-Md Kamruzzaman-

As new year 2025 begins, Bangladesh stands at a critical crossroads, facing economic challenges that require immediate and thoughtful action. This year presents an opportunity for the interim government to address pressing economic issues, strengthen political stability and prioritise inclusive growth. The success of these efforts will not only shape the country’s short-term prospects but also its trajectory for years to come.

The challenges facing Bangladesh’s economy are significant. Inflation remains a persistent issue, affecting the purchasing power of millions. The rising cost of essential goods has placed an enormous burden on lower- and middle-income families, while businesses grapple with higher production costs. The government must adopt a balanced approach to managing inflation. This involves providing targeted subsidies for essential goods, tightening monetary policies to control liquidity, and fostering price stability in critical markets. These measures are essential to protect consumers and maintain confidence in the domestic economy.

The issue of infrastructure development is another pressing concern. Bangladesh has made strides in recent years; however, much work remains to be done. Inadequate infrastructure continues to hinder economic growth and limit investment opportunities. Investments in energy, transportation, and communication networks are vital for reducing logistical costs and attracting both local and foreign investment.

Foreign Direct Investment (FDI) is a crucial driver of economic growth, but political uncertainty has often deterred investors from committing to long-term projects in Bangladesh. As the nation approaches elections, the interim government must ensure a transparent and peaceful electoral process. Political stability is the cornerstone of investor confidence, and any disruption could have far-reaching consequences for economic growth. Additionally, the government should implement investor-friendly policies, such as streamlining bureaucratic processes, enhancing regulatory transparency, and offering tax incentives to attract FDI. A stable political environment, coupled with these measures, will help position Bangladesh as a competitive investment destination in South Asia.

Small and Medium Enterprises (SMEs) play an integral role in Bangladesh’s economy, contributing significantly to employment and GDP. However, these enterprises face numerous obstacles, including limited access to affordable credit, bureaucratic red tape, and a lack of technological adoption. Supporting SMEs should be a priority for the interim government. Financial institutions must be encouraged to provide low-interest loans to these businesses, while initiatives to reduce administrative barriers and promote digital transformation should be expanded. Empowering SMEs will not only drive economic growth but also ensure that its benefits are distributed across all segments of society.

Inclusivity must remain at the heart of Bangladesh’s economic policies. Rural areas, which house a majority of the population, often lag behind in terms of development and access to opportunities. Targeted programmes to support agriculture, fisheries and cottage industries can help bridge the gap between urban and rural economies. These initiatives should be accompanied by investments in education and skill development to prepare the rural workforce for a rapidly changing economic landscape. By extending opportunities to marginalised communities, the government can build a more equitable and sustainable economy.

Another area of concern is the country’s external debt and fiscal discipline. Bangladesh has managed its debt levels prudently so far, but the global economic slowdown and rising import costs have strained public finances. The interim government must adopt measures to improve revenue collection, curb unnecessary expenditures, and ensure efficient use of public funds. Negotiating favourable terms with multilateral lenders and exploring innovative financing options for development projects can also help mitigate fiscal pressures.

As the global economy continues to recover from the shocks of recent years, Bangladesh must navigate external challenges carefully. The slowdown in major export markets, particularly for ready-made garments, poses a risk to the country’s foreign exchange earnings. Diversifying export products and markets is essential to reduce dependence on any single sector or region. The government should also invest in upskilling the workforce to meet the demands of emerging industries such as ICT and pharmaceuticals, which hold significant potential for growth.

The interim government has a unique responsibility to lay the groundwork for a stable and prosperous future. Its actions in 2025 will set the tone for the years to come. By addressing inflation, accelerating infrastructure development, fostering political stability, and supporting SMEs and rural industries, the government can build a resilient economy that benefits all citizens. These efforts must be guided by a commitment to inclusivity and sustainability, ensuring that economic progress leaves no one behind.

Bangladesh has proven time and again that it can rise to the occasion when facing adversity. As we embark on this new year, the nation has the opportunity to transform its challenges into opportunities. By prioritising unity, innovation, and determination, 2025 can become a turning point for Bangladesh, marking the beginning of a new era of growth and shared prosperity.

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The writer is a Special Correspondent at News24 Television