Bangladesh faced a challenging year in implementing its Annual Development Programme (ADP) as per the latest data from the Implementation Monitoring and Evaluation Division (IMED). The implementation rate for the revised ADP in FY2025-26 was only 67.5%, marking the lowest rate in 53 years. This follows a similarly weak performance in the previous fiscal year with an implementation rate of 67.85%. These figures highlight the broader issue of Bangladesh’s development governance resilience.
Looking at a longer timeframe, Bangladesh achieved 92.79% implementation in FY2021-22, followed by 84.16% in FY2022-23 and 80.63% in FY2023-24. However, there was a significant drop in implementation over the next two fiscal years, hovering around 68%. This shift raises concerns about the vulnerability of Bangladesh’s development governance to disruptions.
The recent challenges can be attributed to various extraordinary circumstances, including a political transition in August 2024, economic pressures, foreign exchange shortages, and fiscal constraints. While these factors have undoubtedly impacted public investments, the key question is how effectively the public investment system responded to these challenges while continuing development efforts.
The downward trend in implementation rates is not solely due to recent events. Preexisting issues such as procurement delays, land acquisition problems, design revisions, poor coordination among implementing agencies, and project management limitations have long plagued the system. These weaknesses were magnified by recent shocks, emphasizing the need for resilient institutions to support development ambitions.
Resilience in development governance goes beyond implementation rates. It requires realistic financing, institutional capacity, and project readiness. The disconnect between development priorities, financing, and project preparedness can hinder the successful delivery of development plans.
International development practices now focus on strengthening public investment management rather than just increasing spending. The ability to navigate crises and deliver results consistently is a hallmark of strong public investment systems.
As Bangladesh’s development landscape evolves with larger and more complex projects, the emphasis shifts to managing uncertainty alongside ambition. While larger budgets and ADPs are essential, true success lies in the ability of development governance to weather future shocks and deliver on growing ambitions.
The latest IMED figures serve as a call to action to reevaluate how Bangladesh plans, finances, and governs public investments. The goal is not just to improve implementation rates but to fortify development governance for sustained growth. Viewing this year’s historic low as a catalyst for strengthening resilience in development governance can pave the way for a more robust future.
