Bangladesh’s economy is facing growing challenges due to persistent inflation, weak revenue collection, vulnerabilities in the banking sector and rising energy costs. This warning has been issued by the Centre for Policy Dialogue, a leading non-governmental think tank in Bangladesh.

 

Presenting its latest economic review in Dhaka, the organisation said that macroeconomic stability alone would not be enough to ensure recovery and called for stronger governance, institutional reforms and greater accountability.

CPD Executive Director Fahmida Khatun said inflation remains a major concern, with higher fuel and electricity prices further reducing the purchasing power of low- and fixed-income households. Inflation stood at 9.04 per cent in April, while wage growth continued to lag behind rising prices.

 

The think tank also pointed to significant revenue shortfalls and delays in development projects. It expressed concern over record-low private sector credit growth, rising non-performing loans and weakening capital adequacy in the banking sector.

 

Remittance inflows and foreign exchange reserves have provided some support; CPD noted that exports remain weak and Bangladesh is losing market share in key destinations, including the United States and the European Union. The organisation also urged the government to review its recent tariff agreement with the United States following a proposal by Washington to impose additional duties on imports from countries accused of failing to address forced labour concerns.