FROM PAGE B1

Addressing the parliament yesterday, Khosru said since assuming power, one of the government’s top priorities has been to restructure the economy by tackling global instability, internal structural weaknesses, and inflationary pressures.

“We are trying to reduce waste in every area of government expenditure, cut spending in non-priority sectors, and ensure frugality in administrative costs. At the same time, we are working to implement the government’s electoral manifesto.”

“However, due to global circumstances, we had to adjust subsidies for electricity and energy,” he added.

Opposition MPs raised concerns over weaknesses in the banking sector, rising default loans, shrinking private-sector credit flow, and the government’s capacity to finance the budget deficit.

They also questioned the government’s plan to borrow large sums from banks despite mounting default loans and liquidity crises, while simultaneously creating rescue funds for troubled banks.

They warned that this could further strain the financial sector.

Khosru, in response, said additional allocations were needed to finance priority programmes, including waiving principal and interest on agricultural loans of up to Tk 10,000 and funding two Annual Development Programme (ADP) and four non-ADP projects.

He stressed that the extra funds were not sought for the Finance Division’s own expenses and defended the proposal as justified, rejecting the cut motions.