By Golam Moin Uddin

DHAKA, June 09, 2026 (BSS) - Dr. Monzur Hossain, member (secretary) of the General Economics Division (GED), of the Planning Commission, has said Bangladesh is targeting higher GDP growth, expanded investment and long-term transformation into a trillion-dollar economy alongside pursuing reforms to enhance productivity, create employment, strengthen institutions and improve quality of life of citizens. 

He said preparations for LDC graduation are continuing alongside efforts to strengthen trade competitiveness and institutional capacity.

"Preparations should continue," he said, adding that the government is actively pursuing tariff rationalization, customs modernization and broader trade facilitation reforms.

In an exclusive interview with BSS, Dr. Hossain noted that negotiations are ongoing for free trade agreements (FTAs) and economic partnership agreements (EPAs) with different countries, including Japan and South Korea.

At the same time, he stressed that the private sector must enhance efficiency and reduce production costs to remain competitive in the post-LDC era.

"The private sector must improve efficiency, reduce production costs and strengthen supply chains so they can remain competitive after graduation," he said.

On macroeconomic outlook, he projected that GDP growth could reach around 6.5 percent in the next fiscal year, subject to improved macroeconomic stability and investment recovery.

The noted economist said the government is also focusing on improving implementation of development spending, noting that a large portion of the Annual Development Programme (ADP) remains flexible to accommodate new priority projects.

Dr. Hossain emphasized that Public-Private Partnership (PPP) initiatives will play a key role in bridging infrastructure financing gaps and reducing pressure on public resources.

"PPP and similar models are important to reduce pressure on government resources," he said, while acknowledging the need for institutional reforms to improve implementation outcomes.

He added that agencies such as the Bangladesh Investment Development Authority (BIDA) are expected to play a stronger coordinating role under a unified investment facilitation framework.

On social protection, Dr. Hossain said the government has significantly expanded social safety net programmes, including enhanced family card and farmers' assistance schemes, to protect vulnerable groups from various shocks including inflationary shocks.

"The government is trying to maintain people's livelihood and social stability through fiscal support measures," he said.

Regarding the financial sector, Dr. Monzur Hossain said that Bangladesh's financial sector is undergoing critical restructuring aimed at restoring discipline in banking and capital markets, reducing non-performing loans (NPLs) and supporting long-term macroeconomic stability.

He said the banking sector had been under significant stress for years, and although reform initiatives have been underway for around one and a half years, visible improvements are yet to be realised.

"The banking sector was in a fragile state. Reforms have been initiated for about a year and a half, but results are not yet fully visible," he said.

Dr. Hossain identified non-performing loans as the most serious structural weakness in the financial system, stressing the need for stronger recovery mechanisms and strict enforcement against wilful defaulters.

"The biggest issue is non-performing loans. Asset recovery mechanisms need improvement, and wilful defaulters must be dealt with strict measures," he observed.

He emphasized the importance of strong regulatory oversight by the central bank, noting the critical role of the Bangladesh Bank in ensuring financial discipline and stability across the sector.

Dr. Hossain also highlighted ongoing efforts to consolidate and restructure weak banks, including merger initiatives aimed at restoring depositor confidence and strengthening governance.

He said the economy is currently going through what he described as a "low-performance phase," characterized by high inflation, weak employment growth, declining investment and subdued industrial output.

"This is a low-performance phase of the economy. To recover, significant intervention is needed," he said, adding that the government is pursuing a "big push" strategy through a larger development budget and stricter implementation discipline.

He stressed that improving efficiency in project implementation and strengthening project monitoring are essential for achieving results from increased public spending.

Dr. Hossain further underscored the importance of expanding Public-Private Partnership (PPP) initiatives and improving coordination among investment agencies to enhance project delivery and attract private capital.

On long-term planning, he highlighted the government's Five-year Strategic Framework (July 2026-June 2031) as a "living document" that will be continuously updated based on implementation progress and emerging challenges.

"This is not a static plan; it is an agile document. It will be reviewed and adjusted over the next five years," he said.

He added that ministries will be assigned clear performance targets over 180-day and one-year cycles, supported by a high-level monitoring mechanism to ensure accountability.

Looking ahead, he expressed optimism that Bangladesh could reach a $750 billion economy by 2030-31 and achieve trillion-dollar economy status by 2034 if reforms are implemented consistently.

Dr. Hossain concluded that Bangladesh's future economic trajectory will depend on strong implementation discipline, financial sector stability and sustained policy continuity aimed at achieving inclusive growth, poverty reduction and employment generation.