Originally posted in The Daily Star on 1 February 2026
Fast deals, flimsy scrutiny
With the election less than 2 weeks away, the government is hurriedly pushing opaque, last-minute decision-making
In its final days, Bangladesh’s interim government has embarked on a rapid push for long-term, high-value commitments, effectively tying the hands of the elected administration that will succeed it.
Foremost among them is a prospective deal with UAE-based DP World to manage cargo operations at the New Mooring Container Terminal in Chattogram Port, the country’s most strategically important port asset. This follows the November decision to grant Denmark’s APM Terminals a 33-year concession to build and operate the $550 million Laldia Container Terminal. Simultaneously, Switzerland’s Medlog SA is poised to run Pangaon River Port under a 22-year contract.
While Medlog’s appointment followed an open tender, the Laldia and DP World negotiations did not. That lack of competitive bids is fuelling backlash as the interim government’s mandate nears its end. Installed to oversee a smooth transition to elected rule, the interim authority now faces mounting criticism that it is exploiting its status to make opaque, long-term policy decisions with lasting consequences.
Alongside the port deals, the government is fast-tracking a major procurement of 14 Boeing aircraft for Biman Bangladesh Airlines and pushing through promotions of 118 senior bureaucrats. In parallel, a state-appointed commission proposed a public-sector pay hike of as much as 142 percent. Economists warn that the wage increase alone could destabilise already fragile public finances.
Together, these obligations will force elected leaders to bear financial and political burdens they had no role in designing.
As the clock ticks down to the election on February 12, the flurry of dealmaking is not merely a lapse in fiscal prudence or macroeconomic management; it is a “fundamental breach of principle,” according to Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue.
“It is, in principle, not morally correct,” Bhattacharya said, suggesting that a transitional administration should not be tethering the nation’s future to multi-billion-dollar obligations in its final hours.
“Whether by design or by default, they are making it immensely difficult for the incoming government to manage the economy, especially given the current disruptive global developments,” he said, adding, “It surprises me that those who intend to come to power are not taking these developments, which will make their lives difficult, seriously enough.”
By committing the state to massive expenditures, the interim government is creating what Bhattacharya calls a “difficult benchmark” for the incoming administration.
Prof Anu Muhammad, an eminent economist, said the deals with foreign entities lack public transparency, and the methods reek of those of the previous regime.
He noted that last-minute scramble and ignoring opinions of political parties and the public reminded one of the last autocratic regime. “The interim government assumed power with the promise of reforming and stabilising the democratic system following the mass uprising. Yet, we see that the government itself is not adhering to reforms,” he said.
“Instead, it is perpetuating undemocratic processes that will plunge the people into a deep, long-term crisis,” said Anu Muhammad.
“Once this government is dissolved, there will be no accountability of these advisers and special assistants. They will move on. So, who do we hold accountable?” he said.
DEFENCE INDUSTRIAL ZONE
The interim government has moved into a sensitive arena: defence manufacturing policy, a sector intertwined with national security, foreign relations, and long-term industrial planning. At a meeting of the Bangladesh Economic Zones Authority (BEZA), chaired by Chief Adviser Muhammad Yunus on January 26, the government decided to earmark around 850 acres in Mirsarai, Chattogram, for a proposed Defence Industrial Zone.
After the meeting, BEZA Executive Chairman Ashik Chowdhury said the land is currently vacant and was previously designated for the Indian Economic Zone cancelled last year.
Officials say the Defence Industrial Zone is intended to strengthen domestic military production capacity and position Bangladesh for the growing global defence manufacturing market.
But critics argue the project illustrates the interim government’s broader pattern: taking long-term strategic decisions without electoral legitimacy. BEZA clarified the zone is not meant to replicate Bangladesh Ordnance Factories through state-run plants, but rather pursue technology transfer, joint ventures and supplier arrangements with foreign partners, with private sector participation.
PAY HIKE PROPOSAL
Criticism intensified after the Ninth National Pay Commission, led by former finance secretary Zakir Ahmed Khan, proposed a civil service pay increase so steep that it could double the government’s recurring wage bill if implemented.
The rationale for the pay hike is not entirely groundless. Civil servants have not seen a pay revision in a decade and inflation has eroded purchasing power. But implementing the proposed structure would require an additional Tk 1.06 lakh crore per year, on top of the Tk 1.31 lakh crore the state already spends on salaries and pensions for 14 lakh employees and nine lakh pensioners.
For a treasury strained by debt and missed revenue targets, economists call the proposal a fiscal landmine — especially if it becomes a political inducement rather than a disciplined reform.
AVIATION DIPLOMACY
Yunus’s government won a high-stakes diplomatic reprieve with Washington. Facing a protectionist Trump administration threatening tariffs of 37 percent on Bangladeshi garment exports, his team negotiated it down to 20 percent. For a country dependent on garments for the majority of export earnings, it probably averted a disaster.
