Nobel laureate Dr Muhammad Yunus-led interim government took office on 8 August 2024, following the ouster of prime minister Sheikh Hasina.
Now, after 5-month into power, the government faces mounting challenges alongside reform initiatives.
The interim government’s tenure so far has been marked by bold initiatives, but also by persistent challenges.
Economic instability, rising inflation, delayed reforms, and political fragmentation threaten to overshadow the administration’s achievements.
Interim government increased Value Added Tax (VAT) rates to meet International Monetary Fund (IMF) bailout conditions and address revenue shortfalls.
While officials argue this will not affect essential goods, public perception remains largely critical due to rising living costs.
Incentives have been introduced to encourage large private and public firms to list on the stock market, aiming to improve transparency and stimulate investment.
Efforts to stabilise the economy align with IMF conditions, including monetary tightening and structural adjustments.
However, rising inflation and increased VAT have placed a significant financial burden on ordinary citizens, and the lack of effective economic relief measures has fuelled frustration among low and middle-income groups.
Six commissions were formed to address structural reforms in the constitution, police, judiciary, and electoral system.
However, delays in submitting reports have hampered progress.
Preliminary measures were introduced to improve transparency and accountability within these institutions, but tangible results remain limited.
Programmes to reduce inequality and enhance education and healthcare services were announced, though their implementation has been slow.
Measures to support vulnerable groups amid rising inflation were introduced but remain insufficient.
On the diplomatic front, the government has received robust support from Western countries, particularly the United States and the European Union, for its reform initiatives.
However, diplomatic ties with India have remained stagnant, with unresolved issues such as water-sharing and trade barriers hindering progress.
Public perception suggests that while Western allies support the government, the stagnant relationship with India is seen as a failure in regional diplomacy.
Citizens expect tangible outcomes from diplomatic engagements, particularly regarding trade and cross-border issues.
A significant factor influencing Indo-Bangladesh relations is the role of Sheikh Hasina.
Her stay in India and the ongoing negative campaign against Bangladesh by segments of the Indian media have added layers of complexity to the bilateral relationship.
Additionally, the pending extradition request for Sheikh Hasina remains a contentious issue, causing further strain between the two nations.
The law and order situation have also deteriorated, with rising incidents of mob justice reflecting a loss of confidence in law enforcement agencies.
Citizens express dissatisfaction with the government's slow response to escalating security concerns, and reforms in law enforcement remain sluggish.
Political disagreements between the interim government and the Anti-Discrimination Student Movement highlight growing political tensions.
Political parties remain divided on the proposed electoral roadmap, causing uncertainty and mistrust.
Friction with the student movement underscores dissatisfaction among youth activists, while political parties are split over whether elections should proceed immediately or after planned reforms are completed.
IMF projects Bangladesh's GDP growth at a modest 3.8% by 2025.
Inflation remains persistently high, placing significant financial pressure on citizens.
VAT hikes have further increased living costs, creating widespread discontent.
Reform commissions, tasked with critical structural changes, have sought extensions, delaying crucial improvements in governance.
Political parties and civil society remain sceptical about the pace and sincerity of these reforms.
To address these challenges, the government must expedite the work of reform commissions and ensure accountability in their operations.
Actionable recommendations from these commissions should be implemented without unnecessary delays.
Targeted subsidies for essential commodities must be introduced to alleviate inflationary pressure on low-income groups, while investor confidence must be fostered through policy consistency and financial transparency.
The law and order situation require urgent intervention, with community policing initiatives to build trust between law enforcement agencies and citizens, as well as strict measures to prevent mob justice and ensure swift legal action against perpetrators.
Political dialogue must be prioritised to build consensus with political parties and student movements on a clear electoral roadmap.
Transparency in electoral processes is essential to foster trust among stakeholders.
On the diplomatic front, the government should focus on resolving bilateral issues with India while maintaining strong ties with Western allies, adopting a balanced foreign policy that serves national interests.
The government must prioritise effective reforms, inclusive dialogue, and swift policy implementation to build public trust and ensure a smooth transition towards a stable democratic system.
By addressing these challenges head-on and maintaining transparency and accountability, the interim administration can lay the foundation for sustainable growth, social justice, and political stability in Bangladesh.
