Finance Minister Amir Khosru Mahmud Chowdhury on Friday said the government is fully prepared to tackle emerging global challenges, emphasising that the primary objective is not just GDP growth, but building a sustainable, transparent, and inclusive economy.
He made the remarks while delivering a comprehensive statement in Parliament, saying the government assumed office with a strong public mandate and immediately initiated steps to stabilise the economy, restore institutional strength and ensure equitable development.
“The people have placed their trust in us, and our responsibility is to deliver on that trust by building an advancing, inclusive and sustainable economy for Bangladesh,” the minister told the House with Speaker Hafiz Uddin Ahmad, Bir Bikram, presiding over the sitting.
He said the government inherited an economy marked by structural weaknesses, high inflation, external sector pressure, slow investment, institutional erosion and governance challenges, requiring urgent reforms.
Khosru said fresh global uncertainties emerged shortly after the new government took office due to the US-Israel war on Iran, which disrupted energy markets, supply chains and international trade.
He informed the House that the price of fuel oil and LNG has more than doubled in the international market.
Despite the soaring costs, Khosru said the government has maintained existing energy prices to shield citizens from further hardship.
Consequently, it will need to provide an additional subsidy to the tune of approximately Tk 36,000 crore for electricity and energy in the current fiscal year, beyond the original budgetary allocation, he said.
The minister warned that this unexpected expenditure will likely increase the budget deficit and exert significant pressure on foreign exchange reserves, requiring nearly USD 3 billion for additional import payments.
To mitigate this, he said, the government has already initiated several measures to encourage public austerity in energy and electricity consumption.
Khosru said the government is also seeking additional budget support from development partners to maintain balance of payments stability and manage fiscal pressure.
He said Bangladesh, as an import-dependent economy, cannot remain isolated from global geopolitical developments, but the government is determined to overcome these challenges through prudent policies and efficient management.
The minister noted that while additional subsidies are a burden on the state treasury, the government has refrained from price adjustments considering the struggles of the people.
Referring to government’s broader plans, the minister said it is targeting a trillion-dollar economy by 2034.
Khosru said the BNP has historically played a role in shaping the country’s economic and democratic journey under the leadership of Shaheed President Ziaur Rahman, and later former Prime Minister Begum Khaleda Zia, who he said strengthened the economy through industrial expansion, labour market growth and pro-private investment policies.
Carrying forward that legacy and experience, he said they are now firmly committed to steering Bangladesh’s economy towards an advancing, inclusive, and sustainable path. “We want to achieve this based on transparency, integrity, and accountability.”
Listing the current status of the country’s economy amid the global geopolitical uncertainties, the minister said the government inherited a fragile economic structure marked by structural weaknesses, high inflation, external sector pressure, slow investment, institutional erosion and governance challenges, which require urgent and coordinated reforms.
Highlighting the government’s development vision, he said the main objective is to ensure economic democratisation and deregulation so that the benefits of growth reach every citizen.
Khosru said the government has already started implementing key election pledges to improve livelihoods and strengthen economic resilience. As part of social protection and inclusive development, the government has begun distributing 50 lakh family cards and plans to gradually bring all families under the programme, while farmer cards are being introduced for genuine farmers, fishermen and livestock producers.
He said agricultural loans up to Tk 10,000 have already been waived, while targeted support is being extended to rural producers to enhance productivity and income.
To generate employments, the government has undertaken a plan to create one crore jobs through ICT expansion, modernise transport and communication infrastructure, and develop blue economy, eco-tourism and regional creative hubs, the minister said.
He said the government is also working to introduce the “Made in Bangladesh” brand in the global market to strengthen export competitiveness and diversify economic opportunities.
Focusing on fiscal reforms, Khosru said the government is prioritising revenue transparency and automation to improve tax collection and reduce dependence on borrowings.
He said the government aims to raise the tax-GDP ratio to 10% in the medium term and 15% by 2034 through ensuring visible public benefits and efficient public spending.
The minister said efficient debt management, development of the domestic bond market and coordination between deficit financing sources will help maintain fiscal sustainability and reduce long-term risks.
He said the government is strengthening macro-fiscal planning through a dynamic macro-fiscal model to support medium-term budgeting and ensure credible projections for achieving a trillion-dollar economy by 2034.
On financial sector reforms, Khosru said steps have been taken to restore discipline in the banking system and strengthen the legal framework of the central bank.
He said commercial bank management is being improved, capital shortages are being addressed and strict measures are being taken to restore confidence in the financial sector.
The government is also focusing on developing the capital market by ensuring the independence of the securities regulator, preventing market manipulation and introducing corporate bonds, sukuk and green bonds to diversify investment sources, the minister added.
He said strengthening SMEs, improving the business climate and ensuring easy access to credit will help boost investment, production and employment, creating a sustainable growth cycle.
Khosru also emphasised increased spending on education, health and social protection to ensure inclusive human development.
Looking ahead, he announced that the government has started work on the national budget for the 2026-27 fiscal year, focusing on the restoration of discipline across various economic sectors.
The minister stated that the goal is to move beyond mere growth to ensure a sustainable and inclusive economic framework.
While acknowledging the inherited challenges and current limitations, he expressed confidence that the visionary leadership of Prime Minister Tarique Rahman and the government`s strategic planning – rooted in transparency and accountability – will fulfil the high expectations of the public.
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