Bangladesh's economic policy choices are facing sharp scrutiny as poverty levels climb and inequality deepens, even as the government presses ahead with large-scale infrastructure and defence acquisitions that critics say sideline urgent welfare measures, according to a report by Dhaka-based financial publication The Financial Express.

Poverty and Inequality on the Rise

The report highlights that 2.1 million people slipped into poverty in the last fiscal year alone. The national poverty rate surged from 18.7 per cent in 2022 to 22.5 per cent in the last fiscal year and is projected to reach 22.80 per cent in 2026-27, according to the publication. The World Bank has separately projected that 62 million more people globally could be pushed into poverty by persistent inflation and an ongoing energy crisis.

Rising prices and power shortages are compounding the problem, hitting manufacturing, dampening private investment, and cutting jobs in both the formal and informal sectors. The report argues that the unequal distribution of wealth shows no sign of abating under the present system — and is, in fact, deepening further.

Metro Rail and Aircraft Deals Under Fire

The report criticises the government's spending priorities, pointing to the metro rail programme, which carries costs of over Tk 2 trillion — accounting for roughly two-thirds of the country's annual development programme and nearly a quarter of the national budget of Tk 9.38 trillion. Critics argue these allocations crowd out spending that could directly address poverty and supply-side inflation pressures.

Recent aircraft procurement plans have drawn additional fire. While the government was reportedly pressured by the United States to procure Boeing aircraft, a separate deal signed with the European Union for the procurement of 10 Airbus jets from the European aerospace consortium is described as having been entered into without any such external compulsion. Biman Bangladesh Airlines is reportedly pushing for delivery of the Airbus aircraft before 2030. The publication said: 'Given the Bangladesh Biman's performance record, this investment may prove injudicious or a waste of money.'

Structural Gaps in Economic Policy

The report also flags a mismatch in fiscal decisions — the pay package for government employees has been increased, but structural defects in the supply chain and marketing that drive inflation have not been addressed. Critics argue this approach risks fuelling inflation further without meaningfully boosting household purchasing power for the most vulnerable.

Notably, even the National Citizen Party (NCP), formed by student leaders who spearheaded the July uprising, has reportedly moved away from its earlier focus on discrimination and social inequality — the very issues that once defined its platform. The publication observed that the NCP 'no longer highlights its once pet subject of discrimination that has left society undesirably divided and unbalanced.'

What This Means for Bangladesh's Economic Outlook

The convergence of rising poverty, entrenched inequality, supply-side shocks, and large capital expenditures on prestige infrastructure presents a complex policy dilemma for Dhaka. With the poverty rate on an upward trajectory and inflation yet to be structurally addressed, the choices made in the next budget cycle could significantly shape whether Bangladesh's development path widens or narrows the gap between its poorest and wealthiest citizens.