CPD calls for national election soon 

*    Stable pol environment crucial for investment
*    Economy has not seen momentum in past 6 months
*    Interim govt fails to generate employment
*    Revenue collection indicates significant decline
*    Make power purchase agreements public
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The Centre for Policy Dialogue (CPD) on Wednesday has called upon the interim government to hold the national election soon, as it said stable political environment is crucial for economic and investment growth.

CPD Executive Director Dr Fahmida Khatun made these call saying that "A government without a public mandate cannot remain in power indefinitely and emphasised the urgent need for stability to foster business and investment confidence."

"For business and investment, stability is urgently needed, especially organisational stability, which will work with skill and accountability," CPD Executive Director Dr Fahmida Khatun said these at a press briefing when it released the "State of the Bangladesh Economy in FY2024-25" report at CPD's office.

CPD said that the economy has not seen significant momentum in the past six months, and the interim government has failed to generate employment.

"The sooner a conducive environment is created, the faster the election can be held. There is no reason to delay it," she added.

Fahmida Khatun said: "The interim government has pledged to hold elections between December this year and June next year. We want elections to take place as per the announced roadmap. The democratic process must resume as soon as possible."

She also said: "As of October in this fiscal year, revenue collection growth was only 3.7 per cent, compared to 17.7 per cent during the same period last year. This indicates a significant decline in revenue collection."

She added: "Besides revenue collection, there has been no visible improvement in the implementation of the Annual Development Programme (ADP), inflation control, employment, or private investment. The interim government has taken several initiatives, but no success has been observed yet."

Fahmida Khatun further said: "This government had promised to make power purchase agreements public, but they have yet to be disclosed."

CPD revealed that it had recently applied under the Right to Information (RTI) Act for access to documents related to 28 power plants from the previous government. However, the interim government denied access, citing national security concerns.

The press conference was attended by CPD's distinguished fellow Professor Mustafizur Rahman, Research Director Khondaker Golam Moazzem, Research Fellows Muntasir Kamal and Syed Yusuf Saadat, among others.

Replying to a question over the economical growth issue, Dr Fahmida underscored the importance of setting a clear timeline for elections, suggesting a window between December 2025 and June 2026.

"Uncertainty is inherent in any temporary system," she noted. "An interim or caretaker government operates for a short time, while a political government holds a longer-term mandate from the people."

Dr Fahmida also pointed out that ongoing policies and reforms would ultimately depend on an elected government for implementation.

"In such an uncertain situation, major investments will not materialize. Big decisions, structural changes, and organisational transformations cannot move forward without stability," she said. "That is why holding elections is essential, and we continue to advocate for it."

Taking part in the discussion, CPD Fellow, Dr Mustafizur Rahman said that the political and economic reforms are not mutually exclusive and can proceed simultaneously.

He emphasised the need for democratic processes within political parties to ensure sustainable governance.

"I personally believe the country must progress through a democratic process swiftly," Dr Rahman said, urging for continued political and economic reforms.

"These reforms are critical for our future," he concluded.

During the press briefing, CPD highlighted that the July protests stemmed from a lack of employment opportunities. Discriminatory policies of the previous government had worsened the unemployment crisis and increased social inequality. The interim government has yet to take effective measures to improve employment.

CPD said that no government can sustain itself without a public mandate and called for elections within the timeframe announced by the interim government.

Referring to taxation, Mustafizur Rahman said: "The government is increasing VAT on various products at a time when ordinary people are suffering from inflation. Inflation is double the wage growth."

"The interim government had an opportunity to increase direct taxation, but it chose not to. Instead, it is focusing more on indirect taxes," he added.

He further added: "The government does not fully receive the taxes paid by the people. There were opportunities to address these gaps, but they were not utilized."

He also said: "The International Monetary Fund (IMF) did not specifically ask to increase VAT. It only suggested increasing revenue by any means. However, instead of raising direct taxes, the government is opting for indirect taxation."