Bangladesh has undergone a substantial economic transformation since independence, moving from a highly state-controlled economic system toward a more market-oriented and export-led development model. This manuscript reviews the evolution, achievements, and unresolved challenges of economic reform in Bangladesh, with particular attention to fiscal policy, trade and investment, financial-sector governance, monetary and exchange-rate reform, state-owned enterprises, infrastructure, social protection, and institutional capacity. The analysis combines historical evidence with recent assessments from the World Bank and International Monetary Fund (IMF). Earlier reforms—including denationalization, deregulation, trade liberalization, exchange-rate reform, and greater private-sector participation—supported export expansion and structural transformation, especially through the ready-made garment industry. More recent macroeconomic pressures have exposed persistent weaknesses, including low domestic revenue mobilization, banking-sector vulnerabilities, elevated inflation, limited export diversification, weak investment, and regulatory constraints on firms. Recent IMF-supported reforms have emphasized exchange-rate flexibility, tax-base broadening, financial-sector restructuring, and climate resilience, while World Bank assessments have highlighted the need for stronger competition, trade modernization, business-environment reform, and improved public-sector capacity. The paper argues that the next phase of reform should move beyond stabilization toward productivity-enhancing structural transformation. Priority areas include strengthening tax administration, restoring financial-sector discipline, improving the investment climate, diversifying exports, reducing distortions from trade and tax exemptions, upgrading human capital and infrastructure, and protecting vulnerable households during adjustment. The experience of Bangladesh suggests that reform sequencing, institutional credibility, transparency, and broad-based participation are essential for translating macroeconomic stabilization into durable and inclusive growth.
Keywords:Bangladesh; economic reform; structural transformation; fiscal reform; banking-sector reform