The interim government has formulated a strategic economic action plan to provide directives on revenue collection and investment, with implementation set to commence on 9 February.
This roadmap, developed by leveraging six months of governance experience, equally prioritises both macro and microeconomic considerations, according to sources from the Chief Adviser’s Office.
The initiative seeks to restore an economy inherited in a precarious state. It emphasises policies aimed at expanding trade and commerce while strengthening government-business relations to enhance revenue generation.
Policymakers believe that several financial interventions over the past six months have averted a deeper economic downturn.
The strategy underscores that a disciplined and professional adherence to these directives will invigorate the economy, bolster government earnings, and benefit the private sector.
Moreover, the plan forecasts the creation of new employment avenues.
Key Focus on Employment, Revenue Growth & Anti-Corruption Measures
At its core, the economic framework prioritises employment generation and revenue augmentation.
Officials assert that facilitating job creation will naturally lead to private sector expansion.
Additionally, the blueprint mandates the identification and dismantling of corrupt sectors, a process informed by six months of financial sector scrutiny.
Consequently, the plan sets forth definitive measures to tackle financial misconduct, including stringent instructions to shut down loss-making institutions plagued by corruption.
The strategy also acknowledges the persistent challenge of inflation, stressing the necessity of ensuring a steady supply of essential commodities, particularly food.
It recommends enhancing local production to mitigate supply-side constraints.
Furthermore, the document concedes that retail investors have suffered substantial capital erosion in the stock market over the years, prompting the government to intensify efforts against market manipulation.
The strategy reinforces directives for stricter regulatory oversight.
Concerns Over Energy Supply, Revenue Collection & Tax Reform
The plan candidly admits that the government has struggled to ensure an uninterrupted supply of electricity and gas, leading to consumer dissatisfaction over pricing.
Addressing fiscal sustainability, it underscores the urgency of increasing revenue collection to reduce reliance on borrowing, thus enabling greater credit availability for the private sector.
However, achieving revenue targets remains challenging due to widespread tax evasion.
Corruption and bribery have deterred businesses from paying taxes even when rates are lowered.
The strategy calls for enhanced transparency and accountability within the National Board of Revenue (NBR), stressing the need for a rational approach to income tax, VAT, and customs duties in the upcoming budget.
Reforming the revenue sector remains a focal point, with the government urged to heed the initial findings of a commission investigating structural deficiencies.
The plan recommends separating policy formulation from tax collection, with experienced professionals overseeing both domains.
Investment Strategy & Key Growth Sectors
The plan underscores the need for identifying new markets to boost investment while aligning policies with national development goals.
Foreign Direct Investment (FDI) currently stands at a mere 0.5% of GDP, significantly lower than the global average of 3–4%, presenting ample room for growth.
19 industrial sectors have been recognised as having the highest potential for economic expansion, including:
- Basic apparel
- Pharmaceuticals (excluding Active Pharmaceutical Ingredients)
- Agro-processing
- IT-enabled services
- Advanced textiles
- Renewable energy
- Automotive components
- Footwear & leather
- Electric vehicle batteries
- Medical devices
- Technical textiles
- Toys
- Active Pharmaceutical Ingredients
- Semiconductors
- Plastics
- Challenges & Business Confidence
Despite the ambitious roadmap, significant barriers to investment persist.
The plan identifies political instability, financial sector turbulence, foreign currency shortages, frequent changes in investment policies, bureaucratic inefficiencies, and high interest rates as major impediments.
Authorities have been directed to address these issues on a priority basis.
Abdul Awal Mintoo, former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), expressed concerns over the investment climate.
“Domestic and foreign investors remain hesitant due to political uncertainty and doubts over the interim government’s capacity. The government must devise policies that can be sustained beyond its tenure to ensure business confidence.”
The strategy acknowledges the initial unrest in industrial zones following the government transition, noting that while stability has improved, further progress is required.
Without a secure law-and-order environment, investor confidence is unlikely to return.
Zero Tolerance for Corruption & Future Roadmap
Adviser Asif Mahmud Sojib Bhuiyan reiterated the government’s commitment to industrial growth while maintaining a zero-tolerance stance on corruption.
“The government is dedicated to increasing production in industries, but corrupt institutions will not be allowed to operate,” he asserted.
Dr Selim Raihan, executive director of the South Asian Network on Economic Modelling (SANEM) and an economics professor at Dhaka University, emphasised the need for a clear roadmap.
“The government must outline a structured action plan for the next six months to a year, identifying immediate priorities and strategies to overcome existing challenges.”
While the interim administration’s strategic plan aims to stabilise the economy, its effectiveness will ultimately depend on consistent implementation, policy continuity, and sustained investor confidence.
