While the Interim government initiated significant reform measures,substantial challenges persist in areas such as politics,the economy,and institutional accountability as reported by Transparency International Bangladesh (TIB).[5] Systemic issues in governance and corruption remain largely unaddressed,prompting concerns that this may undermine the democratic aspirations of the uprising.[6] According to the Ain o Salish Kendra,the interim government failed to fulfil the public desires following the uprising.[7]
Background
On 5 August 2024,General Waker-uz-Zaman,the Chief of the Army Staff,handed the resignation of Prime Minister Sheikh Hasina to President Mohammed Shahabuddin following the uprising.[8][9][10] President Shahabuddin immediately started the process of meeting with political leaders,key coordinators of the protest and civil society members from around the country to discuss the formation of an interim government.
Amidst these deliberations,the student representatives who had been instrumental in the uprising expressed strong opposition to a military-led administration and nominated Muhammad Yunus,a Nobel laureate and renowned advocate for poverty alleviation and democratic governance with a global reputation,perceived neutrality and widespread acceptability,to serve as Chief Adviser of the interim government.[11][12][13] After discussions involving the President,military officials,and student representatives,Yunus was appointed as interim leader with hopes that his leadership would restore democratic governance after years of political turmoil and authoritarianism.[14] This was followed by the dissolvement of the parliament on 6 August 2024 by the President,Mohammed Shahabuddin.[15][16]
While the Constitution of Bangladesh has not provided for an interim government since 2011,the Yunus government is deemed legitimate due to the doctrine of necessity. Bangladeshi courts have taken the line that Hasina's resignation created a situation for which there was no constitutional remedy. Not only does the Bangladeshi legal system no longer account for transfers of power,but there was an urgent need to oversee state affairs.
Inauguration
Yunus received by the Students Against Discrimination coordinators upon his arrival in Bangladesh on 8 August 2024President Shahabuddin administers the oath to the advisors of Yunus's interim government.
Yunus was sworn in as the Chief Adviser of Bangladesh in a ceremony at the Bangabhaban on 8 August 2024.[17] President of Bangladesh Mohammed Shahabuddin administered the oath ceremony. Foreign diplomats,civil society members,top businessmen and members of the former opposition party and other guests attended the state ceremony. Yunus and the President signed the oath documents of the office.[18]
Domestic affairs
Advisory council meeting under the chairmanship of Muhammad Yunus on 12 September 2024.
As head of government,Yunus delivered his first address to the nation on 25 August 2024. He outlined the proposed reforms in his half-hour speech. In the speech,he sought for constitutional and electoral reforms and promised to reform the country's economy,education,health,human rights,election system,legal system etc. in many other areas.[22][23] On 11 September,Muhammad Yunus announced 6 commissions to fulfill the interim government's intentions to reform the electoral system,police administration,judiciary and public administration in Bangladesh alongside strengthening anti-corruption measures and amending the constitution avert from the previous authoritarian regime.[24][25]
Hasina regime's violent crackdown which has been defined[by whom?] as a genocide[26] included the use of tear gas,live ammunition,and mass arrests,resulting in over 1,000 deaths and thousands of detentions within three weeks during the July Revolution. Yunus later claimed that as many as 1,500 people were killed and up to 3,500 forcibly abducted during Hasina's 15-year rule. He pledged investigations into these alleged violations and enforced disappearances.[27]
Almost immediately after the transition of power,the main opposition in the country demanded elections. However,the law,justice and parliamentary affairs adviser to the government,Asif Nazrul,said that the incumbent would "remain in power as long as necessary." for the implementation of reforms.[28] The Yunus government also lifted the ban on the Jamaat-e-Islami as an organization that had been placed by the Hasina government at the peak of the anti-government protests.[citation needed]
On 17 September,July Shaheed Smrity Foundation was launched to support the families of those who were killed or injured in the uprising. 1 billion taka was donated from the relief fund of the chief adviser.[29]
