The government has drawn up an ambitious plan for a comprehensive economic transformation aimed at turning Bangladesh into a $1 trillion economy by 2034 through increased investment and productivity, employment generation and the equitable distribution of economic opportunities.

To achieve this target, coordinated initiatives are being undertaken across several sectors, including improving the business environment, strengthening industrial capacity, diversifying exports, developing human resources and expanding infrastructure.
The government’s long-term strategy has been outlined in the budget document for the 2026-27 fiscal year.
Dr Rashed Al Mahmud Titumir, Economic and Planning Adviser to the Prime Minister, told the Bangladesh Sangbad Sangstha (BSS) that the government was working to transform Bangladesh into a global manufacturing and export hub by bringing investment, production and exports together in an integrated framework.
He said initiatives were also being taken to build a skills-based Bangladesh. Through these measures, the government aims to break away from the existing vicious cycle of economic challenges and establish a positive and sustainable cycle linking investment, production and exports.
Titumir said improving the business environment, reducing the cost of doing business and relaxing unnecessary restrictions and regulatory barriers were among the government’s key priorities.
He also emphasised sustainable energy and infrastructure development, policy support for promising economic sectors, adequate financing for investment and production, and the development of multimodal connectivity through railways and roads.
The government is also working to improve supply chain efficiency and reduce transportation costs to enhance the country’s production and export capacity, he added.
The current fiscal year’s budget places emphasis on utilising the country’s demographic dividend and the benefits of increased life expectancy, while ensuring broader participation in economic activities.
Through these measures, the government has set targets to bring inflation down to 7.5 per cent and raise GDP growth to 6.5 per cent in the coming fiscal years.
In recent years, Bangladesh’s economy has faced instability due to external shocks, corruption, mismanagement in the financial sector, energy shortages and declining investor confidence.
The country’s GDP growth rate stood at 6.78 per cent in fiscal year 2005-06. It declined to 5.78 per cent in FY2022-23, further dropped to 4.22 per cent in FY2023-24 and fell to 3.49 per cent in FY2024-25.
The current fiscal year’s budget document attributes this slowdown to structural weaknesses, high interest rates, deficiencies in governance and persistent inflation.
Overall inflation reached 11.66 per cent in July 2024, while food inflation stood at 14.10 per cent during the same period, significantly reducing household purchasing power.
Meanwhile, the government has set targets for FY2030-31 to achieve GDP growth of 8.5 per cent, keep inflation at 5 per cent, raise foreign direct investment (FDI) to 2.7 per cent of GDP and increase total investment to 40 per cent of GDP.
Three-Phase ‘Three-R’ Strategy
To achieve its long-term economic objectives, the government plans to implement a three-phase strategy known as the ‘Three Rs’: Recovery and Stabilisation, Restoration, and Reconstruction for Acceleration.
The first phase, spanning one year, will focus on ensuring macroeconomic stability, protecting vulnerable communities, expanding social safety net programmes, improving public services, facilitating business activities and strengthening coordination among different institutions.
The second phase, covering three years, will prioritise revenue reforms, domestic resource mobilisation, revitalisation of private investment and strengthening the capacity of the banking and financial sectors.
During this phase, the government will also focus on export diversification, human resource development and increased investment in agriculture, energy and infrastructure.
The third phase, spanning five years, will emphasise skills development, digital transformation, institution-building and stronger integration with the global economy.
The government aims to establish a technology-driven and innovation-based economy through energy security and inclusive, climate-resilient growth.
To ensure macroeconomic stability, the government also plans to strengthen foreign exchange reserves, stabilise the exchange rate of the taka, increase exports and remittance inflows, control unnecessary imports and improve coordination between monetary and fiscal policies.
Reviving the Jute Industry and Expanding Employment
As part of efforts to revitalise the industrial sector, the government has taken initiatives to reopen jute mills.
Of the 17 state-owned jute mills leased out by the Bangladesh Jute Mills Corporation (BJMC), production has already resumed at nine. These mills have generated employment for approximately 9,500 people. Preparations are also underway to reopen three more mills.
The broader initiative could create an additional 50,000 to 60,000 employment opportunities.

Lease agreements involving National Jute Mills and Star Jute Mills with PRAN-RFL Group, and Platinum Jubilee Jute Mills with Hamco Group, have created prospects for investment worth Tk 619 crore and annual revenue generation of Tk 1,175 crore.
The government is also encouraging investment in diversified jute products and the expansion of overseas markets.
Expansion of Social Protection Programmes
The government has taken an initiative to introduce Family Cards as part of efforts to expand social protection programmes.
Under the scheme, approximately 4.1 million disadvantaged and vulnerable families are expected to receive assistance in FY2026-27.
Preparations are underway to collect information nationwide and distribute the cards in phases. Around 72,000 volunteers are expected to be involved in implementing the programme.
To support farmers, the government has set a target of bringing approximately 4.3 million farmers under the Farmer Card programme in the next fiscal year.
In the long term, the initiative aims to provide assistance to 24 million landless, marginal and small-scale farmers.
Eligible farmers will receive Tk 2,500 annually to help cover agricultural input costs and maintain production activities.
Water Resource Management and Agricultural Development
To improve water resource management and increase agricultural production, the government has undertaken a programme to excavate or re-excavate 14,000 kilometres of rivers, canals and water bodies over the next four years.
During the past six months, excavation work covering 377 kilometres has been completed, exceeding the target of 360 kilometres set for the period.
Social Security for Religious Service Providers
Providing social protection to religious service providers is also among the government’s priorities.
Under the proposed programme, approximately 60,000 beneficiaries, including imams, muezzins, Hindu priests and temple attendants, may receive assistance in FY2026-27.

Strengthening Public Security

The government is also undertaking various initiatives to strengthen public security.
It aims to improve law and order by increasing police recruitment, training and operational capacity.
These measures are intended to combat murder, robbery, kidnapping and other crimes while restoring public confidence in law enforcement agencies.
Strengthening Energy Security and Expanding Renewable Energy
To ensure energy security, the government plans to increase domestic gas production through the development of approximately 150 gas wells.
Initiatives are also being taken to enhance the capacity of LNG terminals and increase gas supplies to the national grid.
Among renewable energy sources, particular emphasis is being placed on expanding solar power generation.
Proposed incentives in this sector include tax exemptions on imported solar equipment, financial assistance, low-interest loans and opportunities to sell surplus electricity at Tk 10.50 per unit.
The installation of solar power systems at government offices and suitable public land is also under consideration.

Infrastructure Development and Connectivity
The government plans to increase investment in roads, bridges, transportation networks and energy infrastructure as part of its broader development strategy.
These initiatives are expected to improve connectivity, reduce supply chain costs and strengthen links between rural producers and industrial markets.
The government’s overall development strategy emphasises coordinated progress in industrial expansion, agricultural productivity, social protection, energy security, infrastructure development and institutional reforms.
The objective is to build a more resilient and inclusive economy.
The government believes that effective improvements in governance, increased investment mobilisation and higher productivity, combined with the coordinated implementation of these initiatives, will play a crucial role in achieving its long-term ambition of transforming Bangladesh into a $1 trillion economy by 2034.