After dilly-dallying for a long period Bangladesh finally signed the Trans-Asian Railway (TAR) network agreement on November 9, 2007 at the UN headquarters in New York. With this 20 of the 28 countries under the network have joined the agreement. India signed the agreement on June 29, 2007. The remaining eight countries have yet to sign citing "procedural" and "technical" reasons, rather than disagreement about the project. Bangladesh failed to sign the agreement earlier as the previous BNP-Jamaat alliance government was undecided on the issue.

The struggle for control over the Bangladesh Nationalist Party (BNP) took a new turn after the reformist faction appointed former finance minister Saifur Rahman as the acting chairman. This decision was taken by the highest policy making standing committee in a five hour meeting on October 29. The committee also made former water resource minister and dissident leader Hafizuddin Ahmed the new Secretary General. However, the meeting allowed Khaleda Zia to remain as the party's chairperson.

Bangladesh faces a shortage of electric power and is planning to meet the shortfall by setting up nuclear power plants. Significantly, this development has occurred at a time when the country is being ruled by a caretaker government with the backing of the military. The military in Bangladesh is trying to carve out a permanent place for itself in governance by creating a National Security Council.

"I want a country where the army cannot arrest anyone without a warrant. I want our political parties to be democratic, transparent and accountable. I want fair and neutral judges. I want the right to vote. I want there to be no such thing as a legal fatwa. I want the war criminals of the 1971 genocide to be tried, condemned and jailed. I want to vote. I want a country worthy of my desh-prem. I want a country." -- Tahmima Anam, New Statesman, January 22, 2007.

Bangladesh's Chief of Staff General Mooen U Ahmed's visit to India scheduled in the fourth week of August now stands postponed in wake of the severe floods sweeping across the country. This visit by the army chief was keenly awaited in India and is particularly significant in the light of the political developments that have taken place in Bangladesh ever since the Khaleda Zia-led BNP coalition government demitted office in October 2006.

Statistics reveal that the Border Security Force (BSF) has so far, this year, apprehended 8,196 persons who were trying enter India illegally from Bangladesh. The numbers that successfully manage to evade the security forces on the border, is of course, much larger. Apart from the usual suspects, the militants and economic migrants, the recent political turmoil in Bangladesh has also resulted in many Bangladeshi political dissidents and people from the religious minorities attempting to sneak into India to avoid political and religious persecution.

The Bangladesh National Party (BNP), which came to power in 2001, completed its term on October 28, 2006 amidst violent protests that saw 24 people losing their lives. Rejecting the BNP's nominee for the post of Chief Adviser of the caretaker government, the 14 party opposition alliance led by the Awami League (AL) called for a strike to press for an alternate Chief Advisor as well as for electoral reforms. A political crisis has, however, been averted by the country's President, who assumed the additional responsibility of the Chief Advisor.

Anxiety and uncertainty are perceptible even as Bangladesh prepares itself for the next elections scheduled for January 2007. As the incumbent BNP government prepares to transfer power to a caretaker government by the end of October 2006, there is a sense of visible unease about Bangladesh's political future, as many issues pertaining to these elections remain unresolved. It appears that a few issues need an amicable settlement before the ruling party hands over power to the caretaker government.

The TATA investment of US$3 billion in Bangladesh, by far the largest foreign investment in the country, has run into rough weather over the pricing of gas. Dhaka rejected Tata's initial 2004 offer of $1.10 per unit of gas to be supplied over a twenty-year period, seemingly favouring the price to be at par with international prices. As per the new proposal submitted in April 2006, the price that Tata has offered is $3.10 for thousand cubic feet (MCF) of gas for its fertiliser plant and $2.60 per MCF for its proposed steel plant.

Assam, a strategic border state of India, witnessed the influx of migrants since the British period from then East Bengal, now Bangladesh. The influx was largely engineered by the British, given the economic rationale of cheap labour that the migrants provided for the sprawling tea estates in Assam. However, this issue of migration assumed political and communal overtones after independence, and continues to be an issue of concern.