Chief Adviser Professor Muhammad Yunus today chaired a high-level meeting on the country’s overall economic progress and budget expenditure, held at the State Guest House Jamuna in the city. Photo: CA's Press Wing

DHAKA, Dec 22, 2025 (BSS) – A high-level meeting on the country’s overall economic progress and budget expenditure was held at the State Guest House Jamuna in the city today.

Chief Adviser Professor Muhammad Yunus chaired the meeting attended by, among others, Finance Adviser Dr Salehuddin Ahmed, Planning Adviser Wahiduddin Mahmud and Bangladesh Bank Governor Ahsan H Mansur.

The meeting discussed a range of key economic issues, including inflation, wage growth, agricultural production, financial and external sector, current account, remittance, imports and letters of credit.

Inflation:

The meeting was informed that as a 12-month average, overall inflation in the country fell below 9 percent for the first time in November 2025 since June 2023. 

It may be noted that on a point-to-point basis, inflation crossed 9 percent in March 2023, reaching 9.33 percent. However, overall inflation (point-to-point) had already declined below 9 percent in June 2025 and further decreased to 8.29 percent in November 2025.

It is expected that due to the government’s contractionary monetary policy and austerity measures, inflation will fall below 7 percent by June 2026.

Wage Growth:

The meeting was informed that in recent years, the gap between inflation and wage growth rates has been very wide, resulting in a decline in real income of the people. However, in recent months of the current fiscal year, this gap has narrowed significantly.

In November 2025, point-to-point inflation and wage growth stood at 8.29 percent and 8.04 percent respectively, compared to averages of 9.02 percent and 7.04 percent in FY 2022–23.

As a result, although real income had declined considerably in previous years due to high inflation, a gradual recovery is expected in the current fiscal year.

Agricultural Production:

The meeting was also informed that due to appropriate incentives and management in the agricultural sector, Boro production was good in the last fiscal year. As no major natural disasters have occurred so far, a good harvest of Aman is also expected this year. 

Consequently, it is anticipated that the government’s food grain procurement target will be achieved in the current fiscal year. As of December 15, 2025, Aman production has reached 160.95 lakh metric tons. Once harvesting of the remaining crops is completed, production is expected to exceed the target. 

Although Aus production was slightly below the target, total production increased by 7.20 percent compared to FY 2024–25.

Overall imbalances among various economic indicators have already moved toward a balanced position.

Financial and External Sector:

As of December, 18 2025, gross foreign exchange reserves stood at US$ 32.57 billion, compared to around US$ 25 billion in August 2024. 

With exchange rate stability, increased remittance inflows and a significant rise in interest rates recently in the financial sector, foreign exchange reserves are expected to increase further in the coming days.
 

Current Account:

The meeting was informed that from FY 2016–17 to FY 2023–24, the current account remained consistently negative, amounting to US$ (-)18.7 billion, US$ (-) 11.6 billion, and US$ (-) 6.6 billion in FY 2021–22, 2022–23, and 2023–24 respectively. 

However, due to proper management in the financial sector and prevention of money laundering, the deficit narrowed to only US$ (-) 139 million by the end of FY 2024–25. During July–October of the current fiscal year, the deficit stood at US$ (-) 749 million.

Remittance:

During July–November of the current fiscal year, overseas employment for 500,000 workers was ensured, compared to 397,000 during the same period of the previous fiscal year. During the same period, remittance inflows amounted to US$ 13.04 billion, which is 17.14 percent higher than in the corresponding period of the last fiscal year.

Imports:

To make economic development more productive, regulatory restrictions on imports have been withdrawn. Import growth during July–November of FY 2024–25 was (-) 1.2 percent (negative), which increased to 6.1 percent during the same period of the current fiscal year (2025–26).

Letters of Credit:

The meeting was informed that growth in opening letters of credit for capital machinery during July–October of FY 2024–25 was (-) 32.8 percent (negative), which increased to 27.7 percent in the same period of the current fiscal year.

Besides, the growth in opening letters of credit for the import of industrial raw materials was 10.1 percent during July-October 2024 of the 2024-25 fiscal year, which increased to 40.98 percent during the same period in the current 2025-26 fiscal year.

Good financial management has made it possible to halt the decline in the country's image, which is reflected in the increased opening of letters of credit and the easing of trade financing.