Policies, Reforms and Administrative Achievements of Tarique Rahman Government

Professor Dr. Milton Biswas

Nobel laureate economist Prof. Amartya Sen has argued that development is not merely economic growth or rising income, but the expansion of people’s freedoms and their ability to live with dignity. The first six months of the government led by Prime Minister Tarique Rahman, which assumed office on February 17, 2026, reflect this broader approach through policy decisions, administrative reforms and welfare initiatives.

Following the July 2024 uprising and the subsequent interim government, the 13th parliamentary election was held in February 2026. The Bangladesh Nationalist Party (BNP) won 209 of 300 seats, securing an absolute majority. After nearly two decades of legal complications, political persecution and exile, BNP Chairman Tarique Rahman returned home in 2025 and became Bangladesh’s 11th prime minister.

The new government’s immediate priority was rebuilding weakened institutions and restoring public confidence. At its first cabinet meeting on February 18, it announced a 180-day action plan focusing on controlling prices of essential commodities, improving law and order, and addressing the electricity and energy crisis.

To improve administrative efficiency and accountability, the Prime Minister’s Office introduced weekly and monthly monitoring of ministries and divisions through dedicated oversight and data-analysis mechanisms. Ministers and state ministers were also subject to performance evaluation, with preparations for a possible cabinet reshuffle based on their performance.

A major welfare initiative was the Family Card programme, designed to replace fragmented social-safety-net schemes with an integrated digital system. The programme was formally launched on March 10 at T&T Field near Korail in Dhaka, with senior female members of beneficiary families receiving direct ownership of the cards.

During the March-June pilot, 37,567 poor women in 13 districts and 15 wards were included at a cost of Tk 38.07 crore. Beneficiaries can receive Tk 2,500 monthly through digital banking or mobile financial services, or purchase 30kg of rice, two litres of edible oil and one kilogramme of lentils at subsidised prices through the Trading Corporation of Bangladesh (TCB). Based on the pilot, Tk 14,500 crore was allocated to the programme in the 2026-27 budget. The second phase aims to cover 4.1 million families, with a longer-term target of 16 million families within four years and 40 million by 2030.

Economic Management and Healthcare

The government assumed office amid high inflation, weak foreign-exchange reserves and vulnerabilities in the banking sector. Finance Minister Amir Khosru Mahmud Chowdhury presented a Tk 9.38 lakh crore budget for 2026-27 on June 11. It set a GDP growth target of 6.5 percent and an inflation target of 7.5 percent.

The revenue target was fixed at Tk 6.95 lakh crore, including Tk 6.04 lakh crore for the National Board of Revenue. Despite a Tk 2.43 lakh crore deficit, Tk 1,36,646 crore was allocated to education and human-resource development, including Tk 529 crore for higher-education research. A further Tk 35,000 crore was earmarked for the ninth pay scale.

The government also cancelled the traditional state dinner following the budget presentation, reportedly saving around Tk 50 lakh, as part of efforts to curb unnecessary expenditure.

Healthcare policy has focused on prevention and primary care. The government decided to recruit 100,000 new health workers to provide grassroots services, including support for hypertension, diabetes and maternal health. Plans were also initiated to upgrade every upazila health complex from 100 to 101 beds, establish kidney dialysis units at district-level hospitals, introduce digital e-Health Cards and gradually raise health expenditure to 5 percent of GDP within five years.

Administrative decentralisation was another priority. On April 20, the prime minister inaugurated the administrative activities of the newly formed Bogura City Corporation, aimed at strengthening northern Bangladesh’s economic potential. A five-tier monitoring mechanism was also introduced to reduce corruption and political bias in the distribution of social-security and infrastructure benefits.

Foreign Policy and Investment

The government adopted “friendship with all, national interest first” as the guiding principle of its foreign policy. On August 13, Tarique Rahman held talks with a 50-member US-Bangladesh Business Council delegation, including representatives of Excelerate Energy and the American Chamber of Commerce (AmCham).

The government assured the delegation of simplified revenue policies and investment protection. AmCham subsequently expressed a commitment to attract $5 billion in foreign investment to Bangladesh over five years, while Visa began the formal process of establishing a technology development centre in the country.

Bangladesh also remained active in regional diplomacy. As the current BIMSTEC chair, Prime Minister Tarique Rahman received an invitation from New Delhi to attend the 18th BRICS Summit in India. However, the future and possible extradition of former prime minister Sheikh Hasina, who remains in India, continues to complicate Bangladesh-India relations.

Challenges and Political Developments

The government has also faced significant challenges. On February 25, Governor Ahsan H. Mansur was removed amid internal discontent at the central bank and replaced by Mostaqur Rahman. The decision drew criticism over central-bank autonomy and monetary-policy independence.

The electricity and energy sectors remain under pressure because of longstanding opaque contracts, large capacity payments and limited domestic gas exploration. The government has acknowledged that these problems cannot be resolved overnight and has pointed to renewable energy and domestic gas exploration as part of its long-term response. Containing inflation while maintaining people’s purchasing power remains another major challenge.

On August 13, Tarique Rahman formally handed over the BNP’s nomination for the 23rd presidential election to veteran politician Mirza Fakhrul Islam Alamgir. His selection was presented as an effort to strengthen political unity and the constitutional role of the presidency.

Overall, the government’s first 180 days have focused on institutional reform, social protection, economic management and investment diplomacy. The Family Card, increased education allocation, preventive healthcare measures and foreign-investment initiatives represent important policy directions. However, its long-term success will depend on preserving central-bank autonomy, resolving the energy crisis, controlling inflation and managing complex regional geopolitical pressures in the national interest.

Author: Prof. Dr Milton Biswas, Secretary, Ecumenical Christian Trust (ECT), Dhaka.