Geopolitical Briefing: Bangladesh
2 June 2025
- Trial commences against ex-Prime Minister Sheikh Hasina for alleged crimes against humanity during the 2024 student uprising.
- Bangladesh receives a $1.06 billion financial support package from Japan, enhancing infrastructure and education sectors.
- Assam Chief Minister issues stern warning over Bangladesh's revival of Lalmonirhat airbase with Chinese assistance.
- Bangladesh Bank denies merger plans between National Bank and Islamic banks, clarifying restructuring intentions.
- Calls intensify for establishing a dedicated Islamic banking institute under Dhaka University to bolster Shariah-compliant finance.(AP News, Reuters, The Economic Times, The Financial Express, Muslim Network TV)
On 1 June 2025, Bangladesh's International Crimes Tribunal initiated proceedings against former Prime Minister Sheikh Hasina, charging her with crimes against humanity related to the 2024 student-led uprising that resulted in significant casualties. Hasina, currently in exile in India, is accused of orchestrating state-led crackdowns during the protests. This legal action signifies the interim government's commitment to addressing past human rights violations and reasserting national sovereignty by holding former leaders accountable. (AP News, The Economic Times)
During a visit to Tokyo, interim leader Muhammad Yunus secured a $1.06 billion financial assistance package from Japan, aimed at supporting Bangladesh's budget, infrastructure, and education sectors. The package includes a $418 million development policy loan and $641 million for railway modernization. This partnership reflects Bangladesh's efforts to diversify its international alliances and reduce dependency on neighboring powers. (Reuters)
Assam Chief Minister Himanta Biswa Sarma issued a warning regarding Bangladesh's revival of the Lalmonirhat airbase, reportedly with Chinese assistance. Sarma stated that any threat to India's strategic Siliguri Corridor would be met with reciprocal actions. This development underscores the escalating regional tensions and the importance of Bangladesh's strategic decisions in maintaining regional stability. (The Economic Times, Atlantic Council)
Bangladesh Bank has clarified that there are no plans to merge the conventional National Bank with Islamic banks, countering recent media reports. The central bank emphasized that while restructuring of weak banks is under consideration, it will not involve merging conventional and Shariah-compliant institutions. This decision maintains the distinct identities of financial institutions and supports the integrity of Islamic banking practices. (The Financial Express)
At a seminar held on 26 May 2025, experts and policymakers advocated for the establishment of a dedicated Islamic banking institute under Dhaka University. The proposed institution aims to enhance education and research in Shariah-compliant finance, addressing the growing demand for Islamic banking services in Bangladesh. This initiative aligns with the country's efforts to integrate Islamic principles into its financial system and promote economic inclusivity. (Muslim Network TV)
