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Many expectations, including a sustainable recovery of the country’s damaged economy, have remained unmet in the past one year since the July mass uprising, businesses and economists said.

The July uprising ousted the Sheikh Hasina-led authoritarian Awami League regime on August 5, 2024.

Businesses and economists observed that during the ousted regime, political figures and regime-linked businesses ruined the country’s economy by widespread money laundering, financial sector scams, embezzlement and other forms of corruption.

They, however, said that a number of expectations, including the restoration of stability to some extent in the banking sector and foreign exchange reserve situation and sustained export earnings, were achieved in the past one year under the interim government that assumed office on August 8, 2024.

However, several major challenges, including disruptions in gas and electricity supply, increased costs of doing business, political instability and weakness in macroeconomic stability, have continued to cast a shadow over the recovery of business and trade throughout the year, they said.

Anwar Ul Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries, said that they had high expectations from the interim government.

‘Although some expectations have been met, the issues like high inflation, local currency devaluation, high bank interest rate, political uncertainty, unrests at the National Board of Revenue   and port-related issues still persist,’ he added.

He also said that the law and order situation remained fragile, and instances of mob culture had lowered the business confidence in the country.

Due to repeated labour unrests, many factories closed in the past year, which led to an increase in unemployment, he added.

According to Industrial Police data, more than 100 units closed between August 2024 and May 2025, resulting in about 60,000 workers becoming unemployed.

Moreover, various protests in the government and private sectors have undermined the investment climate and threatened operational continuity in many sectors during the interim government, businesses and economists said.

They said that a low level of foreign direct investment, a contractionary monetary policy and an uncertainty over the state’s democratic transition also impacted the businesses throughout the year, they said.

The 2024–25 financial year began with political turmoil in July 2024, marked by the quota reform movement, widespread student protests, the mass uprising and the ousting of the government, disrupting economic activities.

Throughout the past year marked by a fragile law and order situation, labour unrests and demand-related protests, including a ‘complete shutdown’ at the NBR over the splitting of the revenue board, the country’s economy was under a great strain.

Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association, said that the achievements fell short of their expectations.

‘Stability in the bank sector and foreign exchange reserve was achievement, but disruptions in gas and electricity supply have remained as a challenge,’ he added.

He also said that the fragile law and order situation was the major challenge in the past year, though the situation had started improving.

‘Apart from the protests at the NBR, efficiency in ports and customs houses has remained unchanged, though there were initiatives to improve the situation,’ he said.

Mahmud also said that achieving political stability and a swift transition to democracy still remained uncertain.

Despite such uncertainties, Bangladesh earned $48.28 billion in the FY 2024-25 by exporting goods to its global destinations. The earnings are 8.58 per cent higher than $44.46 billion achieved in FY24.

Bangladesh’s economic challenges have also been augmented by the imposition of a 35 per cent ‘reciprocal’ tariff by the United States in July.

The tariff imposed by the Trump administration is scheduled to come into effect on August 1.

However, a Bangladeshi delegation held the third round of tariff talks in Washington from July 29 to July 30 in the hope of reducing the rate.

Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association, told ¶¶Òõ¾«Æ· that despite some growth in the past one year, instability remained.

‘Though the bank looting stopped and banks recovered to some extent, the issues in the energy sector still persist, hindering the inflow of foreign investment,’ said Mohiuddin, also additional managing director of Denim Expert Ltd.

Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue, a local think tank, said that the weakness in macroeconomic stability and a lower flow of foreign direct investment and private investment persisted.

‘Due to the contractionary monetary policy adopted by the Bangladesh Bank and high bank interest rate, the private sector could not flourish as per expectations,’ he said.

He also said that due to contractionary measures and higher cost of doing business, the import of machinery decreased and the opening of letters of credit remained low.

According to Bangladesh Bank data, LC openings rose by just 0.18 per cent year-on-year to $69.01 billion in FY25 compared with that of $68.89 billion in the previous financial year.

M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh, said that there were expectations that a post-uprising government would take sufficient measures to increase FDI flow, implement trade-related reforms, end corruption and initiate initiatives for macroeconomic stability.

‘There were some achievements in stabilising reserves and rescuing banks from looters, but the expectation of lowering inflation remained unmet,’ he added.

Moreover, the most visible disappointment was to fail to attract massive foreign investments, he said, adding that there was also a gap between the government and the private sector.