On August 5, 2024, Sheikh Hasina resigned as Bangladesh’s prime minister from her position as the Prime Minister of Bangladesh amid mass protests triggered by unpopular policies and allegations of authoritarianism. Her departure follows a tenure of nearly 15 years, marked by both economic progress and political suppression. Following her resignation, the Bangladeshi military assumed temporary control, promising to stabilize the situation and guide the country through a democratic transition .
Transition to New Leadership
In the wake of Hasina’s resignation, the military announced the formation of an interim government, led by General Waker-Uz-Zaman, to oversee the transition period and prepare for new elections. As a gesture of political unity, opposition figures such as Khaleda Zia, previously imprisoned on corruption charges, have been released. Nobel laureate Muhammad Yunus has been appointed as the head of the caretaker administration to restore trust in the political system, although his role will be largely symbolic
The interim government has committed to holding elections by December 2024, with the new president or prime minister expected to be sworn in by early January 2025. This timeline is intended to give all political parties, including those previously sidelined, time to organize and participate in fair elections .
Economic Impact of the Leadership Change
Bangladesh’s economy, which relies heavily on its garment industry—accounting for 83% of export revenue—has faced disruption due to political instability and violent protests. Investors are expressing concerns about the reliability of Bangladesh as a business hub, with many factories already reporting losses from the unrest. The country’s transition from Least Developed Country (LDC) status in 2026 further complicates the situation, as it will require renegotiating key trade agreements, including preferential access to European markets【59】【60】.
While the International Monetary Fund (IMF) has reaffirmed its commitment to Bangladesh by proceeding with a $4.7 billion loan, sustained political instability could hinder long-term economic recovery and growth
Conclusion
Sheikh Hasina’s resigned as Bangladesh’s prime minister marks the end of an era in Bangladesh’s political history. The success of the interim government in restoring order and ensuring a transparent election will determine the nation’s future stability. Economic challenges, including high inflation and youth unemployment, remain pressing issues. If the transition to new leadership is handled effectively, Bangladesh could emerge stronger, but the path forward will require cooperation across political lines and a focus on rebuilding public trust .
