SANGSAD BHABAN, June 29, 2026 (BSS) - Finance Minister Amir Khasru Mahmud 
Chowdhury today said that Bangladesh has the capacity to overcome all 
challenges through effective leadership, strong institutions, an efficient 
public administration and the active participation of its people as the 
country is shifting from a debt-driven economy to an investment-driven one, 
with private enterprise, innovation and employment forming the pillars of 
future growth.

Delivering his winding-up speech on the proposed budget for FY27 in Jatiya 
Sangsad (JS), the Finance Minister said the government had inherited a 
fragile economy and weakened institutions but remained optimistic about 
steering the country towards sustainable growth.

"I firmly believe that no matter how great the challenges are, they can all 
be overcome through proper leadership, effective institutions, an efficient 
public administration and the spontaneous participation of the people," he 
said.

With Speaker Hafiz Uddin Ahmad, Bir-Bikram, in the chair, Khasru went on 
saying "We want to build a Bangladesh where the benefits of development reach 
everyone, where merit and hard work are rewarded, where investment, 
production and employment drive the economy, and where every citizen can move 
confidently towards the future," he added.

The minister thanked members of Parliament for their "long, lively and 
constructive" debate on the proposed budget, saying their suggestions 
reflected people's expectations and would help strengthen the budget.

He also acknowledged observations made by economists, business leaders, 
professional bodies, civil society organisations, research institutions and 
the media, saying the government had carefully considered the constructive 
criticisms.

The minister described the proposed budget as more than an annual financial 
statement, calling it a roadmap for restoring economic stability, increasing 
investment, generating employment and ensuring social justice.

He said the government's economic strategy centred on what he termed the 3R 
framework-Recovery and Stabilisation, Restoration and Reconstruction for 
Acceleration-to revive the economy.

Addressing concerns over the government's projections of 7.5 percent 
inflation and 6.5 percent GDP growth, the minister said Bangladesh had 
inherited a "devastated economy" after years of policy failures, corruption, 
capital flight and manipulation of the exchange rate, compounded by recent 
geopolitical tensions in the Middle East.

Nevertheless, he said ongoing policy measures, public cooperation and 
stronger performance in agriculture, industry, services, exports and 
remittance earnings would support the recovery process.

The government, he added, was prioritising higher public and private 
investment, industrial expansion, creative industries, infrastructure 
development and human resource development to achieve the targeted growth.

Revenue reforms and fiscal discipline

Responding to concerns over ambitious revenue targets, Amir Khasru said the 
government would not rely on higher tax rates but would instead broaden the 
tax base.

He said tax policy and tax administration were being separated, while 
automation, deregulation and anti-evasion measures would improve transparency 
and encourage business activity.

The finance minister also announced that traditional markets and small 
grocery shops would remain outside the proposed flat-rate VAT scheme 
introduced for small businesses.

Despite sluggish economic conditions, he said National Board of Revenue 
collections had already crossed Taka 4 lakh crore for the first time within 
four months of the current government's initiatives.

The minister also pledged stricter fiscal discipline by reducing recurrent 
expenditure and increasing development spending.

Under the proposed budget, development expenditure would rise to 33.7 percent 
of total spending in FY2026-27 from 27.27 percent in the current fiscal year, 
while operating expenditure would fall to 66.3 percent from 72.73 percent.

Amir Khasru said excessive borrowing by the previous government had raised 
Bangladesh's debt risk from low to moderate.

At the end of FY2024-25, total public debt stood at around Taka 21.44 lakh 
crore, equivalent to 38.61 percent of GDP. Of this, domestic debt amounted to 
Taka 11.95 lakh crore (21.51 percent of GDP), while external debt totalled 
Taka 9.49 lakh crore (17.10 percent of GDP).

"Although the current administration inherited these liabilities, it had to 
service both the principal and interest, placing considerable pressure on 
public finances," he said.

To reduce debt dependence, the government plans to shift towards an 
investment-led economy, lower bank borrowing by Taka 6,000 crore next fiscal 
year, list state-owned enterprises on the stock market and expand alternative 
financing instruments, including bonds, asset securitisation and equity 
financing.

