Wednesday, April 30, 2025

The Clockmaker's Garden


 Chapter One: The Town That Forgot to Hurry

There was a quiet town nestled between the shoulders of two forested hills and hugged by a lazy river that shimmered gold at dawn. The townsfolk called it Eldhollow, a place where the clocks ticked just a little slower, where people still nodded at strangers and where time, it seemed, politely asked permission before passing.

At the very center of Eldhollow stood a tiny shop with stained glass windows and a swinging wooden sign that read: “Ellis Thorne: Clockmaker”. Inside, the ticking of clocks played like a symphony, echoing through the scent of cedarwood and lavender oil. The man who owned the shop, Ellis, was known for his calm smile, messy curls, and the way his fingers moved like music when fixing old timepieces.

But no one knew that Ellis could hear more than ticking.

He could hear time whisper.


Chapter Two: The Girl With the Wounded Voice

On a rainy spring afternoon, just as Ellis was polishing the brass rim of a grandfather clock, the bell above the door tinkled. A girl stepped in, soaked from the rain, holding a locket in her palm. Her cheeks were flushed from the cold, and her eyes—moss green and guarded—carried stories her lips didn’t.

“Can I help you?” Ellis asked gently, wiping his hands.

She opened her hand. Inside was a tiny, broken pocket watch. “It doesn’t tick anymore.”

Ellis took it from her and smiled faintly. “Most things still want to tick. They just need to be listened to.”

The girl hesitated. “Can I stay while you fix it?”

He nodded. And so she sat, dripping on his floor, watching him work. He didn’t ask her name. She didn’t offer it.

But when he wound the watch and it gave a shy tick-tick, she smiled—a real one. And that was enough for the first day.


Chapter Three: Every Day at Four

The girl—her name was Lyra, he’d learn later—began visiting the shop every day at four. She brought things that didn’t work: a rusted alarm clock, a music box with a stuck ballerina, a wall clock that sang the wrong song. She always watched him work, always left without lingering.

Ellis never asked why.

But he noticed how she flinched at loud sounds. How she held her locket like a tether. And how she would glance at the door, as though someone might follow her in.

One afternoon, she stayed after the repair. Her voice, when it came, was like a wind-chime in fog.

“Do you believe some things are meant to break?”

Ellis looked up from a delicate gear in his palm. “No,” he said. “I believe some things are waiting for the right hands to help them remember.”

Lyra lowered her gaze. “What if it’s not a thing? What if it’s a person?”

Ellis set down the gear and said nothing for a long moment.

Then he whispered, “Especially then.”


Chapter Four: The Garden That Stopped Blooming

After a month of clock repairs and quiet glances, Lyra invited Ellis to her home. She lived in an old manor outside town, covered in ivy, with a gate that hadn’t opened in years. The garden had grown wild and strange, with roses that never bloomed and trees that bent inward as if listening.

“My mother was a botanist,” she said, leading him through the tangled paths. “She died two years ago. Since then, nothing grows. It’s like the house is mourning.”

Ellis ran his fingers over a branch. “Maybe it’s waiting.”

“For what?”

“For joy to come back.”

Lyra laughed, but it cracked like thin glass. “I don’t know if I can give it that.”

“You’ve already given it your presence. That’s a start.”

She turned to him. “Why are you kind to me?”

Ellis met her gaze, steady and unafraid. “Because even broken things deserve kindness. Especially them.”


Chapter Five: The Whispering Clock

One evening, Lyra brought a curious item: a clock shaped like a heart, with intricate gears and a faint hum—though it didn’t move.

“I found it in my attic,” she said. “It belonged to my mother.”

Ellis examined it. The heart-clock was unlike anything he’d ever seen. Inside it, faintly, he heard something—not ticking, but... whispering. It wasn’t words. It was memory.

“May I keep it for a few days?” he asked.

Lyra nodded. And for the first time, she touched his hand. Brief. But it warmed him through.

That night, the heart-clock glowed faintly on his desk. Ellis worked until dawn. Not fixing it. Listening.

He heard laughter. Lyra’s laughter, but as a child. He heard lullabies. Arguments. A voice saying, “I love you more than life, Lyra.”

It was her mother. The clock had been built not just with gears—but with memory, grief, and love.


Chapter Six: A Place Time Forgot

The next day, Ellis brought Lyra the heart-clock, now ticking gently, glowing in rhythm.

