Why Dhaka's transport system needs urgent reform
Dhaka's public transport system is once again under scrutiny as the government moves to introduce a World Bank-backed Public Transport Fund aimed at modernising bus services and restoring discipline to a sector long marked by chaos, pollution and safety risks.
The proposed overhaul, which includes the introduction of electric buses and tighter regulation, reflects growing recognition that the city's existing transport model is no longer sustainable.
At the heart of the problem is a system that prioritises competition over service.
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Dhaka's route-license bus network allows private operators to run services under a net-cost model, where income depends on the number of passengers collected.
This has fuelled aggressive passenger-chasing, reckless driving, frequent stoppages and poor vehicle maintenance, commonly described as "bus wars" on city streets.
The result is severe congestion and inefficiency. Nearly 4,000 buses cluster on profitable routes, while many areas remain underserved.
Inefficient operations increase idling and slow traffic speeds, contributing to an estimated daily loss of more than 8 million working hours.
Weak public transport has also pushed commuters towards private vehicles, worsening congestion further.
Environmental and health concerns add urgency to the case for reform. Dhaka's air quality is among the worst in the world, with PM2.5 levels reaching 85 micrograms per cubic metre in 2020, far above safe limits.
Project documents show that around a quarter of the city's air pollution comes from ageing, poorly maintained fossil-fuel vehicles. More than 80% of vehicles emit harmful pollutants, with old diesel buses playing a major role.
Governance weaknesses have compounded the problem. Licensing and monitoring are fragmented, with police-led committees issuing route permits while state-run operators function separately, limiting coordination.
Subcontracting is widespread, and many drivers work on daily wages, creating incentives to maximise cash collection rather than follow safety rules. As a result, fleets remain overaged and standards poorly enforced.
These structural flaws have social consequences as well. Unsafe services, overcrowding and poor route coverage disproportionately affect women, children, the elderly and people with disabilities, reducing access to work, education and healthcare.
Together, congestion, pollution, weak oversight and unsafe operations have made Dhaka's transport system a drag on economic productivity and urban liveability—underscoring why comprehensive reform is now seen as unavoidable.
