Published: 12:38 AM, 01 May 2026
Austere decision might have to be taken: Finance Minister
Finance Minister Amir Khosru Mahmud Chowdhury on Thursday (30 April 2026) said it would take at least two more years for Bangladesh's economy to recover from its current fragile condition, warning that the period ahead would be challenging and require difficult policy decisions.
"We need cushions to support the economy for two years. The next two years will be difficult. We will have to make many decisions and take measures that may not be popular," he said while participating in the discussion on the motion of thanks on the President's address in parliament.
Amir Khosru Mahmud Chowdhury sought cooperation from the opposition parties, saying that all sides must work together in the national interest to overcome the economic challenges.
The Finance Minister said that although the task would not be easy, Bangladesh would be able to recover from the current situation through collective effort.
He emphasized the need to curb unnecessary expenditure, noting that the country could no longer afford to spend beyond its means.
Amir Khosru also highlighted ongoing reform initiatives, saying that various changes, including reforms and deregulation measures, had already been undertaken, while additional steps were in progress.
He said that implementing necessary reforms would be essential to restore the economy to its previous state or to take it to a stronger level.
Presenting a bleak picture of the economy, the Finance Minister said Bangladesh's tax-to-GDP ratio has fallen below 7%, making it the lowest in South Asia and among the lowest globally.
Amir Khosru Mahmud Chowdhury said the ratio had been around 10% in the financial year 2005-06 and had shown a rising trend during earlier administrations led by the Bangladesh Nationalist Party (BNP).
He said the poverty rate had increased from 17.18% in 2022 to 20.5% in 2024 and reached 29.93% in 2025, according to estimates by the Bangladesh Bureau of Statistics.
Private sector credit growth, which is crucial for investment, production, and employment, has declined sharply to around 6%, compared with 18.27% of GDP in FY2005-06, he further said.
