Three-Stage Strategy to Revive Bangladesh’s Economy

Prime Minister’s Adviser on Finance and Planning, Professor Dr Rashed Al Mahmud Titumir, has outlined a three-stage strategy to revive Bangladesh’s economy from its current crisis, restore sustainable growth and create the institutional foundations needed for faster economic expansion.

The five-year strategic framework consists of:

Recovery — restoring the economy and achieving macroeconomic stability Restoration — rebuilding production, investment and employment while promoting inclusive growth Reconstruction for Acceleration — restructuring institutions to support rapid and sustainable economic expansion

Speaking to Bangladesh Sangbad Sangstha (BSS), Titumir said the three stages would be implemented sequentially to bring the economy back to stability and put it on a sustainable growth path.

1. Recovery: Stabilising the Economy

The immediate objective of the Recovery phase is to address accumulated economic problems, including:

Debt pressures Weak institutions Liquidity shortages Declining production and employment Loss of confidence in the economy

The government is working to strengthen coordination between fiscal and monetary policies, increase revenue collection and restore macroeconomic stability.

Titumir said revenue collection increased by 12% from mid-February to June 30 compared with the same period a year earlier, compared with only 2% growth during the corresponding period previously.

The government is also seeking to expand the tax base and prevent tax evasion without placing additional pressure on existing taxpayers.

He identified rising foreign-exchange reserves, a stronger taka, increased remittances and declining interest rates as positive signs of economic recovery.

2. Restoration: Rebuilding Growth

The second stage, Restoration, aims to move beyond economic stability toward sustainable and inclusive growth.

Production, investment and employment will receive the highest priority during this phase.

The government plans to improve the investment environment by reducing unnecessary restrictions and controls and introducing a proposed “Trace and Track” system.

Bangladesh also wants to position itself as a gateway between South and Southeast Asia.

According to Titumir, investment commitments have been received from North America, Western Europe, the Gulf region and East Asia, with particular interest in economic zones in Chattogram and Mongla.

The government wants to prioritise investments that increase production, create jobs and strengthen export capacity rather than projects that are heavily dependent on borrowing and imports.

Priority sectors include:

• Agriculture and agro-processing
• Electronics
• Pharmaceuticals
• Leather goods
• Light engineering

The Restoration phase will also connect economic growth with social development through expanded social safety-net programmes, reforms in primary education and stronger healthcare capacity.

3. Reconstruction for Acceleration

The third stage, “Reconstruction for Acceleration,” focuses on completing institutional reforms and creating the foundation for rapid economic expansion.

Titumir stressed that institutional restructuring is essential to sustain the progress achieved during the Recovery and Restoration phases.

The energy and power sectors are also expected to undergo major changes. The initial priority will be stabilising the energy sector, followed by expanding capacity in line with economic demand.

The government also plans to expand solar power and net metering so that households and businesses can become energy producers.

“People are no longer just consumers; they are also producers.”

Titumir said Bangladesh can draw important lessons from previous periods of economic transformation.

He cited the expansion of overseas employment and remittances from the mid-1970s, followed later by increases in women's education and employment and the growth of the ready-made garment industry.

These developments, he argued, demonstrate how strategic policy decisions can turn structural weaknesses into economic strengths.

The government therefore intends to identify Bangladesh's existing economic strengths and develop practical policies to make better use of them.

Titumir described the government's first 180 days as the initial phase of the economic recovery process.

The ultimate objective, he said, is to move Bangladesh away from crisis management and toward a stable, productive and inclusive economy.

In short, the three-stage framework is designed to recover lost economic ground, restore production and growth, and then rebuild institutions to enable faster economic expansion.