Graffiti drawn by the students following the uprising featuring Chief Adviser Yunus
In May 2025,the Yunus administration faced large-scale protests from civil servants over a government ordinance that amended the Public Service Act,2018,which empowers the government to forcibly retire civil servants without any enquiry over the slightest accusations of indiscipline,a law that was in place during the presidency of Ziaur Rahman.[35] On that very same month,primary teachers of government schools across the nation went on a strike demanding increase in wages.[36]
The National Consensus Commission was established by the Yunus administration to overview consensus among political parties over the state reforms,engaged in dialogue with various parties for several months.[37] In July 2025,the administration mulled about introducing term limits by restricting a person from holding the prime ministerial position for more than 10 years. The NCP &Jamaat-e-Islami agreed,but the BNP (whose leader Khaleda Zia had already served as prime minister from 1991 to 1996 &2001–2006) &the Communist Party opposed it.[38] The BNP later agreed to support the interim government's steps regarding term limits on the condition that plans to create a National Constitutional Council be shelved.[39] The BNP had also opposed the Yunus administration's plans to introduce proportional representation.[40] As the discussion concludes,concerns raised over disagreements among political parties regarding key reform proposals and the finalisation of the July Charter.[41] However,the deadline for finalising the charter approaching on 31 July,reports indicate that significant differences remain unresolved.[42][43] Observers warned that failure to reach consensus may hinder progress on broader political and governance reforms associated with the July Movement.[44]
Clashes broke out between demonstrating students and police on 22 July 2025 in a protest rally demanding publication of the names of those who died in the 2025 Dhaka fighter jet crash,compensation for the victims and immediate halt over the use of outdated military equipment.[45]
On 5 August 2025,Yunus said in a televised broadcast that he would write to the Bangladesh Election Commission to request the general election be held in February 2026 before Ramadan,which will begin as early as 17 February.[46]
In October 2025,the interim government officially patronised multiple cultural events centering the death anniversary of the celebrated Baul mystic Lalon at the Kumarkhali Upazila where his mazar is located.[47]
Economic affairs
Yunus meeting with the leaders of various religious communities of Bangladesh
In August 2024,the Yunus administration appointed economist Debapriya Bhattacharya to head a committee charged with drafting a white paper on the economy of Bangladesh.[48] In September,Bhattacharya said that all agreements made during the AL regime would be "closely examined".[49]
On 18 August 2024,the interim government expanded the inter-bank market's foreign exchange currency band from 1% to 2.5% to increase liquidity and allow banks to offer "slightly" higher rates. On 29 August,the treasury heads of 47 banks agreed to cap the USD exchange rate at Tk120. However,as state-owned banks continued to offer higher rates,private banks continued to do the same,leading to Bangladesh's remittances rate reaching Tk122. The interim government also implemented a market-based exchange rate. A decrease in under-invoicing,money laundering and the decreased use of informal hundi channels in addition to a stronger dollar and decreased imports saw Bangladesh's remittances grow by 58% (to $4.63bn) in August–September.[50]
However,Inflation and economic growth have been an issue under the interim setup. As per the South Asia Development Update,the World Bank revised its economic growth forecast from 5.7% in April 2024 to 4% in October for the financial year 2025. Political instability exacerbated preexisting inflation. Food inflation under the interim government reached 14% and general inflation 11%. A sudden sharp rise in inflation in July 2024 was mostly attributed to the political turmoil facing Bangladesh;after momentary stabilization,inflation once again begun to increase. The general inflation rate in Bangladesh reached 10.87%,up from 9.92% in September 2024.[51][52][53][improper synthesis?] Later in November,inflation accelerated to 11.38%,the highest in four months.[54]
