Khosru Unveils 39 Reforms to Hit $1 Trillion Economy
Graphics: Agamir Somoy
The government has committed to implementing 39 financial reforms across eight policy areas over the next three fiscal years to elevate the national economy to $1 trillion by 2034.
Finance Minister Amir Khosru Mahmud Chowdhury presented these initiatives during the 2026-27 fiscal year budget presentation in the Parliament on 11 June.
The eight core pillars of this strategy include revenue policy, monetary policy, exchange rate policy, external sector policy, social protection, financial sector development, investment and business environment development, and structural institutional reforms.
Khosru said, “The priorities given in the budget are development for all, quality education and health services for all, universal social protection and investment-dependent employment and productive economy.”
He emphasized goals regarding an affordable business environment, financial stability, energy security, and the advancement of ICT and environmental management.
Revenue and Monetary Strategies
For the 2026-27 fiscal year, the government plans to expand development spending while maintaining financial discipline and growth. Future targets for 2027-2029 focus on securing large-scale investments in infrastructure and human resources while managing debt risks.
In terms of monetary policy, the government will cautiously ease restrictions while maintaining anti-inflationary discipline, eventually transitioning toward a growth-supportive environment as inflation subsides.
External Sector and Exchange Rates
The government aims to strengthen foreign exchange reserves and boost export competitiveness. To achieve this, authorities will operate a full market-based exchange rate system with limited intervention in the upcoming fiscal year.
Long-term goals include diversifying exports, increasing external sector resilience, and ensuring integration with regional and global value chains.
Social Protection and Financial Reform
The trillion-dollar blueprint includes a strategic expansion of targeted programs for underprivileged communities, utilizing digital technology-dependent social safety nets.
This includes the expansion of family cards and farmer cards, alongside the establishment of digital G2P (Government-to-Person) payment systems.
Regarding the financial sector, the government is prioritizing governance in banking and systemic discipline. Future reforms will target reducing defaulted loans, developing capital markets, and ensuring the proper use of credit in productive sectors.
Investment and Institutional Governance
To foster a private sector-led growth environment, the government plans to implement deregulation and strengthen Public-Private Partnership (PPP) infrastructure.
Initiatives include “one-stop” investor services, the development of Economic Zones, and digital licensing. Finally, the government will deepen institutional reforms through automation and digital governance to ensure long-term economic resilience and productivity.
