Government’s first six months: 12 economic indicators improve, 19 deteriorate: CPD

The country’s economy has shown a mixed performance during the first six months of the current government, with 12 of 31 major economic indicators improving while 19 deteriorated, according to the Centre for Policy Dialogue (CPD).

The findings were presented by CPD Distinguished Fellow Dr Debapriya Bhattacharya at a media dialogue titled “Government’s Six Months: Performance Review” in Dhaka on Monday.

According to the CPD assessment, the economy has yet to recover at the expected pace. Economic growth has fallen below 3%, while revenue collection has faced a significant shortfall. Prolonged gas and power shortages have also hampered industrial investment.

The CPD analysed 31 major macroeconomic indicators covering the government’s first 180 days. While 12 indicators showed improvement, 19 recorded deterioration.

Speaking at the event, Debapriya said people had two major expectations from the new government: economic recovery and good governance. However, neither area had shown encouraging progress over the past six months.

He said the government inherited a fragile economy marked by liquidity shortages, problems in the banking sector, non-performing loans, capital flight and revenue shortfalls. However, the government had failed to address these challenges at the expected pace.

On good governance, Debapriya said curbing corruption, extortion, land grabbing, syndicates and mob culture were among the government’s key priorities. However, the situation remained concerning.

He criticised the appointment of politically affiliated individuals to senior positions despite the government’s commitment to merit-based recruitment.

He also said mob violence had continued despite the government’s “zero tolerance” policy, while attacks on women, children and minority communities persisted without visible and effective preventive measures.

Debapriya further pointed to shortcomings in laws related to enforced disappearances and human rights, including potential conflicts of interest in investigations.

He said the government had not prepared a consolidated document detailing the challenges it inherited, leaving many of its claims about the economic situation without adequate supporting data.

However, he praised some government initiatives, including the decision for MPs not to receive cars and plots, the speedy trial of the Ramisa murder case, the use of AI in traffic management and the increase in the tax-free income threshold.

He stressed that the government needs a coordinated reform programme rather than isolated initiatives to revive the economy and address the country’s economic and governance challenges.

SKS