by Asif Showkat Kallol (Dhaka Bureau)
In a move to stabilize a fragile economy and reassure international observers, the Bangladesh government has officially denied reports of injecting ‘artificial liquidity’ into the market. Finance Minister Amir Khosru Mahmud Chowdhury, addressing a pre-budget consultation in Dhaka, dismissed claims that the state had printed Tk20,000 crore to fund its deficit, calling such reports ‘incorrect and misleading.’
A Commitment to Economic Stability
As the country prepares its 2026-27 national budget, the administration is prioritizing macroeconomic stability over short-term fixes. The Finance Minister emphasized that printing money would only exacerbate the current 14% inflation rate, further burdening the citizens who are already struggling with rising costs.
‘We do not want to increase inflation by injecting artificial liquidity into the market,’ Chowdhury stated. Reducing reliance on bank borrowing and avoiding money creation are our key priorities to rebuild trust.
Inherited Challenges and Human-Centric Growth
The current government describes its task as pulling the nation out of a ‘deep hole’ caused by years of previous mismanagement and recent geopolitical shocks affecting energy prices. Despite these hurdles, the proposed budget signals a shift toward Human Capital Development. Record allocations are being planned for Health and Education, reflecting a commitment to long-term social progress.
Bangladesh Bank Governor Mostakur Rahman supported this stance, highlighting the need for transparency in the banking sector. He revealed a staggering gap in five troubled banks, where non-performing loans (Tk164,000 crore) have surpassed total deposits (Tk130,000 crore). This transparency is seen as a vital step toward ‘Non-violence in Economics’, protecting the savings of ordinary people from institutional corruption.
Fostering Innovation and Small Industries
In line with Pressenza’s focus on grassroots empowerment, the central bank announced the launch of Startup Investment Bangladesh Limited, a Tk600 crore fund. This initiative specifically targets:
SMEs and Cottage Industries: Recognizing them as the backbone of employment.
The Creative Economy: Providing a platform for youth and innovators to thrive.
Green Energy: Exploring hydropower imports from Nepal to ensure sustainable development.
The government’s strategy is a delicate balancing act: maintaining fiscal discipline while protecting the most vulnerable from the impact of a devaluing currency. By focusing on capital market reforms and widening the tax net through technology (such as QR codes), the administration aims to create a ‘strong and neutral foundation’ for the future.
As the London and Dhaka bureaus of Pressenza continue to collaborate, this report highlights a nation at a crossroads- striving to replace economic ‘extraction’ with a system based on accountability, human welfare, and sustainable growth.
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The Author:
Asif Showkat Kallol: Works for a German-based online outlet, The Mirror Asia, as Head of News and Contributor, Pressenza- Dhaka Bureau.
