Printing money not an option
The government has ruled out printing money to meet its budgetary needs, opting instead to focus on reviving the economy through increased investment and stronger resource mobilisation, Finance Minister Amir Khosru Mahmud Chowdhury said on Wednesday.
“We are not in favour of printing money,” the minister told reporters after a meeting with officials of the National Board of Revenue (NBR). He said the government aims to move away from a debt-driven approach and build an investment-led economy capable of ensuring sustainable growth and job creation.
Describing the current economic situation, the finance minister identified three major challenges:
restoring momentum in a weakened economy, fulfilling election pledges, and managing the impact of the Middle East conflict, which has pushed up fuel import costs.
His remarks come at a time when Bangladesh is facing increasing fiscal pressure, with revenue collection falling short of targets and government borrowing rising to meet expenditure needs.
“We have inherited a fragile economic situation. Our immediate priority is to stabilise the economy.
while also delivering on commitments made to the people,” he said.
The minister stressed that effective resource mobilisation would be essential for both short-term stability and long-term growth, warning that policy commitments would be difficult to sustain without stronger revenue performance.
He also highlighted policy inconsistency as a key concern for investors, noting that frequent changes in regulations create uncertainty and discourage investment.
Efforts are underway to attract both domestic and foreign investment, with the minister saying there has been a positive response following the elections.
“Investors were waiting, and we are now seeing encouraging signals,” he said, expressing optimism that investment inflows would increase if reforms are implemented swiftly.
The government’s reform agenda includes deregulation and restoring discipline in the financial and capital markets to improve the overall investment climate.
The upcoming national budget will also prioritise marginalised communities, with continued support for social safety net programmes to address inequality and protect vulnerable groups.
In addition, the government plans to diversify exports by extending incentives to emerging sectors, similar to those provided to the apparel industry.
On Bangladesh’s graduation from least developed country (LDC) status, the minister said the process is progressing at the United Nations, though final decisions remain subject to approval by the Economic and Social Council and the General Assembly.
He added that the government is maintaining close engagement with development partners to navigate ongoing economic challenges and ensure a stable transition towards sustainable growth.