But economists argue the relief came with a price. In late 2025, Biman Bangladesh Airlines was directed to purchase 14 Boeing aircraft in a multi-billion-dollar deal backed by a sovereign guarantee. What’s more, the deal is proceeding without a comparative analysis between Boeing and Airbus.
Governance concerns grew further after a sudden reshuffle of Biman’s board weeks before the election. Three officials were appointed to the board of the state-run airline: Khalilur Rahman, the national security adviser and high representative on the Rohingya issue; Faiz Ahmad Taiyeb, special assistant to the chief adviser; and Akhtar Ahmed, senior secretary of the Election Commission.
RECRUITMENT AGENCY LICENCES
The expatriates’ welfare ministry approved licences for 252 new overseas recruitment agencies, swelling the total to 2,646, the highest in South Asia. The ministry claims more competition will break syndicates, but analysts interviewed by The Daily Star argue that oversight is already weak and the expansion will worsen corruption.
The human cost is visible. With markets like Malaysia and the UAE restricted or suspended due to past abuses, illegal migration has risen. The International Organisation for Migration reports Bangladesh ranked first in illegal sea crossings to Europe in 2025, with over 22,000 attempting the dangerous Mediterranean route.
ELECTION-EVE SPENDING SURGE
In perhaps the clearest example of the interim government’s end-of-tenure decision-making, the Executive Committee of the National Economic Council (Ecnec) on January 25 approved a sweeping package of infrastructure and social spending, authorising 25 new and revised development projects worth a combined Tk 45,191 crore.
While officials argue the decisions were necessary to clear administrative backlogs and sustain economic momentum, the timing has sparked debate about whether a transitional administration should commit the state to major financial obligations so close to a transition.
A key driver of this late-stage spending surge is the first major revision of the Rooppur Nuclear Power Plant project, which Ecnec approved with a massive Tk 25,592 crore cost increase, raising the total to Tk 138,685 crore. The project deadline has also been extended by two and a half years, pushing completion to June 2028.
The committee also approved the Bangladesh-China Friendship General Hospital, a 1,000-bed facility for the northern region costing Tk 2,459 crore, with most of the funding expected from China.
The interim government has also moved quickly on massive energy procurement — an area that carries heavy fiscal risk for future administrations. On January 27, the government’s purchase committee approved a proposal to procure five LNG cargoes in 2026, citing the need to meet rising domestic energy demand. Petrobangla will procure LNG directly from Aramco Trading Singapore. That’s just the latest in a series of energy purchases.
RAB VEHICLES AHEAD OF POLLS
The interim government has given initial approval to purchase 163 vehicles for the Rapid Action Battalion (Rab) through direct procurement, citing the need to strengthen the force’s operational capability ahead of the national election. The procurement would include three Jeeps, 100 pickup trucks, and 60 microbuses. The final cost will only be known after approval by the government purchase committee.
The move has drawn scrutiny because the Rab has faced serious domestic and international criticism over alleged human rights violations. The interim government’s own Commission of Inquiry on Enforced Disappearances recommended abolishing this unit in a report to the chief adviser. Rights organisations, including Human Rights Watch, have also called for the force to be disbanded.
Against this backdrop, questions have been raised over why the interim government is approving such procurement as it approaches the end of its tenure. Home Ministry Senior Secretary Nasimul Gani defended the decision to bypass open tenders, saying the ministry wanted to purchase the vehicles from state-owned Pragati Industries. “We are keeping government money within the government,” he added.
SOCIAL SAFETY PLANS FOR FY27
The interim government has also decided to increase monthly allowances and expand beneficiary coverage for 15 social safety net programmes (SSNPs) for the upcoming fiscal year, which begins on July 1. This move has also drawn criticism from policy experts who noted that implementation will fall to the next elected government, which may have different priorities.
In an earlier interview with The Daily Star, Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development (InM), said such decisions are difficult to justify at this stage. He added that if the government intended to cushion low-income groups amid persistent inflation, it could have increased allowances and expanded coverage during the current fiscal year.
PROMOTIONS ACCELERATED
In another significant administrative move, the government promoted 118 joint secretaries to the rank of additional secretary on January 27.
The timing of these promotions has drawn attention as the interim government prepares to hand over power, raising questions about whether such large-scale bureaucratic reshuffles should be finalised at the last minute.
“Now that the countdown is there, and they are running out of gas. They should have concentrated on completing the reforms they had committed to,” Bhattacharya said.
He questioned whether these decisions represent the “whole government” or are being steered by specific individual interest groups looking to secure personal gains before the transition.
“These developments lack transparency, lack stakeholder discussion or professional discussion,” he said, continuing, “so the question is, are they creating this difficult benchmark for the next government by design or by default?”
