Bangladesh stands at a critical juncture as it seeks to address deep-rooted economic challenges—main among them unreliable data, growing inflation and policy mismanagement. These issues were the focus of a dialogue arranged by the Centre for Governance Studies (CGS) on Saturday, where economists, business leaders and policymakers echoed the need for sweeping reforms to realign the country’s economic trajectory. The country’s government must prioritise accurate data reforms to bring back public trust and foster sustainable growth as a foundation for sound policy and economic recovery.
A cornerstone of effective governance is trustworthy data, yet the country’s economic data system is flawed, manipulated and thus not reliable. Accurate data is not just a technical issue; it is essential for implementing effective policies that reflect the real needs of the people and for building a transparent management.
Inflation is another immediate concern, driven by a mix of high production cost, gas shortage and rising interest rate. The business leaders warned of the severe pressure on businesses, where rising cost and interest rate is prompting many to consider an ‘exit policy’ from the market. Current policies relying deeply on interest rate hikes to control inflation are not sufficient to address core issues in the supply chain and increasing production costs. They also expressed concern over this restrictive monetary policy, suggesting that it risks boiling business growth and investment. A more balanced approach is needed— one that acknowledges the constraints of businesses, sustains industrial operation and fosters economic resilience.
We cannot deny that the youth, representing a significant portion of the country’s population, face high rates of unemployment and limited opportunities. Policymakers pointed out that this demographic feels increasingly alienated from political processes, with many not able to vote and lacking a path to important work. They proposed youth-focused initiatives such as a credit programme and a job registry system, which could empower youths as necessary contributors to economic progress. This demographic holds vast potential for innovation and productivity—available resources that could transform the economy it strategically supported.
Establishing a reliable data
infrastructure should be the
first step, setting the stage for
knowledgeable, evidencebased
policies
The absence of an inclusive social welfare system further expands economic disparity, leaving the most vulnerable people at risk amid inflationary pressure. The economists leverage the National ID system to create a robust social safety net, providing fair wages and agricultural price support. Such measures would alleviate poverty, improve household stability and drive equitable growth. A strengthened social welfare system could also serve as a stabilising force against the economic volatility that has plagued Bangladesh.
On the global front, Bangladesh’s economic position faces mounting pressure, in particular, in the ready-made garment sector, where neighbouring competitors such as India are capturing market share. Economists emphasised the need for the country to reinforce its export strategy and attract international investment. Binding the country’s competitive advantages while ensuring possible stability and economic reliability is essential to staying competitive in the global arena.
The authorities concerned must act decisively to address these challenges. Establishing a reliable data infrastructure should be the first step, setting the stage for knowledgeable, evidence-based policies. Simultaneously, adopting an economic approach that addresses inflation and business sustainability, while enabling investment, will bolster growth. Tackling corruption with stern regulatory reforms and investing in the young generation will be contributory in driving a vibrant and resilient economy. Finally, a strong social welfare framework will ensure that growth is equitable and sustainable. As Bangladesh moves forward, the path to stability and growth will require coordinated, far-reaching efforts to address these fundamental issues. The country has the opportunity to overcome its present challenges and lay the groundwork for a prosperous and equitable future through comprehensive reforms.
