Written by The Banking Post
The interim government is drawing up a two-year crash strategy to pull Bangladesh out of mounting economic distress, targeting inflation, rising unemployment, falling household incomes, and deepening poverty.
The General Economics Division (GED) of the Planning Commission is leading the initiative, based on recommendations from a 12-member taskforce chaired by economist Dr KAS Murshid. The plan will bridge the gap left by the expiry of the Eighth Five-Year Plan in June, marking the end of a 15-year era of medium-term planning.
The strategy prioritises six areas: macroeconomic management and poverty reduction, agriculture, social sectors including health, education and social protection, industry and trade, infrastructure, and governance reforms.
A Tk110.36 million project proposal has been placed before the Planning Commission to design and implement the plan, align it with the UN’s Sustainable Development Goals (SDGs), prepare the 2026 SDG Progress Report, and launch three pilot “SDG villages.”
Officials say approval is likely soon, as the cost falls below the Tk500-million threshold set by Planning Adviser Dr Wahiduddin Mahmud. A Project Evaluation Committee meeting is scheduled Sunday, where officials will probe high consultancy and survey expenses, which account for nearly half the budget.
The proposal paints a sobering picture. The Gini index shows income inequality has widened over the past decade, while the World Bank warns up to 3 million people could slip into extreme poverty this fiscal year amid job losses and falling wages. Extreme poverty may have already climbed to 9.3 percent in FY25, up from 7.7 percent a year earlier.
Taskforce chief Dr Murshid welcomed adoption of key recommendations but noted that while rural SDG villages are being piloted, urban challenges in health, education and social protection also demand urgent attention.
“Immediate measures are needed to revive the economy. Delays in approval and implementation could hold back the new strategy,” he warned.
Six advisory committees and a technical body led by the planning adviser will oversee execution, while selected government officials will receive overseas training to strengthen capacity.
“The review is underway to chart the economy’s current trajectory and serve as a bridge between the Eighth Five-Year Plan and future planning,” a senior GED official said.
