File Photo

DHAKA, Mar 5, 2026 (BSS) - The General Economics Division (GED) of the Planning Commission has expressed the hope that the new government would take prudent steps to ensure macroeconomic stability. 

According to the latest economic update and outlook of the GED, the key priorities for this government include attracting investment, generating employments, controlling inflation and strengthening investor confidence. 

The report also emphasised the importance of improving ADP implementation, maintaining debt sustainability and ensuring policy consistency to support long-term economic growth. 
It said the planned introduction of the government’s Family Card programme was highlighted as a potential step towards strengthening social protection and supporting vulnerable groups. 

The report attributed the slowdown to weak project preparation, procurement delays, land disputes and coordination challenges. 
Despite domestic challenges, Bangladesh’s external sector showed relative stability. Foreign exchange reserves stood at about $33.18 billion in January 2026, following a notable increase in December. 
Remittance inflows remained strong, reaching $3.17 billion in January, significantly higher than the $2.19 billion recorded in the same month last year. 
The GED expects remittance inflows to increase further during Ramadan due to seasonal transfer patterns. 

Merchandise exports also recorded growth, driven mainly by the ready-made garments (RMG) sector. 

RMG exports rose from $3.23 billion in December to $3.61 billion in January, while non-RMG exports increased to $798.9 million after a slight dip in December. 
However, imports of capital machinery remained low, suggesting relatively weak private investment despite rising overall imports. 

The report said Bangladesh’s inflationary pressure remained persistent at the start of 2026 as rising prices of fish, fruits and vegetables continued to push up food costs, while rice prices showed signs of easing.

Inflation edged up slightly to 8.58 percent in January 2026, from 8.49 percent in December 2025, reflecting continued pressure from food prices within the overall inflation structure, said the GED in its Economic Update and Outlook for February 2026. 

Food inflation increased to 8.29 percent in January, up from 7.71 percent in December, whereas non-food inflation moderated to 8.81 percent from 9.13 percent during the same period. 

The report noted that food remained the largest contributor to overall inflation, accounting for 43.06 percent of headline inflation in January, compared with 40 percent in December. Housing and utilities contributed 15.05 percent, while miscellaneous goods and services accounted for 9.31 percent. 

Despite some non-food items recording higher inflation rates, their lower weights in the consumer price index limited their impact on overall inflation. 

Within the food basket, rice’s contribution to food inflation declined significantly in January as price growth slowed. The share of rice in food inflation dropped from 37.34 percent in December to 22.16 percent in January, reflecting moderation across all rice varieties. 

Overall rice inflation fell to 7.61 percent in January, down from 11.92 percent in December, with medium rice, coarse rice and fine rice all recording lower price increases.
  
However, the reduction in rice-driven inflation was offset by rising prices of vegetables, fruits and fish, which kept food inflation elevated. 
Vegetables, which had contributed negatively to inflation in December, turned positive in January, while fish and dry fish remained the largest contributors to food inflation. 
The GED attributed higher vegetable prices largely to increased transportation costs and excessive profit-taking by wholesale and intermediary traders, highlighting the need for better supply chain management of essential food items. 

The report also cautioned that rising inflation combined with stagnant wage growth is putting pressure on household purchasing power. 
While inflation rose to 8.58 percent in January, wage growth remained almost unchanged at 8.08 percent, following 8.07 percent in December. 
Since September 2025, inflation has consistently outpaced wage growth, creating a widening gap between price increases and income gains. 

The report emphasised the need for coordinated wage and price management to address the growing pressure on living standards. 
Meanwhile, the National Board of Revenue (NBR) recorded modest gains in collection in January.

Against a revised monthly target of Tk 52,545 crore, the NBR collected Tk 37,033 crore, leaving a shortfall of Tk 15,512 crore. 
Collections from import and export duties fell short by Tk 4,914 crore, domestic VAT by Tk 5,199 crore, and income tax and travel tax by Tk 5,399 crore compared with the revised target. 
Overall, the NBR achieved 70.48 percent of its January target. 

Revenue collection increased only slightly from Tk 36,191 crore in December to Tk 37,033 crore in January, marking a month-to-month growth of 2.3 percent. 

On a year-on-year basis, revenue rose by 3.81 percent compared with January 2025. 
The report also highlighted weak implementation of the Annual Development Programme (ADP) in the current fiscal year. 

GED cited that even with accelerated spending in the final months, FY2025-26 may record the lowest ADP implementation rate in recent years.