Senior policymakers, economists and government officials today voiced strong optimism that Bangladesh is moving into a new phase of economic stabilisation, with ongoing fiscal, administrative and governance reforms expected to pave the way for a more resilient, inclusive and investment-friendly economy.
They were speaking at a dissemination seminar on the Bangladesh State of the Economy 2025 and Sustainable Development Goals Bangladesh Progress Report 2025, organised by the General Economics Division (GED) of the Planning Commission in collaboration with UNICEF Bangladesh at the NEC Conference Room in Dhaka.
Special Assistant to the Chief Adviser Dr Anisuzzaman Chowdhury attended the event as chief guest, while Bangladesh Bank Governor Dr Ahsan H Mansur, Chief Adviser’s Press Secretary Shafiqul Alam, Principal SDG Coordinator Lamiya Morshed, Finance Secretary Md Khairuzzaman Mozumder, NBR Chairman Md Abdur Rahman Khan and Planning Division Secretary SM Shakil Akhter spoke as special guests. GED Member (Secretary) Dr Monzur Hossain chaired the programme.
Fiscal reforms critical for stability
NBR Chairman Md Abdur Rahman Khan underscored the urgency of bold fiscal reforms—particularly in VAT and income-tax administration—to strengthen macroeconomic stability.
Despite revenue collection rising from Tk 168 crore in 1972 to Tk 3.78 lakh crore last fiscal year, the tax-to-GDP ratio has slipped to about 7 percent, he said, calling it a major structural weakness.
He noted that reforms have already begun, with new rules ensuring tax exemptions are issued only by Parliament. Revenue grew more than 20 percent in the first quarter of FY26, supported by higher income-tax receipts and mandatory e-filing.
Emphasising the government’s digital automation efforts—including online VAT refund processing and automated audit selection—he said digitisation will curb leakages, improve transparency and raise compliance. Separating tax policy from administration, he added, would reduce discrimination and make the system fairer.
Inflation easing under tight fiscal stance
Finance Secretary Md Khairuzzaman Mozumder said the government’s contractionary fiscal approach has helped bring inflation under control and stabilise macroeconomic conditions.
Inflation, which had surged above 13 percent last fiscal year, has since fallen sharply due to import compression, fiscal restraint and an increase in the policy rate to 10 percent. Food inflation has dropped below 7 percent, though non-food inflation remains elevated.
Mozumder said the budget deficit has been contained at 3.6 percent—well below the traditional 5 percent ceiling—reflecting strong fiscal consolidation. While this temporarily slowed growth and investment, he expressed confidence that expansionary measures, once stability is cemented, will help revive economic momentum. Export indicators remain steady as Bangladesh prepares for LDC graduation, he added.
Reforms to boost competitiveness
Chief Adviser’s Press Secretary Shafiqul Alam highlighted port modernisation, institutional reform and more efficient administration as key drivers of future competitiveness.
He said improved coordination between business bodies and national reform agendas will be essential, noting that a more efficient Chattogram Port would directly benefit major export sectors such as RMG.
He described the recent turnaround in macroeconomic stability as “historic.”
Economists call for deeper governance and investment reforms
Dhaka University Professor Mahbubullah stressed the need to strengthen governance, rebalance power structures and shift the economy from extraction to production. He urged long-term reforms to expand productive capacity and attract new investment, especially in pharmaceuticals, ceramics and light engineering. Persistent inflationary pressures and supply-side constraints, he said, must be addressed.
Former World Bank Lead Economist Dr Zahid Hussain pointed to improvements in remittances, revenue collection, electricity supply and disaster resilience. He said political stability and sustained reform efforts are vital, adding that meaningful reform requires not just political will but “political stamina.”
CPD Distinguished Fellow Professor Mustafizur Rahman emphasised the importance of stronger revenue mobilisation and governance to prevent future debt risks. He noted recent gains in macroeconomic stability and highlighted the need to curb corruption and transition toward skill-based competitiveness ahead of LDC graduation. Rising LC openings for capital machinery, he said, suggest renewed investor confidence.
A critical but promising turning point
Speakers agreed that Bangladesh is at a decisive yet promising stage of reform and institutional strengthening. With sustained commitment to fiscal discipline, governance improvements and structural reforms, they said the country is well-positioned to accelerate growth, expand inclusion and meet its long-term development ambitions.