Written by The Banking Post
The government has signalled a major shift in economic strategy, aiming to move away from a rent-seeking model towards a more transparent, productivity-driven economy.
Speaking at a policy seminar in Dhaka, Finance and Planning Adviser Rashed Al Mahmud Titumir outlined a reform agenda centred on curbing corruption, strengthening domestic industries and driving investment-led growth.
He said past development practices were often shaped by vested interests. “The mountain of debt accumulated in the past was not realistic; rather, it reflected a culture of patronage. Projects were undertaken with the intent of plunder,” he said.
The new approach, he added, will prioritise local private sector development as the foundation for attracting foreign direct investment. “Without investment in the local private sector, no foreign company will come forward.”
The reform roadmap includes tightening oversight of large infrastructure projects, boosting agro-based industries and expanding export-oriented sectors. Northern Bangladesh was highlighted as a key growth zone, with surplus production in crops and dairy offering scope for agro-processing and job creation.
Sector-specific measures are also on the table. These include ensuring compliance with global standards in the leather industry, upgrading drug regulation to international benchmarks for pharmaceutical exports, and modernising light engineering clusters.
The adviser also pointed to the possibility of improving efficiency in state-owned enterprises through private management, while stressing the need for realistic fiscal planning. “Setting targets based on fiction undermines institutional credibility,” he said, referring to revenue projections.
On energy pricing, he acknowledged global pressures could spill over domestically. “An increase in prices could impose an additional burden… We are trying to keep this manageable and avoid fuelling inflation.”
He added that Bangladesh Bank is preparing measures to restore discipline in the banking sector, including liquidity support and stronger regulation.
Economists at the event warned that the reform drive comes at a critical time. Mustafizur Rahman said the government faces an “acid test” amid high inflation, weak investment and financial sector stress. He also flagged rising inequality and limited fiscal space, urging reforms in revenue mobilisation.
Business leaders called for policy stability and stronger support for industry, including energy pricing reforms, export diversification and improved access to finance.
The government’s broader goal is to build a more accountable, inclusive and investment-friendly economy—one less dependent on rent-seeking and better positioned for sustainable growth.
