Bangladesh was a nation at a crossroads in August 2024. Sheikh Hasina's 16-year rule ended, but not before the country plunged into chaos. Hasina, days before she fled Bangladesh, ordered a brutal crackdown on a student-led movement, which eventually brought down her government. Over 1,400 people were killed in police action.
For Muhammad Yunus, the return to Bangladesh was unexpected. At 84, he had long given up on political ambitions after years of vilification and persecution under Hasina. But when the student protesters asked him to lead an interim government to restore democracy, he agreed. On August 8, 2024, Yunus, Bangladesh's Nobel Peace Prize-winning economist, took office as the interim chief adviser of the country.
Yunus implemented a series of reforms aimed at dismantling Hasina's authoritarian rule. He also pledged to hold Bangladesh's first free and fair elections in decades, set to take place on February 12.
What Went Well Under Yunus' Rule
- Senior police officers involved in illegal killings were prosecuted.
- Secret detention centres where critics were held were emptied.
- Human rights commissions were set up.
- Hasina, for her role in the death of 1,400 students and teens, faces the death penalty.
In the economy, Yunus asked the International Monetary Fund (IMF) for help to stabilise the country. He appointed Ahsan H Mansur, a former IMF economist, as governor of Bangladesh's central bank.
Mansur introduced measures to fight inflation, fix troubled banks, and recover stolen money. Inflation dropped from 11.6 per cent in July 2024 to 9.05 per cent in May 2025.
Challenges
Despite progress, Bangladesh faces serious problems:
- Police are still weak, and gang crime is rising. Minorities have been attacked, and Awami League supporters report threats and violence.
- The army chief warned that the country is in a “state of anarchy” and that divisions could threaten its independence.
- Last year, political parties like the Bangladesh Nationalist Party (BNP) pushed for elections to be held quickly.
Foreign Relations
Bangladesh's relations with India and the US have been strained. India has not responded to extradition requests for Hasina, who faces the death penalty in absentia. Donald Trump's return as US president has reduced American support. Yunus has tried to attract investment by inviting figures like Elon Musk to Bangladesh.
Yunus has strengthened ties with China and Pakistan.
Economy And Jobs
While inflation dropped, unemployment remained high. Youth unemployment rose to 4.63 per cent in late 2025, affecting students and young people who supported Yunus.
