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market, supply chains, and international trade, the minister said, adding, “This will not only increase the budget deficit but also put pressure on foreign currency reserves, as an equivalent of about USD 3 billion will be required for import payments.”

To address the situation, the government has taken measures to encourage efficient energy use, including closing government and autonomous offices at 4:00pm instead of 5:00pm, maximising daylight to reduce electric lighting and regulating air-conditioner temperatures, closing markets and shopping malls by 7:00pm, securing energy from alternative suppliers, ensuring timely subsidy releases to maintain uninterrupted imports and supply, and seeking additional budgetary support from development partners to ease fiscal and balance-of-payments pressures.

Khosru said that as an import-dependent economy, Bangladesh is not immune to this geopolitical reality, adding that despite the need for higher subsidies due to global energy prices, the government has decided not to adjust domestic prices for now, considering public hardship.

The government has already started working on formulating the budget for FY 2026-27, with the aim of establishing discipline across various sectors of the economy and addressing multifaceted pressures.

“We are fully aware of the immense expectations of the people from the first budget of the newly elected government. At the same time, we hope the public will also recognise the limitations we face due to inherited challenges,” the finance minister said, adding that the government’s goal is not merely growth, but to build a sustainable, transparent, and inclusive economy.

Taking stock of the situation inherited from the Awami League government, the finance minister presented the state of macroeconomic indicators, social sector indicators, and institutional conditions across three key periods: the final fiscal year of the last BNP government (2005-06), the final fiscal year of the previous Awami League government (2023-24), and the interim government’s fiscal year (2024-25).

Over 16 years, the fascist AL government drove the economy to the brink of collapse through rampant corruption and unchecked plunder, while rendering the social and institutional sectors dysfunctional, Khosru said.

In contrast, under the BNP government, the economy’s key indicators had been placed on a positive trajectory thanks to its farsighted and people-oriented economic vision, accelerating the pace of growth.

“Much of that progress, however, has been undone over the last 16 years,” he said.

Khosru told parliament that GDP growth fell from 6.78 percent in FY 2005-06 to 4.22 percent in FY 2023-24, while inflation rose from 7.17 percent to 9.73, despite overall economic expansion.

Over the same period, the taka depreciated from Tk 67.2 per US dollar to Tk 111, and further to Tk 121 in FY 2024-25, nearly halving its value and fuelling inflation, while broad money (M2) growth dropped from 19.3 percent to 7.7 percent.

Private sector credit growth declined from 18.3 percent in FY 2005-06 to 9.8 percent, and further to 6.5 percent in FY 2024-25, reflecting monetary mismanagement and structural weaknesses.

The tax-to-GDP ratio remained stagnant at 8.2 percent, while the deficit widened from 2.9 percent of GDP to 4 percent.

Interest payments surged from Tk 85 billion to Tk 1,147 billion, driven by heavy domestic borrowing that crowded out private credit. “Projects were overvalued… and billions siphoned abroad through corruption,” the minister said.

Exports rose from USD 10.5 billion to USD 40.8 billion and imports from USD 13.3 billion to USD 63.2 billion by FY 2023-24, widening the trade gap and straining reserves. Remittances increased from USD 4.8 billion to USD 23.9 billion, while reserves stood at about USD 20 billion.

Under the interim government, remittances rose to USD 30.3 billion and reserves stood at USD 33.2 billion by December 2025.