By Tarannum Rahman
Oftentimes, negative and misleading narratives about nations, leaders, and people drown out important stories of progress. In this new series on the Friends of Bangladesh blog, we will highlight the individuals, leaders, and institutions influencing the creation of what many are calling “Bangladesh 2.0.” This first installment focuses on a broad range of positive trends in the country that came to light in May/June 2025. Future installments will be shorter and talk about fewer examples in more depth.
Bright Spots in Building Bangladesh 2.0: 10 Tangible Signs of Progress
It has been easy to feel discouraged about some of the negative stories about Bangladesh over the years. Some are largely accurate, while others are filled with half-truths, exaggerations, or fabrications. Yet, if you look closer, there’s another story quietly unfolding. It’s a story of resilience, reform, and real steps forward for that nation and its people. Here’s a quick look at ten recent developments that show Bangladesh is not just surviving but moving forward with purpose.
1. IMF Approves $1.3 Billion for Bangladesh’s Reform Plan
May 14, 2025
The International Monetary Fund recently gave the green light to a major loan package after a strong reform performance by Bangladesh. This came after Bangladesh met critical benchmarks in structural reform, such as energy pricing, public finance management, and the overall governance of the financial sector. The funding will help to support key areas like tax and economic policy, as well as energy pricing.
The IMF itself praised the Bangladeshi government’s commitment to “prudent macroeconomic management in the face of global headwinds.” These funds are not only designed to rebuild the country’s foreign exchange reserves but also strengthen global confidence and stabilize the economy. At an event in London earlier last month, Bangladesh’s interim leader, Dr. Muhammad Yunus, credited the IMF with playing a “very positive” role in advancing long-overdue currency reforms in the country. He stated, “It was a big decision for us, which we debated, but now we see the strength in the economy.” This isn’t just a technical financial win but something that will continue to keep fueling Bangladesh’s economy, directly affecting millions of lives on a daily basis.
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2. Starlink Goes Live in Rural Bangladesh
May 20, 2025
Bangladesh has officially joined the global Starlink Network, giving the country high-speed internet even in its most remote areas. This is a game-changer for students in rural villages, entrepreneurs in hard-to-reach areas, and first responders during disasters. Reliable internet is no longer a luxury; it is a lifeline. Thanks to these recent developments, Starlink opens the door to digital inclusion, online learning, and economic opportunity. This milestone is a step towards transformative possibilities by leveling the playing field. Starlink is not just an upgrade; it’s a tool for social mobility.
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3. UK Freezes £185 Million Linked to Corrupt Officials
May 2025
A significant move made by the UK’s National Crime Agency led to the freezing of about £185 million ($236 million) worth of property linked to a former land minister in Bangladesh’s Awami League government, who has been accused of embezzlement. This is one of the largest foreign corruption-related seizures involving South Asia in recent years, and the largest ever action by the UK government.
This action shows that corruption isn’t just being discussed, but it is, in fact, being addressed across borders. Many critics have stated that wealthy leaders are often able to get away with corrupt practices thanks to their ability to hide assets abroad. The Interim Government is attempting to show that accountability isn’t something you dismiss, and it is making progress.
The frozen funds, if recovered and returned, could eventually be used to advance the public good by supporting things like improved schools, clinics, and climate-based projects. It’s a step towards accountability and a sign that powerful figures aren’t beyond the reach of justice.
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4. Japan Commits Over $1 Billion in Aid
May 30, 2025
Japan announced an impressive $1.06 billion funding package for development in Bangladesh. It demonstrates a clear sign of confidence in the country’s direction. The support includes a hefty $641 million for railway upgrades, $418 million to support climate-resilient economic reforms, and over $4 million for education. This is more than just numbers. This funding will mean faster trains, greener policies, and more opportunities for students. Japan has been a long-time development partner for Bangladesh, but this latest pledge reaffirms that the international community believes more strongly than ever in Bangladesh’s future. Even with a degree of political uncertainty at home, Bangladesh continues to gain global trust.
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5. Inflation Comes Down
June 2025
After months of pressure on household budgets, inflation in Bangladesh has dropped to the lowest point since mid-2023. Over the past 27 months, inflation surged as high as 11.7% in July 2024, but now, according to the Bangladesh Bureau of Statistics, the annualized inflation rate has dropped to 8.48% in June 2025. The three key factors behind the fall in inflation include “…stable weather conditions that supported agricultural output, a relatively steady exchange rate with the US dollar, and a shift towards contractionary monetary policy under the new central bank leadership.”
