Economy
Metro Rail Era starts as year Ends
Prime Minister Sheikh Hasina opened the first phase of the country’s first-ever metro rail service in the morning today (28 December).
President M Abdul Hamid and Prime Minister Sheikh Hasina on Tuesday greeted all who were involved in the implementation of the country’s first-ever elevated metro rail.
DMTCL has already completed its preparation to hold the colorful opening function at Diabari, Uttara at 11am and police-RAB personnel have taken all measures to ensure security of the event.
After the opening, the metro rail will run straight from Uttara to Agargaon without stopping at any intermediate station along the route. Commuters will be able to take a trip on the train from Thursday.
A train will wait for passengers at each platform for 10 minutes for the first few days as city dwellers are not familiar with this new transport system.
Initially, some 10 sets of trains having six coaches will run from Uttara to Agargaon. For the time being, the train will run on this route slowly. It will run from 8am to 12pm, the time will be extended later and the number of trains will be increased as per demand.
Talking to BSS Managing Director of Dhaka Mass Transit Company Limited (DMTCL) M.A.N Siddique said metro rail will be a first-time experience for people in Bangladesh so passengers would have to acquire experiences about the ticketing system and using the service.
“We will increase the number of trips, trains and stoppages at intermediate stations when people become familiar with the metro rail,” he said.
Dhaka is the second-largest city in South Asia and the seventh-largest in the world in terms of population. And the capital city is going to get the most modern transportation system with metro rail for commuters, Siddique said.
He said the metro rail will reduce public sufferings, since it will transport more passengers within a less time with comfortable means.
Common people believe that the inauguration of the metro rail will not only reduce traffic congestion in the city but also increase the overall revenue collection of the government.
However, if the train starts at full speed, one train will run every three-and-a-half minutes’ interval. How long the train will stay at one station has not been decided yet.
At each station, the train will wait till the boarding and alighting of passengers are completed. Each train can run at a speed of 100 to 110 km per hour with 2,300 passengers. However, the speed will be lower in areas with bends.
Abdul Kuddus, a commuter of Dhaka city, said three political parties have ruled the country for several periods after independence. None of the parties made much progress at the district or divisional level. As a result, the country’s major industries have developed in the capital. Every year, thousands of common people rush to Dhaka from villages for livelihood.
The Government of Bangladesh has formulated the following Time-bound Action Plan in order to establish a state-of-the-art strong Network of public transport system to be implemented by DMTCL consisting of Metro Rail routes covering the distance of 128.741 kilometres having 104 Stations in Dhaka city and its adjoining areas.
On March 29, 2022 Japan and Bangladesh signed “Exchange of Notes” and “Loan Agreement” for the 5th tranche of loans worth 18,285 million Japanese Yen for financing the Dhaka Mass Rapid Transit Development Project.
The metro rail is projected to carry 60,000 passengers per hour by traveling the entire route of 21.26 km from Uttara to Motijheel-Kamalapur Railway Station in less than 40 minutes.
Earlier on August 1, 2017, the implementation agency started installing the viaduct for the rail project. Within April this year they were scheduled to clean the occupied roads under the project areas, M.A.N Siddique said.
The 20.1-kilometer-long metro rail line lies through Uttara Phase-3 and the Bangladesh Bank in Motijheel via Pallabi, Rokeya Sarani, Khamarbari, Farmgate, Karwan Bazar, Shahbagh, Dhaka University’s Teacher-Student Centre, Doyel Chatwar and Jatiya Press Club.
Prime Minister Sheikh Hasina launched the construction work of the metro rail project, also known as the MRT Line-6, on June 24, 2016.
Later, Road Transport and Bridges Minister Obaidul Quader inaugurated the construction work of the first part of the elevated viaducts and nine stations of the MRT Line-6 at Agargaon point in the city on August 2, 2017.
The JICA (Japan International Cooperation Agency) provided around Tk 16,600 crore as project assistance out of the total cost of Tk 22,000 crore.
“I convey my sincere greetings to all those involved in the implementation of the (metro rail) project, including the Road Transport and Highways Division (RTHD),” said President Hamid in his statement.
“Another success of the people-friendly government has been achieved with the inauguration of the metro rail,” he said.
The head of the state said the ‘grand opening’ of the country’s first metro rail Mass Rapid Transit (MRT) line-6 from Uttara to Agargaon is a unique milestone in the development of the country’s communication system.
Lauding the present government for introducing such rail, the president added that it is a timely initiative of the government to introduce a fast, safe, reliable, air-conditioned, time-saving, electric, environment-friendly and remotely controlled state-of-the-art public transport system to alleviate the traffic congestion in the densely-populated metropolis of Dhaka and its surrounding districts.
“The journey of Metrorail will add a different dimension and pace to the transport system of Dhaka metropolis alongside saving the working hours of city dwellers,” he said.
