BANGLADESH: GOVERNMENT PASSES BUDGET AMID RISING POLITICAL FRICTION AND TRADE TENSIONS

   Tue, 17 June 2025

The interim government has unveiled a fiscally conservative budget that prioritises stabilisation over stimulus, despite mounting economic pressures and limited social spending. This cautious approach reflects the administration’s constrained political mandate, which is increasingly tested by electoral tensions and divergent demands from key actors, including major political parties, the army, and reformist groups. Simultaneously, escalating trade frictions with India, compounded by global protectionist trends, are straining Bangladesh’s vital garment export sector. Together, these developments underscore the fragility of the country’s political and economic transition, with uncertainty likely to persist until an elected government assumes power.

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