Development projects deemed "economically less important" were dropped by the interim government,while the owners of ready-made garment industries agreed to an 18-point demand of workers including minimum wage,nightly allowances,increased tiffin,monthly attendance bonusses,etc. Transparency International Bangladesh (TIB) noted "ongoing chaos" in the garment industry. In the banking sector the government reorganized the Board of Directors of Bangladesh Bank (BB),appointed a new central bank governor,and restructured the Boards of several state-owned commercial banks. In response to inflation,Bangladesh Bank untied controls on interest rates to decrease money supply,while the Yunus administration set the prices of 'daily commodities,' withdrew import duties on foodstuffs,removed letter of credit (LC) requirements on 'daily commodity' imports,and said there would be no borrowing limit from banks for companies importing food and fertilizers.[55] Inflation has continued to rise,reaching 11.38%,a four-month high in December.[56]
The interim government cancelled money "whitening" channels by removing a provision previously allowing the legitimization of undeclared assets by levying a 15% tax after asset declaration. Two bodies;an advisory committee to reform the National Board of Revenue (NBR) and a task force to review the Income Tax Act 2023 were constituted by the Interim administration,which also launched an online return filing system for tax year 2024–25 and made the submission of online income tax returns mandatory for certain occupations.[a] Tax exemption status was restored to Grameen Bank and given to As-Sunnah Foundation.[55]
In the stock market,the interim ministry reorganized the Bangladesh Securities and Exchange Commission (BSEC),Dhaka Stock Exchange,and Chittagong Stock Exchange,reduced capital gains tax to 15%,and formed three bodies:a committee to investigate S. Alam and Salman F. Rahman,another to "determine" the fall in market share prices,and a five-member task force to improve the market and recommend reforms.[55] TI Bangladesh said that there had been a "failure" from July to October to meet revenue collection targets and that loopholes continued to exist in property purchasing for legitimizing "black money". On the stock market it said that the "share market is still unstable".[55]
In November 2024,the International Crisis Group (ICG) said "early signs suggest that policymakers can avoid a Sri Lanka-style economic crash" and added exchange rate reforms helped improve foreign reserves while inflation had declined from its peak,although it warned that "serious economic risks remain". The crisis group also said that long-term economic reform was "far longer" than the interim governments "likely lifespan",stating that the government was focused on "short-term macro-economic priorities" such as inflation,foreign reserves and economic stability.[57]
On 2 April 2025,Trump administration imposed 37% "reciprocal" tariff on Bangladesh,which is second highest in South Asia just after Sri Lanka (44%).[58] On 5 April,Yunus called an emergency meeting of experts,advisers and related officials to discuss over the tariff issue.[59] Following the meeting,decisions were made to increase import for reducing trade deficit with the United States.[60][61] On 7 April,Yunus sent a personal letter to President Donald Trump urging to reconsider the tariffs and requested a three-month postponement of the decision,highlighting steps to reduce trade deficit with the United States.[62] Later,after several series of negotiations,United States reduced tariffs for Bangladesh to 20% that came to effect from 1 August,which Yunus called a "historic treaty" and an "important diplomatic victory".[63]
On 25 April 2025,the interim government issued a presidential ordinance to restructure the National Board of Revenue (NBR). The ordinance stated that the NBR would be dissolved and replaced by two new divisions under the Ministry of Finance –the Revenue Policy Division (RPD) and the Revenue Management Division (RMD).[64] Accordingly,on 13 May 2025,the government dissolved NBR and Internal Resources Division (IRD) and split into two new agencies,through Revenue Policy and Revenue Management Ordinance,2025. According to the ordinance,where RPD's work would be to monitor the implementation of tax laws and the tax collection situation,the RMD's work would be to collect revenues. Officers of income tax and customs cadres protested the discussion and called for revocation.[65][66][67]
Owing to the strained India-Bangladesh relations,Bangladesh restricted import of yarn from India,[68] who in return,restricted the import of jute from the former.[69]
The government engaged in discussions with the ambassadors of different countries,including Palestine,Italy,China,Russia,Pakistan,Saudi Arabia,India,and others.[70][71][72][73]
