‘Debt burden rises by Tk1 lakh cr in 4 months’

The country’s debt burden increased by more than Tk1 lakh crore within four months of the new government taking office, warning that failure to implement reforms could erode public confidence, National Citizen Party (NCP) Member Secretary and MP for Rangpur-4, Akhter Hossen said.

Participating in the discussion on the proposed national budget for FY2026-27 in Parliament, he said the country’s total debt stood at around Tk23 lakh crore when the government assumed office and had since risen to approximately Tk24 lakh crore.

“Within just four months, the government has pushed the country into an additional Tk1 lakh crore debt burden,” he said.

Questioning the government’s commitment to implementing reforms, Akhter said the finance minister himself had acknowledged in his budget speech that political reforms were necessary to address the ongoing economic crisis and institutional weaknesses. However, he alleged that little progress had been made in advancing such reforms.

“The people voted for the formation of a Constitutional Reform Council and for an independent judiciary. Yet the government has not addressed these issues,” he said.

Drawing a parallel with what he described as the government’s failure to secure expected assistance from the International Monetary Fund (IMF), the NCP lawmaker warned that failure to ensure governance reforms could similarly weaken public trust.

“If reforms cannot be implemented, the ruling party, like the finance minister who had to return empty-handed from the IMF, may also have to return to the people,” he said.

Akhter urged the government to implement the referendum verdict, establish a Constitutional Reform Council and move forward through proper review and consultation.

He also alleged that the IMF had withheld support due to the absence of meaningful economic reforms, and said the separation of the National Board of Revenue’s policy and management wings—initiated through an ordinance during the interim administration—was later allowed to lapse.

On the banking sector, he criticised provisions of the recently enacted Bank Resolution Act, saying they could allow owners of troubled banks to regain control if certain conditions were met.

“Those who drove banks into insolvency and siphoned off funds may again regain control of these institutions. What benefit will that bring?” he asked.

Akhter further claimed that the economy had been weakened by capital flight and rising non-performing loans, citing an alleged white paper that suggested around $240 billion had been siphoned off during the previous Awami League period.

He described the economy as fragile, saying default loans had strained the banking sector while inflation remained close to 10 percent.

Criticising claims that prices had not increased after the budget, he said electricity and fuel prices had already been raised twice within three months of the government taking office, which had triggered a broader rise in living costs.

“When electricity and fuel prices go up, transport costs rise and prices of all goods increase. The price pressure was already in motion before the budget,” he added.