Bangladesh’s economy last week witnessed a mix of post-election gains in the capital market alongside data underscoring underutilised development spending. While investors regained confidence following the national polls, systemic challenges in fiscal management and trade readiness remain pressing.
The following is a recap of major stories covered by Star Business:
Business leaders and economists urged the government to restore investor trust to revitalise the private sector. They noted that persistent law-and-order challenges and weak institutional coordination have eroded confidence, making immediate policy interventions essential for a sustainable turnaround.
The Dhaka Stock Exchange surged following the national election, with indices hitting an 18-month high. Investors displayed renewed optimism as political clarity returned, sparking a buying spree across sectors and sharply increasing daily turnover.
A newly signed trade agreement with the US offers a 19 percent reciprocal tariff but imposes restrictive clauses. Critics argue that the requirement to use US-origin cotton for duty-free access may benefit Washington more than Dhaka’s garment industry.
Implementation of the Annual Development Programme fell to a 16-year low due to political unrest and bureaucratic delays. Only a fraction of the allocated budget was utilised, threatening GDP growth targets and slowing critical infrastructure projects nationwide.
While the interim administration stabilised foreign exchange reserves and narrowed the current account deficit, industrial growth remains stagnant. High inflation and energy shortages continue to hamper manufacturing, preventing full recovery.
Major telecom operators are locked in intensifying legal disputes with the regulator over audit claims and spectrum fees. These courtroom battles risk disrupting future investment and service quality in one of the country’s most dynamic sectors.
A recent assessment revealed significant shortcomings in Bangladesh’s preparation for graduating from Least Developed Country (LDC) status. Experts warned that without addressing supply chain weaknesses and securing GSP+ benefits, the export sector faces a steep competitive cliff.
