The Bangladesh government has committed to a radical economic transformation aimed at achieving a trillion-dollar economy by 2034, despite severe fiscal pressure from the escalating conflict in the Middle East. Finance Minister Amir Khosru Mahmud Chowdhury informed the Jatiya Sangsad on Friday that the administration is prioritising institutional stability and energy security to navigate fragile inherited structures and global geopolitical volatility.
The ministerial brief addressed the critical impact of the ongoing war in the Middle East, which has caused international oil and LNG prices to more than double. This conflict has forced the government to provide an additional 36,000 crore taka in subsidies for power and energy during March-June of the current fiscal year.
“This will increase budgetary pressure and require around three billion US dollars in additional import payments, affecting foreign exchange reserves,” Khosru warned. To address this, the government has adopted energy-saving measures such as reducing office hours, encouraging daylight use, and closing markets earlier. Despite these global pressures, the government has decided to keep energy prices unchanged to reduce the burden on citizens while seeking additional budget support from development partners to maintain balance of payments stability.
Presenting a statement under Section 300 of the Rules of Procedure, the finance minister asserted that the government assumed office with a strong public mandate to restore institutional strength and ensure equitable development. “The people have placed their trust in us, and our responsibility is to deliver on that trust by building an advancing, inclusive and sustainable economy for Bangladesh,” he told the House.
The finance minister noted that the Bangladesh Nationalist Party (BNP) has long served as a platform for fulfilling popular expectations under the leadership of Shaheed President Ziaur Rahman, who initiated the journey towards economic emancipation. He credited “uncompromising leader” Begum Khaleda Zia with infusing dynamism into a fragile economy by developing the garment industry and expanding Bangladesh’s presence in the global labour market.
“Through the introduction of the VAT system, modernisation of the tariff and import structure, and pro-private investment policies, she strengthened the foundation of the economy,” Khosru stated. Carrying forward this legacy, he emphasised that the current administration is committed to steering the economy based on transparency, integrity, and accountability to overcome a fragile economic structure marked by structural weaknesses, high inflation, and governance challenges.
Highlighting the vision for economic democratisation, the finance minister explained that the primary objective is to ensure the benefits of growth reach every citizen. “Our goal is not only higher growth, but also a progressive, inclusive and sustainable economy built on transparency, accountability and good governance,” he told the House. To support this, the government has already started implementing key election pledges, including the distribution of 50 lakh family cards for social protection and the introduction of farmer cards for genuine producers. The minister confirmed that agricultural loans up to 10,000 takas have already been waived, while targeted support is being extended to rural producers to enhance productivity and income.
To generate employment, the government has undertaken a plan to create one crore jobs through ICT expansion, modernisation of transport infrastructure, blue economy development, and regional creative hubs. Khosru also announced the introduction of the “Created in Bangladesh” brand to strengthen export competitiveness globally. On fiscal reforms, the government aims to raise the tax-to-GDP ratio to 15 per cent by 2034 through revenue automation and reduced borrowing. “We want people to see the benefits of their taxes through improved services, governance and infrastructure,” he added, noting that a dynamic macro-fiscal model is being used to support these trillion-dollar projections. Further financial sector reforms include restoring discipline in the banking system, addressing capital shortages, and diversifying the capital market through corporate bonds, Sukuk, and green bonds.
