Bangladesh’s economy is currently in crisis. Even the Finance Minister has acknowledged this difficulty. Over the past 17 years, misrule and corruption, combined with the current global situation, have brought us face-to-face with a tough reality. Fuel prices in the international market are surging rapidly. Furthermore, past policy errors have resulted in severe power and gas shortages.
According to the International Monetary Fund’s (IMF) October 2026 forecast, Bangladesh's Gross Domestic Product (GDP) growth may drop to 3.2% in the 2026–27 fiscal year. During the same period, average inflation is projected to rise to 10.9%. This report was released during the ongoing World Bank and IMF Joint Annual Meetings. The IMF’s World Economic Outlook report noted that Bangladesh’s final GDP growth for FY 2025–26 could end up at 3.6%, with average inflation reaching 8.7%. This indicates that in FY 2026–27, inflationary pressures are expected to rise alongside a decline in the growth rate.
According to data from the Bangladesh Bureau of Statistics (BBS), overall national inflation stood at 8.34% last September.
The IMF stated that the slowing growth rate is a major cause for concern for the economy. Weak economic activity limits opportunities for new investment and job creation. In particular, if private investment does not grow as expected, industrial production, business expansion, and income growth risk being severely disrupted. High inflation can erode real incomes and purchasing power, placing the greatest burden on low- and middle-income families.
Meanwhile, the World Bank recently remarked on Bangladesh's situation, noting that growth is slowing, while private investment and employment remain weak. Industrial production is being hindered by gas and power shortages, while default loans and capital shortfalls are rising in the banking sector. High inflation continues to reduce people's real income and purchasing power.
The government is making sincere efforts to address the economic crisis. However, due to flawed policies from the Yunus era, securing funds from international donors has become difficult. The IMF has not yet approved new loans, and complications have arisen regarding the release of the fourth installment of previous loans. Recently, the Finance Minister requested $10 billion in financial assistance from the World Bank. Following a meeting with World Bank officials, the minister stated that these discussions would continue for several more months. To meet its expenditure, the government borrowed 24,245 crore BDT from the banking sector in the first three months (July–September) of the current 2026–27 fiscal year. Industry insiders say that because revenue collection has fallen short of expectations, reliance on bank borrowing to cover operating and development expenses is increasing. On the other hand, the private sector remains under severe pressure due to energy shortages and other factors. Many industrial units have shut down, while operating facilities are struggling to maintain production. This disruption to economic activity has placed government revenue collection under strain, driving up bank borrowing.
Instead of rushing for loans, the government could resolve this economic crisis through other means. If effective and appropriate steps are taken to recover the massive amounts of money laundered out of Bangladesh over the last 17 years, retrieving these funds is entirely achievable. Once these funds are recovered, Bangladesh will no longer need to seek aid from external sources.
According to a published white paper on the economy, approximately $234 billion was illicitly siphoned out of Bangladesh through various channels between 2009 and 2023—an average of nearly $16 billion leaving the country each year. Furthermore, Transparency International Bangladesh (TIB) estimates that at least another $15 billion was laundered during the 1.5-year rule of the Yunus government.
Under the Yunus administration, funds deposited by Bangladeshis in Swiss banks increased by nearly 41%. According to 2025 figures, Bangladeshi deposits in Swiss banks rose to 834.1 million Swiss Francs (CHF), up from nearly 500 million CHF in 2024.
Although the Yunus government made grand declarations after taking power about repatriating laundered funds, no concrete results were achieved. In fact, premature statements regarding money laundering complicated recovery efforts during that period. By publicly accusing individuals before conducting proper investigations, the real perpetrators were effectively shielded. Moreover, overseas trips were conducted in the name of asset recovery to little effect.
The current government has crafted a well-planned roadmap to address money laundering and has initiated multiple steps to recover siphoned assets. Bangladesh Bank Governor Md. Mostakur Rahman has issued directives to place recovery efforts on a "fast-track" to expedite the return of illicit funds. The government has officially launched a special initiative to repatriate the portion of defaulted bank loans that was siphoned abroad through financial irregularities and corruption. To assist in retrieving these assets, Non-Disclosure Agreements (NDAs) are being signed with nine international agencies. These agencies will assist Bangladesh on a "No Win, No Fee" basis, meaning the Bangladeshi government will incur no upfront costs. The agencies will receive a specific percentage as commission based on the amount they successfully recover; if they fail to retrieve any funds, they cannot claim any financial compensation from the government. However, investigators attempting to bring back hundreds of millions of dollars are encountering a complex international web. Money launderers have employed highly sophisticated, multi-layered strategies to conceal the final destination of illicit assets, making them difficult to penetrate.
Although tax authorities and investigative agencies have partially identified the initial exit routes or primary destination countries, the trail often grows cold after the money moves into third or fourth jurisdictions. As a result, local officials are struggling to pinpoint the exact locations where the laundered assets are currently held.
An inter-agency taskforce led by Bangladesh Bank is currently coordinating these asset recovery efforts. The taskforce includes the Bangladesh Financial Intelligence Unit (BFIU), the Anti-Corruption Commission (ACC), the Criminal Investigation Department (CID), the National Board of Revenue (NBR), and the Attorney General’s Office. The BFIU holds primary responsibility for tracing illicit financial flows and presenting evidence to the taskforce.
The government has identified 10 target countries as potential destinations for the laundered wealth. Among them, Malaysia, Hong Kong, and the United Arab Emirates have agreed in principle to cooperate under Mutual Legal Assistance frameworks. Meanwhile, the United States, the United Kingdom, Canada, Australia, and Switzerland have expressed willingness to cooperate in accordance with international law.
One of the central election pledges of the current government is the repatriation of laundered money, and these efforts must be further intensified. If Bangladesh can recover even half of the laundered wealth, it will not need to seek financial aid from anyone, and the country will move forward. Therefore, retrieving laundered funds should be given top priority to overcome the current economic crisis. This will not only revitalize the Bangladeshi economy but also deter anyone from attempting to launder money in the future.