Dhaka: Former Lead Economist at the World Bank's Dhaka office, Dr Zahid Hussain, has stated that Bangladesh's economy has regained stability and vibrancy, with economic activities showing an increase compared to the fiscal year 2022-23. He made these remarks while addressing the Moazzem Hossain Memorial Lecture in the capital today.
According to Bangladesh Sangbad Sangstha, Dr Zahid highlighted both the contemporary economic conditions of the country and the overall scenario of the financial and banking sectors. The Economic Reporters Forum (ERF) organized the memorial lecture in tribute to its founding president, the late Moazzem Hossain, who was also the editor of the English daily The Financial Express.
Dr Zahid attributed the restored economic stability primarily to the removal of those responsible for the previous instability. He noted that money laundering from the country has ceased, leading to a significant decline in hundi and an increase in foreign currency inflows. Meanwhile, he stated that looting within the banking sector has been halted, although the true condition of banks has not improved due to rising defaulted loans.
A member of the committee constituted by the interim government to prepare a White Paper on the State of Bangladesh Economy, Dr Zahid also discussed the impact of international developments favorable to Bangladesh's economy, particularly the decline in the value of the US dollar. He asserted that policy has not significantly contributed to the current stability, though there has been a shift in economic management with greater discipline in policymaking.
Dr Zahid further explained that tariffs imposed by the Trump administration on different countries have created a positive environment for Bangladesh's economy. He presented his analysis, indicating that tariffs on India and China have opened opportunities for Bangladesh to increase its exports to the US by approximately $205 crore in the fiscal year 2025-2026. Since India faces tariffs roughly 30% higher than Bangladesh, this creates an export advantage ranging between $120 crore and $207 crore, while increased tariffs on China could boost Bangladeshi exports to the US market by an additional $7 million to $25 million.
Despite these positive signs, Dr Zahid warned that Bangladesh remains trapped in the middle-income bracket. He cited ongoing obstacles such as the power and energy crisis, a distressed banking sector, weaknesses in the logistics system, underdeveloped labor markets, and institutional decay as primary challenges to exports.
On the government's reform efforts, Dr Zahid emphasized that political willpower alone does not guarantee success. He stressed that effective reform requires strong delivery capacity and calls for a coordinated effort among the Council of Advisers, the administration, the business community, and civil society.
Leading businessman and member of the Financial Express trustee board, Mahbubur Rahman, also spoke at the event. Rahman noted that the changes anticipated following the July revolution have yet to be fully realized. The memorial lecture was presided over by ERF President Doulot Akter Mala and conducted by General Secretary Abul Kashem.