Under her visionary and efficient leadership, the country is moving forward in the implementation of ‘Vision 2041’, he said.
As a result of the prudence, right direction and courageous leadership of the incumbent government, the smooth construction of metro rail has become possible in the densely populated Dhaka metropolis, he mentioned.
He appreciated the combined efforts of the government, Dhaka city dwellers and stakeholders because, without these efforts, the timely inauguration of MRT line-6 or the Uttara (North) to Agargaon section of Bangladesh’s first metro rail would not have been possible.
The metro rail is going to open (for all) before its scheduled time by overcoming many hurdles including the Covid-19 pandemic and the global economic recession, he added.
He hoped that with the launch of metro rail, there will be positive changes in the communication and socio-economic system of Dhaka metropolis and the country.
“It will be beneficial in business, especially in investment,” Hamid continued.
The auspicious inauguration of Uttara to Agargaon section of Metrorail in the month of victory is a unique gift of Prime Minister Sheikh Hasina to the nation, he mentioned.
“I am expecting the implementation of the entire section of Uttara to Kamlapur of the first metro rail of Bangladesh within the stipulated time,” he said.
In her message, PM Hasina said ‘Metrorail’, a symbol of Bangladesh’s pride and aspiration, is a unique milestone in Bangladesh’s city mass transport system.
The inauguration of Mass Rapid Transit (MRT) Line-6 or Bangladesh’s first metro rail is a long-awaited dream of the people of Dhaka city, the premier said.
“The dream of the city-dwellers is fulfilled today with the auspicious inauguration of MRT Line-6 from Uttara to Agargaon part,” she added.
She extended her sincere greetings to the people of the country on this auspicious occasion of the inauguration of the metro rail.
Keeping the slogan “Sobar Jonno Metrorail” in mind, she said Dhaka Metrorail has included all the necessary facilities for people with special needs like the developed world.
To ensure the safe and comfortable travel of women passengers in metro rail, every metro train has a dedicated women’s coach, she added.
PM Hasina wished for continued prosperity of the metro rail in the days to come.
The International Monetary Fund (IMF) has urged Bangladesh to maintain a tight monetary policy to contain inflation, while stressing that monetary tightening alone will not be enough to restore economic stability.
Inflation in Bangladesh rose to 8 per cent in September, according to the IMF. The Washington-based lender has called for broader reforms in the financial sector, stronger revenue mobilisation and improvements in overall economic management to address the country’s persistent economic challenges.
Sonali Jain-Chandra, deputy director of the IMF’s Asia and Pacific Department, made the remarks in response to a question at a news conference on the economic outlook for Asia and the Pacific, held on the sidelines of the IMF and World Bank Group annual meetings in Bangkok, Thailand.
Asked whether tight monetary policy alone would be sufficient to tackle inflationary pressures that have persisted for more than three and a half years, Jain-Chandra said maintaining a restrictive monetary stance was important, but needed to be accompanied by other reforms.
Bangladesh is currently facing challenges in three key areas: revenue mobilisation, the financial sector and inflation, she said.
The IMF also expressed concern over the fragile state of Bangladesh’s financial sector, saying a credible reform strategy was needed to strengthen the sector’s capacity and ensure stability.
The fund also highlighted the country’s persistently weak revenue collection. Bangladesh’s tax-to-GDP ratio has declined over time and currently stands at around 7 per cent, placing it among the lowest in the world, according to the IMF.
The IMF stressed the need for a coordinated effort to increase revenue collection, saying higher government revenues were essential to finance development expenditure and strengthen the financial sector.
It called for necessary reforms to the revenue system and effective measures to improve the government’s capacity to generate income.
Talks Under Way on New IMF Programme
Meanwhile, discussions are continuing on a potential new lending programme for Bangladesh.
Jain-Chandra said Bangladeshi authorities approached the IMF in May for support under a new programme after deciding not to draw further instalments under the previous arrangement.
In response to the request, an IMF mission visited Dhaka in July to discuss various aspects of Bangladesh’s economic reform agenda.
According to Jain-Chandra, the reform issues discussed during the visit were closely aligned with the recommendations outlined in the IMF’s Article IV consultation for Bangladesh earlier this year.
The IMF has remained in regular contact with Bangladeshi authorities since the July visit, she said.
Jain-Chandra added that the fund remained closely engaged with the authorities and was ready to support Bangladesh in initiating the reforms needed to address its economic challenges.
The International Monetary Fund (IMF) has projected that Bangladesh’s gross domestic product (GDP) will grow by 3.2 per cent in the 2026-27 fiscal year, while average inflation could rise to 10.9 per cent, signalling mounting pressure on the country’s economy.
The projections were outlined in the IMF’s World Economic Outlook (WEO) report, released on Tuesday.
