Finance Adviser Dr Salehuddin Ahmed on Monday said that Bangladesh’s economy is not in bad shape at this moment, although it is facing formidable challenges that require sustained reforms, better coordination, and strong political commitment from the next government.
Speaking at a discussion meeting, the adviser said that despite multiple domestic and global pressures, Bangladesh has managed to maintain macroeconomic stability and avoid a deep crisis. “The economy was on the verge of collapsing. But we are managing the situation… the challenges are there and must not be underestimated,” he said.
The Finance Adviser was addressing an event titled “Macroeconomic Insights: An Economic Reform Agenda for the Elected Government” as the chief guest, held at a hotel in the capital that afternoon.
The Policy Research Institute of Bangladesh (PRI) and the Department of Foreign Affairs and Trade (DFAT) of the Australian Government jointly organised the event.
Presiding over the meeting was Dr Zaidi Sattar, Chairman of PRI. Dr KAS Murshid, former Director General of the Bangladesh Institute of Development Studies (BIDS), and Clinton Pobke, Deputy High Commissioner of the High Commission of Australia to Bangladesh, spoke as special guests.
Dr Ashikur Rahman, Principal Economist of PRI, delivered the keynote presentation, while Dr Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), and Dr M. Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh (PEB), spoke as distinguished panellists.
The closing remarks were made by Dr Ahmad Ahsan, Director of PRI.
Dr Salehuddin noted that Bangladesh has shown resilience amid global shocks, including post-pandemic disruptions, geopolitical tensions, energy price volatility, and tightening global financial conditions. Prudent macroeconomic management has helped the country navigate a difficult period, he added.
Referring to inflation, balance of payments pressures, and fiscal stress, he said these issues are not unique to Bangladesh. “Many countries are going through similar problems. What matters is how we respond through reforms and institutional strengthening,” he continued.
The finance adviser said the interim government has focused on stabilising the macroeconomy, ensuring fiscal discipline, managing foreign exchange pressure, and keeping essential economic operations continuing.
“We have tried to take balanced decisions so that the economy continues to function while protecting the vulnerable,” he said.
He highlighted that revenue mobilisation remains a major challenge, noting that Bangladesh’s tax-to-GDP ratio is still very low compared to peer economies. “It is extremely difficult to run a modern state with such a low level of revenue collection,” he said, stressing the need for tax reform, expansion of the tax base, and improved compliance.
