Use Next Budget to Revive Economy, Experts Urge Govt

Economists have urged the government to use the upcoming national budget as a strategic tool to revive economic growth while maintaining macroeconomic stability. They warned that Bangladesh’s economy remains under severe stress due to persistent inflation, record-low private sector credit growth, and mounting fiscal pressures.

These observations were shared on Thursday during the launch of the "Pre-Budget Priorities" report by the Policy Research Institute (PRI) of Bangladesh. Centre for Policy Dialogue (CPD) Executive Director Fahmida Khatun attended as the chief guest, with PRI Chairman Zaidi Sattar chairing the event.

“The economy now stands at a crossroads,” said Zaidi Sattar. He noted that slowing growth, weakened investment, and vulnerabilities in the financial and energy sectors heavily constrain the government's policy options. Sattar stressed that macroeconomic stabilization alone is not enough; the country requires urgent productivity-enhancing reforms, including rationalizing tariffs, improving the investment climate, promoting foreign direct investment (FDI), and restructuring state-owned enterprises.

Delivering the keynote presentation, PRI Principal Economist Dr Ashikur Rahman stated that a disciplined budget anchored in stability is the most credible pathway to restore momentum. He noted that the room for expansionary fiscal or monetary stimulus remains highly restricted due to rising debt interest payments and financial sector fragilities.

The experts unanimously called for strong, decisive reforms and stricter accountability in economic management to ensure public funds are utilized effectively.