Reforms must continue to ensure stability: CPD

The reform initiatives undertaken by the interim government should be continued by the new government to ensure economic stability, said Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD).

“The current moment is a critical juncture for policy recalibration, where sustained macroeconomic discipline is essential to ensure stability and inclusive, resilient growth,” she said.

She made the remarks at a roundtable today titled “Looking into Bangladesh’s Development: Priorities for the Newly Elected Government in the Short to Medium Term”, organised by the CPD and The Daily Star at BRAC Centre Inn, Dhaka.

She said that the Bangladesh economy has faced significant instability in recent years, marked by rising inflation, limited fiscal space, subdued private investment, vulnerabilities in the monetary sector, high debt, pressure in the energy sector and political uncertainty during the transition period.

Following the election, the newly elected government has assumed office with a renewed mandate to restore macroeconomic stability, strengthen institutional governance, rebuild investor confidence and generate employment, she said.

She stressed that restoring macroeconomic stability must begin with coordinated monetary and fiscal discipline. Interest rate policy, exchange rate management and prudent public spending should work together to contain demand pressures and anchor inflation expectations.

She also emphasised the need to address supply-side bottlenecks through better storage, transport and strategic food reserves, ensure a market-reflective and stable exchange rate, strengthen market monitoring, expand targeted social protection, deepen banking reforms and safeguard central bank independence.

The ultimate success of any government initiative depends on execution, said Mahfuz Anam, editor and publisher of The Daily Star, at the event.

“You can plan as much as you want, ultimately it depends on implementation,” he said, expressing hope that academics entering government would influence the system rather than be shaped by it.

He said sound policies often fail due to bureaucratic delays, describing the administrative culture as a colonial legacy marked by excessive red tape.

Delays inflate project costs, with Tk 1,000 crore projects rising to Tk 1,500–2,000 crore.

Anam urged digitalisation across ministries and sector-based advisory groups, calling cooperation amid global instability a collective responsibility.