When she held it, she cried. Not the kind of crying that wounds—but the kind that heals. The kind that says thank you for remembering me.

“I used to think I’d forget her voice,” she whispered.

Ellis placed his hand over hers. “Now you never will.”

They stood in the garden, and Ellis noticed: a single rose had bloomed. Small, red, and defiant.


Chapter Seven: The Day the River Stopped

A strange thing happened in Eldhollow.

The river, which never hurried, stopped.

It simply froze mid-flow, like a paused breath. People panicked. Birds flew in spirals. The sun stayed in one place.

Ellis and Lyra stood on the hill and watched.

“This isn’t right,” Lyra said.

Ellis closed his eyes. He could hear the clocks in town. All of them had stopped.

Except one.

The heart-clock.

Back at the shop, they found it glowing brighter than ever. Ellis placed his ear to it and heard something new:

“She must choose.”

“What does that mean?” Lyra asked.

Ellis didn’t know. But he had a feeling.

Time, he realized, wasn’t just something he repaired. It was something he was part of. And Lyra... she had brought a piece of time trapped in grief. Now time was listening.


Chapter Eight: The Choice

That night, Lyra stood beneath the rose bush in bloom, holding the heart-clock.

“I was going to leave Eldhollow,” she said. “I was supposed to marry someone in the city. Someone my mother approved of before she died. But I ran. Because I didn’t love him.”

Ellis stepped closer. “And now?”

“I don’t know what I feel.” Her voice trembled. “But I know I feel it with you.”

Ellis reached out. Not to hold her, but to be there if she needed holding.

“I hear time,” he whispered. “But with you, it sings.”

The clock pulsed once, gently.

And the river began to move again.


Chapter Nine: A New Bloom

Spring truly arrived the next morning. Not just on the calendar—but in the soul of Eldhollow. Flowers burst from places long dormant. The townsfolk smiled more.

Lyra didn’t leave.

She stayed, not because she had to—but because something deep and ancient had rooted in her heart. Something warm. Something patient.

Love didn’t arrive like thunder in Eldhollow.

It arrived in tick-tick-ticks, in quiet cups of tea, in gardens replanted, in hands brushed accidentally, in a clock that whispered a mother’s lullaby.

Ellis and Lyra walked the garden one evening as fireflies blinked awake. She looked up at him and asked, “Do you believe in forever?”

Ellis smiled. “I believe in now. And if we have enough ‘nows,’ we’ll make a forever.”

And Lyra kissed him.

Not out of passion—but out of peace. Out of a longing that finally found home.


Epilogue: The Garden of Hours

Years later, people still visit Eldhollow.

They say if you enter the garden behind the clockmaker’s shop, time feels strange—slower, softer. Roses bloom all year. There’s a heart-clock in the center, still ticking.

No one knows how Ellis Thorne and Lyra Everen met. Only that love, in that garden, never hurries.

It simply stays.

Ticking.

Waiting.

Blooming

Tuesday, April 29, 2025

Trump congratulates Canada's Carney as they agree to meet in 'near future


 US President Donald Trump has called Canadian Prime Minister Mark Carney to congratulate him on his victory in the country's general election and the two have agreed meet in the near future.

The two countries were expected to enter talks about a new economic and security relationship after Monday's vote.

Trump's trade tariffs and repeated comments undermining Canada's sovereignty overshadowed the race, which ended with Carney's Liberals projected to win a minority government, according to public broadcaster CBC.

That result will make Carney's pressing tasks of negotiating with his US counterpart and tackling a range of domestic issues more of a challenge, as he'll need to wrangle support from other political parties.

In their first call since the election, Trump congratulated Carney on his victory, according to the prime minister's office on Tuesday.

The office also said the two leaders had "agreed on the importance of Canada and the United States working together – as independent, sovereign nations – for their mutual betterment".

The Liberals will need to rely on their support to pass legislation through the House of Commons.

They also face possible defeat in any vote of confidence in the chamber.


The Liberals are most likely to find willing partners with the diminished left-wing New Democrats, who have in the past supported the Liberals, and the Bloc Québécois.

The Liberals are projected to have won 169 seats, three short of the 172 needed for a majority in Canada's House of Commons.

It still marks a historic turnaround for a party that had seemed on course for collapse just months ago.

