Economic reform impossible without political reform: CPD

Staff Reporter Published: 29 January 2025, 03:56 PM
Economic reform impossible without political reform: CPD
Center for Policy Dialogue holds a media briefing at its office on Wednesday.--Jago News Photo

The Center for Policy Dialogue (CPD), a leading private research organisation, has emphasised that economic reform in Bangladesh cannot be achieved without parallel political reforms. 

The organisation noted that despite changes in leadership, there are no visible signs of improvement in the macroeconomic situation as the 2024-25 fiscal year progresses.  

CPD Executive Director Fahmida Khatun made these remarks while presenting a keynote paper at a media briefing titled Bangladesh Economy 2024-25: The Challenge of Meeting Expectations in Times of Crisis. The event was held at the CPD office in Dhanmondi, Dhaka, on Wednesday (January 29).  

The briefing was organised under CPD’s flagship program, the Independent Review of Bangladesh’s Development (IRBD).  

The CPD highlighted that reforms cannot be implemented without strong political commitment, especially when confronting powerful vested interests. To ensure sustainable reforms, the organization stressed the need for political will, enhanced institutional capacity, internal discipline, and good governance.  

Addressing the multifaceted economic challenges, the CPD proposed a three-pronged approach. It pointed out that the lack of employment opportunities, a key driver of the July movement, stemmed from the discriminatory policies of the previous government.  

Fahmida Khatun shared concerning data, revealing that total revenue collection growth until October 2025 stood at just 3.7 per cent, compared to 17.7 per cent during the same period in the previous fiscal year. She also noted a slowdown in foreign investment and a lack of confidence among businesses to borrow and invest due to ongoing economic uncertainty. 

Additionally, the government’s increasing reliance on internal sources of financing is expected to have a negative impact on the overall economy.  

The CPD executive director urged the interim government to adopt a balanced and effective strategy in the coming months. 

This strategy should address immediate economic crises while laying the groundwork for medium- to long-term reforms that the next elected government can implement.