Archive · 29 Aug 2026
Ershad Leaves Army Post as Urban Poor Loan Scheme Begins
On August 29, 1986, Hussain Muhammad Ershad stopped serving as Bangladesh’s army chief.
He appointed Major General Atiqur Rahman to take that military position.
Ershad still remained the country’s chief martial law administrator and commander-in-chief.
People were discussing whether Ershad might run for president in October.
Separately, Bangladesh planned a loan program for poor people living in cities.
The program was scheduled to begin on September 1.
People earning less than Rs 600 per month could qualify.
Each eligible person could receive a loan of up to Rs 5,000 to start self-employment work.
On August 29, 1986, Bangladesh President Lt Gen Hussain Muhammad Ershad ended his army career.
Ershad appointed Major General Atiqur Rahman as the new chief of army staff.
Ershad retained the positions of chief martial law administrator and commander-in-chief.
Speculation suggested Ershad might run for Bangladesh’s presidency in October.
A self-employment loan scheme beginning September 1 was expected to benefit 300,000 urban poor people.
- Who
- Bangladesh President Lt Gen Hussain Muhammad Ershad, Major General Atiqur Rahman, and eligible urban poor people.
- What
- Ershad ended his army career by appointing Atiqur Rahman as chief of army staff; a separate urban-poor loan scheme was announced.
- When
- August 29, 1986; the loan scheme was due to begin September 1, with a possible presidential election in October.
- Where
- Bangladesh.
- Why
- Ershad’s military role changed amid speculation about a presidential run, while the loan scheme aimed to support self-employment among the urban poor.
- Date of Ershad’s change
- August 29, 1986
- New chief of army staff
- Major General Atiqur Rahman
- Ershad’s retained positions
- Chief martial law administrator and commander-in-chief
- Expected loan beneficiaries
- Three lakh, or 300,000, people
- Loan eligibility
- Self-employed urban poor with family income below Rs 600 per month
- Maximum loan
- Rs 5,000
- Loan scheme start date
- September 1