The latest growth forecast marks a significant downward revision from the 4.3 per cent projected by the IMF in April. The fund had subsequently forecast growth of 3.5 per cent in July before lowering its estimate further to 3.2 per cent.
The IMF has also sharply revised its inflation outlook for Bangladesh. In April, it projected average inflation of 6 per cent for the 2026-27 fiscal year. The latest estimate raises that figure to 10.9 per cent.
The combination of slower economic growth and persistently high inflation points to continued pressure on Bangladesh’s macroeconomic stability.
Bangladesh growth outlook trails other forecasts
The IMF’s latest growth projection for Bangladesh is lower than those of other major international development institutions.
The World Bank has forecast GDP growth of 3.4 per cent for Bangladesh in the 2026-27 fiscal year, while the Asian Development Bank (ADB) has projected growth of 4 per cent.
According to the IMF, Bangladesh’s economy grew by 3.6 per cent in the 2025-26 fiscal year, following growth of 3.5 per cent in the preceding fiscal year.
India, Bhutan expected to grow faster
The IMF has projected stronger economic growth in neighbouring countries, with India’s economy expected to expand by 7 per cent and Bhutan’s by 6.9 per cent in the relevant fiscal year.
The contrasting forecasts highlight the challenges facing Bangladesh as it seeks to restore economic momentum while tackling persistent inflation.
The IMF’s latest projections come as the annual meetings of the IMF and the World Bank Group are underway in Bangkok, Thailand.
Bangladesh’s economic situation, reform programmes and efforts to secure financing from development partners are among the key issues receiving attention during the meetings.
The World Bank supports the Bangladesh government’s policies to address the country’s current economic challenges, restore stability and implement medium- and long-term development plans, Finance Minister Amir Khasru Mahmud Chowdhury said on Tuesday.
He said the global lender was broadly aligned with Bangladesh’s economic programmes and policy priorities and would continue to support the country’s economic recovery and future development.
The finance minister made the remarks while speaking to journalists after a meeting with a World Bank managing director in Bangkok, Thailand, on October 13.
Amir Khasru said Bangladesh’s economy was facing significant challenges when the current government took office. Alongside dealing with the financial and economic burdens inherited from the previous period, the country was also having to navigate global economic disruptions caused by ongoing wars and geopolitical tensions.
He said the World Bank understood the realities facing Bangladesh and supported the government’s policy approach to overcoming the economic difficulties.
“The World Bank is aligned with the programmes and policy direction we have set to restore economic stability and ensure future development,” the minister said, adding that both sides would continue working together.
He said the World Bank was willing and prepared to provide the assistance Bangladesh needed.
No decision yet on proposed $10 billion in additional assistance
Clarifying reports that Bangladesh had sought an additional $10 billion in assistance from the World Bank, the finance minister said no final decision had been made.
He said discussions with the lender were ongoing and that possible proposals would be reviewed in light of those discussions. The process could take several months to complete, he added.
“No decision is being made at this stage. I have seen several inaccurate reports here and there. This is a discussion, and there will be follow-up based on these talks. It is a process that will continue over the next few months,” he said.
The minister stressed that the ongoing discussions should not be interpreted as a final agreement. Rather, they were intended to establish a basis for determining the next steps and considering possible decisions.
Further discussions would also take place in Dhaka, he said.
Expressing satisfaction with the progress of the talks, Amir Khasru said Bangladesh was in a favourable position to establish a framework for future cooperation.
He reiterated that the government’s economic policies, programmes and medium- and long-term development plans were broadly aligned with the World Bank’s position.
Government’s economic agenda aligned with BNP manifesto
The finance minister also said the World Bank’s position was consistent with the government’s economic plans and the Bangladesh Nationalist Party’s (BNP) election manifesto.
He said discussions were underway on how to address the country’s economic challenges and achieve the government’s development objectives.
According to the minister, the government has submitted a written proposal outlining a framework for partnership with the World Bank. Discussions on the proposed framework will continue.
He said the World Bank had provided various recommendations and suggestions, while Bangladesh had also presented its own proposals and recommendations.
Further discussions would be based on these submissions, he added.
Government optimistic about inflation and GDP targets
Asked about forecasts by the World Bank and the Asian Development Bank (ADB) on inflation and gross domestic product (GDP) growth, and how they compared with the government’s targets, the finance minister said the government did not intend to dispute the projections made by other institutions.
He said the institutions had prepared their forecasts based on their own calculations and analyses, adding that the country’s economic performance would become clearer as progress on key indicators was assessed over time.
“We do not want to dispute anyone’s projections. They have made their estimates based on their own calculations. We are carrying out our work, and they are doing theirs. What matters most is that the cooperation we need continues,” he said.
The minister expressed optimism that the government would be able to meet the inflation targets set out in the national budget.
He said the government was working to restore economic stability through continued engagement with the World Bank, implementation of its economic policies and progress on medium- and long-term development plans.
