Economic Reform: Bangladesh targeting a trillion-dollar economy

Prime Minister Tarique Rahman used his closing speech to the first session of parliament to reaffirm his government's adherence to democracy and stability as the basis of progress. “The ruling party and the opposition must work together, and under no circumstances should parliament be allowed to fail,” he said. “Without a stable government, without a stable parliament, we cannot advance.” That reflects the determination to harness the two-thirds majority secured by his Bangladesh Nationalist Party in February's elections to deliver an ambitious programme of reform and economic growth.

The centrepiece ambition is to transform Bangladesh into a trillion-dollar economy by 2034. Addressing parliament in April, Finance and Planning Minister Amir Khosru Mahmud Chowdhury outlined the principles that underpin that target. “We want to achieve this based on transparency, integrity and accountability,” he said, framing the task in terms of economic democratisation. “Our goal is not only higher growth, but also a progressive, inclusive and sustainable economy.” Deregulation is a structural priority: the finance ministry is streamlining licensing, expanding one-stop digital investor services and working to reduce the cost of doing business.

Exports are another priority area. A Tk 5,000 crore financing facility at 5% interest is now available to exporters, and Bangladesh Bank has resumed low-interest pre-shipment export loans. Northern Bangladesh has been earmarked as a strategic agro-processing hub, part of a broader push to more evenly distribute economic activity beyond established industrial corridors.

Foreign policy is showing the same sense of renewed momentum, built around a 'Bangladesh First' doctrine centred on economic diplomacy – attracting foreign direct investment, promoting technology transfer and diversifying export markets. Relations with the Gulf are key to that outlook. Days after taking office, Foreign Minister Dr Khalilur Rahman met UAE Ambassador Abdulla Ali AlHmoudi for talks focused on energy, trade, infrastructure and public-private partnerships. That sits within a broader aim to promote greater regional integration and cooperation, with ASEAN membership a stated goal alongside a push to revive the South Asian Association for Regional Cooperation. “Through dialogue and diplomacy, we can overcome barriers and unlock the region’s full potential,” Rahman said.

On the domestic front, the government has moved quickly on its welfare commitments. Two key manifesto pledges are now operational: the Family Card guarantees monthly food security support to the country's most vulnerable households, while the Farmer Card connects smallholders directly to state services and subsidised inputs for the first time. A Health Card extending accessible healthcare to underserved communities is also in development.

The common thread running through the government’s agenda is that growth and inclusion must go hand in hand. “We're firmly committed to steering Bangladesh's economy toward an advancing, inclusive and sustainable path,” Chowdhury told parliament.