Opinion | Economic Debacle In Bangladesh During Yunus's Regime

The interim government has damaged what was once a thriving economy

Bangladesh’s economy grew significantly during the Awami League’s 15-year regime and has achieved significant progress in promoting economic growth. Through a mix of government-supported infrastructure projects, SME financing, and focused industrial policies, the country proved that self-reliance was achievable.

Over that 15-year period, Bangladesh maintained an average GDP growth rate of 6.3%. Bangladesh was also set to graduate from LDC list in 2026, meeting all three conditions. Extreme poverty reduced to single digit; social sector indicators were the best among the South Asian countries. Bangladesh has ranked highest among Muslim-majority countries in terms of women’s empowerment.

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However, that progress has now been systematically undermined. In August 2024, under a unique political circumstance, an interim government was formed in Bangladesh led by Dr. Muhammad Yunus. Upon its formation, the government promised to reduce political tensions through a neutral administrative process and pave the way for a credible election. However, the interim government failed to reflect even a minimal sense of this intent in political, social, or economic domains. Instead, the economic situation quickly worsened to an unprecedented level.

This discussion will present evidence demonstrating how the interim government has damaged what was once a thriving economy, led to the collapse of hundreds of industries, caused millions to lose their jobs, and brought hardship to ordinary people.

The average GDP growth rate from FY2009-10 to FY2023-24 was 6.24%. Per capita income increased almost fourfold to $2,728 in FY24 from $759 in FY09. However, GDP growth has reduced to only 3.49% in FY25, which is lowest since FY1991-92. The real wages of general people also decreased compared to last year due to higher inflation.

From FY2009-10 to FY2023-24, the poverty rate consistently declined at an average annual rate of 0.75%. But we have seen a reverse phenomenon in the following year. The Asian Development Bank (ADB) has estimated that poverty increased to 27.93% in 2025 from 18.7% in 2022, with 3 million more people at risk of falling into poverty.

Due to labour unrest, political turmoil and closure of industrial units........

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