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the tenure of such an interim setup,” said the economist.

In an interview with The Daily Star marking the government’s first year in office, Haque said, “We are seeing some changes in various areas. But people are saying change is happening slowly. They expect changes overnight, but it is not possible.” Haque said uncertainty usually holds back investment during transitional periods, which is exactly what the country is now experiencing.

“What we are hoping to see is the return of the rule of law. That is the big question. Its return is important,” he said.

According to Haque, the interim government had a chance to move in the right direction, but may have overestimated what it could deliver in a limited timeframe.

“To evaluate the one year of the government fairly, we must look at the state of the economy they inherited,” he said.

The BIDS DG said that the previous regime left a deeply corrupt and fragile system. “There was economic growth, but it did not have a sound foundation. Corruption was rampant, money was being laundered, and the banking sector was in serious crisis.”

“Pulling the economy back from the brink was no small task. In that context, some progress has been made,” he said.

However, setting aside the dire conditions of the past and looking only at GDP growth and investment over the past year, he admitted performance has fallen short.

There has been some improvement in the external sector, largely due to rising remittance inflows and curbed money laundering. These trends have helped build foreign exchange reserves.

“When the dollar was allowed to float and its price rose, remittances increased, which is expected,” he said.

But corruption, he commented, has not declined.

“This is something that should concern everyone. Advisers are no longer involved in corruption like before. Yet, why has not corruption gone down?”

He suggested that one reason could be the unchanged nature of the bureaucracy.

“Nothing has changed there. The same people are in place, doing the same things,” he said.

Haque added that although money laundering may have reduced, there has been no meaningful reform in the banking sector.

“If we want to reform private banks, a proper regulatory framework is necessary. And I do not believe that will be fully completed under the tenure of the interim government.”

Still, he believes that laying the legal groundwork for reform is essential and possible.

He also commented that while banks are no longer giving out loans indiscriminately, borrowers are not stepping forward either. “If they do not understand the long-term economic outlook, no one wants to invest. That means not everything is in the government’s hands.”

With elections approaching, Haque expects the interim government now to focus on building the foundation for a fair economy.

“It is very difficult for such a government to carry out major economic reforms. It is not easy to reassure the private sector during the tenure of such a government,” he said.

“Political governments assume office for a longer term, which gives them the confidence to make decisions. But now, all investors are sitting quietly.”

Haque believes the primary goal of the current government should be to create an economic structure where fairness prevails, and no individual or group can manipulate the system for personal gain.

“The core idea behind reform was to set up the principle that if people play fairly, they will not be harassed. That is important. It is important for economic actors to understand that no one can violate their economic rights. This applies to businesses, banks -- all sectors.”

Still, he pointed out, corruption and extortion continue. “Reducing corruption was a major part of economic reform, and work must be done in the areas where corruption happens. The Anti-Corruption Commission is working now. But to end corruption, efforts must be made in every corner.”

With around six months left in its term, Haque said the interim government should focus on a few specific, achievable areas.

“If they can temper their expectations and work on a few specific areas, they should. At the very least, if they can build the foundation of reform, the next government will be able to carry it forward.”