Dhaka: Dr. Monzur Hossain, member (secretary) of the General Economics Division (GED) of the Planning Commission, has articulated Bangladesh’s ambitious plan to transform into a trillion-dollar economy. The strategy focuses on fostering higher GDP growth, expanded investment, and long-term economic reforms aimed at enhancing productivity, creating employment, strengthening institutions, and improving citizens’ quality of life.
According to Bangladesh Sangbad Sangstha, preparations for Bangladesh’s graduation from the Least Developed Countries (LDC) status are in full swing. Efforts are underway to bolster trade competitiveness and institutional capacity, with the government actively pursuing tariff rationalization, customs modernization, and broader trade facilitation reforms.
In an exclusive interview with BSS, Dr. Hossain revealed ongoing negotiations for free trade agreements (FTAs) and economic partnership agreements (EPAs) with countries such as Japan and South Korea. He emphasized that the private sector must enhance its efficiency and reduce production costs to remain competitive in the post-LDC era.
Dr. Hossain projected that GDP growth could reach approximately 6.5 percent in the next fiscal year, contingent on improved macroeconomic stability and investment recovery. He noted the government’s focus on improving the implementation of development spending, with a significant portion of the Annual Development Programme (ADP) remaining flexible to accommodate new priority projects.
Public-Private Partnership (PPP) initiatives are set to play a pivotal role in bridging infrastructure financing gaps, reducing pressure on public resources. Dr. Hossain underscored the need for institutional reforms to improve implementation outcomes, with agencies like the Bangladesh Investment Development Authority (BIDA) expected to assume a stronger coordinating role under a unified investment facilitation framework.
Addressing social protection, Dr. Hossain mentioned the government’s expansion of social safety net programs, including enhanced family card and farmers’ assistance schemes, to safeguard vulnerable groups from various shocks, including inflationary pressures.
Regarding the financial sector, Dr. Hossain highlighted ongoing critical restructuring efforts aimed at restoring discipline in banking and capital markets, reducing non-performing loans (NPLs), and supporting long-term macroeconomic stability. He acknowledged the banking sector’s significant stress and the challenges in realizing visible improvements despite reform initiatives over the past year and a half.
Dr. Hossain identified non-performing loans as a major structural weakness, emphasizing the need for improved asset recovery mechanisms and strict enforcement against wilful defaulters. He stressed the importance of strong regulatory oversight by the central bank, noting the Bangladesh Bank’s critical role in ensuring financial discipline and stability.
The economy, currently in a “low-performance phase” characterized by high inflation, weak employment growth, declining investment, and subdued industrial output, requires significant intervention for recovery. Dr. Hossain advocated for a “big push” strategy through a larger development budget and stricter implementation discipline to address these challenges.
On long-term planning, Dr. Hossain highlighted the government’s Five-year Strategic Framework (July 2026-June 2031) as a dynamic document that will be continuously updated based on implementation progress and emerging challenges. He expressed optimism that Bangladesh could achieve a $750 billion economy by 2030-31 and reach a trillion-dollar status by 2034, provided reforms are consistently implemented.
Dr. Hossain concluded that Bangladesh’s future economic trajectory will hinge on strong implementation discipline, financial sector stability, and sustained policy continuity aimed at achieving inclusive growth, poverty reduction, and employment generation.