On 14 March 2025,the United Nations Secretary-GeneralAntónio Guterres visited Rohingya camps in Ukhiya,Cox's Bazar. He praised Bangladesh for its humanitarian efforts but stressed the urgent need for international support to sustain aid programs.[82][83] He also expressed his solidarity with Bangladesh's reform and transition process during his visits.[84][85]
Large pro-Palestinian demonstrations took place to protest the Gaza war.[86] Subsequently,the Yunus government issued a directive reinstating the stipulation in Bangladeshi passports:"THIS PASSPORT IS VALID FOR ALL COUNTRIES OF THE WORLD EXCEPT ISRAEL",which had been removed in 2021 by the Hasina government.[87]
On 27–29 August 2024,in a recalibration for foreign policy,Muhammad Yunus met Malaysia's High Commissioner in Dhaka,Haznah Md Hashim,during a visit at the Jamuna State Guest House. He reignited the idea for Accession of Bangladesh to ASEAN,an economic organization of Southeast Asian countries.[88] An idea that was floated since the presidency of Ziaur Rahman in the 70s'.[89] Analysts interpret Bangladesh's eastward diplomatic orientation as a strategic recalibration,potentially signaling a departure from what has been described as an "India-centric foreign policy" under Prime Minister Sheikh Hasina. This shift has been viewed by some as a response to perceived Indian influence over Bangladesh's domestic and foreign affairs. In this context,deeper engagement with Southeast Asia,particularly through aspirations to join ASEAN,is seen as a move to diversify regional partnerships and reduce reliance on India's geopolitical orbit.[90][91] Yunus has since treated the idea of membership of ASEAN as a top foreign policy priority,[92][93] garnering support from Malaysia[94] and Indonesia.[95] On 4 October,the Prime Minister of Malaysia,Anwar Ibrahim,visited Bangladesh and greeted with Yunus. They discussed strengthening bilateral relations and different sectors of both countries.[96]
On March 26,2025,the Chief Adviser,Muhammad Yunus,visited China on a four-day trip. During the visit,Chinese President Xi Jinping expressed full support for Bangladesh's interim government and pledged to expand economic and technical cooperation.[97][98] Yunus raised issues such as Chinese investment in Bangladesh,water management over the Brahmaputra River and the Rohingya crisis.[99] He requested a 50-year master plan from China for comprehensive river and water management.[100] After the suspension of Indian visas for Bangladeshi nationals,China allocated four hospitals in Kunming specifically for Bangladeshi patients.[101] Additionally,China Eastern Airlines plans to operate flights between Bangladesh's port city,Chittagong,and Kunming.[102] Bangladesh has also secured $2.1 billion in investments,loans,and grants from China to enhance infrastructure and manufacturing sectors.[103] During this visit,an agreement on economic and technical cooperation was signed between Bangladesh and China. Furthermore,the two countries signed eight memoranda of understanding (MoUs) in areas such as literature and publishing,cultural heritage exchange and cooperation,news exchange,media,sports,and health.[104]
In the immediate aftermath of the revolution,India halted issuance of visas to Bangladeshi medical tourists &Bangladesh accused India of orchestrating floods by releasing waters from the dams in the Indian state of Tripura.[111][112][113] The Bangladesh Assistant High Commission at Agartalawas attacked in 2024 by far-right Hindu outfits in protest of the anti-Hindu violence in Bangladesh. Bangladeshis under the Yunus government have reportedly pressed irrendentist claims over India's eastern &northeastern regions on social media.[114][additional citation(s) needed] On 1 April 2025,Yunus claimed 'guardianship' over the Bay of Bengal while on his diplomatic visit to China,which drew sharp condemnation from the Indian side.[115] Even Chief Minister of the Indian state of AssamHimanta Biswa Sarma demanded that the Indian government declare an all-out war on Bangladesh in reaction.[116] In late August 2025,the Yunus government suspended operations of a port of entry bordering Tripura &closed down 3 other ports of entry along the India-Bangladesh border.[117]
On 4 April 2025,Yunus and Modi met each other for the first time since the ouster of Hasina in August 2024. Both leaders engaged in a bilateral meeting in the sideline of 6th BIMSTEC summit in Bangkok.[118][119] Amongst the discussed topics,were extradition of Hasina,border killings,sharing of the waters of Ganges at the Farakka Barrage and Teesta at the Teesta barrage,persecution of Hindus in Bangladesh following Hasina's exile,and provocative statements made from the both sides.[120][121][122] Press Secretary Shafiqul Alam has described the meeting as "constructive,productive,and fruitful".[123] In the meeting,Yunus also gifted a picture of Modi honouring him in 102th Indian Science Congress in 2015.[124]
