From Crisis to Possibility: Challenges Facing New Govt in Difficult Times

People want to see rapid change, and there is little room for delay in meeting those expectations

Prof. Dr. Sharmin Reza Chowdhury, The Acting pro-Vice Chancellor and Treasurer of Ahsanullah University of Science and Technology, has said the newly elected government led by Tarique Rahman faces a defining test of leadership as Bangladesh stands at a historic crossroads marked by economic strain, rising public expectations and global uncertainty.

Addressing The Daily Observer’s National Print Dialogue titled “From Ballot to Balance Heet” through a written speech, he said the overwhelming public mandate secured in the February 12 national election reflects not only political trust but also an urgent demand for visible economic and institutional change.

Through the national election of February 12, 2026, Prof. Dr. Chowdhury continues, Bangladesh has once again arrived at a critical political crossroads. Although the new government has begun its journey with a clear public mandate, that mandate comes with immense expectations�"alongside the pressure of confronting harsh realities. 

“People want to see rapid change, and there is little room for delay in meeting those expectations”, he said.

He said the government has assumed office amid a complex situation. On one hand, there are public expectations; on the other, significant economic pressure. “Balancing these two forces will be its greatest test. While the people have expressed confidence through the election, delivering on that trust requires swift and effective action. Transforming promises into visible achievements is therefore the central challenge”.

He continues: The economic reality is tough. The country is currently facing multiple pressures. Inflation is deeply affecting everyday life, as rising prices of essential goods are eroding purchasing power. For many families, managing daily expenses has become increasingly difficult. Global instability�"particularly conflicts in the Middle East�"has disrupted energy markets, intensifying the crisis. As a result, domestic economic weaknesses combined with global uncertainty have made the situation more complex.

Uncertainty is also visible in the business and investment climate, which could hinder long-term growth. Restoring confidence will require not just policy announcements, but effective implementation. A balanced approach is needed�"ensuring short-term stability while fostering long-term growth. Increasing revenue collection, reforming the banking sector, supporting small and medium enterprises, and attracting foreign investment can help build a dynamic economy. Additionally, expanding social safety net programs is essential to protect vulnerable populations.

Good governance will be a key measure of the government’s success. Corruption, administrative inefficiencies, and lack of accountability have long been persistent issues. Addressing these requires institutional reform, impartial enforcement of laws, and effective oversight mechanisms. Expanding e-governance and digital services can enhance transparency. At the same time, involving citizens in participatory governance will strengthen democracy.

Education and human resource development will determine the country’s future. In today’s world, sustainable development is not possible without technology-driven knowledge and skills. Therefore, the education system must be modernized, with increased investment in research and innovation, and a stronger emphasis on practical, employment-oriented learning. At the same time, balanced investment in healthcare, improved medical infrastructure, and ensuring quality services for rural populations are fundamental state responsibilities.

It is now clear that tightening monetary policy alone cannot solve the problems. Raising interest rates does not address supply-side weaknesses or structural issues. Private investment remains slow, and while there are some signs of foreign investment, they are not yet sustainable. Restoring investor confidence requires policy consistency, transparency, and realistic measures. Meanwhile, slowing investment and structural weaknesses are hindering economic progress.

At the heart of these economic challenges lies a deeper issue�"inequality. The dangerous concentration of wealth is not only an economic concern but also a threat to social stability. A small segment of the population holds vast wealth, while a large portion of the population struggles with minimal resources. This disparity affects opportunities, living standards, and future prospects. Addressing this gap requires a fair tax system and inclusive policies.

These challenges stem from long-standing structural weaknesses: a regressive tax system, a patronage-based economy, urban-centric development, and a large informal labor market. Much of employment remains insecure and low-paying. Limited participation of women in the workforce further restricts economic potential, reducing overall demand and contributing to stagnation. Increasing women’s participation in education and employment, along with ensuring transparency, accountability, and effective policy implementation, is crucial.

In this context, maintaining stability alone is not enough. Bangladesh must choose a new economic path�"one that goes beyond short-term fixes and focuses on long-term reform. Ensuring energy security, strengthening the financial sector, and boosting productivity are essential for building a sustainable economic foundation. The country must move beyond low-cost, labor-intensive production toward higher productivity, technology-driven industries, and diversified exports. Policy consistency and transparency will be vital to restoring investor confidence and maintaining competitiveness.

To achieve socio-economic development, the government must adopt coordinated, long-term strategies. Ensuring quality, modern education is essential. From primary to higher education, curricula must be updated, with greater emphasis on technology and skill development. Expanding technical and vocational education is critical. Skill development programs aligned with industry needs will help increase employment opportunities.


However, the path of reform will not be easy. Economic transformation often involves political risks and social reactions. The government’s greatest challenge will be to deliver quick results while simultaneously laying the foundation for long-term reform.

Bangladesh has, in the past, turned adversity into opportunity many times. That potential still exists. But success will depend on the courage of decision-making, the effectiveness of policies, and the ability to earn public trust. At this critical moment, the right steps can transform crisis into the beginning of a new possibility. The country now faces an important choice�"not just stability, but a path toward sustainable transformation that may define its future success.