Staff Correspondent:

Over the past ten months, the government’s economic policy has taken a sharply loan-dependent turn. Rather than stimulating internal economic activity, it has increasingly sought credit from all possible sources—often at the cost of national interest.

The ancient Charvaka philosophy of “living on borrowed money” is no longer viable in modern economics. The consequences of debt are widely understood—it can devastate both individuals and nations. With a current debt burden of $103 billion, each Bangladeshi effectively owes nearly $700 (close to BDT 100,000). A newborn inherits this debt at birth. Alarmingly, 45% of Bangladesh’s GDP now depends on borrowing.

Economists warn that debt-to-GDP ratios above 40% can severely strain an economy. Yet the interim government, set to present its 2025–26 budget on 2 June with a modest 5% growth target, appears focused solely on loans. It lacks a concrete strategy to revitalise the private sector—the engine of national economic growth.

Despite initial promises to rein in debt, the government has increasingly leaned on external funding, tying itself to foreign conditions. Recent figures suggest that Bangladesh’s exports have failed to show meaningful recovery. Added pressure from US tariff hikes and strained India relations—such as the cessation of garment exports via Indian territory and import restrictions in the Seven Sisters—pose further risks.

Worst of all, the private sector has been under siege. Since 5 August, at least 773 industrial establishments have been attacked, 15,000 false cases—including 35,773 business people named—have been filed, and over 6,500 bank accounts frozen, 4,000 of them belonging to entrepreneurs. As a result, more than 3,500 businesses have shut down, leaving thousands unemployed.

The government’s recent moves—like the controversial division of the National Board of Revenue (NBR) and floating of the taka—were driven by IMF conditions. But these policies, designed to secure loans, are destabilising the economy further.

Rather than vilifying the private sector, the government must empower it. All harassment, including frivolous cases and media trials, must end. The private sector must be seen as a partner, not an enemy. Only by supporting business can Bangladesh rebuild its economy—and realise the aspirations of the July revolution.