly affected by the funding cut.
After the US government announced the “Stop Work Order” in January 2025, thousands of skilled development professionals across Bangladesh immediately lost their jobs without any transition support or alternative opportunities.
This crisis not only threatens individual livelihoods but also risks the collapse of years of development progress achieved through collaborative efforts.
Participants at this consultation shared about their current financial struggles-
“The trouble started with a call about my personal loan. After I was let go from my job in February, I received some money and thought I’d be okay,” said one attendee.
“But it’s running out. My daughter’s still in college, and I just want to finish my son’s education. That would give me some peace. I don’t know how I’ll survive a crisis this big,” added the attendee.
Participants stressed that many affected professionals are active taxpayers contributing to the economy through income, VAT, and other taxes. Yet, the crisis remains unrecognized, with no government effort to assess the layoffs' impact on the workforce or development indicators.
They demanded that the Bangladesh Government formally recognize this crisis. Participants also raised concerns over tax obligations for the current fiscal year.
One of the discussants shared his worries- “I tried to sell my land, but found out that prices have dropped because of the global economic situation. It feels like a loss no matter which way I turn.”
“A massive layoff happened over the past 4–5 months, but we still don’t know how many were affected directly or indirectly,” said Zinat Ara Afroze, a development professional laid off due to Usaid funding cuts. “We urge the government to conduct an immediate survey. Without accurate numbers, no effective support can be designed.”
Ms Afroze also pointed out that this year’s income taxes were deducted at source based on a full year’s income—an assumption no longer valid.
She urged the government to amend the Income Tax Law-2023 to refund taxes to unemployed development professionals affected by the Usaid funding cuts.
The consultation concluded with the following calls to action by the participants:
- Immediate government recognition of the massive unemployment in the development sector caused by Usaid funding cuts.
- A government-led survey to assess the real total number of these mass layoffs caused directly or indirectly by the Usaid funding cuts.
- A rapid, government-led economic impact assessment is needed to understand the fiscal and social implications.
- Clear tax policy response, including potential exemptions or refunds for laid-off professionals who have already paid income taxes through deduction at source.
- Acknowledgment of the development sector workforce as a vital part of the national economy.
The speakers said that, as Bangladesh navigates its development journey, the country cannot afford to overlook the value of this skilled and dedicated workforce. A strategic government response now could help restore stability, retain capacity, and protect the future of Bangladesh’s development sector.
