Centre for Policy Dialogue (CPD) Executive Director Dr Fahmida Khatun today stressed the need for an integrated reform agenda focused on employment, education, health and fiscal management to support long-term economic stability and inclusive growth.
Dr. Fahmida Khatun also highlighted the fiscal framework, trade and investment climate, public finance management, and the financial sector as important reform issues. However, she focused particularly on employment, characterizing it as one of the most urgent issues.
Dr Fahmida said this while speaking at a programme titled “Macroeconomic Insights: An Economic Reform Agenda for the Elected Government” held at a hotel in the capital this afternoon.
The Policy Research Institute of Bangladesh (PRI) and Department of Foreign Affairs and Trade (DFAT) of the Australian Government jointly organized the event.
The discussion was attended by Finance Adviser Dr Salehuddin Ahmed as the chief guest, along with leading economists, policymakers and representatives from development partners.
Under the direction of PRI Chairman Dr. Zaidi Sattar, special guests Clinton Pobke, Deputy High Commissioner, High Commission of Australia to Bangladesh, and Dr. KAS Murshid, former Director General of the Bangladesh Institute of Development Studies (BIDS), addressed.
The keynote speaker was Dr. Ashikur Rahman, Principal Economist of PRI. Dr. M. Masrur Reaz, Chairman and CEO, Policy Exchange Bangladesh (PEB), spoke as distinguished panelists.
As a renowned panelist, Dr. Fahmida emphasized that in order to maintain Bangladesh’s development momentum, comprehensive economic reforms, stronger institutions, and a stronger emphasis on job creation are required.
She said Bangladesh’s development achievements over the years — including reductions in poverty, improvements in per capita income and social progress — had long been recognised internationally as a success story.
Despite governance limitations, she said the country managed to make notable gains in economic and social indicators.
“But, the momentum weakened over time due to inherent structural weaknesses,” she said, pointing to low investment efficiency, a weak tax system and inadequate attention to reforms.
She observed that reforms are often unpopular and require strong political commitment and bold leadership to implement successfully.
“Without structural reforms, targets will remain difficult to achieve and the economy will continue to move in circles,” she said.
She said recent public movements had been largely driven by demands for jobs, noting that the public sector can absorb only about 5 percent of total job seekers.
“Growth without jobs has little meaning,” she said.
About 40% of the labor force is still employed in agriculture, she noted, with a large portion of this work being seasonal and informal. Despite accounting for more than half of GDP, the service sector has not produced enough high-quality jobs.
Additionally, the manufacturing sector has not produced enough chances to offer steady and well-paying jobs.
She pointed out that a sizable percentage of Bangladeshi migrant workers engage in low-skilled or semi-skilled jobs overseas, which restricts their ability to earn a living and receive long-term benefits.
Stressing the need for labour market reform, she said the country must prioritise manufacturing expansion and skill development to create decent jobs.
Dr Fahmida Khatun called for increased budget allocations for education and improvements in quality, governance and training facilities. She made similar observations about the health sector, saying low spending and poor utilisation of resources weaken the workforce’s productivity.
She also highlighted the importance of social protection, particularly at a time when inflation has remained high since 2023 while wages have not increased at the same pace. With investment slowing and job creation lagging, she said that support for low-income groups is essential.
Referring to various election pledges, including family cards and farmer support schemes, she said such initiatives would require a strong fiscal strategy and comprehensive public finance reforms to ensure sustainable funding.
