The Centre for Policy Dialogue (CPD) has raised concern over the institutional weaknesses and the country's inability to implement reform agenda at present.

The state of the Bangladesh economy just before the announcement of the national budget for fiscal year 2021-22 transmits a worrying signal, according to the think-tank.

The government did come up with a number of initiatives to mitigate the sufferings of the people and overcome the adverse effects on the economy in view of the pandemic and the much-expected turnaround is still not there, it said.

"One conclusion that can be drawn from the analysis presented in the proceeding sections is that addressing embedded institutional weaknesses and resilient recovery have become entwined."

Inherent weaknesses in the banking sector are undermining the government's efforts to trigger economic recovery through bank-dependent stimulus packages, it said.

Attempts to trigger private sector investment through subsidies, incentives and working capital support are not being able to compensate for the inherent challenges that continue to undermine the competitiveness of the private enterprises.

Reaching the marginal groups and those who are left behind are proving to be difficult in the absence of effective local-level institutions and access to real-time data.

Generating domestic resources to underwrite the needed resources have been weakened in the absence of the much-needed fiscal reforms.

These observations were shared by the CPD today at a virtual press briefing on the state of Bangladesh economy in 2020-21 fiscal year.