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Millions of Bangladeshi people welcomed Muhammad Yunus as the chief advisor of an interim government with much fanfare last August after the fall of the Sheikh Hasina government. A crisis-ridden Bangladesh was expecting a "new deal" from the Nobel laureate economist who popularised microfinance across the world.
Yunus, a favourite of the US establishment, grabbed the opportunity as it offered him a chance to be the Franklin D. Roosevelt -- the American President who laid the groundwork to steer America out of the crisis after the Great Depression of the 1930s -- of Bangladesh. After assuming office, the former professor of economics at Chittagong University was quick to announce plans to reform the judiciary, police, finance and public administration.
The man known as the poor man's banker also took a pledge to revitalise the economy and dismantle the "corruption-soaked network" created by "Hasina's Fascist regime" from the country’s political and economic fabric.
The world -- especially the West, generally oblivious of the realities of this subcontinent -- saw a messiah in Muhammad Yunus, who flew in from Paris to fill the leadership vacuum in Dhaka.
Cut to August 2025. The goodwill that greeted Yunus has retreated significantly as ordinary Bangladeshis are openly voicing their utter disgust with Yunus and his regime. More importantly, some opinion makers of Bangladesh -- weathercocks, according to a veteran journalist -- who had backed Yunus just a year ago are now singing a different tune.
Take for instance the recent comments of Debapriya Bhattacharya, economist and distinguished fellow at the Centre for Policy Dialogue (CPD) in Dhaka. Last year, Yunus reinstated Bhattacharya in public life by entrusting him with the responsibility of preparing a white paper on the economy. The PhD in economics from erstwhile Soviet Union was signing Yunus's tune till a few months ago, giving sound bites on how Bangladesh shifted from crony capitalism to kleptocracy under the Hasina regime.
He has, however, begun talking more about the lapses of the new regime these days. Last week he stressed that the time has come for the interim government to define a clear "exit policy”.
Such dramatic volte-faces have become common in today's Bangladesh and most people blame Yunus and his cronies for the 180-degree shift in their opinions.
Against this backdrop, it is pertinent to assess the reasons behind the slide in Yunus's stocks.
1. Economy shattered
The Muhammad Yunus government organised an investment summit in April 2025 with a pledge to turn the country into a globally competitive and investor-friendly economy by 2035. Several claims -- like a $150 million investment agreement with China and a huge growth in employment -- were made after the three-day conference.
All these claims, and the earlier pledges to revive the economy, have remained only on paper as an unprecedented phase of economic hardship has hit the country, which had grown at a stellar pace during the time of Hasina.
Persistent high inflation and lack of employment opportunities have dealt a deadly blow to ordinary people. Bangladesh’s banking sector is on the brink of a collapse due to unsustainable proportions of non-performing loans, which has crossed Tk 5.3 lakh crore (Rs 2.16 lakh crore), about 30 per cent of total loans.
The future looks bleak due to political uncertainty and mismanagement by the Yunus regime. The World Bank has predicted a 3.3 per cent growth in GDP in FY25, reducing it from its earlier projection of 4.1 per cent made in October 2024. The IMF has cut its growth forecast for FY 2025 from 4.5 per cent (made in last October) to 3.7 per cent.
2. Media silenced
Bangladeshi media have faced systematic and organised repression since the change of guard in Dhaka in August 2024 though Yunus publicly advocated for press freedom. "Write as you please. Criticise," he said. "Unless you write, how will we know what is happening or not happening?"
The reality, however, is different. Reports suggest that criminal cases have been filed against 182 journalists, about 206 others are implicated in cases of violence, accreditation of about 167 journalists have been cancelled, and inquiries have been initiated against 85 senior journalists by the Bangladesh Financial Intelligence Unit, the anti-terror and anti-money laundering arm of the government.
The system is so oppressive that bail pleas of senior journalists like Mozammel Babu, Shyamal Dutta, Farzana Rupa and Shakil Ahmed, who have been languishing in jail on fabricated murder charges for about 11 months, are not even taken up for hearing.
