Interim Government Of Muhammad Yunus

The leadership of Muhammad Yunus began on 8 August 2024 when he was sworn in as the Chief Adviser of Bangladesh by President Mohammed Shahabuddin. In August 2024, after the resignation of Sheikh Hasina as prime minister and her departure to India following the Student–People's uprising, the key coordinators of the uprising announced that Yunus would be Chief Adviser of the interim government. The main pledge of the interim government is to forge consensus about and implement fundamental reforms that are required to hold a free and fair national election by June 2026.

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. President Shahabuddin immediately started the process of meeting with political leaders, key coordinators of the protest and civil society on 6 August 2024.

Inauguration

Yunus was sworn in as the Chief Adviser of Bangladesh in a ceremony at the Bangabhaban on 8 August 2024. 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.

Domestic affairs

On 9 August 2024, Yunus visited injured people at Dhaka Medical College Hospital. On 10 August 2024, he also visited the home and family members of Abu Sayed and paid respects to Sayed's grave in Rangpur. On 13 August, he visited the Dhakeshwari National Temple, the main place of worship for the Hindu minority in the capital city of Dhaka to meet the leaders of the Hindu community and denounced the post-resignation attacks on Hindus and other religious and ethnic minorities.

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. On 11 September, Muhammad Yunus announced 6 commissions to fulfil 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.

Hasina regime's violent crackdown 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 Student–People's uprising. Interim leader 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.

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."

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. 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.

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.

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.

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". The move was justified owning 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. 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.

In February 2025, following a widespread outburst of violence in the aftermath of demolition of Dhanmondi 32, the Yunus administration launched Operation Devil Hunt to quell the ongoing violence. On its first day, 1,308 people were arrested.

In April 2025, after a massive demonstration by the NCP & Islamist outfits like the Hefazat-e-Islam, the Yunus government banned the Awami League as an organization. In June 2025, the ban on Jamaat-e-Islami as a political outfit that had been placed in 2013, was removed, thereby enabling the outfit to become eligible to run in the upcoming polls. Alongside, the 2014 death sentence of Jamaat leader ATM Azarul Islam, who was convicted of crimes against humanity during the Bangladesh Liberation War, was also overturned.

Islamism, which had been harshly suppressed by the Hasina regime, saw a resurgence under the Yunus government. 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. In May 2025, Islamists organised massive demonstrations against the government's initiative to grant equal rights to women regarding property inheritance.

In May 2025, the Yunus administration faced large-scale protests from civil servants over an 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 military dictatorship of Ziaur Rahman. On that very same month, primary teachers of government schools across the nation went on a strike demanding increase in wages.

Economic affairs

In August, the Yunus administration appointed economist Debapriya Bhattacharya to head a committee charged with drafting a white paper on the economy of Bangladesh. In September, Bhattacharya said that all agreements made during the AL regime would be "closely examined".

On 18 August, 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.

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. Later in November, inflation accelerated to 11.38%, the highest in four months.

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. Inflation has continued to rise, reaching 11.38%, a four-month high in December.

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. Tax exemption status was restored to Grameen Bank and given to As-Sunnah Foundation.

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. 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".

In November, 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.

On 2 April 2025, Trump administration imposed 37% "reciprocal" tariff on Bangladesh, which is second highest in South Asia just after Sri Lanka (44%). On 5 April, Yunus called an emergency meeting of experts, advisers and related officials to discuss over the tariff issue. Following the meeting, decisions were made to increase import for reducing trade deficit with the United States. 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.

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). 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.

Foreign affairs

Yunus' government engaged in discussions with the ambassadors of different countries, including Palestine, Italy, China, Russia, Pakistan, Saudi Arabia, India, and others.

A few days after becoming the Chief Adviser of the interim government, Yunus talked with the authorities of the United Arab Emirates. After the discussion, the President of the United Arab Emirates, Mohamed bin Zayed Al Nahyan, pardoned 57 Bangladeshi expatriates who were previously arrested for protesting against the Hasina government.

On 29 August, the International Convention for the Protection of All Persons from Enforced Disappearance was signed by Yunus. It was well received by the people and the United Nations.

On his official foreign visit at Seventy-ninth session of the United Nations General Assembly, Yunus discussed with the heads of the governments of many countries like Mauritius, Canada, United States, Italy, Pakistan, Nepal, the Maldives, and the Netherlands. He also discussed with some high officials like Volker Türk, Ajay Banga, Kristalina Georgieva, Karim Ahmad Khan, Samantha Power, Noel Quinn, and Dick Durbin. He also met former U.S. President Bill Clinton in a programme.

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.

On 14 March 2025, the United Nations Secretary-General António 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. He also expressed his solidarity with Bangladesh’s reform and transition process during his visits.

