Leading economists, industry leaders, and policymakers on Tuesday called for urgent institutional and governance reforms to secure sustainable economic growth in Bangladesh.

The July–August edition of the Monthly Macroeconomic Insights (MMI), hosted by the Policy Research Institute (PRI) in partnership with the Australian Government’s Department of Foreign Affairs and Trade (DFAT) at PRI’s office in Dhaka, highlighted key challenges and recommendations for the country’s economic transition.

The discussion, chaired by Khurshid Alam, Executive Director of PRI, focused on constraints affecting growth, including limited capital machinery imports, weak institutional capacity, and governance challenges.

He stressed the importance of balancing stability with long-term growth, emphasising that achieving sustainable development will require deeper and more comprehensive reforms.

Mohammed Farashuddin, Chairperson of East West University’s Board of Trustees and former Governor of Bangladesh Bank, highlighted the urgency of tax reform and financial integrity, noting the need to bring 20 lakh new taxpayers into the system annually while combating money laundering.

He also underscored the importance of supporting small entrepreneurs through skills development and access to affordable credit to boost employment.

Delivering the keynote, Ashikur Rahman, Principal Economist at PRI, warned that the erosion of Bangladesh Bank’s independence in the past had allowed unchecked financial irregularities, weakening the economy’s foundations.

He urged the government to grant full autonomy to the central bank, comparing the proposed reforms to governance models like the Bank of England or the US Federal Reserve.

‘Central bank independence is no longer a policy choice; it is essential for Bangladesh’s economic stability,’ Ashikur said.

Kamran T Rahman, President of the Metropolitan Chamber of Commerce and Industry (MCCI), highlighted the need for coordinated action between the government, private sector, and development partners to harness Bangladesh’s demographic dividend.

Clinton Pobke, Deputy Head of Mission at the Australian High Commission, reaffirmed Australia’s commitment to supporting Bangladesh’s reform agenda through trade, investment, and development partnerships, while warning that reform windows are rare and easily lost.

Panelists, including Khondoker Shakhawat Ali of BRAC University and Rizwan-ur Rahman, former DCCI president, emphasised the growing role of technology in banking and the need for stronger regulation, cybersecurity, and accountability mechanisms.