STAR BUSINESS REPORT

Finance Minister Amir Khosru Mahmud Chowdhury has pledged to avoid printing money to fund the government’s deficit and warned that creating “high-powered money” would trigger an inflationary spiral as the administration attempts to steer an economy battered by political cronyism and global shocks.

Speaking at a pre-budget discussion with representatives of the Economic Reporters’ Forum (ERF) at the finance ministry yesterday, he said the government was “doing its utmost to maintain its course despite navigating incredibly difficult times.”

“We are actively trying to prevent the ‘crowding out’ of the private sector. We must avoid creating an inflationary spiral by printing money,” Chowdhury said, describing this fiscal restraint as one of the foundational principles of the government’s economic policy.

The government strongly pushed back against recent media reports claiming that the central bank had printed Tk 20,000 crore.

During the discussion, Bangladesh Bank Governor Md Mostaqur Rahman dismissed the claims as “completely untrue,” warning that such misleading news harms the country’s sovereign rating and increases borrowing costs.

He clarified that fluctuations in the government’s “Ways and Means” advance account