LDC graduation offers opportunity to reassess our trajectory: Finance ministry special assistant

Bangladesh's upcoming graduation from least developed country (LDC) status presents a crucial opportunity to reassess its development strategy and correct past policy missteps, said Anisuzzaman Chowdhury, special assistant at the finance ministry, today (15 May).

"The government is committed to aligning its policies around clear objectives. While challenges are inevitable, LDC graduation offers a valuable opportunity to reassess our trajectory, learn from past missteps, and move forward with renewed strategic clarity and resolve," he said while speaking as the chief guest at the launch of the Monthly Macroeconomic Insights (MMI) by the Policy Research Institute of Bangladesh (PRI).

The MMI, launched at the PRI office in Dhaka, is a new publication from PRI's Center for Macroeconomic Analysis (CMEA), developed with support from the Australian Department of Foreign Affairs and Trade (DFAT). The event featured a keynote presentation and high-level policy discussion.

Anisuzzaman further stated, "Global economic history shows that nations achieve sustained development when policy coherence is paired with strong social capital. Bangladesh must prioritise both. "

Speaking as the guest of honour at the event, Md Habibur Rahman, deputy governor of Bangladesh Bank, said, "Exchange rate liberalisation will benefit Bangladesh on multiple fronts. Notably, the exchange rate has remained stable even after the move to a floating regime. 

"Considering the current reserve levels, improvements in the current account, and overall balance of payments, we are well-positioned to manage any potential exchange rate overshooting. I remain optimistic about the trajectory of economic recovery."

Clinton Pobke, deputy head of mission at the Australian High Commission in Bangladesh was the special guest of this launch. He said, "We are proud to support efforts that enhance evidence-based policy dialogue and contribute to more effective, timely policymaking."

"I commend PRI for bringing together macroeconomic data, rigorous analysis, and impactful presentation in a way that can meaningfully inform and influence policy decisions," he added.

In the keynote presentation, PRI Chairman Zaidi Sattar highlighted that in the current year, macroeconomic stability has been restored, and the economy is poised to return to a higher growth trajectory.

However, he noted that Bangladesh's export potential continues to be hindered by a highly protective tariff regime, which has created a persistent "anti-export bias in policy incentives."

Another keynote presenter, Ashikur Rahman, principal economist at PRI, said, "While external balances are improving, persistent fiscal weaknesses are making the ongoing economic recovery very fragile." 

"However, the dissolution of the NBR and creation of separate Revenue Policy Division and Revenue Management Division is a step forward, alongside the new bank resolution ordinance that strengthens BB's authority to manage the weakened financial sector," he added.

Joshua Gacutan, second secretary at the Australian High Commission, also participated in the event as a special guest.

The March edition of the MMI highlighted key developments, including a modest rebound in GDP growth in Q2 FY25, persistent inflationary pressures, and progress in the external sector driven by robust export performance and strong remittance inflows. 

It also underscored persistent revenue collection challenges and limited fiscal headroom for counter-cyclical spending.