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in Hong Kong, London and New York to mobilise foreign direct investment for Bangladesh.

Yesterday, the Finance Bill for the upcoming fiscal 2026-27, along with tax-related amendments, was passed in the parliament.

The major amendments included increasing the tax-free income limit for individual taxpayers by Tk 50,000 to Tk 4 lakh, withdrawing the opportunity to whiten undisclosed money (black money) and repealing the mandatory TIN (Taxpayer Identification Number) certificate requirement for opening bank accounts.

Khosru’s speech followed the prime minister’s concluding remarks, during which he addressed various budget amendments and criticisms raised since the proposed budget was placed on June 11.

The discussions on the budget across various levels, including the parliament and the media, primarily focused on inflation, revenue collection, budget deficit financing, banking sector reforms, employment, investment and overall economic recovery.

“These questions are natural and logical. The public wants to know how we will effectively tackle current challenges and place the economy on a strong and sustainable foundation,” Khosru said.

REFORMING NBR

The government will separate the revenue policy wing of the National Board of Revenue (NBR) from the regulatory body’s management wing to eliminate conflicts of interest and enhance revenue collection capacity.

While the interim government issued an ordinance to separate the NBR’s functions following recommendations from development partners like the World Bank and the International Monetary Fund, it was not formalised into law, triggering doubts over its execution.

Yesterday, Khosru officially announced the separation of revenue policy and revenue management.

“We are taking initiatives to expand business and trade by ensuring transparency and accountability through the separation of revenue policy and revenue management, automation of the tax system, prevention of tax evasion and deregulation,” he told the parliament.

Addressing the concerns over ambitious domestic revenue targets, Khosru said the government aims to expand the tax base rather than increase the tax rates.

Despite recent economic stagnation, Khosru highlighted that the NBR’s revenue collection has crossed the historic Tk 4 lakh crore milestone for the first time owing to sweeping reforms introduced over the last four months.

He expressed confidence that despite being challenging, the upcoming fiscal year’s revenue targets are achievable.

SPECIALISED FUNDS

To boost private sector growth and reduce entrepreneurs’ over-dependence on traditional banking, the government is looking at alternative capital market instruments.

“We are expanding alternative financing opportunities for the private sector through asset securitisation, bond market development and equity financing.”

As part of the strategy, specialised funds will be formed in major global financial hubs -- Hong Kong, London and New York -- specifically dedicated to investing in Bangladesh.

“Once operational, these private funds will inject foreign direct investment into both public and private projects without adding any extra pressure on our domestic financial system,” he said, assuring that the government’s domestic borrowing will not “crowd out” the private sector.

Criticising the previous regime, Khosru said that massive, reckless borrowing under the “fascist” government had severely compromised the country’s debt sustainability, downgrading its risk rating from ‘low’ to ‘medium’.

At the end of fiscal 2024-25, the government’s total debt stood at Tk 21,44,034 crore, accounting for 38.61 percent of the country’s GDP.

“Although we inherited this massive debt, we are bound to repay both the principal and interest on time, which is severely straining our revenue management.”

LOWERING BANK BORROWING

It also outlined a strategy to bring the country’s fiscal risk rating back to the “low” category by gradually shifting the economy from debt-driven to investment-led growth aiming to boost returns on investment, accelerate GDP growth and reduce reliance on deficit financing.

The government has proposed reducing bank borrowing by Tk 6,000 crore in the next fiscal year and plans to steadily reduce its reliance on financing from the BB and commercial banks over the medium term.

THE IMF PROGRAMME

Responding to critics who said the government returned empty-handed from talks with the International Monetary Fund (IMF), Khosru said that Bangladesh voluntarily walked away from the previous arrangement.

“The government did not return empty-handed. Rather, certain conditions of the programme initiated during the fascist government’s tenure were not acceptable to us in the interest of the country and its people. Therefore, we voluntarily opted out.”

A completely new programme will be negotiated with the IMF keeping the best interests of the nation and its citizens at the centre of the dialogue.

The government is treating prevailing high inflation with the utmost importance, viewing the fight against soaring prices not merely as an economic programme but as a social responsibility to protect ordinary citizens, Khosru said.

Addressing scepticism from lawmakers, economists and civil society members regarding the upcoming fiscal year’s targets of 7.5 percent inflation and 6.5 percent GDP growth, he defended the projections as challenging but achievable through synchronised policy interventions.

“We have taken initiatives to control the money supply in the market through effective coordination of monetary and fiscal policies.”

To give relief to consumers, the government has reduced the tax at source for 60 essential commodities.

The state is actively working on deregulation and digitalisation to lower the cost of doing business, repair supply chain disruptions and foster market competition, he said.

“Strict measures remain in place against artificial crises and manipulation by dishonest market syndicates. We firmly believe these initiatives will gradually bring inflation under control and offer relief to public life.”

Dismissing doubts surrounding the 6.5 percent GDP growth target, Khosru emphasised that growth is a reflection of economic vitality, investment and public confidence rather than just a dry statistic.

To hit the target, the government is prioritising a massive expansion in production capacity by boosting public and private investment across key sectors, including industry, agriculture and ICT services.

“We are also focusing on integrating the creative economy into the mainstream, accelerating human resource and physical infrastructure development and significantly strengthening the private sector.”

CRACKDOWN ON MONEY LAUNDERING

In a major announcement regarding financial scams and capital flight, Khosru offered strong reassurances that the government is aggressively pursuing laundered wealth.

“Our stance on repatriating stolen assets is uncompromising. The government has taken strict measures against those who misappropriated public funds or smuggled them abroad.”

As of May, assets worth approximately Tk 72,343 crore have been seized or frozen both at home and abroad under 11 priority cases.

To track down and retrieve the siphoned capital, Bangladesh has dispatched 23 Mutual Legal Assistance Requests to 13 countries. Furthermore, two formal Mutual Legal Assistance Treaties have been finalised with Malaysia and Hong Kong.

As part of the legal crackdown, the government is initiating civil proceedings in the first phase against six major defaulting borrower groups linked to the priority cases. Additionally, more than 15 affected commercial banks have signed over 60 non-disclosure agreements (NDAs) with international asset recovery agencies to trace and repatriate the stolen funds.