Dhaka: Bangladesh’s Awami League on Tuesday warned that the country is confronting a serious and multi-layered crisis, marked by rising external debt, stagnant investment, and stalled development activity.
The party said that behind the appearance of recent growth, the nation is facing a harsh economic reality fuelled by entrenched administrative inefficiency and pervasive corruption under the interim government led by Muhammad Yunus.
According to the Awami League, the country’s growth engines — investment and job creation — have slowed sharply. “While the debt burden grows, the engines of future growth—investment and job creation—have stalled,” the party said. It pointed to political uncertainty, banking irregularities, a severe dollar shortage and bureaucratic obstacles that have brought new investments nearly to a halt.
Factories are reportedly struggling to import raw materials and obtain financing, resulting in reduced production. Instead of job creation, the labour market is witnessing growing layoffs, worsening economic conditions.
Entrepreneurs, the party said, increasingly view corruption as a more significant obstacle than policy instability. The “duties-bribes-approvals” cycle has become the dominant barrier to business entry and expansion.
Highlighting the deteriorating economic environment, the Awami League said the development sector has been hit the hardest. Government spending under the interim administration has dropped sharply, and implementation of the Annual Development Programme (ADP) has fallen below 68 per cent — the lowest in ten years — following the change in government and subsequent reassessments.
The party alleged that development work has been crippled by administrative delays, weak management and widespread “commission culture.” Complexities in fund release and poor decision-making have further slowed progress.
Economists warn that when development stalls, rising debt shifts from being a tool of investment to a future burden — a path the Awami League says Bangladesh is now following.
The party noted that the country’s external debt has grown rapidly due to cost overruns, irregularities and delays in major infrastructure projects such as the Rooppur Nuclear Power Plant, the Metro Rail and the Karnaphuli Tunnel. Citing the Asian Development Bank, it said Bangladesh currently has the fastest-growing external debt in South Asia.
Debt servicing risks are expected to escalate from the 2026–27 fiscal year, when major repayment instalments for large projects begin, placing significant strain on national finances. The International Monetary Fund has already classified Bangladesh’s external debt as moderately risky, the party added.
