SANGSAD BHABAN, June 28, 2026 (BSS) -Commerce Minister Khandakar Abdul 
Muktadir today said the government is working on to bring down inflation, 
improve the investment climate, strengthen export-oriented industries and 
prepare the country for a smooth graduation from the Least Developed Country 
(LDC) category.

Taking part in the general discussion on the proposed national budget for 
FY2026-27 in the Jatiya Sangsad today, the minister highly praised the budget 
presented by the finance minister, describing it as one that had "exceeded 
expectations by miles."

He said the proposed budget has been built around the central themes of 
stability, investment and growth, with greater emphasis on human capital 
development through increased allocations for education, health, skills 
development and soft power rather than excessive spending on large 
infrastructure projects.

Muktadir, also the minister for Industries and Textiles and Jute, said the 
government has set a GDP growth target of 6.5 percent for the coming fiscal 
year and is working towards transforming Bangladesh into a one-trillion-
dollar economy by 2034 through sustained annual real growth of around 8.5 to 
9 percent.

To achieve that objective, he said, "Bangladesh must improve the efficiency 
of public expenditure, reduce the Incremental Capital Output Ratio (ICOR), 
raise the tax-to-GDP ratio and significantly increase both public and private 
investment,"

On inflation, the commerce minister said the government's strategy focuses on 
reducing production, logistics and transportation costs rather than relying 
only on monetary measures.

He noted that Bangladesh's logistics cost currently stands at around 16 
percent of GDP compared with the global benchmark of about 10 percent.

The minister said the government is improving efficiency at Chattogram Port 
through greater private sector participation, reducing container handling 
time and lowering freight and customs clearance costs.

He also said steps are being taken to improve market information systems and 
address supply chain inefficiencies so that unnecessary price hikes between 
producers and consumers can be reduced.

Referring to the government's renewable energy initiatives, the minister said 
the ongoing programme to generate 10,000 megawatts of solar power and the 
gradual introduction of electric and plug-in hybrid vehicles would lower 
production and transport costs, thereby helping contain inflation.

On Bangladesh's LDC graduation, the minister said the government has already 
sought a three-year deferment of the graduation timeline. If approved, 
Bangladesh would graduate in November 2029, allowing more time to strengthen 
competitiveness and prepare businesses for the post-LDC trade regime.

He said creating a conducive investment environment remains one of the 
government's highest priorities.

The minister acknowledged that gas shortages continue to constrain industrial 
production and said the government is working to increase LNG imports through 
an additional Floating Storage and Regasification Unit (FSRU), which would 
supply an additional 550-600 million cubic feet of gas per day.

He also said a feasibility study is underway to establish a dedicated LNG 
network for fertilizer factories that frequently remain idle because of gas 
shortages.

Highlighting reforms to improve the ease of doing business, the minister said 
the government has simplified procedures for establishing new businesses and 
expects investors to be able to reach the stage of opening letters of credit 
for importing machinery within 14 days.

He added that company registration, trade licence issuance, import and export 
registration certificates and several other services are being integrated and 
digitised, while overlapping regulatory requirements are being removed.

The minister said trade licences would soon be obtainable entirely online 
without visiting any office, with fees automatically reaching the respective 
local government institutions.

Focusing on export diversification, he identified the leather sector as one 
of the country's highest priority industries.

He said Bangladesh's leather exports have remained below US$1 billion for 
several years despite the country's huge raw material base. 

The government is therefore undertaking coordinated reforms, including 
upgrading the Savar Central Effluent Treatment Plant (CETP), ensuring 
environmental compliance of all tanneries and helping them obtain 
internationally recognised Leather Working Group (LWG) Gold certification.

These measures, he said, would enable Bangladesh to produce higher value-
added leather products and expand leather exports to US$10-12 billion in the 
future.

The commerce minister also highlighted the jute sector as another major 
export priority.

He said Bangladesh currently produces around 1.5 million tons of jute 
annually and the government has proposed a joint research laboratory with 
China to improve productivity, develop diversified jute products and explore 
new international markets.

He said greater emphasis would be placed on producing high value-added 
blended fabrics and other diversified jute goods instead of relying primarily 
on traditional packaging materials.

Expressing confidence in the country's economic prospects, the minister said 
the government's reform agenda and the proposed budget would strengthen 
macroeconomic stability, attract greater investment, expand exports and put 
Bangladesh firmly on the path towards achieving its long-term development 
goals.