Finance Minister Amir Khosru Mahmud Chowdhury spoke today at a post-budget press conference held at the Osmani Memorial Auditorium in the capital. Photo: BSS

DHAKA, June 12, 2026 (BSS) – Finance Minister Amir Khosru Mahmud Chowdhury today said Bangladesh’s economy requires a two-year cushion to recover from deep-rooted structural weaknesses, expressing confidence that the country would enter a phase of stronger growth from the third year and achieve full recovery by the fourth and fifth years.

Speaking at a post-budget press conference at the Osmani Memorial Auditorium in the capital, the minister said the government inherited an economy burdened by banking-sector distress, weak institutions, rising poverty, declining investment and years of policy distortions.

“Bangladesh’s economy is now at a stage where it needs a two-year cushion. We are setting the direction and laying the foundation for recovery,” he said.

According to the minister, the government’s immediate priorities are stabilisation, institutional reforms, social protection and investments in human capital.

“From the third year, the economy will start moving forward more strongly. It will become stable and then move towards prosperity. By the fourth and fifth years, the economy will fully recover and stand firmly on its own feet,” he said.

The finance minister said the budget has been designed to address both immediate social challenges and long-term economic transformation.

Khosru highlighted what he described as the largest social-sector investment package in Bangladesh’s history, including Family Card, Farmer Card, universal health coverage initiatives and expanded preventive healthcare programmes.

“The purpose is to protect people whose living standards have declined while simultaneously preparing them for better economic opportunities,” he said.

The finance minister stressed that the government is investing heavily in education, vocational training, reskilling and upskilling programmes to improve workforce productivity.

“If a worker becomes skilled, employment opportunities increase both at home and abroad. That is why we are placing such importance on education and skills development,” he added.

Referring to Bangladesh’s large low-income population, he said the government is pursuing an apparent dual-track strategy: expanding social protection for vulnerable groups while creating pathways to sustainable employment.

The minister also emphasised support for educated unemployed youths, saying the budget includes measures aimed at generating jobs and helping graduates acquire market-relevant skills.

A key component of the government’s strategy is the newly introduced Creative Economy initiative, which seeks to bring rural artisans, craftsmen, performers and cultural workers into the mainstream economy.

“For decades many of these people remained outside the economic mainstream. We want to connect them with markets, finance, skills and technology so that their incomes improve,” he said.

The finance minister said the government has deliberately moved away from a mega-project-centred development model and is instead prioritising investments that generate jobs, create value and directly improve people’s lives.

“We are not chasing large prestige projects. We are focusing on projects that create employment, improve living standards and provide value for money,” he said.

Despite existing fiscal and institutional constraints, he expressed confidence that the reform agenda would gradually transform the economy and deliver sustained growth over the medium term.

“We are establishing the trend now. The benefits will become increasingly visible in the years ahead,” he added.

Information and Broadcasting Minister Zahir Uddin Swapon, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood, Education minister Dr. A N M Ehsanul Hoque Milon, Health and Family Welfare Minister Sardar Md. Sakhawat Husain, Agriculture Minister Mohammed Aminur Rashid, State Minister for Planning Zonayed Abdur Rahim Saki, Adviser to the Prime Minister on Post, Telecommunication and Information Technology Rehan Asif Asad, Prime Minister's Adviser and PMO Spokesperson Dr Mahdi Amin, Prime Minister's Special Assistant on Investment and Capital Market Tanvir Gani, Cabinet Secretary Nasimul Gani, Principal Secretary to the Prime Minister A B M Abdus Sattar, Bangladesh Bank Governor Md Mostaqur Rahman, Finance Secretary Dr. Md Khairuzzaman Mozumder, chairman of the National Board of Revenue (NBR) Md. Abdur Rahman Khan were present at the dais.