Restarting investment and creating real jobs have emerged as the biggest challenges for Bangladesh's new government, according to the Centre for Policy Dialogue (CPD). The leading think-tank warned on Saturday that near-zero growth in both domestic and foreign investment, combined with high interest rates and political uncertainty, is severely constraining economic activity and threatening social stability.
The warning came at a press conference held at CPD's office in Dhanmondi, Dhaka, titled "Multidimensional Risks Facing Bangladesh's Economy at This Post-Election Turning Point." The discussion was led by CPD Executive Director Fahmida Khatun, alongside distinguished economists Mustafizur Rahman and Khondaker Golam Moazzem.
Fahmida Khatun delivered a stark assessment of the current situation, saying that without a revival of meaningful investment, inequality will deepen and social unrest is likely to grow. "When fair opportunities disappear, frustration and anger increase," she said, warning that economic stagnation could have serious social consequences.
She pointed to the large-scale protests in July last year as a reminder of the risks. Those demonstrations were driven largely by dissatisfaction over limited private-sector jobs and the government's quota system, which many young people felt was blocking their access to employment. The continued rise in the prices of essential goods has only added to the pressure on households, she noted, making daily life increasingly difficult for ordinary families.
Fahmida cautioned that if the investment gap is not addressed soon, existing tensions may intensify. At the same time, she highlighted a major opportunity for the country: its youth. With an average age of just 26 to 27 years, Bangladesh has one of the youngest populations in the world. "If this demographic dividend is properly utilised, the economy could grow much faster," she said.
She also stressed that the country is in the midst of a technological transformation, and young people are best placed to adapt to new skills and innovations. Creating jobs that align with this technological shift, she argued, should be a top policy priority.
Turning to governance and politics, Fahmida emphasised the importance of a credible electoral process. She said the role of the Election Commission is crucial in ensuring neutrality, inclusivity and peace. According to her, elections must be conducted according to rules, free from black money, and voters must be able to cast their ballots without fear or violence.
Another major concern raised at the briefing was Bangladesh's rising debt burden.
Mustafizur Rahman warned that both domestic and foreign debts are increasing rapidly, with interest payments now consuming the largest share of the national budget. "If this trend continues, Bangladesh risks falling into a middle-income trap, where growth slows and development stalls," he said.
The economists stressed that managing debt prudently is essential to maintaining fiscal stability and ensuring that public resources can be directed toward development priorities rather than servicing old loans.
Overall, CPD's message was clear and urgent. Inflation must be brought under control, investment unlocked, and genuine employment opportunities created-particularly for the youth. At the same time, debt must be managed carefully, and a peaceful, transparent election process ensured. Failure to address these interconnected challenges, the think-tank warned, could make the coming years economically and socially turbulent.
