Dhaka: Finance Minister Amir Khosru Mahmud Chowdhury today announced that the government is actively working to transition the country away from a patronage-based economic framework. He emphasized that such a system has historically led to an unequal distribution of wealth, concentrating resources in the hands of a select few through political patronage.
According to Bangladesh Sangbad Sangstha, the Finance Minister highlighted the challenges of moving away from a patronage-driven economy, which has resulted in wealth accumulation among oligarchs. The government is committed to revitalizing the economy it inherited, which was in a fragile state, and is focusing on creating equal opportunities for all citizens. Initiatives such as family and farmer cards have been introduced to support this goal.
The remarks were made during a pre-budget discussion with the leaders of the Economic Reporters’ Forum (ERF) at the Bangladesh Secretariat. The Finance Minister noted the gradual decline in the country’s poverty rate, although many businesses continue to face difficulties in meeting wage and loan obligations. Reducing economic inequality remains a primary objective for the government.
Khosru also announced plans to increase allocations for education and health in the upcoming budget, with a priority on developing a skilled workforce. He stressed the need for practical skills beyond academic degrees, with a special focus on vocational education.
Addressing concerns about government borrowing, the Finance Minister refuted claims of ‘money printing’ to facilitate bank borrowing, warning of potential impacts on the country’s credit rating. He clarified that bank borrowing is a routine process, with figures showing a decrease from Tk 17,592 crore on February 17 to Tk 11,722 crore on April 22.
The meeting was attended by key officials including Finance Secretary Md. Khairuzzaman Mozumder, Financial Institutions Division Secretary Nazma Mobarek, and Bangladesh Bank Governor Md Mostaqur Rahman, among others. ERF President Daulat Akter Mala presented a 21-point budget proposal, supported by other ERF members.
Finance Secretary Khairuzzaman Mozumder stated that incentives would no longer be available without exporting goods, as the government progresses towards an accrual-based budget. Efforts are also being made to improve the tax-to-GDP ratio.
Bangladesh Bank Governor Md Mostaqur Rahman emphasized the government’s focus on repatriating laundered money, reopening closed industrial units, and strengthening the foundations of five Islamic banks, with necessary documentation updates underway.