Despite strained relations,bilateral trade with India considerably increased under the Yunus government.[125]
Criticism
"Adibashi" graffiti controversy
A graffiti photo with the term Adibashi was removed from sections of Bangladeshi textbooks describing the religious groups of the country in an effort to maintain "state harmony" and a "pluralistic society".[126][127] The move was justified owing to the word's association with paganism &the fact that most of these people identify as either Hindu,Christian or Buddhist in official reports. The removal of the graffiti prompted a demonstration by indigenous activists,which would be followed by an attack on the demonstrators by the group "Students for Sovereignty" on 15 January 2025,injuring 20 people.[128] The group previously has criticized Yunus for using the term Adibashi in his speech on 25 August 2024. Protests continued on 16 January,as indigenous rights students,under the Agitated Adibashi Students banner,marched towards the home ministry;the police responded with water cannons and batons in accordance to the principles the interim government followed at the time.[129][130][non-primary source needed]
Yunus' government received heavy criticism for its apparent failure to quell a spate of crimes against women,especially against minors in the aftermath of the revolution,following the death of an 8-year-old girl from injuries sustained on being gangraped by her 20-year-old brother-in-law and his father in March 2025 at Magura District.[131][132][133]
In late-May 2025,Yunus reportedly expressed his dismay and frustration over the situation of the country and proposed reforms. He pointed out lack of cooperation and consensus from the politicians and officials to this government. Prothom Alo reportedly confirmed from several government officials and National Citizen Party (NCP) leader Nahid Islam that Yunus expressed his desire to resign and called off creation of a new interim government in several government meetings.[134]
In June 2025,during Muhammad Yunus' visit to London,he was met with protests outside the Dorchester Hotel in Mayfair,led by British Bangladeshis linked to the UK branch of the ousted-Awami League and allied groups. Demonstrators accused his interim government of human rights abuses,and deteriorating law and order,carrying placards that labelled him the "architect of mob rule" and demanded his resignation.[135]
In July 2025,members of the Awami League attacked a venue of the National Citizen Party (NCP) in Gopalganj,home district of Sheikh Hasina. The district civil surgeon said 4 people were killed and 13 injured in clashes. The Daily Star,citing witnesses,said "around 200-300 people armed with sticks vandalised the stage and tore apart the banner. They also exploded some crude bombs." The government-imposed curfew and deployed the Border Guard Bangladesh (BGB) in Gopalganj that day.[136]
Islamism,which had been harshly suppressed by the Hasina regime,saw a resurgence under the Yunus government. In late August,several individuals associated with Islamic terrorist organisations such as Ansarullah Bangla Team and Jamaat-ul-Mujahideen and Islamist parties like Jamaat-e-Islami,who were allegedly imprisoned on false charges,were released from prisons by the interim government. Many were cleared of all charges while some were released on bail. One of the most controversial moves was the release of Mufti Jashimuddin Rahmani,chief of the Ansarullah Bangla Team. There were at least 4 cases lodged against him for inciting terrorism.[137][138][139]
In October 2024,despite heavy security and deployment of armed personnel,scattered incidents of idol desecration and violent intimidation of Hindus occurred in various parts of the country during Durga Puja festivities in an attempt to jeopardize the observance of the most important Hindu festival in the country.[140]
In March 2025 Hizb ut Tahrir Bangladesh,a banned Islamist organisation,organised an open demonstration in the capital city of Dhaka,demanding implementation of sharia as the primary law of the land &resumption of khilafat,which,however,also received harsh resistance from the state law-enforcing agencies.[141][142]
The Bangladesh Hindu Buddhist Christian Unity Council,a non-profit minority rights organization which has been accused for spreading disinformation and fabricated news,[144][145] accused the Yunus administration of inaction &denialism in quelling religious violence against minorities perpetrated by Islamists,in a press statement issued on 10 July 2025.[146]
