Dhaka: Finance Minister Amir Khosru Mahmud Chowdhury today presented the first quarter (July-September) budget implementation progress report for the fiscal year 2025-26 in the Jatiya Sangsad, underscoring improved revenue collection, increasing foreign exchange reserves, and a trend towards macroeconomic stability despite ongoing global and domestic challenges.
According to Bangladesh Sangbad Sangstha, the Finance Minister reported a 17.7 percent growth in total revenue collection for the first quarter of FY26, a significant improvement compared to the 4.4 percent growth during the same period in the previous fiscal year. Total government expenditure rose by 10 percent, a decrease from the 14 percent growth recorded during the same period of FY2024-25.
The report highlighted that the implementation of the Annual Development Programme reached 4.58 percent of the total allocation, up from 3.97 percent in the corresponding period of the previous year. Foreign exchange reserves saw an increase from $24.86 billion on September 30, 2024, to approximately $31.43 billion by September 30, 2025, indicating a more stable external economic position.
Export earnings increased by 5.26 percent, while import expenditures rose by 9.49 percent in the first quarter of FY26. Inflation was recorded at 9.45 percent at the end of September 2025, showing a minor decline from 9.97 percent in the same period of the previous fiscal year.
The Finance Minister discussed the impact of geopolitical tensions and the ongoing conflict in the Middle East on global trade, affecting export growth in developing countries like Bangladesh. Despite these challenges, Bangladesh’s economy is gradually stabilizing, supported by reform initiatives, policy coordination, and steady remittance inflows, which have bolstered foreign exchange reserves.
However, the minister acknowledged that factors such as tariff barriers in global trade, rising competition, high interest rates, and internal constraints are pressuring exports, private sector credit growth, and investment. Revenue collection is also encountering some shortfalls.
Inflation is not decreasing at the anticipated rate due to supply chain limitations, market management issues, and external variables, despite the implementation of contractionary fiscal and monetary policies. Bangladesh Bank has increased policy interest rates and continued its contractionary monetary policy to control inflation and aggregate demand, while targeted credit support is being maintained for agriculture, export-oriented industries, and SMEs.
The Finance Minister emphasized the importance of policy continuity, institutional capacity building, good governance, an investment-friendly environment, export diversification, and technology-based production to further strengthen the economy. He expressed optimism that Bangladesh could overcome its challenges and transform into a one-trillion-dollar economy by 2034 through collective efforts and pragmatic reform programs.