On March 26, 2025, the Chief Adviser, Dr. 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. Yunus raised issues such as Chinese investment in Bangladesh, river management, and the Rohingya crisis. He requested a 50-year master plan from China for comprehensive river and water management. After the suspension of Indian visas for Bangladeshi nationals, China allocated four hospitals in Kunming specifically for Bangladeshi patients. Additionally, China Eastern Airlines plans to operate flights between Bangladesh's port city, Chittagong, and Kunming. Bangladesh has also secured $2.1 billion in investments, loans, and grants from China to enhance infrastructure and manufacturing sectors. 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.

The interim government's relationship with India under the leadership of the Hindu nationalist Prime Minister Narendra Modi has significantly nosedived, due to the Modi administration providing refuge to Hasina & its support for the Awami League, & the Yunus government's soft stance on Islamist resurgence, detention of Chinmoy Krishna Das over the murder of Saiful Islam Alif & resumption of trade relations with Pakistan. Within India, the Yunus government is portrayed by the pro-government media as a ''de-facto'' Islamist government. The Bangladesh Assistant High Commissionerate at Agartala was attacked in 2024 by far-right Hindu outfits in protest of atrocities against Hindus committed following Hasina's ouster. Bangladeshis under the Yunus government has reportedly pressed irrendentist claims over India's eastern & northeastern regions on social media. A retired Bangladesh Army veteran called for the nation to invade & occupy the neighbouring Indian state of West Bengal (a Bengali majority state that was separated in 1947 due to its Hindu population), which drew sharp condemnation from the West Bengal Chief Minister Mamata Banerjee. On 1 April 2025, Yunus publicly claimed 'guardianship' over the Bay of Bengal (despite the fact that India has more coastline along the Bay of Bengal than that of Bangladesh) while on his diplomatic vist to China, which drew sharp condemnation from the Indian side. Himanta Biswa Sharma, an influential Northeast Indian leader of Modi's Bharatiya Janata Party, who also serves as the Chief Minister of Assam (a Assamese Hindu majority state sharing border with Bangladesh which saw significant ethnic clashes in the 1980s over demographic change caused by illegal immigration of Bangladeshi Muslims) demanded that the Indian government declare an all-out war on Bangladesh.

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. 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. Press Secretary of Bangladeshi CA Shafiqul Alam described the meeting as "constructive, productive, and fruitful". In the meeting, Yunus also gifted a picture of Modi honouring him in 102th Indian Science Congress in 2015.

After nationwide large pro-Palestinian demonstrations organised by right-wing & Islamist outfits protesting the Gaza war resulting in increased anti-Isareli sentiments, the Yunus government issued a directive reinstating the sentence in Bangladeshi passports 'THIS PASSPORT IS VALID FOR ALL COUNTRIES OF THE WORLD EXCEPT ISRAEL', which had been dropped in 2021 by the Hasina government, thereby halting all diplomatic relations with Israel.

Criticism

Following the formation, the interim government faced legal obstacles due to constitutional and "legal inconsistencies". The Appellate Division ruling from 2011 invalidated the 13th Amendment, which introduced the caretaker government system. The 15th amendment upheld this by abolishing the caretaker provision altogether. The Supreme Court's High Court Division declared the 15th Amendment unconstitutional but the move failed to restore the caretaker system. Amin Al Rashid of The Daily Star says the Appellate Division's ruling remains "binding". The interim government operates outside the existing legal framework. For the government to be constitutionally legitimate, the 2011 ruling needs to be overturned which has not happened.

In October 2024, Yunus made a remark about a "reset button" during an interview with the ''Voice of America'', which was seen as suggesting revision of the country's history. The government's press wing later clarified that Yunus did not intend to
"erase" the nation's "proud history".

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 on March 2025 at Magura district.

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 it's 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.

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. 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 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.

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.

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 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.

Following an incident of vandalism of a mural at Jatiya Kabi Kazi Nazrul Islam university, many intellectuals criticised the Yunus government's lack of action against violence perpetrated by Islamist mobs.

Criticism over management of Ministry of Foreign Affairs

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 Advisor’s Office.

Cabinet

President Mohammed Shahabuddin administered the oath of office to Yunus and his council of advisers at Bangabhaban on 8 August 2024. The cabinet currently consists of Yunus as chief adviser, 23 advisers and 3 special assistants to the chief adviser. Apart from one Hindu adviser ( Bidhan Ranjan Roy) and one Buddhist adviser ( Supradip Chakma), all other members of the council are Muslim, out of which four are women ( Farida Akhter, Nurjahan Begum, Rizwana Hasan and Sharmeen Murshid). Three student activists ( Mahfuz Alam, Asif Mahmud and Nahid Islam) had also been included in the council. The Jamuna State Guest House is serving as the official residence of the chief adviser. Later, Nahid Islam resigned in order to form his political outfit, the National Citizen Party.

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References

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