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Challenges facing the interim government 

Published : Thursday, 7 November, 2024 at 12:00 AM  Count : 532
Babu Kamruzzaman
As Bangladesh navigates a complex economic landscape, the role of the interim government becomes increasingly crucial. With inflation rising, foreign reserves shrinking, and a growing need for banking reforms, public confidence in economic policies is wavering. As a journalist covering these issues for over a decade, I've observed firsthand the intricate challenges that lie ahead. Beyond implementing reforms, restoring people's trust is essential for long-term stability.

In recent years, Bangladesh has made significant progress in sectors such as the ready-made garments industry, which remains a primary driver of export growth. Additionally, the burgeoning digital economy and ambitious infrastructure projects like the Padma Bridge and metro rail have highlighted the country's developmental strides.

However, these achievements are juxtaposed with mounting economic pressures. Global inflation, driven by supply chain disruptions and geopolitical tensions, has affected Bangladesh, where inflation reached concerning levels, eroding purchasing power. Recently, GDP growth for the fourth quarter of FY 2023-24 was reported at only 3.91%, underscoring a marked slowdown compared to prior quarters. This comes against an annual growth target of 7.5% that, amid rising inflation and a tightening of foreign reserves, has become challenging to achieve.

Bangladesh's foreign reserves have dwindled significantly, due in part to increased import bills and underwhelming remittance inflows. This strain has left the central bank struggling to manage the exchange rate and finance essential imports, impacting the availability and prices of goods on the market. Understandably, these economic conditions have fueled public concern over the government's ability to stabilize the situation.

In response, the interim government has introduced several reforms aimed at economic stabilization, including revisions to the national budget and adjustments in revenue policies. While these moves are necessary, the real challenge lies in implementation. Banking reform is an area where progress is visible. Long-standing issues, such as high levels of non-performing loans and inadequate regulation, have left the sector vulnerable, eroding public trust.
The recent banking reforms, while encouraging, must be part of a larger effort to address the system's structural weaknesses. Without consistent and transparent policy enforcement, these reforms may struggle to yield tangible results. In particular, if measures to address banking sector transparency and non-performing loans are sustained, they may serve as a catalyst for public trust.

The private sector, a crucial driver of economic growth, has been cautious, with entrepreneurs citing high inflation, fluctuating exchange rates, and unpredictable policy decisions as deterrents to investment. This hesitancy has had a ripple effect, particularly on job creation, which remains critical given Bangladesh's young and growing workforce.

In these trying times, journalism plays an increasingly critical role. Over the past 12 years, I've covered some of Bangladesh's most significant economic events-from banking reforms to the challenges of inflation and taxation. Journalism serves as a bridge between the public and policymakers, providing a platform for critical dialogue and accountability.

Programs like Economic Thoughts on News24 and talk shows such as Motijheel Theke and Haat Bazar have allowed me to engage with economists and industry leaders to highlight pressing economic issues. Accurate, in-depth analysis fosters an informed public, which is essential to a healthy democracy. Journalism's ultimate goal is to drive progress, and holding policymakers accountable remains integral to this mission.

As the interim government charts a path forward, its biggest challenge is not just implementing reforms but restoring public confidence. Tangible improvements in daily life-such as lower inflation, more job opportunities, and a stable economy-are critical to public trust. This requires a long-term commitment to consistent policy measures, effective governance, and adaptability to shifting global conditions.

For these reforms to be impactful, the interim government must focus on transparency, equitable growth distribution, and ensuring that rural and marginalized communities are included in the economic benefits. Only then can Bangladesh move toward economic stability and resilience.

In conclusion, while the interim government has made commendable strides, the real test lies in whether these policies can deliver lasting relief to the public. Amid rising inflation and persistent economic uncertainty, the road ahead is undoubtedly challenging. With a commitment to reforms, transparency, and public trust, Bangladesh has the potential to navigate these challenges and emerge stronger.

The writer is a TV journalist specializing in business and economic affairs



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