Carney, a former central banker for Canada and the UK, will continue as prime minister, having stepped into the role last month following his unpopular predecessor Justin Trudeau's resignation.

One issue where it may be easy for the Liberals to find support in the House is in passing legislation to help workers and industries affected by US tariffs - something all parties swung behind on the campaign trail.

  • RESULTS: How Canada voted - in charts
  • ANALYSIS: Trump made Carney's turnaround victory possible
  • PROFILE: Five things Carney has pledged to do as Canadian PM
  • WATCH: Relief, disappointment or surprise? Canadians reactOn Tuesday morning, Bloc Québécois leader Yves-Francois Blanchet suggested Carney could benefit from at least a period of stability in the House.
  • Blanchet urged a "truce" among parties while Canada negotiated trade with the US, saying it was clear Canadians wanted political stability in unstable times.

    He said it wasn't time for other parties to "threaten to overthrow the government anytime soon" and didn't see any scenario "other than collaboration for a period of slightly over a year".

    The leader of the sovereigntist party, which only runs candidates in Quebec, did urge Carney to avoid pressing the province on certain issues, noting that collaboration goes both ways.

    On Tuesday, the White House commented on Carney's win, with deputy press secretary Anna Kelly saying: "The election does not affect President Trump's plan to make Canada America's cherished 51st state."

    In an interview with the BBC, Carney said that Canada deserves "respect" from the US and he will only allow a Canada-US trade and security partnership "on our terms".

    Carney has told the BBC that a 51st state scenario was "never, ever going to happen".

    Meanwhile, new US ambassador to Canada, Pete Hoekstra, said in a video statement that he is "committed to making progress in this great relationship".

    Carney has also promised action on a range of domestic issues, including tackling the country's housing crisis and tax cuts for lower- and middle-income Canadians.

    The prime minister also needs to prepare for the G7 summit in June, which Canada is hosting in the province of Alberta.

    In Monday's election, both the Liberals and the Conservatives saw a significant rise in their share of the national vote compared with four years ago.

    The Conservative Party came in second, on track to win 144 seats, and will form Official Opposition.

    Increased support for Canada's two largest parties has come at the expense of smaller parties, particularly the NDP, whose share of the popular vote is down by around 12 percentage points.

    Voter turnout for the election was 67%.

    Both Conservative leader Pierre Poilievre and NDP leader Jagmeet Singh lost their seats, with Singh announcing he will step down as leader of the left-wing party.

Reviving the Bengal Tiger: A Strategic Blueprint for Bangladesh's Economic Recovery and Sustainable Growth


 

Recovering and strengthening the economy of Bangladesh requires a comprehensive, long-term strategy that addresses both structural weaknesses and immediate crises. Here's a detailed plan under unique headings to tackle each major obstacle discussed earlier:


1. Diversifying the Economic Base Beyond RMG

Solution Strategies:

  • Invest in High-Potential Sectors: Accelerate the growth of IT, pharmaceuticals, light engineering, and agro-processing through government incentives, public-private partnerships, and export subsidies.

  • Build Value Chains: Move from basic RMG to high-value fashion design and textile innovation. Support startups and SMEs to diversify production.

  • Improve Trade Agreements: Seek new bilateral and multilateral trade agreements beyond traditional markets (EU, US) to reduce export concentration.


2. Ensuring Political Stability and Good Governance

Solution Strategies:

  • Strengthen Democratic Institutions: Support independent judiciary, transparent electoral systems, and media freedom to ensure policy continuity.

  • Combat Corruption: Empower anti-corruption commissions, digitize public services to minimize bureaucracy and bribery.

  • Inclusive Dialogue: Create national platforms for dialogue among political parties, civil society, and businesses to ensure stability.


3. Curbing Inflation and Strengthening Fiscal Management

Solution Strategies:

  • Monetary Policy Reforms: Strengthen the central bank’s autonomy to control inflation, manage exchange rates, and regulate liquidity.

  • Tax System Overhaul: Broaden the tax base by integrating the informal economy, modernizing tax collection, and reducing dependency on VAT.

  • Public Expenditure Rationalization: Audit and prioritize government spending; cut wasteful subsidies and redirect funds to social protection.


4. Revamping the Energy Sector

Solution Strategies:

  • Renewable Energy Investments: Expand solar, wind, and hydroelectric projects with foreign partnerships and green bonds.

  • Energy Efficiency Programs: Promote energy audits in industries and incentivize the use of efficient appliances.

