The poverty rate in Bangladesh has risen sharply to 27.93 per cent according to a new study by the Power and Participation Research Centre (PPRC), up from 18.7 per cent in 2022, based on government data.

The alarming increase highlights a deepening economic crisis affecting millions of households across the country. The research surveyed 33,207 individuals across 8,067 households in May 2025.

The report reveals a troubling rise in both extreme and general poverty. While government data placed extreme poverty at 5.6 per cent in 2022, the PPRC estimates it has now climbed to 9.35 per cent. Additionally, 18 per cent of families are currently classified as vulnerable, living on the edge and at risk of falling into poverty due to economic shocks.

The study also reflected widespread harassment in everyday life, painting a troubling picture of economic distress and institutional dysfunction across Bangladesh.

Titled ‘Economic Dynamics and Mood at Household Level in Mid-2025’, the report, presented at an event in Dhaka’s LGED auditorium, reveals that the national poverty rate has climbed to 27.93 per cent, up from 18.7 per cent in 2022. Meanwhile, extreme poverty has surged from 5.6 per cent to 9.35 per cent over the same period. An additional 18 per cent of families are now classified as vulnerable, at risk of falling into poverty due to economic shocks.

The findings are based on a nationwide survey conducted in May 2025, covering 33,207 individuals from 8,067 households, and underscore the compounding impact of three overlapping crises: the aftermath of Covid-19 (2020–2022), persistent inflation, and ongoing political-economic uncertainty.

Urban households under severe pressure

The economic strain is most acute in urban areas. The average monthly income for an urban household has fallen from Tk 45,578 in 2022 to Tk 40,578, while monthly expenses have risen to Tk 44,961 – leaving a deficit of over Tk 4,300. This growing gap has eroded household resilience and eliminated any possibility of savings.

In contrast, rural incomes have seen a modest increase, rising from Tk 26,163 in 2022 to Tk 29,205, with average expenses at Tk 27,162, allowing for a small surplus. Nationally, average monthly income stands at Tk 32,685, with expenses at Tk 32,615, leaving virtually no room for financial security.

Food dominates household spending

The report highlights the heavy burden of basic living costs, revealing that 55 per cent of household expenditure goes toward food, averaging Tk 10,614 per month, while other key expenses include Tk 1,822 on education, Tk 1,556 on healthcare, Tk 1,478 on transport, and Tk 1,089 on housing.

This high share of food spending points to growing food insecurity, particularly in cities, where families are increasingly forced to make trade-offs between nutrition and other essential needs.

Harassment: A hidden economic and social crisis

Beyond poverty, the PPRC identifies harassment as a pervasive and under-recognised burden on households. Unlike corruption, which involves direct financial transactions, harassment encompasses bureaucratic delays, lack of information, unresponsive officials, and poor service conduct, all of which carry significant economic and emotional costs.

The report notes: “A bribe may be only Tk 10, but the week lost in delays and hassles costs much more.”

Key findings on harassment reveal that 49 per cent of households nationwide (56 per cent in urban areas) reported negative experiences in healthcare services, 42 per cent nationally (52 per cent in cities) faced harassment in markets, 22 per cent at the national level and 30 per cent in urban areas experienced it in government services, 16 per cent nationally and 24 per cent in cities in educational institutions, while harassment occurred on streets for 18 per cent of households and in workplaces for 15 per cent.

The most common form of harassment is the belief that “nothing works without money” (reported by 75 per cent of households), followed by bureaucratic hassles (36 per cent), unclear procedures (23 per cent), delays (22 per cent), and indifferent or unethical officials (12–20 per cent).

PPRC Executive Chairman Hossain Zillur Rahman stated: “Harassment is difficult to define, but it is a lived reality. It is rarely discussed, yet it urgently needs to enter the national dialogue.”

Corruption: Decline in bribery, but shifts in pattern

On a more positive note, the percentage of households paying bribes has fallen from 8.54 per cent to 3.69 per cent since August 2024. However, the nature of corruption is evolving.

Police now receive the largest share of bribes, rising from 31.77 per cent to 39.37 per cent.

Payments to political leaders and activists have increased.

Conversely, bribes to local government and government offices have declined, suggesting some anti-corruption efforts may be working.

Motives for bribery are also shifting. Fewer people are paying for “faster service” or due to direct demands. Instead, more are paying to “avoid legal hassle,” “due to confusion over rules,” or “lack of influence.” This indicates a deeper structural problem: a complex, opaque system that forces citizens to pay simply to navigate basic processes.

Five emerging vulnerabilities require urgent action

Zillur Rahman outlined five critical areas needing immediate policy attention: rising chronic illness, which calls for new social protection schemes; female-headed households, among the most marginalised and in need of targeted support; growing household debt, posing a serious threat to financial stability; increasing food insecurity, not yet widespread but worsening rapidly; and the sanitation crisis, with 36 per cent of the population still using non-sanitary toilets despite only five years remaining to meet the Sustainable Development Goals (SDGs).

Joblessness and the need for a people-centred economy

Zillur Rahman warned of a “joblessness disaster”, urging immediate action to create decent employment. He criticised the current focus on macroeconomic indicators, saying: “Discussions must not remain limited to GDP. We need to expand debates to include equity, justice, inclusivity, and citizen welfare.”

A call for governance reform

While the decline in bribery is encouraging, the persistence of harassment and rising poverty reveal deeper systemic failures. The PPRC calls for governance reforms that simplify procedures, enhance transparency, and make public services more accountable and user-friendly.

Without addressing harassment as a structural issue, the report warns, efforts to reduce corruption and strengthen public trust will remain incomplete. As Bangladesh navigates a complex economic transition, the message is clear: true development must be measured not just by growth, but by dignity, access, and fairness in everyday life.