DHAKA, August 2, 2026 (BSS) – Economists, academics, business leaders and policy experts today underscored the importance of strengthening Bangladesh's policy independence to ensure sustainable and inclusive economic development while navigating an increasingly complex global environment.

The observations came at a fireside conversation titled “Development Strategy and Policy Independence: Navigating Bangladesh's Development Pathway,” organized by the Policy Research Institute of Bangladesh (PRI) at its conference room in the capital.

Speaking as the featured guest, Professor Emeritus at Western Sydney University and former Special Assistant to the Chief Adviser, Dr. Anisuzzaman Chowdhury, said policy independence is fundamental to Bangladesh's long-term economic progress.

He said the privatization initiatives introduced during Shaheed President Ziaur Rahman's tenure, the emergence of the ready-made garment (RMG) industry and agricultural integration created the foundation for the country's economic transformation, said a press release.

Referring to the development experiences of Vietnam and South Korea, Dr. Chowdhury said their economic success was built on independent and consistent policymaking tailored to domestic needs. He also noted that during the interim government's tenure, Bangladesh Bank did not fully follow certain policy prescriptions of the International Monetary Fund (IMF), highlighting the importance of adapting reforms to Bangladesh's own economic realities.

He stressed the need to strengthen social capital, empower civil society, eliminate vested interest groups and depoliticize public institutions, particularly educational institutions, to enhance governance and policy autonomy.

Dr. Chowdhury also expressed optimism that tighter global immigration policies would encourage Bangladesh's young population to seek greater economic opportunities and reforms within the country.
PRI Chairman Dr. Zaidi Sattar, who moderated the discussion, said Bangladesh's economic direction changed significantly following the democratic transition in 1991.

Recalling the economic challenges of the early 1990s, he said the country faced stagnant growth, critically low foreign exchange reserves and severe macroeconomic instability.

According to him, the government responded by shifting from an import-substituting, state-controlled economy to a market-oriented, liberalized and open-trade framework through exchange rate flexibility, current account convertibility, privatization and financial sector reforms.

Metropolitan Chamber of Commerce and Industry President Kamran T. Rahman said World Bank and IMF financing has traditionally been accompanied by governance and reform-related conditions. He questioned whether such conditions reflected reforms Bangladesh needed to undertake or commitments that had not been fully implemented.

Centre for Policy Dialogue Executive Director Dr. Fahmida Khatun said Bangladesh has strengthened its policy voice and negotiating capacity over the years, resulting in greater policy independence.

She said, as the country's graduation from Least Developed Country (LDC) status approaches, policymakers should focus on long-term structural transformation rather than short-term adjustments.

She also warned that growing global polarization has weakened multilateral institutions, making international cooperation more difficult, and said genuine policy independence requires resilience against both external pressures and domestic vested interests.

SANEM Executive Director Dr. Selim Raihan said civil society has consistently advocated for deeper reforms, while development partners, including the World Bank and IMF, have increasingly taken country-specific contexts into account. He added that the success of such engagements largely depends on Bangladesh's own negotiating capacity.

Participants exchanged views on the institutional reforms and policy priorities required to support sustained, inclusive and resilient economic development, emphasizing the importance of informed dialogue among policymakers, researchers, private-sector representatives and civil society.

The session featured a distinguished panel: Kamran T. Rahman, President of the Metropolitan Chamber of Commerce and Industry; Dr. Fahmida Khatun, Executive Director of the Centre for Policy Dialogue; Dr. Selim Raihan, Executive Director of the South Asian Network on Economic Modeling (SANEM); Dr. AKM Waresul Karim, Dean of the School of Business and Economics at North South University; and Md. Rezwan Selim, Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).