Dhaka: The newly formed government has initiated efforts to accelerate the country’s annual development plan (ADP) execution, aiming to reach an expected level despite two-thirds of the fiscal period having elapsed under the interim administration. Finance and Planning Minister Amir Khosru Mahmud Chowdhury issued directives during his inaugural meeting with senior ministry officials.
According to United News of Bangladesh, the minister expressed dissatisfaction with the current ADP implementation rate, urging officials to identify effective strategies to enhance execution. The ADP, a key fiscal tool for financing public sector projects, is currently experiencing one of its slowest paces. Government data reveals that only about one-fifth of the ADP allocation has been spent in the first half of the 2025-26 fiscal year, highlighting persistent execution challenges.
The ADP’s role is crucial for job creation, service improvement, and economic growth. However, the Implementation Monitoring and Evaluation Division (IMED) reported that only 21.18 percent of the ADP had been executed by January, slightly lower than the previous year’s 21.52 percent. Mid-year implementation rates have historically been below average, but current figures are notably insufficient for achieving year-end targets.
Amir Khosru, addressing ministry officials, emphasized the unsatisfactory performance over the last year and a half, urging sincere efforts to improve for the country’s benefit. Experts attribute the weak performance to procurement delays, land acquisition issues, and shortages of experienced project directors and technical staff. The minister called for the urgent engagement of appropriate officials to address these challenges.
Political developments have compounded these structural issues. Following anti-government protests and administrative uncertainty in 2024, many contractors withdrew from projects, creating implementation gaps. The interim government’s decision to reduce the ADP size by Tk300 billion in a revised budget further constrained project spending, with health and education sectors facing significant cuts.
Bangladesh recorded its lowest ADP implementation rate in decades in FY2024-25, executing only 67.85 percent of the revised program by June. This marked a decline from the previous year’s 80.63 percent, reflecting the impact of political upheaval and policy shifts.
Experts warn that slow ADP execution impacts the economy by delaying or scaling back projects, reducing their economic stimulus. It also risks undermining investor confidence, as progress on infrastructure and social projects attracts private investment. Calls for reforming project planning and execution mechanisms have emerged, focusing on streamlining procurement, enhancing project management capacity, and ensuring leadership continuity.
Government officials acknowledge these challenges and highlight ongoing efforts to improve performance, pointing to modest sectoral improvements and plans to accelerate spending in the fiscal year’s second half. Critics argue that without addressing deeper structural and administrative weaknesses, progress will remain inconsistent.
For Bangladesh, improving the ADP implementation rate is crucial for fulfilling development priorities, enhancing public services, and sustaining economic growth amid global uncertainties and domestic pressures. The focus will be on whether the new government can translate their plans into visible results as the fiscal year progresses.