The Government of Bangladesh has launched a comprehensive four-tier strategic plan aimed at reforming the country’s fragile financial sector and restoring macroeconomic stability. Under this initiative, a medium-term macroeconomic framework for the fiscal year 2028-29 has been approved, integrating monetary and fiscal policies.
The strategy was finalized during a Coordination Council meeting held at the Finance Division on April 10. Finance Minister Amir Khasru Mahmud Chowdhury shared details of these decisions in the National Parliament on Tuesday, responding to a query from Member of Parliament Mohammad Fakhrul Islam (Noakhali-5).
Inflation Control and Policy Stability
The Finance Minister informed the Parliament that the policy interest rate has been maintained at 10% to safeguard macroeconomic stability. This measure is already yielding positive results in controlling inflation.
“Food inflation, which peaked at 14.10% in July 2024, has significantly declined to 8.24% by the end of March 2026,” the Minister noted, highlighting the success of the current monetary stance.
Growing Forex Reserves
Addressing the country’s external sector, the Finance Minister reported a healthy recovery in foreign exchange reserves. As of April 15, 2026:
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Gross Reserves: $34,873.32 million.
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BPM6 Method (IMF standard): $30,201.71 million.
Support for Businesses and Production
Acknowledging the strain on importers and general traders due to the devaluation of the Taka, the Minister announced that Bangladesh Bank will provide special assistance to mitigate capital shortages. Furthermore, the central bank has devised a dedicated action plan to support the production sector, ensuring that vital economic activities remain dynamic despite global and domestic challenges.
Key Reforms and Capital Market Modernization
In a major move to restore investor confidence, the government is forming a ‘Capital Market Reform Commission.’ The Minister outlined a roadmap for market modernization, which includes:
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Implementing Blockchain Technology to enhance transparency.
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Developing a robust and vibrant Bond Market.
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Launching an ‘Investment Gateway’ to simplify the investment process for expatriate Bangladeshis.
Future Targets and Legal Protection
To ensure financial discipline, the government has recalibrated targets for money supply (M2) and private sector credit growth for the 2026-27 fiscal year, aligning them with overall economic growth projections.
Additionally, new legal frameworks are being established to strengthen protection for investors, signaling the government’s commitment to a transparent and secure financial ecosystem.
