Dhaka, Jan. 31 -- Bangladesh's interim government is grappling with mounting political and economic challenges as its initial wave of support wanes, according to the latest Watch List report by the International Crisis Group (ICG), published on 30 January.

The report, titled Bangladesh: The Dilemmas of a Democratic Transition, highlights increasing pressure from opposition parties, strained relations with India, and concerns over governance and stability.

The ICG notes that while Nobel laureate Professor Muhammad Yunus leads the administration with a vision for reform, his government has struggled to manage political divisions and growing public discontent.

The report warns that the coming months will bring intensified competition amon...