Investment, employment will pose major challenges for new govt: CPD
The research organisation Center for Policy Dialogue (CPD) has said the biggest challenges facing the new post-election government will be boosting investment and creating employment.
Controlling inflation will be the new government’s primary task, the organisation added.
The CPD pointed out that the current stagnation in investment is expected to emerge as the new government’s most pressing challenge.
It was alleged at the event that high bank interest rates and political uncertainty are preventing growth in both domestic and foreign investment.
These observations were made at a press conference titled “Bangladesh’s Economy at an Electoral Crossroads: Multidimensional Risks,” organised by the private research organisation Center for Policy Dialogue (CPD) at its office in Dhanmondi, Dhaka, on Saturday.
Organisation’s Executive Director Fahmida Khatun presented the keynote paper while Distinguished Fellow Mustafizur Rahman and CPD Research Director Khondaker Golam Moazzem were also present.
Fahmida Khatun said that if investment does not increase, inequality and instability will intensify.
She noted that when there are no fair opportunities in society, inequality grows on the one hand and instability emerges on the other.
Citing an example, Fahmida Khatun said that the movement in July 2024 was also driven by this reality. There were no jobs in the market, government jobs had become the only option, and even there the quota crisis persisted. High inflation compounded the situation. Taken together, these factors created intense economic pressure on people’s lives.
The movement in July 2024 was also driven by this reality. There were no jobs in the market, government jobs had become the only option, and even there the quota crisis persisted. High inflation compounded the situation. Taken together, these factors created intense economic pressure on people’s lives.
She said, “If we fail to overcome the investment deficit in the economy under these circumstances, these problems will continue to persist.”
Speaking about future prospects, Fahmida Khatun said, “Bangladesh’s greatest strength is its energetic young population. As a nation, Bangladesh is still young—the average age of the population is only 26 to 27 years. If we can utilise this youth properly, momentum will return to the economy.”
She added, “We are living in an era in which technology is bringing major changes to every aspect of life. Young people have the greatest capacity to adapt to these changes.”
Expectations regarding the election
When asked about electoral challenges, Fahmida Khatun said, “The responsibility for conducting the election and addressing challenges lies with the Election Commission. We want the upcoming election to be neutral and participatory. There are guidelines to prevent the misuse of money, and every candidate must follow them. There should be no excessive use of money in the election.”
She emphasised that the most important issue is ensuring that the election is held in a violence-free environment so that people can go to polling centres and cast their votes freely. “This is the kind of election we want to see,” she remarked.
The burden of domestic and foreign debt is increasing, and that interest payments on debt have now become the largest component of the national budget. This pressure is growing steadily, creating a risk that Bangladesh could fall into the middle-income trap.CPD Distinguished Fellow Mustafizur Rahman
CPD Distinguished Fellow Mustafizur Rahman said that the burden of domestic and foreign debt is increasing, and that interest payments on debt have now become the largest component of the national budget. This pressure is growing steadily, creating a risk that Bangladesh could fall into the middle-income trap.
Researchers from various levels of CPD were also present at the press conference.