The story of the extraordinary transformation of the economy of Bangladesh is really amazing. The beginning was very challenging. After the Liberation War, Bangladesh was a pile of ruins.

It can be mentioned that Bangladesh started its development journey with empty hands. But the great asset was the inspiring aesthetic leadership of Father of the Nation Bangabandhu Sheikh Mujibur Rahman. It is the fighting spirit of this leadership given to the nation that pulls Bangladesh on the highway of development.

Between 1972 and 1975, the per capita income of Bangladesh increased from $99 dollars to $260. It increased by 163%. But during 1975-1978 period, it increased by only 52%. It proves that a capable leadership is very much important for development of any nation. The per capita income was $699 in 2009 and it nearly quadrupled in 2022. The importance of leadership is also visible in this phase. The average growth was 4.15% in the five-year period of 1991-1995 and in 2016-2020 period it increased to 7.14%.

The industrial sector GDP has increased from 22% to 37% in the last decade. The production of pulses in 1972 was 15 million tons which increased to 52 million tons in 2010. And the amount stands at 63 million tons in 2021. All these have had an impact on reducing overall poverty rate of the country. In 2010, the poverty rate was 31.5% which decreased to 18.7% in 2022.

Apart from this, the improvement in human development indicators was also noticeable. Average life expectancy in 2005 was 65.2 years and now stands at 73 years. In the period of 2005-2023, the infant mortality rate decreased from 51 per thousand to 22. Similarly, the maternal mortality rate decreased from 376 to 123 per lakh during that period.

Factors behind this remarkable development in Bangladesh's socio-economic indicators include: rapid development of the manufacturing sector including ready-made garments, massive increase in emigration income, remarkable transformation and growth of multifaceted agriculture, widespread financial inclusion driven by the use of digital technology, greater participation of women in the formal sector (30% to 38% in the phase of 2009-2023) and supplying electricity to 100% of households.

At this time, Bangladesh did not take any major wrong strategy in economy and politics. Rather, Bangladesh has moved forward by avoiding economic and political instability that resulted in eye-catching success. However, some instability is seen in the macro economy.

Despite the excellent handling of the Covid crisis, the external economy of Bangladesh has come under quite a bit of pressure due to the impact of the Ukraine war. Massive import price hikes and low remittances and export earnings causing a major shock to the balance of trade. This situation cannot be said to have improved by depleting reserves.

Rather, the price of money has decreased by about 30 percent. Due to this, the price of imported goods has increased. That is why, it is becoming difficult to bring inflation under control. There seems to be no alternative to making balanced monetary and revenue policy.