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M A Khaleque

  • Economist

Retired General Manager, Bangladesh Development Bank Limited and Writer on Economics

Graduation to the list of developing countries: Decisions must be based on reality
developing countries
Economics

Graduation to the list of developing countries: Decisions must be based on reality

To qualify for graduation to the final list of developing countries, a nation must meet three essential criteria. Bangladesh has successfully met all of these conditions. After being under observation for several years, Bangladesh is set to officially graduate to the developing country category in 2026. This will be the most significant economic achievement for the country since its independence. No nation wants to remain a least developed country (LDC) indefinitely. Every country aspires to graduate to the developing nation category as quickly as possible. While LDCs receive certain benefits from developed nations, these privileges are often granted out of a sense of charity rather than respect. Thus, achieving developing country status is a matter of national pride.

Some thoughts on the budget for FY 2025-26
budget for FY 2025-26
Economics

Some thoughts on the budget for FY 2025-26

The preliminary work for drafting the national budget for the upcoming fiscal year (2025-26) has already begun. If everything goes as planned, the proposed budget will be presented for approval on June 5. Since there is no active national parliament at present, the proposed budget for the next fiscal year will be submitted for approval to the advisory council of the interim government. Since Bangladesh gained independence, the national budget has been approved through the parliament every year, except during periods of military rule and the fiscal years 2007-08 and 2008-09.

Administrative depoliticization: A prerequisite for breaking the stagnation
Administrative depoliticization: A prerequisite for breaking the stagnation
Politics and Bureaucracy

Administrative depoliticization: A prerequisite for breaking the stagnation

According to modern political science, a state is formed based on four essential elements: independence and sovereignty, a defined territory, population, and government. These components are interrelated, and without any one of them, a modern and complete state cannot exist. Among these, the weakest and only changeable element is the government. The government is not the owner of the country; rather, it is a trustee responsible for running the state on behalf of its people. Governments come and go, but the other three components of the state remain unchanged. Whether a government stays in power or not depends on the will of the people. If citizens become dissatisfied with the government, they can change even the most powerful administration through elections.

Banking sector reforms must be based on reality
Banking sector reforms must be based on reality
Economics

Banking sector reforms must be based on reality

This government-backed family has become a liability to the banking sector. Dr. Mansur also announced that the Bank Resolution Act is being formulated to address banking failures. Some state-owned banks are also struggling, and measures will be taken to prevent the Financial Institutions Division of the Ministry of Finance from interfering in banking operations. The Bangladesh Bank will be allowed to function independently. However, the Governor did not explicitly state what would happen to banks that cannot be saved or how they would be phased out. His remarks, however, indicate that major changes are on the horizon for the banking industry.

Contractionary monetary policy alone can’t solve inflation woes
Contractionary monetary policy
Economics

Contractionary monetary policy alone can’t solve inflation woes

The Bangladesh Bank announced the second monetary policy of the current fiscal year on February 10, 2025. This was the second monetary policy for the fiscal year 2024-25 and the first policy under the interim government. There was considerable anticipation regarding the announced policy, and many experts had expected it to be contractionary in nature. Indeed, the policy can be described as contractionary in terms of its characteristics, as it focuses more on controlling the existing high inflation rather than achieving high growth.

No more delays in the name of reforms—Control inflation
No more delays in the name of reforms—Control inflation
Economics

No more delays in the name of reforms—Control inflation

The leaders of the top four business organizations in the country have expressed their concerns regarding the government's initiative to increase gas prices in a joint letter addressed to the Energy Adviser. They have warned that raising gas prices at this moment will severely impact industries, leading to a sharp rise in production costs. As a result, Bangladeshi products may lose their competitive edge in the international market.