"Press freedom has been under threat for years but it has never been like this... Journalists have become favourite punching bags in the country, where so-called student revolutionaries have sweeping powers to harass anyone. So, media organisations have adopted self censorship to be in the good books of the government and the notorious student vigilantes," said a veteran journalist.
3. Extortion culture
The fact that The Daily Star -- a newspaper that had been a cheerleader of Yunus for years -- commented on the rising trend of extortion across Bangladesh in a recent editorial makes it clear that the situation is grave.
The comment piece mentioned the gruesome murder of scrap metal trader Lal Chand alias Sohag in Dhaka's Mitford area by men linked to the BNP. The case of Abdur Razzak Riyad, a leader of the Students Against Discrimination (SAD), who extorted an ex-MP's family and pressured another ex-MP into signing cheques worth crores, also featured in the piece.
These two incidents are, however, just the tip of the iceberg in a country where extortion has become a social culture. Some of the student leaders who were at the forefront of the movement against Hasina have become millionaires in just a few months.
Given the spread of the extortion economy -- in the absence of normal economic activity -- some commentators have sarcastically suggested the government should declare a National Extortion Development Policy.
4. Mobocracy boom
Ain o Salish Kendra (ASK), one of the leading human rights and legal aid organisations in Bangladesh, brought out a recent report that claimed at least 179 people were killed in mob attacks between August 2024 last year and June 23 this year.
The Yunus regime -- by giving impunity to people who ran amok last July and August -- has encouraged mobocracy to such an extent that a mob has the power to assault a former chief election commissioner who was also a valiant freedom fighter.
Following the attack on K.M. Nurul Huda, 30 eminent citizens in a joint statement expressed deep concern over the rising trend of mob violence in the country and urged the government, law enforcement agencies and political parties to firmly oppose such acts of lawlessness.
Unfortunately, no visible action has been taken in Yunus's Bangladesh, where Bangabandhu Sheikh Mujibur Rahman's Dhanmondi-32 residence was demolished by a mob in the presence of men in uniform.
5. Academics affected
As twenty-something new generation of leaders -- products of last year's anti-Hasina protests -- call the shots in Bangladesh and organise various programmes to decry the "former Fascist regime", the next generation of learners suffers the most.
The sudden rise of the student leaders as national heroes and policymakers has the potential to disincentivise excellence, said a professor.
"We were taught that academic excellence is the key to success... The new generation of leaders have turned that doctrine upside down by reaching the top by leading violent street protests. They are glorifying violence, carrying arms and also minting money through extortion," he explained.
"Some of the top student coordinators are not even college passouts. They are bad examples for our next generations. Yunus should be held responsible for destroying the Bengali culture, where pursuing academic excellence was always held in high esteem," he said.
Besides, regular incidents of unrest in academic institutes and attacks on teachers under any pretext have cast a shadow on the country's education system.
6. Women subjugated
Gone are the days when high participation of women in the Bangladeshi workforce used to be a topic of discussion at seminars. Following the change of guard in Dhaka, atrocities on women in Bangladesh are drawing the world's attention as there has been a sharp rise in crimes against women in Bangladesh.
Islamist radicals, who strongly back the Yunus regime, recently hit the streets demanding trashing of a Women's Reform Commission report that recommended equal rights for women in matters of inheritance, divorce, property and marriage. Videos of Islamist radicals stripping a woman's effigy and beating it with shoes went viral after the protest rally.
According to a report by Dhaka Tribune, more than 24 cases of rape were reported in the country between June 20 and June 29 this year. Even insiders in the Yunus regime have described the sexual violence as a “pandemic-level crisis”.
7. Minorities petrified
A sharp rise in violence against Hindus since the deposition of Hasina in August 2024 has raised serious apprehensions regarding the status of religious minorities in Bangladesh. The brazen rape and public humiliation of a married Hindu woman in Bangladesh's Cumilla region in June brought into focus how insecure minorities are in the nation.
