Dhaka: Finance Adviser Dr. Salehuddin Ahmed has expressed optimism about the government’s plans to reduce the inflation rate in the upcoming fiscal year 2025-26 (FY26), acknowledging the challenges that lie ahead. “We’re trying our best. Our agriculture sector suffered hugely last year due to the flood. However, we’re expecting a good harvest this time,” he stated in an interview with the BSS at his office in the Bangladesh Secretariat.
According to Bangladesh Sangbad Sangstha, Dr. Ahmed discussed the government’s strategy to contain inflation within the upcoming national budget for FY26, which will be the first under the interim government led by Nobel Laureate Chief Adviser Professor Dr. Muhammad Yunus. The Finance Adviser expressed hope to bring down inflation to 8 percent by December 2025, with further reductions to 6 to 7 percent by June next year, despite anticipating some time for these measures to take effect.
Amid the absence of the Jatiya Sangsad, Dr. Ahmed will present the budget through a televised speech, to be formalized via a presidential ordinance. Officials involved in the budget formulation revealed that the government is planning a Taka 7,90,000 crore national budget for FY26, which is Taka 7,000 crore less than the current fiscal year’s original budget.
This televised budget will mark a significant moment for the interim government, reminiscent of the 2007-08 fiscal year when former caretaker government Adviser AB Mirza Azizul Islam delivered the budget through national broadcast.
Dr. Ahmed addressed the challenges of balancing inflation control with the demands of priority sectors such as education and health. He noted that inflation, once peaking at 11 percent, has stabilized at around 9 percent. Despite persistent high inflationary trends, the rate is now on a declining trajectory, thanks to government interventions, especially during the Holy Month of Ramadan.
The Finance Adviser emphasized the dual challenge of curbing inflation on both demand and supply sides, with monetary policy tightening addressing demand, and production focus addressing supply. He remains hopeful that the targets, though challenging, will be achieved.
According to the Bangladesh Bureau of Statistics (BBS), the general point-to-point inflation rate in Bangladesh eased slightly in April 2025, decreasing to 9.17 percent from 9.35 percent in March. This decline was driven by reductions in both food and non-food inflation, with rural and urban areas experiencing similar trends.
On trade and commerce, Dr. Ahmed assured that reputable businessmen continue to operate without issues in opening LCs, while those with poor track records might face difficulties. He highlighted that businesses are still active, with exporters receiving incentives.
Despite the lack of budget support from the IMF over the past eight months, Dr. Ahmed assured that foreign currency reserves and the current account balance remain stable. He mentioned the central bank’s projection of reserves reaching $25 billion by June, with potential growth to $30 to $40 billion.
Dr. Ahmed, former Bangladesh Bank Governor, reflected on past foreign reserve levels, emphasizing the importance of aligning reserves with GDP, broad money, debt service, and import bill coverage. He expressed confidence in the current stable state of reserves, predicting further increases and underscoring the need for more foreign direct investment to bolster reserves.