This paper discusses how project risk management will affect the efficiency of the economy in Bangladesh. The research is founded on the qualitative desk-based research with secondary data based on journal articles, institutional reports, and project-related documents. It explains the impact of those risks that are common in projects such as procurement delay, ineffective contract management, poor coordination, financial pressure as well as administrative inefficiency on project performance and lower economic efficiency. The analysis indicates that poor risk management is likely to cause cost overruns, slow implementation, poor use of resources and low value of money. Conversely, identification, assessment, mitigation, and monitoring of risk can be made stronger to enhance the project control and greater utilization of time, money, and company resources. The Contingency Theory is also used in the study to support the premise that risk responses need to be modified to suit the project conditions and not uniformly used. On the whole, the paper has found that context-sensitive and systematic project risk management is necessary to enhance the project performance and economic effectiveness in Bangladesh.