Dhaka – November 25 (LatestNewsX) – On Tuesday, Bangladesh’s Awami League warned that the nation is confronting a severe, multifaceted crisis marked by rising national debt, stagnant investment, and stalled development projects.
The party argued that behind the recent façade of growth lies a harsh reality: the country’s economic progress is being crushed by deeply entrenched administrative inefficiencies and a culture of pervasive corruption that has flourished under the Muhammad Yunus‑led interim government.
“While the debt burden grows, the engines of future growth—investment and job creation—have stalled. Political uncertainty, irregularities in the banking sector, a severe dollar crunch, and bureaucratic hurdles have brought new investment to a virtual standstill. Factories are grappling with difficulties importing raw materials and accessing financing, leading to reduced production. Instead of creating new jobs, the labour market is witnessing a rise in layoffs, contracting economic growth,” the Awami League said.
The party also reported that frustrated entrepreneurs have bluntly claimed that corruption now poses a bigger barrier than policy uncertainty, and that the prevailing “duties‑bribes‑approvals” cycle has become the default hurdle to entering markets and expanding businesses.
Highlighting Bangladesh’s growing economic crisis, the Awami League stressed that its worst impacts are evident in the development sector, where government spending under the interim administration has sharply fallen.
“The implementation of the Annual Development Programme (ADP) has fallen to below 68 per cent — the lowest figure in a decade — following a change of government and subsequent reassessments,” the party emphasized.
It accused the development projects of being paralyzed by a lethal mix of administrative delays and half‑hearted management, with a widespread “commission culture” fueling corruption. Incompetent decision‑making and complex fund release procedures only add to the problem.
“When development stalls, economists warn, debt ceases to be an investment tool and instead becomes a crushing liability for the future. This is precisely the trajectory Bangladesh is on, where rising debt is failing to translate into financial growth,” the party added.
The Awami League claimed that the acceleration of external debt in Bangladesh has been driven by cost overruns, irregularities, and delays in mega‑projects such as the Rooppur Nuclear Power Plant, the Metro Rail, and the Karnaphuli Tunnel. The Asian Development Bank (ADB) has also noted that Bangladesh holds the fastest‑growing external debt in South Asia.
“The debt risk is set to intensify dramatically from the 2026–27 fiscal year onward, when the major repayment installments for these large projects begin, adding immense pressure to the national finances. This alarming trajectory has led the International Monetary Fund (IMF) to already classify Bangladesh’s external debt as moderately risky,” the party mentioned.
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