The last few months have seen instances of brutal attacks on minorities – for allegedly hurting religious sentiments – and places of worship. India has repeatedly taken up the issue of “systematic persecution” of minorities with the Yunus regime, but Dhaka has been in denial mode.
8. Rising fundamentalism
A streak of Islamic extremism that had long lurked beneath Bangladesh's secular facade is now out in the open with the Jamaat-e-Islami playing a key role in national politics since August 2024.
Several radicals and terrorists, including ABT chief Mufti Jashimuddin Rahmani and several of his aides, either escaped or were released last August, which paved the way for the regrouping of the organisation.
The Hizb-ut-Tahrir (HuT), a pro-Caliphate transnational radical Islamic outfit, which played a key role in the regime change, has become active across campuses. There are also reports that the JMB has enhanced its organisational activities, which increases the security risk for the entire subcontinent.
Do not forget the presence of over 1.4 million Rohingya refugees, who are prone to radicalisation and recruitment by terrorist groups. This means the Yunus regime has created a perfect ecosystem to ensure consolidation of Islamic radicals.
9. History rewritten
The interim regime dropped the title "Father of the Nation" from a key law honouring the country's freedom fighters in an attempt to erase Bangabandhu Sheikh Mujibur Rahman from the narrative of the Liberation War.
Yunus has cancelled eight national holidays associated with Bangabandhu and the War of Liberation that led to the founding of the nation in 1971.
His cronies are also busy trying to pit 2024 against 1971, which indicates a meticulous plan to rewrite the country's history.
Under Yunus, Bangladesh even saw the release of convicted war criminal ATM Azharul Islam and attacks by Jamaat-Shibir on rallies that were organised to protest the verdict.
A peaceful rally by the Democratic Student Alliance at Rajshahi University on May 27 was attacked for protesting the impunity given to Islamists. In protest, another rally was held on May 28 at Chittagong Press Club, which also came under attack by Islamists under the banner of the “Anti-Shahbagh Unity”.
10. Brain-drain hastened
Against this backdrop, bright young minds are desperate to leave the country -- despite sudden visa restrictions imposed by several countries -- as most of them do not see a future in Bangladesh.
Official data showed the flow of foreign direct investment fell to $104.33 million in the July-September quarter of fiscal year 2024-25, the lowest in at least six years.
A Bangladeshi businessman said forget foreign investors, even domestic investors are not putting any money in the country due to deadly political unrest, labour agitations, and a persistent economic crisis.
"I can't be an extortionist... I don't have any hope in this country. I will finish off my plus-two level studies and go to England," said a student of XIth standard, who is waiting to run away from Bangladesh after his exams later this year.
The boy's mother, a politician of an anti-Yunus party, said that she has consented to her son's demand not because of dwindling career prospects alone. "Bangladesh is no longer safe... If he is late in returning from his tuition, my heart starts racing," she said.
11. Distressed diplomacy
Yunus may have been a world-known figure, but Bangladesh's diplomatic ties have been badly hit since he took charge in August.
Not only did he embarrass the foreign service officers of Bangladesh with his comments on India's northeastern states, his failure to rein in his cronies from making inappropriate comments about the neighbouring country has pushed India-Bangladesh ties to a nadir.
Though the Yunus regime is seen cosying up to Islamabad and Beijing, Dhaka suffered a major diplomatic face loss in June.
"His so-called state visit to England was a huge mistake as his pleas for a meeting with Keir Starmer went unheard.. It was a major embarrassment," said a source in Dhaka.
12. Goebbelsian culture
The Achilles' heel of the Yunus regime will be its denial to admit mistakes and learn from them. Instead of admitting mistakes, it has adopted tactics used by Nazi Germany's minister of propaganda, Joseph Goebbels.
So, mobocracy is justified as effervescence of revolution, attacks on Hindus are referred as attacks on discredited Awami League and atrocities on women are called stray incidents.
Yunus's spin doctors swat away questions on economic mismanagement, lawlessness and rise of fundamentalist forces as the Indian media's propaganda.
Such deception and manipulation may deflect attention for a few months, but there is little doubt that the banker's image has taken a huge beating.
