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 July Uprising, the key coordinators of the Students Against Discrimination announced that Yunus would be Chief Adviser of the Interim government of Bangladesh. The main pledge of the interim government is to forge consensus about and implement fundamental reforms that are required to hold a free and fair general election and constitutional referendum on the July Charter alongside the election on 12 February 2026.
While the interim government initiated significant reform measures, substantial challenges persist in areas such as politics, the economy, and institutional accountability as reported by Transparency International Bangladesh (TIB). Systemic issues in governance and corruption remain largely unaddressed, prompting concerns that this may undermine the democratic aspirations of the uprising. According to the Ain o Salish Kendra, the interim government failed to fulfill the public desires following the uprising.
In the 2024–2025 fiscal year, Bangladesh registered an annual GDP growth rate of 3.49%, down substantially from immediate prior fiscal periods, representing a period of stagnation during the tenure of the interim government. Muhammad Yunus granted a number institutions affiliated with him, including Grameen-related organizations in substantial tax relief.
A concerns regarding the detention of political opponents were also raised in the United Kingdom Parliament. Early Day Motion 64866 stated that former Members of Parliament, journalists and judges had been imprisoned without charge for extended periods and expressed concern about alleged human rights abuses by state institutions. The motion called on the interim government to respect the rights of minorities and ensure adherence to due process and judicial safeguards.
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. The President have 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.
Amidst these deliberations, the student representatives who had been instrumental in the uprising expressed strong opposition to a military-led administration and nominated Muhammad Yunus, a Nobel laureate and renowned advocate for poverty alleviation and democratic governance with a global reputation, perceived neutrality and widespread acceptability, to serve as Chief Adviser of the interim government. After discussions involving the President, military officials, and student representatives, Yunus was appointed as interim leader with hopes that his leadership would restore democratic governance after years of political turmoil and authoritarianism. This was followed by the dissolvement of the parliament on 6 August 2024 by the President Mohammed Shahabuddin.
While the Constitution of Bangladesh has not provided for an interim government since 2011, the government is deemed legitimate due to the doctrine of necessity. Bangladeshi courts have taken the line that Hasina's resignation created a situation for which there was no constitutional remedy. Not only does the Bangladeshi legal system no longer account for transfers of power, but there was an urgent need to oversee state affairs.
Inauguration
Muhammad 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
On 9 August 2024, Yunus visited injured people at Dhaka Medical College Hospital. On 10 August 2024, he also visited the home and family members of Abu Sayed and 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 and denounced the post-resignation attacks on Hindus and other religious and 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. In the speech, he sought for constitutional and electoral reforms and 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 6 commissions to fulfill the interim government's intentions to reform the electoral system, police administration, judiciary and public administration in Bangladesh alongside strengthening anti-corruption measures and amending the constitution avert from the previous authoritarian regime.
Hasina regime's violent crackdown included the use of tear gas, live ammunition, and mass arrests, resulting in over 1,000 deaths and thousands of detentions within three weeks during the July Uprising. Yunus later claimed that as many as 1,500 people were killed and up to 3,500 forcibly abducted during Hasina's 16-year rule. He pledged investigations into these alleged violations and enforced disappearances.
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". for the implementation of reforms. The Yunus government also lifted the ban on the Jamaat-e-Islami as an organization that had been placed by the Hasina government at the peak of the anti-government protests.
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 Bangladeshi taka was donated from the relief fund of the chief adviser.
In February 2025, following a widespread outburst of violence in the aftermath of Demolition of Dhanmondi 32, the administration launched Operation Devil Hunt to quell the violence. On its first day, 1,308 people were arrested.
In April 2025, after a massive demonstration by the National Citizen Party, citizens & other political parties like the Hefazat-e-Islam Bangladesh, the government banned the Awami League as an organization under the anti-terrorism act.
In May 2025, a Women's Affairs Reform Commission set by the government proposed granting equal rights to women regarding property inheritance, against which Islamists organised massive demonstrations.
In May 2025, the Yunus administration faced large-scale protests from civil servants over a government ordinance that amended the Public Service Act, 2018, which empowers the government to forcibly retire civil servants without any enquiry over the slightest accusations of indiscipline, a law that was in place during the presidency of Ziaur Rahman. On that very same month, primary teachers of government schools across the nation went on a strike demanding increase in wages.
The National Consensus Commission was established by the Yunus administration to overview consensus among political parties over the state reforms, engaged in dialogue with various parties for several months. In July 2025, the administration mulled about introducing term limits by restricting a person from holding the prime ministerial position for more than 10 years. The NCP & Jamaat-e-Islami agreed, but the BNP (whose leader Khaleda Zia had already served as prime minister from 1991 to 1996 & 2001 to 2006) & the Communist Party of Bangladesh opposed it. The BNP later agreed to support the interim government's steps regarding term limits on the condition that plans to create a National Constitutional Council be shelved. The BNP had also opposed the Yunus administration's plans to introduce proportional representation. As the discussion concludes, concerns raised over disagreements among political parties regarding key reform proposals and the finalisation of the July Charter. However, the deadline for finalising the charter approaching on 31 July, reports indicate that significant differences remain unresolved. Observers warned that failure to reach consensus may hinder progress on broader political and governance reforms associated with the July Uprising.
Clashes broke out between demonstrating students and police on 22 July 2025 in a protest rally demanding publication of the names of those who died in the 2025 Dhaka fighter jet crash, compensation for the victims and immediate halt over the use of outdated military equipment.
On 5 August 2025, Yunus said in a televised broadcast that he would write to the Bangladesh Election Commission to request the general election be held in February 2026 before Ramadan, which will begin as early as 18 February.
In October 2025, the interim government officially patronised multiple cultural events centering the death anniversary of the celebrated Baul mystic Lalon at the Kumarkhali Upazila where his mazar is located.
Economic affairs
In August 2024, 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 2024, 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 an issue under the interim setup. As per the South Asia Development Update, the World Bank revised its economic growth forecast from 5.7% in April 2024 to 4% in October for the financial year 2025. Political instability exacerbated preexisting inflation. Food inflation under the interim government reached 14% and general inflation 11%. A sudden sharp rise in inflation in July 2024 was mostly attributed to the political turmoil facing Bangladesh; after momentary stabilization, inflation once again begun to increase. The general inflation rate in Bangladesh reached 10.87%, up from 9.92% in September 2024. Later in November, inflation accelerated to 11.38%, the highest in four months.