This reduction isn’t accidental. Government efforts to bring down the costs of food, fuel imports, and other essentials are beginning to show. Most importantly, food inflation, an issue that hits the poorest families the hardest, seems to be stabilizing. BBS data also indicated that rural inflation has dropped to 8.46%, while urban inflation stands at 8.94%, reflecting a nationwide positive trend.
Zahid Hussain, economist at the World Bank, noted, “the recent months of April, May, and June have seen consistent easing of inflation, suggesting that tight monetary policy is finally taking effect.”
While Inflation remains above the central bank’s target range of 5 to 6%, this cooling trend is a significant step forward. After years of uncertainty, this progress offers families room to breathe, plan, and hope for continued stability.
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6. Chief Adviser Muhammad Yunus and Interim Chairman Tarique Rahman Meet for the First Time
June 13, 2025
In an important and hopeful moment, interim leader Professor Muhammad Yunus and BNP’s Tarique Rahman met in London and agreed to support a roadmap for a national election in early 2026. According to attendees, the two men discussed the possible frameworks for ensuring a fair and peaceful election in February 2026.
The significance of this meeting can’t be overstated. For decades, Bangladeshi politics have been defined and divided by rivalries, personal bitterness, and cycles of pettiness. Yet, this encounter was a pivotal moment in Bangladesh’s politics, proving yet again that meaningful long-term changes come from conversation, not confrontation.
While some of the details of their discussion remain confidential, the fact that they met at all is a powerful message to the country, the diaspora, and all its people. It is a reminder that, regardless of the circumstances, dialogue is always possible and is in fact needed desperately during times of recalibration.
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7. Political Dialogue Resumes in Dhaka
June 16, 2025
On the ground in Bangladesh, political engagement is also taking a positive turn. The National Consensus Committee (NCC) convened for its second round of discussions around electoral reform. What made this session notable was the range of participants who took part.
The agenda of the meeting focused on technical aspects of a ‘fair election,’ highlighting the importance of voter registration, the use of electronic voting machines, and electoral oversight. Besides that, the broader message amidst the group was to project unity. It is clear that there is an appetite for reform, which is grounded in a collective interest in national progress. Most importantly, these talks are being held without any violence, boycotts, or mass arrests, a welcome shift from past election cycles.
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8. Bangladesh Starts Receiving Electricity from Nepal
June 16, 2025
Nepal made history by exporting 40 megawatts of electricity to Bangladesh through India’s power grid. While that number might seem small, the long-term potential is huge. It represents something much bigger: a new chapter in South Asian energy cooperation. For Bangladesh, it means expanding energy sources, reducing reliance on fossil fuels in favor of renewable energy, and improving access to electricity during high-demand periods. This partnership isn’t just a technical milestone but one that is rooted in trust, growth, and mutual benefit. This deal shows us what is possible when the South Asian countries work together towards a common and mutually beneficial goal. Rather than competing over resources, Nepal, India, and Bangladesh are collaborating to create a more connected and prosperous future.
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9. Innovative Boats as Classrooms, Clinics, and Farms
June 2025
Amidst the growing global focus on climate change, Shidhulai Swanivar Sangstha—an organization known to use solar-powered boats—expanded Bangladesh’s floating schools’ initiative. These boats provide education, health care, and farming support to families who might otherwise go without help. With the utilization of solar power, these boats are easier to maintain and known to reach flood-prone areas efficiently. Now equipped with internet access, mobile libraries, and agricultural training opportunities, these tools have already started to help many farmers increase their earnings. What began as a response to seasonal flooding has become a practical solution for serving remote communities and improving access to essential needs and services.
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10. Expanding Digital Healthcare Across Bangladesh
June 2025
Bangladesh’s Digital Health Strategy saw new progress being made this month with expanded telehealth services in rural districts. Digital platforms such as Maya, Jaeon, and CMED are helping patients connect with healthcare providers remotely; this is especially important in areas with limited access to healthcare. Rural communities often face delays in receiving medical care due to the lack of accessible healthcare facilities. However, these recent developments provide a sense of hope as the government plans to train more than 100,000 health care workers and ensure that 80% of upazilas are equipped for telemedicine by 2027.
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What’s next in this series?
The progress we’ve explored here, from financial reform to diplomatic engagement, tells us part of the story. In future editions of our “Bangladesh 2.0” series, we will look at other aspects of national progress, including the people behind it. Stay tuned for more.
The author is a Bangladeshi American undergraduate at the City College of New York (CUNY), double majoring in International Studies and Psychology with a concentration in Global Issues. In the summer of 2025, they are interning with Friends of Bangladesh, contributing to research on Bangladesh’s development with support from the Colin Powell International Human Rights Fellowship.