  • Strategic Energy Reserves: Build oil and gas reserves and sign long-term LNG contracts to avoid sudden price shocks.


5. Building Climate Resilience

Solution Strategies:

  • Coastal Infrastructure Development: Construct embankments, tidal barriers, and cyclone shelters in vulnerable areas.

  • Climate-Smart Agriculture: Promote drought-resistant crops, drip irrigation, and training for farmers on climate adaptation.

  • Green Financing: Leverage international climate funds and carbon credits to finance sustainable development projects.


6. Tackling Youth Unemployment and Skill Gaps

Solution Strategies:

  • Vocational and Technical Training: Expand TVET programs aligned with market demands, especially in ICT, healthcare, and construction.

  • Public-Private Apprenticeships: Encourage private firms to offer internships and apprenticeships through tax breaks or subsidies.

  • Startup Ecosystem Support: Provide seed funding, incubation, and regulatory support to youth-led businesses and social enterprises.


7. Reforming the Financial Sector

Solution Strategies:

  • Strengthen Banking Regulation: Enforce stricter lending standards, reduce non-performing loans, and recapitalize weak banks.

  • Financial Inclusion Programs: Use mobile banking and fintech to bring unbanked populations into the formal financial system.

  • Encourage Capital Markets: Develop stock and bond markets to reduce dependence on banks and attract long-term investments.


8. Upgrading Infrastructure and Urban Planning

Solution Strategies:

  • Mass Transit Systems: Accelerate metro rail and BRT (Bus Rapid Transit) development to ease congestion in Dhaka and other cities.

  • Smart Urban Planning: Develop secondary cities, ensure zoning laws are enforced, and relocate industries from dense residential areas.

  • Public-Private Infrastructure Funds: Attract FDI and multilateral loans for sustainable infrastructure projects.


9. Export Diversification and Market Expansion

Solution Strategies:

  • Incentivize New Exporters: Offer tax holidays or export bonuses for companies entering non-RMG exports or new international markets.

  • Branding and Quality Certification: Assist exporters with quality control, international certifications (ISO, HACCP), and global marketing.

  • E-commerce Facilitation: Promote online platforms for SMEs to access foreign buyers directly via B2B or B2C marketplaces.


10. Revamping the Remittance Ecosystem

Solution Strategies:

  • Skill Development for Migrants: Train potential migrants in higher-skilled jobs to access better-paying markets.

  • Combat Hundi System: Lower the cost of formal remittance transfers and incentivize migrants through loyalty programs or matching savings schemes.

  • Diaspora Bonds: Offer secure investment opportunities to the Bangladeshi diaspora to finance national development.


11. Empowering Women Economically

Solution Strategies:

  • Expand Credit Access: Support women entrepreneurs through microcredit, grants, and training.

  • Legal Reforms: Ensure women's rights to inheritance, land ownership, and workplace safety.

  • Childcare and Flexibility: Create childcare facilities and flexible work environments to increase women’s labor force participation.


12. Strengthening Digital and Technological Infrastructure

Solution Strategies:

  • Improve Internet Access: Expand broadband in rural areas and reduce digital service costs.

  • Digital Governance: Shift government services online to reduce corruption and boost efficiency.

  • Cybersecurity Investment: Build national frameworks to protect businesses and public infrastructure from cyber threats.


13. Reviving Investor Confidence

Solution Strategies:

  • Stable Policy Framework: Maintain consistent, long-term industrial and tax policies.

  • One-Stop Investor Services: Simplify business registration, customs clearance, and utility connections through digital portals.

  • Land Reforms: Establish industrial zones with ready access to utilities and land acquisition mechanisms.


14. Strengthening Regional Cooperation

Solution Strategies:

  • South Asia Trade Corridors: Collaborate with India, Nepal, and Bhutan to develop cross-border energy and transportation links.

  • Blue Economy Initiatives: Exploit maritime resources and port logistics with strategic partners like Japan or China.

  • Rohingya Crisis Diplomacy: Work with ASEAN, OIC, and the UN for refugee repatriation and support to reduce economic strain.


Conclusion: A Roadmap for Inclusive and Sustainable Growth

Recovering Bangladesh’s economy is not just about reversing crises—it’s about rebuilding better, with resilience and equity at the center. The country must:

  • Reform governance to build trust and attract investment.

