Finance Minister Amir Khasru Mahmud Chowdhury on Saturday said the government is working to transition Bangladesh’s economy away from a patronage-based system that has historically concentrated wealth among a small group of individuals.
Speaking at a pre-budget discussion with leaders of the Economic Reporters’ Forum at the Bangladesh Secretariat, the minister said previous economic practices had allowed large sums of money to be distributed to select groups through political connections, leading to the rise of oligarchic control over resources.
He noted that the government inherited a fragile economic situation and acknowledged that reforming such a system would be a complex and long-term challenge. However, he stressed that efforts are underway to ensure equal opportunities for all citizens.
As part of these initiatives, the government has introduced programmes such as family cards and farmer cards aimed at supporting vulnerable groups and improving access to resources.
The minister said poverty levels are gradually declining, although many businesses continue to struggle with wage payments and loan repayments. Reducing economic inequality remains a key policy priority, he added.
Looking ahead to the upcoming national budget, Khasru indicated that allocations for education and healthcare would likely increase, with a strong focus on developing a skilled workforce. He emphasised the importance of practical and vocational education over purely academic qualifications.
Addressing concerns about government borrowing, the finance minister rejected claims that money is being printed to finance expenditure, warning that such misinformation could negatively affect the country’s credit standing. He clarified that borrowing from the banking system is a standard fiscal practice.
He also shared updated figures showing that government borrowing from banks decreased from Tk17,592 crore on 17 February to Tk11,722 crore by 22 April.
Other officials present at the meeting included Finance Secretary Khairuzzaman Mozumder, Bangladesh Bank Governor Md Mostaqur Rahman, and National Board of Revenue Chairman Abdur Rahman Khan, among others.
During the discussion, ERF President Daulat Akter Mala presented a 21-point budget proposal, which was supported by other forum leaders.
Officials also highlighted ongoing reforms, including efforts to increase the tax-to-GDP ratio, introduce an accrual-based budgeting system, repatriate laundered funds, and revive closed industrial units, alongside strengthening the country’s Islamic banking sector.
