Kaler Kantho

Following the government’s downfall in a popular uprising, Bangladesh’s economy—plunged into deep crisis amid political instability—has shown signs of recovery in several indicators. However, its main engine, the private sector, remains stagnant. High interest rates, foreign currency shortages, and lack of investor confidence have caused private sector credit growth to fall to a two-decade low. Revenue mobilisation remains sluggish despite ambitious targets, and GDP growth has declined. Nonetheless, there are positive signs in exports, remittance inflows, and external transactions.

Finance Adviser Salehuddin Ahmed has said that enhancing efficiency in asset management across State-Owned Enterprises (SOEs) and Autonomous Bodies (ABs), which together hold 80% of the government’s assets, could play a crucial role in reducing the government’s contingent liabilities, currently standing at Tk6.5 lakh crore.

Due to political change and ongoing political and economic instability, the country’s housing sector has been in a deep slump for over a year. Sales of new projects and ready flats have dropped to half of normal levels, with the downturn most visible in the capital, Dhaka.