He also disclosed plans to establish private investment funds in Hong Kong, 
London and New York to mobilise foreign capital for Bangladesh without adding 
pressure to the domestic financial system.

The minister said the government had taken a tough stance against financial 
crimes.

By May 2026, assets worth around Taka 72,343 crore had been seized or frozen 
at home and abroad in connection with 11 priority cases involving alleged 
financial crimes.

He said Bangladesh had sent 23 Mutual Legal Assistance Requests to 13 
countries to recover laundered assets, while mutual legal assistance treaties 
with Malaysia and Hong Kong had been finalised.

Legal proceedings had also begun against six major borrower groups, and more 
than 15 affected banks had signed over 60 non-disclosure agreements with 
international asset recovery firms.

Addressing depositors of the five merged Shariah-based banks, the minister 
assured that protecting public deposits remained the government's highest 
priority.

Individual depositors would be allowed to withdraw up to Taka 200,000 
immediately from current and savings accounts, with the remaining funds to be 
repaid in phases.

Special arrangements had also been made for patients suffering from serious 
illnesses, Hajj savers and DPS account holders.

He further announced that the government had decided to repeal Section 18(a) 
of the Bank Resolution Act, 2026 following consultations with stakeholders.

"Our message is clear-those who looted public wealth will not be spared, 
while depositors' savings will remain protected," he said.

The finance minister proposed a package of tax incentives to strengthen the 
capital market.

These include tax exemptions on income from zero-coupon bonds, lower 
corporate taxes for listed companies, additional tax reductions for companies 
offloading at least 10 percent of shares through public offerings, reduced 
dividend tax rates for companies and individuals, and removal of the Taka 
500,000 investment ceiling for mutual fund tax rebates.

He said these measures would encourage more quality companies to enter the 
stock market and expand long-term financing opportunities.

IMF programme

Rejecting criticism that Bangladesh had returned empty-handed from 
discussions with the International Monetary Fund (IMF), the finance minister 
said the government had voluntarily withdrawn from the previous IMF programme 
because certain conditions were not considered to be in the national 
interest.

He said Bangladesh remained open to negotiating a new programme with the IMF 
that better served the country's priorities.

The minister said the government was shifting from a debt-driven economy to 
an investment-driven one, with private enterprise, innovation and employment 
forming the pillars of future growth.

He said the Prime Minister's recent visits to Malaysia and China would 
strengthen investment, infrastructure, technology transfer and manufacturing 
cooperation.

The government's deregulation agenda aims to remove unnecessary bureaucratic 
barriers, reduce business costs and transform the state into a service-
oriented facilitator rather than a regulatory obstacle, he said.

He said special emphasis is also being placed on attracting foreign direct 
investment, supporting export-oriented industries, technology-based 
enterprises, SMEs and the creative economy.

On energy security, the minister acknowledged that unreliable power and fuel 
supplies remained a constraint on industrial growth.

Khasru outlined plans to diversify energy sources, increase LNG import 
capacity, strengthen BAPEX, expand domestic gas exploration through 
international tenders, establish the Second Eastern Refinery and raise the 
share of renewable energy to 20 percent of electricity generation by 2030.

He urged people to remain patient while these long-term initiatives were 
implemented.

The finance minister reiterated that the budget focused on 10 priority areas, 
including inclusive development, quality education and healthcare, universal 
social protection, investment-led growth, deregulation, financial sector 
stability, energy security, ICT development, environmental management and 
accountable public institutions.

He said investment decisions would prioritise value for money, return on 
investment, employment generation and environmental sustainability.

Acknowledging implementation challenges, Amir Khasru said the success of the 
budget would depend not on its announcement but on effective execution.

He cited global economic uncertainty, geopolitical tensions, climate change, 
revenue mobilisation, financial sector reforms and investment climate 
improvements as key challenges ahead.

"The government would therefore strengthen institutional capacity through 
results-based management, digital monitoring dashboards, timely project 
implementation, stronger project evaluation and greater administrative 
accountability," he said.