At a post-budget panel discussion hosted by the American Chamber of Commerce in Bangladesh (AmCham) on Tuesday, Special Assistant to the Chief Adviser for the Ministry of Finance, Dr. Anisuzzaman Chowdhury, stated that inflation is a political issue requiring political solutions, not solely monetary interventions.
Speaking at the event titled “Reflection, Response and the Road Ahead: National Budget FY 2025-26” at the Sheraton Hotel in Banani, Dr. Chowdhury emphasized the urgent need for coordinated policy action across ministries and stronger communication among major institutions to tackle Bangladesh’s mounting economic challenges. He also criticized the central bank’s inability to curb inflation and reduce defaulted loans, calling for a focus on improving the tax-GDP ratio to lessen reliance on foreign aid.
The panel included prominent economists such as Dr. Fahmida Khatun (CPD), Dr. Zahid Hussain (former World Bank), and Dr. Masrur Reaz (Policy Exchange), with moderation by Citibank N.A. Country Officer Md. Moinul Huq. Dr. Reaz described the FY26 budget as overly ambitious, warning it could worsen inflation and lacks a unified policy framework.
Dr. Hussain stressed the importance of banking sector reform and eliminating tax intermediaries. Dr. Khatun cautioned against increasing dependency on domestic and foreign borrowing and criticized underfunding of education and healthcare—highlighting Bangladesh’s lowest ranking among 44 LDCs in education spending.
AmCham President Syed Ershad Ahmed expressed concerns about limited foreign direct investment (FDI) support, citing poor law and order and weak logistics infrastructure, and flagged inadequate green energy allocations as a major climate vulnerability.
Participants agreed that broader industrial incentives, political consensus on inflation management, and more efficient public spending are key to economic recovery. The session concluded with a shared call for comprehensive, coordinated, and politically driven economic reform.
