The Centre for Policy Dialogue (CPD) has stressed the urgent need for governance reforms and stronger institutions to help Bangladesh manage ongoing economic pressures and maintain a sustainable growth path.
The observations were presented at a media briefing in Dhaka on Thursday, where CPD Executive Director Dr Fahmida Khatun presented a keynote paper titled “State of the Bangladesh Economy in FY2025-26: Multidimensional Challenges during the Transition Period.”
She noted that although the economy continues to face several challenges, there are also signs of resilience that could support recovery and long-term growth if appropriate policy measures are taken.
A key concern highlighted by CPD was inflation, which stood at 9.04 per cent in April 2026. The think tank emphasised the importance of safeguarding purchasing power, particularly for low-income and vulnerable households.
CPD also called for improved revenue mobilisation and stronger fiscal management to create additional fiscal space for development spending and private-sector expansion.
In the banking sector, the organisation urged accelerated reforms to ensure financial stability, strengthen governance, and rebuild confidence in the financial system. It recommended stricter regulatory enforcement and urgent action to address structural weaknesses.
Despite domestic and global challenges, CPD noted that Bangladesh’s external sector has shown resilience. The balance of payments recorded a surplus of US$3.6 billion in FY26, compared to a deficit of US$1.1 billion in the previous fiscal year.
This improvement was driven largely by a 19.8 per cent increase in remittance inflows and higher external financing, which helped support foreign exchange reserves and external stability.
CPD further stressed the importance of addressing global energy uncertainties, improving supply-chain management, and strengthening governance in key sectors such as agriculture, health, and labour. It also called for better disaster preparedness, enhanced farmer support, transparency in procurement, and stronger social protection systems.
The think tank concluded that sustained reforms and institutional accountability are essential for ensuring long-term macroeconomic stability and unlocking Bangladesh’s full economic potential.
