Published: 10:20 AM, 15 June 2026
Budget 2026–27: New Momentum for Manufacturing
Bangladesh’s economy is currently facing important challenges, including increasing investment, generating employment, containing inflation and diversifying exports. In this context, we view positively the government’s emphasis on private sector growth, industrialization, investment promotion and macroeconomic stability in the national budget.
We also appreciate the measures aimed at controlling the prices of essential commodities and keeping the cost of living within a manageable range for ordinary citizens. Various initiatives announced in the budget send a positive signal to investors and have the potential to further energize the country’s industrial and manufacturing sectors.
However, the ultimate success of the budget will depend on effective implementation, policy consistency, good governance and strengthening the confidence of businesses and investors. Under the current economic circumstances, increasing private investment, expanding production and creating employment should remain key priorities. If the announced reforms and initiatives are implemented effectively, their positive impact on the economy will become visible more quickly.
From an industry perspective, we particularly welcome the government’s decision to include packaging materials alongside industrial raw materials and reduce the supply-stage Advance Income Tax (AIT) rate to 3 percent. This has been a longstanding recommendation of the Bangladesh Flexible Packaging Industries Association (BFPIA), and we sincerely thank the government for addressing this issue. We also appreciate the recognition of the paper and packaging sector as the “Product of the Year 2026,” which reflects the growing importance and potential of the industry.
At the same time, further consideration may be given to simplifying duty drawback procedures, introducing deemed export facilities, providing policy support for sustainable packaging and extending greater support to emerging manufacturing sectors in order to strengthen industrial competitiveness and promote export diversification.
Bangladesh possesses immense potential. We believe that with the right policy support, effective implementation and close collaboration between the government and the private sector, the country can create new opportunities for investment, industrial growth and export expansion.
Safius Sami Alamgir is a President, Bangladesh Flexible Packaging Industries Association (BFPIA).
>>Safius Sami Alamgir