Ban on Awami League
In May 2025,the Awami League,accused the interim government of undermining democratic norms by banning all its activities and "stoking division". The Bangladesh Nationalist Party had earlier opposed the proposal to impose the ban.[147] Critics argue that banning Bangladesh's oldest and most electorally dominant party risks undermining democratic principles by targeting political affiliation rather than individual wrongdoing. They note that millions still identify with the party's historical role in securing Bangladeshi independence despite concerns over its recent leadership. The ban,which extends beyond top leaders to suspend all party activity —including its affiliated wings —has closed offices,cancelled events,and removed online platforms. For ordinary members not implicated in any wrongdoing,the move effectively denies them political representation and may deepen existing political divisions.[148]
Despite these, the government promised to support freedom of the press,[156] while criticizing the media for its role during the mass uprising against Sheikh Hasina.[157]
Allegations of special privileges and favouritism
The government has been accused for giving special privileges and facilities to Grameen family of organisations, including speedy approval of Grameen University, Grameen Employment's manpower export licence and Grameen Telecom's digital wallet. Also, Grameen Bank's government stake was lowered from 25% to 10% and its five-year tax exemption was reinstated. Apart from this, the cases against Yunus were also dismissed without completing the trial proceedings soon after he became the Chief Adviser.[158]
The Ministry of Foreign Affairs under the interim government led by Yunus has come under increasing scrutiny over allegations of favoritism, politicization, and internal rivalries in diplomatic appointments. Critics point to smear campaigns, delays in decision-making, and a lack of accountability within the ministry. These issues were highlighted by the delayed and contested appointment of Md. Sufiur Rahman as Special Assistant to the Chief Advisor with executive authority, raising concerns about the Foreign Advisor's role and reflecting broader dysfunction. The ministry's reduced influence has been further underscored by the growing prominence of Khalilur Rahman—now National Security Advisor—who has led key international engagements as several foreign governments and organisations increasingly bypass the ministry in favor of direct coordination with the Chief Adviser's Office.[159]
Other criticism and controversies related to the interim government include lack of judicial freedom, government intervention in the sports sector, environmental degradation, loose polythene control policy, transportation and connectivity issues, fall of trade and foreign investment, price hike and inflation, and visa bans.[161]
↑These being: government employees, bankers, employees of mobile operator companies, and officers and employees of six major companies within four city corporations.[55]
↑The survey was conducted on the people aged between 18 and 55
↑49.3% correspondents said "somewhat satisfied" and 5.2% said "extremely satisfied".
↑18.9% correspondents said "somewhat disatisfied" and 3.6% said "extremely disatisfied".
↑39.5% correspondents said "good" and 39.2% said "fair".
↑Muhammad, Jamshed Iqbal. "SAARC: Origin, Growth, Potential and Achievements"(PDF). National Institute of Historical and Cultural Research in Islamabad. p.131. Archived(PDF) from the original on 11 November 2013. Retrieved 11 November 2013.
↑কেন নজরুল বিশ্ববিদ্যালয়ের 'অঞ্জলি লহ মোর' ভাস্কর্য ভেঙে ফেলা হয়েছে?. BBC News (in Bengali). 19 June 2025. Retrieved 21 June 2025. অন্তর্বর্তী সরকারকে এসব ঘটনায় আইনগত পদক্ষেপ নেওয়ার পরিবর্তে কেবলমাত্র বিবৃতি দিয়ে হুঁশিয়ারি উচ্চারণ করতে দেখা গেছে।[Instead of initiating legal procedures against these incidents, the Interim Governmentis seen only issuing warnings through press briefings.]
↑Bhattacherjee, Kallol (10 July 2025). "258 communal attacks in Bangladesh in the first half of 2025: Bangladesh minority religious group". The Hindu. ISSN0971-751X. Retrieved 11 July 2025. The government has denied occurrence of communal violence by describing them as political incidents. As a result, the perpetrators of these crimes have become emboldened increasing the insecurity of the minority religious communities....We have noted with regret that the government has adopted the strategy of describing communal violence as concocted lies
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