Bangladesh in a Crossroads: Economic Policies since Hasina

A political earthquake hit Bangladesh in 2024. The student demonstrations over the

quotas of employment in the society soon turned into a nationwide campaign

against corruption and dictatorship. In a matter of weeks, Prime Minister Sheikh

Hasina who had been in power 15 years resigned and fled the country. Her

downfall as drama, was, after all, the cutting off of a period of expansion and

chagrin and brought about an economy balancing on the brink of prosperity and

disaster.

The Dynasty of Accumulation and Stress.

Bangladesh under Hasina had recorded some of the fastest growth rates in the

Asian continent that were fueled by the garments and remittances. However,

beneath the gloss, serious faults were visible: inflation was undermining household

spending, foreign reserves were dwindling, and corruption scandals were

undermining trust. The political revolution revealed its true weakness in terms of

foundation.

The Bold Moves of the Yunus Government.

Nobel laureate Muhammad Yunus came to the rescue and formed a transitional

government. His government did not take long before pushing reforms.

Revenue Reform: in May 2025, the administration abolished the National Board

of Revenue and divided it into two separate policy and management units. It was

aimed at transparency but the action provoked strikes that halted the collection of

taxes and customs and compelled the government to declare revenue services as

essential.

Inflation Control: To curb the skyrocketing food prices, the Bangladesh Bank

increased interest rates, an indication of a change in the money discipline. This

soothed markets but was also dangerous in the way that it might slacken business.

Bringing Corruption to Light: A white paper stunned the country with revelation

of the illegal leak out of close to US 240 billion dollars in the last years of Hasina.

The discovery highlighted the reason as to why reform ceased to be optional.

Getting the Guarantee: Bangladesh was also looking to get IMF support and

bilateral assistance to assure the investors and remain in trade routes.

The Road Ahead

However, things are never easy on the road. The poor are still bitten by inflation,

the demand of garments around the world is low, and the divide between the

political parties is still strong, particularly, since the interim government prohibited

the actions of the old ruling Awami League. Stability is no longer a matter of

policy; it is also about trust.

The story of Bangladesh is a lesson and a wakeup call. Without equity,

responsibility and inclusion, rapid growth is nothing. The collapse of Hasina has

given an opportunity to renewal. It will depend on whether the interim government

can convert crisis into opportunity whether Bangladesh will emerge as a stronger

and more just economy or whether they will fall deeper into the uncertainty.