Bangladesh is currently facing a severe economic crisis marked by a rapid decline in employment and business closures, with over one million people unemployed since August 5, 2024. The garment sector, which employs approximately 6.5 million workers, is particularly at risk as the country grapples with a liquidity crisis that threatens its stability [b67b0bed]. This economic turmoil coincides with escalating political unrest, as Nobel laureate Muhammad Yunus attempts to restore order after the ousting of Prime Minister Sheikh Hasina [2fa4f23f].
Yunus, appointed as chief adviser on August 9, 2024, has called for patience from the public while emphasizing the necessity of election and constitutional reforms before any elections can be scheduled [2fa4f23f]. However, his administration is under scrutiny as extremist groups, including Al-Qaeda and ISIS, are reportedly gaining influence in the region, raising concerns about security and stability [b67b0bed].
The political landscape has become increasingly volatile, with recent violence and ethnic tensions surfacing amid protests. Notably, Hindu leader Krishna Das Prabhu was detained on sedition charges, highlighting the rising attacks on minorities in a country where 91% of the population is Muslim [8eee86e3]. Critics argue that Yunus is exploiting anti-Hindu sentiment to distract from the economic collapse, further complicating the political narrative [b67b0bed].
In a bid to stabilize the economy, the International Monetary Fund (IMF) has agreed to fast-track financial assistance to Bangladesh, a crucial move as high inflation and factory closures threaten the economic landscape [8eee86e3]. Additionally, the potential for Donald Trump to assume office on January 20, 2025, raises concerns about future trade relations and economic policies that could impact Yunus's administration [b67b0bed].
The recent appointment of Dr. Ahsan H Mansur as the new governor of Bangladesh Bank, following the resignation of Abdur Rouf Talukder, is seen as a hopeful turn for the central bank. Mansur is expected to tackle pressing issues such as bank defaulters, tax evasion, and money laundering [5bbe504d]. Alongside him, Dr. Salehuddin Ahmed and Dr. Wahiduddin Mahmud have been appointed as advisors, indicating a shift towards a more qualified leadership in the banking sector [0d023a21].
Dr. Salehuddin Ahmed has stressed the urgent need for reforms in the revenue and banking sectors, advocating for increased transparency and accountability in tax collection [9140d609]. He has also called for a reduction in reliance on foreign aid, pushing for self-reliance through direct taxation to boost Bangladesh's revenue [9140d609].
As the interim government seeks to stabilize the situation, there is a growing call for the abolition of the Financial Institutions Division to enhance accountability in the banking sector [0d023a21]. Analysts emphasize that the interim government must pragmatically assess achievable reforms while managing public expectations, focusing on tackling corruption and improving public administration [ea577216].
Yunus's leadership is viewed as pivotal during this tumultuous period, with hopes that he can unify the country and steer it towards stability [ea577216]. However, the potential for instability in his administration looms large, especially with the possible return of Tarique Rahman, the acting chairman of the Bangladesh Nationalist Party (BNP), from exile, which could challenge Yunus's authority [b67b0bed]. International support for Yunus is also waning, as EU ambassadors have begun questioning human rights violations under his regime [b67b0bed].