‘Two tough years ahead’, Khosru warns of painful economic fix

Published : Thursday, 30 April, 2026 at 6:55 PM Count : 5

Sketching the grim picture of the country’s economy, Finance Minister Amir Khosru Mahmud Chowdhury on Thursday clearly stated that it would take more two years to come out from the present deplorable condition.

“We need cushions (to support the economy) for two years. The next two years will be difficult. We will have to make many decisions. We will take many measures that may not be popular. So, to get out of a difficult situation, we will have to make many difficult decisions,” he said.

The finance minister made the remarks, participating in the discussion on thanksgiving motion over the President’s speech delivered on the first day of the current parliament session.

He sought cooperation from the opposition for the interest of the country in this economic revitalization process. “We all have to work together to get me out of here. Our leadership is good. Our captain is okay and his vision is good,” he said.

The finance minister said though it is not an easy task, Bangladesh would be able to come out from the situation. “We need cooperation from all here,” he said.

The minister also underscored the importance of curbing unnecessary expenditure, saying that spending beyond their means is no longer viable. “We all feel that we do not need excessive spending. There is no scope to go beyond what we can afford,” he said.

Highlighting the government’s reform initiatives, he said various changes including reforms and deregulation measures, have already been undertaken, while the remaining steps are in progress.

“If we want to bring the economy back to its previous position or take it to an even better level, the necessary reforms must be implemented,” he said.

Describing Tarique Rahman as ‘visionary and prudent leader,’ of the country, he said his vision, thoughts and work ethic is working among them. “It is working among everyone. So, I can say for sure that we will come out of here, Inshallah,”

Grim picture of economy:

Depicting the current pictures of the economy with a series of indicators, the finance minister said Bangladesh’s tax-to-GDP ratio has fallen below 7 percent — the lowest in South Asia and among the lowest globally. He noted that the ratio was around 10 percent in 2005-06 and had a growing trend during the last BNP regime.

About the poverty rate, he said the rate increased from 17.18 percent in 2022 to 20.5 percent in 2024 and it reached 29.93 percent in 2025 as per BBS estimates.

Private sector credit growth, which is crucial for investment, production and employment, has declined sharply to around 6 percent of GDP, compared to 18.27 percent in 2005-06, he said.

Export growth has also turned negative, falling by 2.6 percent, whereas it had recorded around 14 percent growth when the BNP left office in 2006, he added.

He expressed concern over the rising volume of non-performing loans (NPLs), saying it has exceeded 30 percent, a level that could bring economic activities close to a halt. “When NPLs exceed 30 percent, the economy almost comes to a grinding halt,” he warned, noting that the figure was around 13 percent in 2005.

The finance minister also pointed to mounting fiscal pressures due to large subsidies in the power and energy sectors. He said the government is currently providing around Tk 36,000 crore in power subsidies and may need to provide an additional Tk 20,000–30,000 crore.

Remarks on loan defaulters and banking practices:

Responding to remarks of opposition Chief Whip Nahid Islam’s remarks that many BNP lawmakers are loan defaulters, the finance minister said loan rescheduling is a global banking practice and not something newly introduced by any political party.

“In the last 17 years, many BNP businessmen could not run their business and they were not provided bank loans,” he said, adding that they faced systematic obstacles in accessing bank loans and doing business.

He claimed that even sanctioned loans were not disbursed, repayment periods were not extended, and various administrative barriers were created, forcing many businessmen to shut down operations.

“Many were unable to stay in their homes, some had to go into hiding, and others were imprisoned. Under such circumstances, repaying bank loans becomes extremely difficult,” he said.

He said gas and electricity connections of some business units were disconnected, further worsening their financial condition.

BNP does not own any banks, while alleging that some other political parties have their own banks, enabling them to protect their members from becoming defaulters.

Referring to recent discussions in Parliament, he emphasised the importance of respecting constitutional institutions, including the office of the President.

“The President is an institution, not a person. If we believe in constitutional democracy, we must respect institutions,” he said.

July Charter and political mandate:

Turning to the issue of the July Charter, he said it remains a key political framework and is aligned with BNP’s 31-point reform agenda and election manifesto.

“BNP’s 32-point agenda is fully aligned with the July Charter,” he said, adding that BNP signed the charter aligning it with the 31-point agenda.

During the last election campaign, BNP sought public support based on those commitments and the people gave us a two-thirds mandate, which reflects their support for the BNP’s election manifesto, said the minister.

FP/MI