  • Empower youth and women to tap into the full demographic dividend.

  • Build green, smart infrastructure to adapt to climate threats and urban challenges.

  • Diversify both products and markets to build a sustainable export economy.

With coordinated leadership, international cooperation, and a clear national vision, Bangladesh can not only recover but also leap forward as a resilient middle-income country in the next decade.

Angladesh's Economic Crossroads: Navigating Challenges and Charting a Path Forward

 



As of April 2025, Bangladesh stands at a pivotal juncture in its economic journey. The nation, once lauded for its rapid growth and poverty reduction, now grapples with a confluence of challenges that threaten to derail its progress. Political upheaval, persistent inflation, a fragile banking sector, and external shocks have converged to create a complex economic landscape. Yet, amidst these trials, opportunities for reform and resilience emerge, offering a chance to recalibrate and forge a sustainable path forward.


1. Political Transition and Economic Stability

The resignation of Prime Minister Sheikh Hasina in August 2024, following mass protests, marked a significant political shift. The interim government, led by Nobel laureate Muhammad Yunus, was tasked with stabilizing the nation and steering it toward democratic elections. While this transition aimed to restore public confidence, it also introduced a layer of uncertainty that has affected economic activities.

The interim government's primary focus has been on restoring governance and addressing systemic issues. However, the lack of a clear economic roadmap and the anticipation of upcoming elections have led to cautious behavior among investors and consumers alike. This hesitancy has manifested in reduced investment inflows and a slowdown in economic momentum.


2. Inflation: The Pressing Economic Concern

Inflation has emerged as the most pressing economic concern for Bangladesh in 2025. According to the World Economic Forum, inflation tops the list of risks facing the country this year. The Consumer Price Index (CPI) has seen a significant uptick, with food prices experiencing the most substantial increases.

Several factors contribute to this inflationary trend:

  • Currency Depreciation: The Bangladeshi Taka has weakened against major currencies, making imports more expensive and fueling domestic price increases.

  • Supply Chain Disruptions: Global supply chain issues, exacerbated by geopolitical tensions and the lingering effects of the COVID-19 pandemic, have led to shortages and increased costs of essential goods.

  • Energy Prices: Rising global energy prices have translated into higher transportation and production costs domestically.

The government's response has included monetary tightening measures, such as increasing interest rates. However, these steps have yet to yield significant results, and inflation remains a critical issue affecting the purchasing power of citizens.


3. Banking Sector Vulnerabilities

The banking sector in Bangladesh is facing significant challenges, characterized by a high volume of non-performing loans (NPLs) and governance issues. The central bank has initiated reforms, including the dissolution and reconstitution of boards in several private banks, to address these concerns.

Despite these efforts, the sector continues to grapple with:

  • Liquidity Crises: Several banks are experiencing liquidity shortages, prompting the central bank to provide emergency funding.

  • Credit Growth Stagnation: Private sector credit growth has slowed, impacting business expansion and economic growth.

  • Public Confidence: Persistent issues within the banking sector have eroded public trust, leading to increased cash holdings and reduced bank deposits.

Addressing these vulnerabilities is crucial for restoring financial stability and fostering economic growth.


4. Trade Dynamics and External Pressures

Bangladesh's trade sector is under pressure from both regional and global developments. The revocation of a transshipment facility by India, which previously allowed Bangladeshi exports to transit through Indian territory, has disrupted trade routes and increased logistical costs.

Additionally, global trade tensions and protectionist policies in key markets have impacted export volumes, particularly in the ready-made garments (RMG) sector, which is a cornerstone of Bangladesh's economy. Tariff hikes and stringent compliance requirements have made it more challenging for Bangladeshi exporters to maintain their competitive edge.

To mitigate these challenges, Bangladesh is exploring new markets and trade agreements, while also investing in infrastructure to enhance export capabilities.


5. Investment Climate and Industrial Growth

The investment climate in Bangladesh has been subdued, with foreign direct investment (FDI) inflows remaining modest compared to regional peers. Factors contributing to this include:

  • Regulatory Hurdles: Complex regulatory frameworks and bureaucratic inefficiencies deter potential investors.

  • Infrastructure Deficits: Inadequate infrastructure, including power supply and transportation networks, hampers industrial growth.

  • Political Uncertainty: The ongoing political transition has led to a wait-and-see approach among investors.

