Structural weaknesses, poor governance plague economic reform: Debapriya

Despite some signs of economic stabilisation, such as a slight easing of inflation and efforts to keep the foreign exchange market stable, Bangladesh's broader economic reform trajectory is hampered by structural weaknesses and governance shortcomings, said Debapriya Bhattacharya, the convenor of Citizen's Platform for SDGs,Bangladesh and distinguished fellow at the Centre for Policy Dialogue (CPD) today.

"We're not seeing the kind of structural transformation or reduction in anti-equity bias that would signal a meaningful shift in economic management," he said.

He made the remarks at an event titled "Bangladesh Economy 2025-26: Policy Reform and National Budget", organised by the Citizens' Platform for SDGs, Bangladesh, held at the Lakeshore Hotel in Dhaka.

He said that the government has paid little attention to economic reforms compared to other types of reform.

"If there is no stability in the economy, no other reform will be sustainable," he said.

Bhattacharya also pointed out that the upcoming budget for FY26 would be shaped by three key deficits: a lack of cooperation and inclusivity, poor coordination, and limited transparency.

"There has been minimal public engagement in the budget-making process. We saw no real dialogue outside Dhaka, nor substantial inclusion of diverse groups even within the capital," he said.

On the issue of separating tax policy from administration, Bhattacharya said the reform initiatives should involve broader consultations with multiple stakeholders and be carried out transparently.

"The decision to divide it into two divisions is the right one, and it was also one of the recommendations in our white paper," he said.

"However, the way it has been implemented is not appropriate. It was done without proper consultation, by shrinking the space for professionals and increasing control over other administrative areas."

"This approach is flawed, and implementing the reform properly has now become a matter of significant importance."

He added that the ongoing pen-down strike by NBR officials may further affect overall revenue collection.