The new government, led by the Bangladesh Nationalist Party (BNP), took office following the national elections on February 12, 2026.
As it approaches its first 100 days on May 27, the administration faces a reality far removed from the typical honeymoon period of policy formulation and administrative restructuring.
From day one, the new leadership has had to confront a fragile economy marked by a weak banking sector, high inflation, a persistent dollar shortage, stagnant investments, and years of deep-rooted financial mismanagement.
Since taking charge, top government officials have repeatedly stated that they inherited a severely damaged economy.
Finance Minister Amir Khosru Mahmud Chowdhury noted that previous administrations left the country's finances in ruins, warning that it will take at least two years to recover from the damage.
Information and Broadcasting Minister Zahir Uddin Swapon added that due to past corruption and financial irregularities, the current administration has had to begin its tenure under the heavy burden of a Tk3,000,000 crore national debt.
This sentiment was mirrored by Prime Minister Tarique Rahman during his address at the Deputy Commissioners' Conference.
He emphasized that the government had to start its work with a Tk3,000,000 crore debt burden on the backs of the state and its people, noting that the administration took office amid one of the weakest economic climates, a deeply divided administration, and a challenging law and order situation in the nation's history.
An analysis of the macroeconomic landscape during these initial 100 days shows that the government's efforts have been focused almost entirely on crisis management.
High headline inflation, pressure on foreign exchange reserves, rising import bills, volatile exchange rates, non-performing loans (NPLs), industrial energy shortages, and flat private investments created a complex economic knot.
Macroeconomists observe that while the administration has successfully prevented a total economic collapse, it has yet to restore full stability. Many vital economic indicators remain in a highly vulnerable position.
Inflation management
Over the past few years, a steady rise in food prices has pushed the cost of living to historic highs for ordinary citizens.
Prices for everyday essentials—including rice, pulses, cooking oil, eggs, fish, meat, and vegetables—have continued to climb.
According to data from the Bangladesh Bureau of Statistics (BBS), overall inflation remained above 9% in April 2026, with heavy price pressures across both food and non-food categories.
This persistent inflation has triggered a quiet crisis among fixed-income and middle-class families.
While low-income brackets receive some relief through state-backed social safety nets, the middle class has seen its purchasing power drop rapidly, forcing many families to deplete their savings to cover basic housing, healthcare, education, and food costs.
In response, the government has increased market monitoring, slashed import duties on select essentials, and simplified import procedures.
Meanwhile, Bangladesh Bank is maintaining a tight contractionary monetary policy. However, these measures have yet to bring tangible relief to retail markets.
The state of the commercial banking system has emerged as a major challenge during this introductory period.
Years of lax oversight, non-commercial loan approvals, structural irregularities, and capital flight have weakened public trust in financial institutions.
Financial sector structural stress (May 2026)
- Approximately Tk500,000 crore systematically extracted through fraudulent loans, with most funds laundered abroad.
- Central bank estimates indicate that roughly one-third of the total capital within the banking system is missing or unrecoverable.
- Initiating targeted bank mergers, stricter central bank oversight, and financial restructuring boards.
Bangladesh Bank Governor Md Mostakur Rahman highlighted the severity of the crisis, stating that nearly Tk500,000 crore had been stolen from the banking system under the guise of loans, with the bulk of it laundered abroad.
He noted that nearly one-third of the total money in the banking system is simply missing, a disclosure that sparked panic among retail depositors in several weak banks.
While the central bank has stepped in with bank mergers and tighter auditing, experts emphasize that long-term stability will require keeping commercial lending free from external political influence.
Private capital expenditure has slowed significantly due to high borrowing costs, erratic industrial gas supplies, dollar shortages, and weak domestic consumer demand.
Local entrepreneurs are taking a cautious approach before setting up new production plants.
This investment slowdown has lowered the pace of job creation, contributing to a rise in unemployment among educated youths.
The Metropolitan Chamber of Commerce and Industry (MCCI) noted in its recent economic review that Bangladesh is undergoing a "fragile and uneven recovery," where tight monetary policies and weak domestic demand continue to hold back manufacturing and industrial expansion.
The country's export earnings, which rely heavily on the readymade garment (RMG) sector, are facing external pressures.
Global economic uncertainty, shifts in Western tariff preferences, and cooling demand in key European markets have caused international buyers to reduce order volumes and demand steeper price discounts.
Tk60,000 crore stimulus
To inject momentum back into the economy, Bangladesh Bank recently announced a Tk60,000 crore special credit package.
The subsidized funds are earmarked for reviving closed factories, supporting agriculture, assisting cottage, micro, small, and medium enterprises (CMSMEs), driving export diversification, and funding youth startups.
Governor Md Mostakur Rahman explained that with private sector credit growth slipping below 5%, businesses are facing a critical shortage of working capital, making this injection necessary to boost the economy.
While some economists worry that introducing a large credit package during a period of high inflation could add to market pressures, the central bank clarified that these funds will be drawn from existing excess liquidity within the banking system rather than printing new currency.
