Bangladesh has reached broad policy alignment with the World Bank (WB) and the International Monetary Fund (IMF) on key economic reforms aimed at restoring financial stability, increasing tax revenue, expanding social protection and generating employment, Adviser to the Prime Minister on Finance and Planning Prof Dr Rashed Al Mahmud Titumir said.
Bangladesh has reached broad policy alignment with the World Bank and IMF on economic reforms to restore financial stability, boost tax revenue, expand social protection and create jobs, Adviser Rashed Al Mahmud Titumir said.
The government also plans to reopen closed factories, attract investment, strengthen energy security and expand trade ties with Thailand.
The government’s five-year economic strategy prioritises domestic and foreign investment, reopening closed factories, strengthening banking-sector discipline, addressing rising energy costs and rebuilding the economy, Titumir told journalists ahead of the 2026 Annual Meetings of the IMF and the World Bank Group in Thailand, according to local media reports.
Titumir said the public expected greater discipline in the financial sector, a higher tax-to-GDP ratio, increased spending on social protection and more jobs through industrialisation. The government was working to arrange special financing to reopen closed factories and encourage new investment, as growing unemployment among educated young people and the closure of industrial units posed challenges to economic recovery.
Restoring confidence in the banking sector is a major priority, he said, adding that ordinary citizens were bearing the consequences of irregularities and lending-related disorder under the previous administration. Discussions were underway with the International Finance Corporation (IFC) and other institutions on refinancing support to rehabilitate the weakened financial system. Without a stable banking sector, Bangladesh would struggle to meet its investment and employment targets, he added.
The adviser also called for stronger revenue mobilisation, saying excessive tax exemptions and irregularities in tax administration had weakened collection, widened the fiscal deficit and constrained spending on social protection and development. Co-ordinated efforts were needed to strengthen financial discipline, raise revenue, expand safety nets and create jobs.
On energy, Titumir said the government had discussed with the WB the additional financial pressure caused by the conflict in the Middle East, which began on February 28, and its impact on consumers. The government had refrained from fully adjusting domestic energy prices to international market levels to limit the burden on households.
The government is also seeking financing to strengthen climate resilience, expand renewable energy and develop essential infrastructure. Titumir said economic recovery would require co-ordinated progress in investment, industrial production, employment generation and social protection.
Titumir said Bangladesh was also expanding co-operation with the WB, the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB) and the Islamic Development Bank (IsDB). The ADB had announced assistance worth $5 billion, he added.
He also expressed optimism about expanding trade and investment ties with Thailand.
Titumir said Bangladesh aimed not only to reduce its bilateral trade deficit with Thailand but also to expand overall trade by strengthening links between the two countries’ production and supply chains. Potential arrangements could involve producing raw materials in Bangladesh, manufacturing intermediate goods in Thailand and assembling finished products for export, with similar co-operation in the reverse direction for other products.
Discussions had also covered improving maritime connectivity between Chattogram Port in Bangladesh and Ranong Port in Thailand, which could facilitate cargo movement and regional trade. He highlighted opportunities for free trade agreements with members of the Association of Southeast Asian Nations (ASEAN) and access to preferences under the Regional Comprehensive Economic Partnership (RCEP) framework to help Bangladesh expand exports beyond bilateral markets.
Bangladesh’s economic progress had benefited from migrant workers, entrepreneurs in the ready-made garment sector and women’s participation in formal employment. Expanding these contributions through stronger production, investment and job creation, alongside wider social protection, would be essential to rebuilding the economy and putting it on a sustainable path to prosperity, Titumir added.
Fibre2Fashion News Desk (CG)