Despite these challenges, initiatives like the National Special Economic Zone aim to attract investment by offering incentives and streamlined processes. The success of such initiatives will be pivotal in revitalizing industrial growth and employment.


6. Social Challenges: Employment and Inequality

Bangladesh faces significant social challenges, particularly in employment and income inequality. While the overall unemployment rate has seen some improvement, youth unemployment remains high, especially among educated urban populations.

Income inequality has also widened, with the Gini coefficient indicating a growing disparity between different socioeconomic groups. This inequality is more pronounced in urban areas, where the cost of living has surged due to inflation.

Addressing these issues requires targeted policies focusing on skill development, job creation, and social safety nets to support vulnerable populations.


7. Environmental Concerns and Climate Vulnerability

Environmental issues pose a long-term threat to Bangladesh's economic stability. The country is highly susceptible to climate change impacts, including rising sea levels, extreme weather events, and pollution.

The textile industry, a significant contributor to the economy, is under scrutiny for its environmental footprint. Efforts are underway to enhance sustainability through waste recycling and cleaner production methods. However, more comprehensive strategies are needed to balance economic growth with environmental preservation.


8. Path Forward: Policy Recommendations

To navigate the current economic challenges, Bangladesh should consider the following policy measures:

  • Monetary and Fiscal Coordination: Ensure cohesive policies to control inflation without stifling growth.

  • Banking Sector Reforms: Implement stringent oversight and governance reforms to restore confidence in the financial system.

  • Trade Diversification: Explore new markets and strengthen regional trade partnerships to reduce dependency on traditional markets.

  • Investment Promotion: Simplify regulatory processes and improve infrastructure to attract both domestic and foreign investment.

  • Social Protection Programs: Expand social safety nets and employment programs to support vulnerable populations.

  • Environmental Sustainability: Integrate environmental considerations into economic planning to ensure long-term resilience.


Conclusion

Bangladesh's economy in 2025 stands at a crossroads, facing a complex interplay of political, economic, and environmental challenges. Addressing these issues requires a multifaceted approach, combining immediate policy interventions with long-term strategic planning. With decisive action and inclusive governance, Bangladesh can navigate these turbulent times and lay the foundation for sustainable and equitable growth.

​Bangladesh's Economic Crossroads: Navigating Inflation, Political Transition, and Global Pressures in 2025

 


As Bangladesh steps into 2025, the nation's economy finds itself at a pivotal juncture, grappling with a confluence of internal challenges and external pressures. The political upheaval of 2024, marked by the resignation of Prime Minister Sheikh Hasina and the establishment of an interim government led by Nobel laureate Muhammad Yunus, has ushered in a period of uncertainty. This political transition, coupled with persistent inflation, a fragile banking sector, and global economic headwinds, has significantly impacted the country's economic landscape.AP News+2Wikipedia+2Wikipedia+2


1. Political Transition and Economic Implications

The political landscape of Bangladesh underwent a seismic shift in August 2024 when mass protests led to the resignation of Prime Minister Sheikh Hasina. In response, an interim government was formed under the leadership of Muhammad Yunus, tasked with stabilizing the nation and steering it toward democratic elections. While this transition aimed to restore public confidence, it also introduced a layer of uncertainty that has affected economic activities.

The interim government's primary focus has been on restoring governance and addressing systemic issues. However, the lack of a clear economic roadmap and the anticipation of upcoming elections have led to cautious behavior among investors and consumers alike. This hesitancy has manifested in reduced investment inflows and a slowdown in economic momentum.Wikipedia+1Wikipedia+1


2. Inflation: The Pressing Economic Concern

Inflation has emerged as the most pressing economic concern for Bangladesh in 2025. According to the World Economic Forum, inflation tops the list of risks facing the country this year. The Consumer Price Index (CPI) has seen a significant uptick, with food prices experiencing the most substantial increases.Asia News Network - Bringing Asia Closer

Several factors contribute to this inflationary trend:

  • Currency Depreciation: The Bangladeshi Taka has weakened against major currencies, making imports more expensive and fueling domestic price increases.

  • Supply Chain Disruptions: Global supply chain issues, exacerbated by geopolitical tensions and the lingering effects of the COVID-19 pandemic, have led to shortages and increased costs of essential goods.

  • Energy Prices: Rising global energy prices have translated into higher transportation and production costs domestically.

