CPD proposes comprehensive policy reforms to navigate economic challenges

BSS
Published On: 04 Mar 2026, 17:12

DHAKA, Mar 4, 2026 (BSS) – Centre for Policy Dialogue (CPD) Executive Director Dr. Fahmida Khatun today presented a comprehensive set of policy priorities for the newly elected government, warning that urgent structural reforms are the only path to restoring macroeconomic stability. 

“The current moment is a critical juncture for policy recalibration, where sustained macroeconomic discipline is essential to ensure stability and inclusive, resilient growth,” she said.

She made the remarks at a roundtable today titled “Looking into Bangladesh’s Development: Priorities for the Newly Elected Government in the Short to Medium Term”, organised by the CPD and The Daily Star at BRAC Centre Inn, in the city.

She said that the Bangladesh economy has faced significant instability in recent years, marked by rising inflation, limited fiscal space, subdued private investment, vulnerabilities in the monetary sector, high debt, pressure in the energy sector and political uncertainty during the transition period.

Following the election, Fahmida Khatun mentioned that the newly elected government has assumed office with a renewed mandate to restore macroeconomic stability, strengthen institutional governance, rebuild investor confidence and generate employment.

She stressed that restoring macroeconomic stability must begin with coordinated monetary and fiscal discipline. 

Interest rate policy, exchange rate management and prudent public spending should work together to contain demand pressures and anchor inflation expectations, she added.

She also emphasised the need to address supply-side bottlenecks through better storage, transport and strategic food reserves, ensure a market-reflective and stable exchange rate, strengthen market monitoring, expand targeted social protection, deepen banking reforms and safeguard central bank independence.

Dr. Fahmida Khatun concluded the presentation by noting that the newly elected government has a renewed mandate to rebuild market confidence through institutional governance. 

She emphasized that the window for policy recalibration is narrow and that firm commitment to these structural reforms is necessary to stabilize the macroeconomic environment and generate the employment opportunities required for the nation's youth.

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