Businesses and economists have called for effective implementation of the proposed national budget, highlighting weak revenue mobilisation as a key challenge as revenue targets remain ambitious amid a subdued economic environment.
They also underscored the importance of a business-friendly environment to make Bangladesh one of the easiest places to do business, which would also help restore investors' confidence, attract investment and create employment.
They came up with the observations at a post-budget panel discussion titled "National Budget FY2026-27: Building Confidence and Competitiveness for Investment-Led Growth", organised by American Chamber of Commerce in Bangladesh (AmCham) at a city hotel on Monday.
M Masrur Reaz, chairman of Policy Exchange Bangladesh, presented a comprehensive overview of the proposed budget at the event moderated by Amcham Vice-President Ala Uddin Ahmad.
Describing the proposed budget as 'pragmatic effort to support economic recovery while laying the groundwork for long-term transformation', Mr Reaz noted that the budget sends positive signals for private sector-led growth through measures aimed at easing the burden on businesses, encouraging investment, and strengthening social protection.
At the same time, he observed that achieving the budget's objectives will require overcoming significant challenges, including an ambitious 6.5 per cent GDP growth target, a substantial increase in revenue mobilisation, persistent inflationary pressures, and vulnerabilities in the banking and energy sectors.
"Effective implementation will be critical to translating the budget's policy intent into tangible outcome," he noted.
Speaking on the occasion, Executive Director of the Centre for Policy Dialogue (CPD) Dr Fahmida Khatun said the proposed budget includes several positive measures for vulnerable groups, including the expansion of the Family Card programme and an increase in the tax-free income threshold.
She, however, laid stress on strong governance and proper targeting to ensure the effective implementation of these initiatives. She also called for higher public investment in health and education saying out-of-pocket healthcare spending in Bangladesh remains among the highest in the region.
Pran-RFL Group Chairman and CEO Ahsan Khan Chowdhury said Bangladesh must become one of the easiest places to do business to compete with countries like Vietnam and Cambodia and attract foreign investment. He also highlighted the need for a more skilled workforce to boost productivity and overseas earnings.
He, however, said the budget lacks clear guidelines fully or partially regarding how business people would formulate their own strategy over the supply of costly energy, ease of business and doing business.
Bangladesh should move away from blanket tax incentives and subsidies and adopt performance-based incentives linked to measurable outcomes.
Former Standard Chartered Bank Bangladesh CEO Naser Ezaz Bijoy cautioned that increased government borrowing from the banking system to finance fiscal deficits could crowd out private sector credit, placing upward pressure on interest rates and limiting access to financing for businesses.
Such pressures could constrain investment, business expansion, and job creation, ultimately affecting the pace of economic growth.
Other recommendations included re-allocating residential gas supply to industry, speeding up the shift towards a cashless economy with offering incentives and reforming tax administration to improve voluntary compliance.
Welcoming some measures including VAT exemption on recycled cotton, zero turnover tax incentives for startups and technology-driven businesses, and continued support for renewable energy through tax exemptions and rebates, AmCham President Syed Mohammad Kamal, noted that some concerns of the business community remain and emphasised the importance of further tax rationalization to support investment, business growth, and long-term economic development.
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