The government's response has included monetary tightening measures, such as increasing interest rates. However, these steps have yet to yield significant results, and inflation remains a critical issue affecting the purchasing power of citizens.


3. Banking Sector Vulnerabilities

The banking sector in Bangladesh is facing significant challenges, characterized by a high volume of non-performing loans (NPLs) and governance issues. The central bank has initiated reforms, including the dissolution and reconstitution of boards in several private banks, to address these concerns.Centre for Policy Dialogue (CPD)

Despite these efforts, the sector continues to grapple with:

  • Liquidity Crises: Several banks are experiencing liquidity shortages, prompting the central bank to provide emergency funding.

  • Credit Growth Stagnation: Private sector credit growth has slowed, impacting business expansion and economic growth.The Financial Express

  • Public Confidence: Persistent issues within the banking sector have eroded public trust, leading to increased cash holdings and reduced bank deposits.

Addressing these vulnerabilities is crucial for restoring financial stability and fostering economic growth.


4. Trade Dynamics and External Pressures

Bangladesh's trade sector is under pressure from both regional and global developments. The revocation of a transshipment facility by India, which previously allowed Bangladeshi exports to transit through Indian territory, has disrupted trade routes and increased logistical costs.Reuters

Additionally, global trade tensions and protectionist policies in key markets have impacted export volumes, particularly in the ready-made garments (RMG) sector, which is a cornerstone of Bangladesh's economy. Tariff hikes and stringent compliance requirements have made it more challenging for Bangladeshi exporters to maintain their competitive edge.

To mitigate these challenges, Bangladesh is exploring new markets and trade agreements, while also investing in infrastructure to enhance export capabilities.


5. Investment Climate and Industrial Growth

The investment climate in Bangladesh has been subdued, with foreign direct investment (FDI) inflows remaining modest compared to regional peers. Factors contributing to this include:

  • Regulatory Hurdles: Complex regulatory frameworks and bureaucratic inefficiencies deter potential investors.

  • Infrastructure Deficits: Inadequate infrastructure, including power supply and transportation networks, hampers industrial growth.

  • Political Uncertainty: The ongoing political transition has led to a wait-and-see approach among investors.

Despite these challenges, initiatives like the National Special Economic Zone aim to attract investment by offering incentives and streamlined processes. The success of such initiatives will be pivotal in revitalizing industrial growth and employment.Wikipedia


6. Social Challenges: Employment and Inequality

Bangladesh faces significant social challenges, particularly in employment and income inequality. While the overall unemployment rate has seen some improvement, youth unemployment remains high, especially among educated urban populations.

Income inequality has also widened, with the Gini coefficient indicating a growing disparity between different socioeconomic groups. This inequality is more pronounced in urban areas, where the cost of living has surged due to inflation.

Addressing these issues requires targeted policies focusing on skill development, job creation, and social safety nets to support vulnerable populations.


7. Environmental Concerns and Climate Vulnerability

Environmental issues pose a long-term threat to Bangladesh's economic stability. The country is highly susceptible to climate change impacts, including rising sea levels, extreme weather events, and pollution.

The textile industry, a significant contributor to the economy, is under scrutiny for its environmental footprint. Efforts are underway to enhance sustainability through waste recycling and cleaner production methods. However, more comprehensive strategies are needed to balance economic growth with environmental preservation.Reuters


8. Path Forward: Policy Recommendations

To navigate the current economic challenges, Bangladesh should consider the following policy measures:

  • Monetary and Fiscal Coordination: Ensure cohesive policies to control inflation without stifling growth.

  • Banking Sector Reforms: Implement stringent oversight and governance reforms to restore confidence in the financial system.

  • Trade Diversification: Explore new markets and strengthen regional trade partnerships to reduce dependency on traditional markets.

  • Investment Promotion: Simplify regulatory processes and improve infrastructure to attract both domestic and foreign investment.

  • Social Protection Programs: Expand social safety nets and employment programs to support vulnerable populations.

  • Environmental Sustainability: Integrate environmental considerations into economic planning to ensure long-term resilience.


Conclusion

Bangladesh's economy in 2025 stands at a crossroads, facing a complex interplay of political, economic, and environmental challenges. Addressing these issues requires a multifaceted approach, combining immediate policy interventions with long-term strategic planning. With decisive action and inclusive governance, Bangladesh can navigate these turbulent times and lay the foundation for sustainable and equitable growth