Govt has taken office at a time when almost all economic indicators are under pressure: Amir Khasru

Finance and Planning Minister Amir Khasru Mahmud Chowdhury said that the new government of BNP has assumed office at a time when almost all economic indicators are under pressure. Rebuilding public confidence has now emerged as a major challenge.

He made these remarks today, Friday, in a statement under Rule 300 in the National Parliament. The session began at 10:00 am under the chairmanship of Speaker Hafizuddin Ahmed. The minister delivered the statement at the beginning of proceedings before moving on to the day’s agenda.

The minister said that over the past 16 years, the fascist government, through unlimited corruption and unchecked plundering, has pushed the economy to the brink of collapse and rendered social and institutional sectors ineffective. He added that while the previous BNP government had put key economic indicators on a positive trajectory and accelerated economic growth, much of that progress has been eroded over the past 16 years.

Amir Khasru said that he wants to present to the people an overview of macroeconomic indicators, as well as political, social, and institutional conditions across three periods: the last fiscal year (2005–06) of the previous BNP government, the final fiscal year (2023–24) of the Awami League government, and the 2024–25 fiscal year under the interim government. He also aims to inform citizens about the current government’s vision and policy framework for building an advanced, dignified, equitable, and humanitarian state for the people.

Citing official data, the Finance and Planning Minister said that GDP growth in the 2005–06 fiscal year was 6.78 per cent, while inflation remained relatively controlled at 7.17 per cent. Due to subsequent misgovernance and flawed policies, by the end of the 2023–24 fiscal year, growth had declined to 4.22 per cent, and inflation had risen to 9.73 per cent.
In 2005–06, industrial sector growth stood at 10.66per cent, but it dropped to 3.51 per cent in 2023–24. Agricultural growth was 5.77 per cent in 2005–06, which declined to 3.30 per cent in the 2023–24 fiscal year.

Amir Khasru added that when an economy loses the driving force of industry, employment contracts and overall productivity declines—something that has been clearly observed in recent years.

The finance minister said that over the past decade, the share of value addition in agriculture—one of the three main sectors of the economy—has declined by about 4 percentage points, while the contributions of industry and services have increased. However, during the same period, employment in agriculture rose by 4.8 per cent, whereas employment in industry and services declined. Due to insufficient job creation in these sectors, many young people were compelled to engage more in agriculture. This has intensified disguised unemployment, leading to a waste of youth labour and limiting their productivity and income potential.

He added that although agriculture currently contributes 11.6 per cent to total national value addition, around 41 per cent of total employment is concentrated in this sector. This mismatch indicates low labor productivity in agriculture and highlights deep structural weaknesses in the labor market—signaling the risk of jobless growth.

The minister said that over the past 15 years, the local currency has undergone significant depreciation. In the 2005–06 fiscal year, the exchange rate was 68.2 taka per US dollar. By 2023–24, it had risen to 111 taka, and further to 121 taka in 2024–25. As a result of continuous depreciation, the currency has lost about half its value over the past 15 years. This has increased import costs, accelerated inflation, reduced purchasing power, and raised the cost of living for ordinary people.

On money supply, Amir Khasru Mahmud Chowdhury said that in 2005–06, broad money (M2) growth was 19.3 per cent, and reserve money growth was 23.9 per cent, indicating strong economic vitality. By 2023–24, the situation had changed significantly, with M2 growth falling to 7.7 per cent and reserve money growth to 7.9 per cent.

Highlighting the precarious condition of the banking sector, he said that non-performing loans have exceeded 20 per cent (in reality around 30 per cent), while capital adequacy has dropped to 3.8 per cent. In his words, “many banks have effectively been operating in a bankrupt state.”
Rising debt burden and surge in interest payments

Amir Khasru said that interest payments on government debt have increased 13-fold—from 85 billion taka in 2005–06 to 1,147 billion taka in 2023–24. This is creating significant pressure on the budget and limiting development spending.

The minister said that although exports have increased, they still lag behind imports. Exports stand at $40.8 billion, while imports are $63.2 billion. This gap has reduced foreign exchange reserves. He claimed that money laundering and informal transfer systems (hundi) are among the key reasons.

The minister noted that income inequality has risen sharply. He said that the income gap between the rich and the poor was 35 times in 2005, which increased to 81 times in 2022—resulting in a highly unequal society.
Institutional weaknesses a major crisis

Amir Khasru Mahmud Chowdhury said that in recent years, the administration has become politicized, while the banking and financial sectors have weakened. The statistical system has also come under question, hindering effective policymaking.

The minister said that two indicators are most important for understanding the true condition of the banking sector: the ratio of classified (non-performing) loans and capital adequacy.

Amir Khasru added that, according to data from Bangladesh Bank, the overall non-performing loan ratio in the banking sector stood at 13.6 per cent in December 2005. By December 2024, the situation had changed dramatically, with the ratio rising to 20.20 per cent, and now exceeding 30 per cent. He noted that the internationally accepted definition of non-performing loans had been strategically bypassed and misrepresented to deliberately conceal the true picture.

Amir Khasru Mahmud Chowdhury said that the current government has set a target to transform Bangladesh into a trillion-dollar economy by 2034, and has undertaken several initiatives toward this goal.

The minister warned that instability in global energy markets, driven by conflict in the Middle East, may force the government to provide an additional 360 billion taka in subsidies, putting pressure on both the budget and foreign exchange reserves. To manage this unexpected situation, the government has taken several measures, including advising citizens to use fuel and electricity more efficiently.

He added that, as an import-dependent economy, Bangladesh is not insulated from these realities. Despite rising global energy prices necessitating higher subsidies, the government has so far kept domestic prices unchanged to ease public hardship. In this challenging global environment, the country must continue to move its economy forward. The government has already begun preparing the budget for the 2026–27 fiscal year, focusing on restoring discipline across various sectors and addressing multiple economic pressures.

The minister said that mega projects implemented during the previous government’s tenure are particularly notable in this context, as the public has not been able to reap the expected benefits from those investments. He alleged that vast sums of money were siphoned abroad through these projects.

In his speech, .