CPD Reviews Bangladesh Economy Amid Revenue Shortfall and Factory Closures

The Centre for Policy Dialogue (CPD) has evaluated the performance and economic situation of the new government during a media dialogue held on 24 August 2026 in Bangladesh. The event, organised by the CPD, focused on reviewing the initial six months of the administration and analysing broader economic trends across the country. Key speakers at the briefing included Dr Debapriya Bhattacharya, Mustafizur Rahman, and Towfiqul Islam Khan, who provided detailed assessments of the current fiscal and industrial landscape.

During the dialogue, experts addressed significant structural hurdles facing the nation. Dr Debapriya Bhattacharya noted that when the government assumed office, the economy was already grappling with various structural problems, while the global economic situation was also not favourable. He further emphasised that the public had two major expectations from the new administration: economic recovery and the establishment of good governance.

Industrial data presented for the period from January to August 2026 revealed severe pressures within the manufacturing sector. Across the country's three main industrial hubs, a total of 95 factories were permanently shut down during this timeframe. This widespread closure of manufacturing units resulted in a direct loss of employment for 61,881 workers, highlighting ongoing vulnerabilities in the domestic industrial base.

Fiscal challenges were also a central theme of the review, particularly concerning national revenue collection. Projections indicated that the government could face a massive revenue shortfall ranging between Tk 1,30,000 crore and Tk 1,40,000 crore during the current fiscal year. These figures underscore the fiscal constraints and administrative hurdles confronting key revenue authorities, including the NBR, as well as investment promotion bodies like BIDA, BEZA, and PPPA.

Despite these severe industrial and fiscal setbacks, the dialogue highlighted several positive macroeconomic indicators. Overall inflation has decreased to 8.3 per cent, while food inflation has moderated to 7.2 per cent. Additionally, the country's foreign exchange reserves experienced a notable increase, standing at USD 32.3 billion, offering some relief to the external sector amid ongoing domestic challenges.