It is imperative for the newly elected government to continue coordinated fiscal and monetary policies to keep inflation under control, as price growth has eased to single digits in the current fiscal year.
Immediate-past finance adviser of the interim government Dr Salehuddin Ahmed has tipped this wink to his successor, as Bangladesh continues to grapple to tame inflation that creates imbalances in the overall economy.
Point-to-point inflation declined to 8.58 per cent in January 2026, reflecting the impact of contractionary monetary and fiscal measures adopted amid high inflation, external-sector pressures and global instability in recent years.
In a transition note titled 'Recent Economic Situation, Ongoing Reforms and Priority Programs', the finance adviser recommended these for sustaining the ongoing policy stance to consolidate macroeconomic stability.
Maintaining a sustainable debt-to-GDP ratio through prudent debt management, expanding fiscal space by boosting revenue collection, and implementing the new pay scale are also listed as immediate priorities.
The Financial Express obtained the 'successor note', signed on 16th February by Dr salrhuddin, that has been placed to current Finance Minister Amir Khasru Mahmud Chowdhury for his consideration.
In the note, Dr Salehuddin Ahmed has given separate recommendations for each of the wings of the MoF, including Finance division, Financial Institutions Division, Internal Resources Division (IRD) and Economic Relations Division.
Talking to the FE on Friday, Dr Salehuddin Ahmed said the main reason to draft this note is to reveal the reality as many people, including few economists, are alleging on the basis of 'theoretical' concept.
"It was not so easy to control inflation as inertia prevails among the actors," he said.
"We have taken debt very carefully and had to repay the megaprojects' loan," he added.
The past custodian of exchequer mentions that expensive projects such as Metro 5 have been dropped finding it expensive.
"We are in thresholds of IMF on debt sustainability," he said.
In the note, the former adviser has laid emphasis on finalising the Bank Company (Amendment) Ordinance 2026, enacting a Distressed Asset Management Ordinance, strengthening capital- market regulation and enhancing overall governance and accountability in the financial sector.
Separately, he suggests considering temporary deferral of LDC graduation, if necessary.
Dr Salehuddin has stressed the need to prioritize high-impact development projects, reduce non-essential expenditure and make the subsidy regime more targeted and efficient.
For the National Board of Revenue (NBR), priority actions include full operationalisation of the separation of the revenue policy and revenue administration divisions.
In FY25, 76 agreements were signed with 20 development partners, with foreign aid commitments reaching $8.38 billion-133 per cent of the annual target. Disbursement stood at $9.31 billion, exceeding the target, it is noted in the note.
Budget support and policy-based lending totalled $3.44 billion from partners that include the World Bank, the ADB, JICA, AIIB, OPEC Fund and AFD.
Total external debt repayment in FY25 amounted to $4.11 billion, it is stated in the account.
Dr Salehuddin stresses finalisation of the Bank Company (Amendment) Ordinance 2026 and the Bangladesh Bank (Amendment) Order 2026, enactment of the distressed Asset Management Ordinance and AML amendments and managing financial and institutional risks in bank mergers and resolution
Dr Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue (CPD), hails the adviser's note of cue to the finance minister on the basis of his experiences in 18 months.
He says, "The note could explain what are the challenges and barriers the interim government faced to implement its plan that has not seen success."
He adds: "Inflation has not declined to the expected level in the last regime while revenue- mobilisation scenario aggravated and government expenditure could not be reduced as desired."
The government borrowing was also high, reaching 32 per cent, he mentions.
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