Interim government of Muhammad Yunus

This article is about Muhammad Yunus's tenure as Chief Adviser of Bangladesh. For the people in his government, see Yunus ministry.

Muhammad Yunus Chief Adviser of Bangladesh 8 August 2024 – present
President	Mohammed Shahabuddin
Premier	Muhammad Yunus
Cabinet	Interim
Party	Independent
Nominated by	Anti-discrimination Students Movement
Appointed by	President Mohammed Shahabuddin

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 this government is organise a constituent assembly to draft and adopt a new, inclusive, democratic constitution, ensuring the inviolability of human dignity.

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 members from around the country to discuss the formation of an interim government. President dissolved the Parliament on 6 August 2024.

Premiership

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

Advisory council meeting under the chairmanship of Muhammad Yunus on 12 September 2024.

On 9 August 2024, Yunus visited peoples injured in the protests at Dhaka Medical College Hospital. On 10 August 2024, he also visited the home and family members of Abu Sayed & 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 & denounced the post-resignation attacks on Hindus & other religious & 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. He 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 that the interim government's intentions to reform the electoral system, police administration, judiciary and public administration in Bangladesh alongside strengthening anti-corruption measures & amending the constitution.

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 radical outfits like Ansarullah Bangla Team and Islamist or politically far-right parties like Jamaat-e-Islami 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. He has been known for his pro Al-Qaeda leanings. There were at least 4 cases lodged against him for inciting terrorism.

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 & deployment of armed personnel, scattered incidents of idol desecration & violent intimidation of Hindus occurred in various parts of the country during Durga Puja festivities in an attempt to jeopardise the observance of the most important Hindu festival in the country. On 11 October, it was reported that a golden crown donated at the shrine of Jessoreshwari by the Indian Prime Minister Narendra Modi during his state visit to Bangladesh on 2021 had been stolen.

On 4 December, Hasina accused Yunus's administration of perpetrating a meticulously designed genocide and requested them to "take all steps for the protection of minorities."

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 a massive issue under the interim setup. As per the South Asia Development Update, the World Bank revised its economic growth forecast from an optimistic 5.7% in April 2024 down to just 4% in October for the financial year 2025. While inflation has been unsatisfactory before, it reached unsustainable levels due to political upheavals in the country. Consequently, the interim government found itself facing severe food inflation at above 14% and the inflation in general was 11%. There has been lack of economic stability. For instance, sudden sharp rise in inflation in July 2024 was mostly attributed to the political turmoil facing Bangladesh but then after a momentary stabilization, the inflation started shooting up again in October 2024. The general point-to-point inflation rate in Bangladesh reportedly reached 10.87 percent, up from 9.92 percent in September 2024. The trend continued in November. The inflation accelerated to 11.38%, described as the highest in over 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 bonsuses, 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 for 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.

Foreign affairs

President Joe Biden with Chief Adviser Yunus at the U.N. Headquarters in the New York City.

Yunus with President of Azerbaijan Ilham Aliyev and Secretary-General of the UN António Guterres at COP29 in Baku, Azerbaijan

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, 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.

Legal Challenges

The interim government under Muhammad Yunus faces a legal challenge due to constitutional and legal inconsistencies. The Appellate Division’s 2011 ruling invalidated the 13th Amendment, which introduced the caretaker government system, making it legally obsolete. The 15th Amendment reinforced this by abolishing the caretaker provision altogether. While the High Court recently declared the 15th Amendment unconstitutional, this does not automatically restore the caretaker system, as the Appellate Division’s ruling remains binding. The Muhammad Yunus-led interim government lacks constitutional legitimacy, as it operates outside the existing legal framework. For such a government to be valid, the 2011 ruling would need to be overturned, and a new constitutional amendment passed, neither of which has occurred. As a result, the current interim government’s authority is legally untenable.

Cabinet

Further information: Yunus ministry § Members

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) & one tribal Chakma adviser (Supradip Chakma), all other members of the council are Muslims, out of which only 4 are women (Farida Akhter, Nurjahan Begum, Rizwana Hasan & Sharmeen Murshid). 3 student activists (Mahfuz Alam, Asif Mahmud & Nahid Islam) have also been included in the council. The Jamuna State Guest House is serving as the official residence of the chief adviser.

International trips

Main article: List of international trips made by Muhammad Yunus as Chief Adviser of Bangladesh

Approval ratings

Polling firm/Link	Fieldwork date	Date published	Sample size	Margin of Error	Approval		Disapproval		Net approval
					Politics	Economy	Politics	Economy	Politics	Economy
BIGD	22 Aug – 5 September 2024	16 September 2024	2,366	± 2.0%	71%	60%	29%	40%	+42%	+20%

See also

• Premiership of Sheikh Mujibur Rahman – Period of the Government of Bangladesh from 1972 to 1975)
• Presidency of Ziaur Rahman – President of Bangladesh (1977–1981)
• Premiership of Sheikh Hasina – Period of the Government of Bangladesh from 1996 to 2001 and 2009-2024