Bangladesh Follows Pakistan’s Path As Inflation Soars And Job Crisis Deepens Amid Economic Collapse

International News: Economic indicators now mirror Pakistan’s crisis trajectory, raising serious concerns among analysts. Inflation has crossed 8 percent, making it the highest in South Asia. Job creation has stalled due to the absence of new investments. Poverty has surged to 28 percent according to private surveys. Citizens report difficulty managing daily expenses with stagnant income. Experts caution that without economic reforms, conditions may deteriorate further. Growing instability is becoming a major threat to public welfare.

How Severe Is The Inflation Impact On Citizens?

The Bangladesh Bureau of Statistics confirms inflation hit 8.17 percent in October. By comparison, India’s inflation stands at 0.25 percent and Sri Lanka at 2.1 percent. Only Pakistan comes close at 6.2 percent, signalling similar crisis patterns. Daily expenses on food and essentials are escalating rapidly. People complain of no significant increase in wages. Economic uncertainty has reduced purchasing power dramatically. Household budgets are under intense strain nationwide.

Is Poverty Rising Faster Than Expected?

Private studies show poverty levels jumped to 28 percent, far higher than the 18.7 percent official rate in 2022. Citizens blame mismanagement and lack of policy control. Despite financial struggle, government delegations continue travelling abroad. Reports reveal large expenditure on non-essential projects including police uniform changes. Meanwhile, job markets continue shrinking and small businesses are collapsing. Many individuals cannot withdraw deposits from banks, leading to frustration. Trust in financial institutions is weakening sharply.

Why Are New Jobs Not Being Generated?

With foreign and domestic investments declining, employment opportunities have stagnated. Manufacturing sectors face resource shortages and operational constraints. Entrepreneurs express hesitation to start new ventures because of economic instability. Rising inflation has discouraged consumer spending, affecting business growth. Several companies have halted expansion plans due to uncertainty. Experts argue that job stagnation is a direct result of poor economic governance. Young graduates are increasingly leaving for foreign employment.

How Much Has Government Borrowing Increased Recently?

When the interim administration took charge, annual government borrowing was around 11.61 percent. That figure has now surged to 27.22 percent. Private sector lending growth has dropped from 9.86 percent to 6.29 percent. This shows the government is relying heavily on the banking system to cover budget deficits. In June 2023 alone, it took nearly 35 percent of total bank loans. Financial experts warn excessive borrowing may trigger long-term instability. Reduced revenue and rising expenditure are causing fiscal distress.

What Challenges Are Citizens Facing Daily?

People are struggling to manage basic living costs due to falling income. Constant price hikes have made essential items unaffordable for many families. Several citizens reported restrictions while withdrawing their own money from banks. Reduced employment options have forced many to depend on informal labour. The lack of strong governance has accelerated instability. Households have lost confidence in economic recovery. Many fear inflation will not reduce anytime soon.

What Lies Ahead If No Action Is Taken?

Analysts warn that without urgent financial reform, Bangladesh may witness deeper crisis similar to Pakistan. Rising government borrowing could push the country into a debt trap. Unemployment, inflation and poverty may continue climbing if investment does not revive. Experts recommend tighter fiscal discipline and support for private sector growth. Social unrest may intensify if economic pressure persists. Public confidence in economic policies is already diminishing rapidly. The coming months are critical for national stability.