Economy
PM asks youth to work for forming cooperative
Prime Minister Sheikh Hasina on Saturday, November 5, called upon the country’s youths to engage in inspiring people to form cooperatives for boosting food production and pulling the country ahead further.
“The youths will have to come forward. We can go a long way if the youths do their activities in bringing village people together as everyone will have the responsibility,” she said.
The premier was addressing a function on the 51st National Cooperatives Day at Bangabandhu International Conference Center, BICC as the chief guest, joining virtually from her official residence Ganobhaban in Dhaka.
She told the youths not to chase after the job but rather get involved in food production activities such as poultry and fish cultivation by forming cooperatives.
Referring to the 100 special economic zones being established by the government, she said, “you (youths) can set up food processing factories there, which will not only meet the local demand but also can help export abroad.”
Sheikh Hasina said she believes that the country could attain desired economic success through cooperatives.
She also urged all to work in combination to overcome the crisis that was created in the country due to the Covid-19 pandemic and the Russian-Ukraine war as well as sanctions and counter-sanctions.
With State Minister for Rural Development and Cooperative Swapan Bhattacharjee in the chair, Register and Director General of the Department of Cooperatives Dr. Tarun Kanti Sikder delivered the welcome address.
Local Government, Rural Development and Cooperatives Minister Md Tazul Islam and Rural Development and Co-operative Division Sectary Md. Mashiur Rahman also spoke as a special guest.
A total of nine Samobay Samity (cooperative associations) and one person were given National Cooperative Award-2021 on the event.
On behalf of the prime minister, Md Tazul Islam handed over the award. Each awardee was conferred with a gold medal and a certificate.
At the outset of the function, a video documentary on national cooperative day was screened. The theme of the day is “Bangabandhu’s Philosophy, Development of Cooperative.
The prime minister said cooperatives are absolutely essential for agricultural production, life and livelihood of the people in the country.
“Cooperatives create enormous scopes in a densely populated country like ours. Paying attention to it, we will have to strengthen cooperatives,” she said.
She stressed the need for giving utmost importance to cooperatives for the development of the country’s people.
Sheikh Hasina said her government is working for the people and wants to create scopes so that every individual can improve their life and livelihood.
She said her government opened every sector for private entrepreneurs so employment is generated.
Talking about inflation, the premier said the price of every commodity has soared throughout the world due to the war and Covid-19, which affected Bangladesh also and almost all the countries are now suffering from high inflation.
“Everyone has to run using its reserve (of foreign currencies). Also, we are to do it for the well-being of the common people of the country,” she added.
She said that now Bangladesh needs to purchase fertilizers, fuel and edible oil at very high prices amid high transportation costs for the sake of the people and agricultural production.
The head of government said although the country has cent per cent electricity coverage, but now they are facing much trouble in generating power as imports of fuel and gas are being hampered due to the war.
“I hope that we can overcome this situation,” she said, referring to the measures taken by the government such as solar power, coal-fired power plant as well as the import of power from Nepal and Bhutan.
She, however, reiterated her call to the countrymen to put concentration on savings and exercising austerity as well as boosting food production.
She once again requested all not to spare any inch of land uncultivated but rather made a call to produce whatever they can.
She said the current progress of Bangladesh should in no way be interrupted.
Though the Covid-19 and current war and sanctions slowed down the progress to some extent, the government’s goal is to go forward overcoming this situation and build the country as Sonar Bangla as dreamt by Father of the Nation Bangabandhu Sheikh Mujibur Rahman, she added.
Sheikh Hasina said her government’s goal is that the rural people would get civic facilities, improved life and lead a decent lifestyle.
In this context, she mentioned several schemes, including “My House My Farm” (Amar Bari Amar Khamar) and “My Village My Town” (Amar Gram Amar Shohor) programmes, which were taken by her government for the development of rural people.
“We want to transform every village into a town,” said the prime minister.
She stressed the need for the construction of modern houses through cooperative societies to make modern flats affordable for the villagers as well as to protect arable lands by stopping the indiscriminate construction of homes everywhere.
The government has also started a project titled “Palli Janapad” to construct modern houses in a planned way for the rural people, she said.
The premier said her government took the ‘My House My Farm scheme’ and micro-saving project under the scheme so that the poor people don’t need to bear the burden of micro-credit rather they can save money and take loans, forming a cooperative society under it.
If they save Tk200, the government would add another Tk200 to it till two years and the money would remain deposited in Palli Sanchay Bank, she added.
The International Monetary Fund (IMF) has urged Bangladesh to maintain a tight monetary policy to contain inflation, while stressing that monetary tightening alone will not be enough to restore economic stability.
Inflation in Bangladesh rose to 8 per cent in September, according to the IMF. The Washington-based lender has called for broader reforms in the financial sector, stronger revenue mobilisation and improvements in overall economic management to address the country’s persistent economic challenges.
Sonali Jain-Chandra, deputy director of the IMF’s Asia and Pacific Department, made the remarks in response to a question at a news conference on the economic outlook for Asia and the Pacific, held on the sidelines of the IMF and World Bank Group annual meetings in Bangkok, Thailand.
Asked whether tight monetary policy alone would be sufficient to tackle inflationary pressures that have persisted for more than three and a half years, Jain-Chandra said maintaining a restrictive monetary stance was important, but needed to be accompanied by other reforms.
Bangladesh is currently facing challenges in three key areas: revenue mobilisation, the financial sector and inflation, she said.
The IMF also expressed concern over the fragile state of Bangladesh’s financial sector, saying a credible reform strategy was needed to strengthen the sector’s capacity and ensure stability.
The fund also highlighted the country’s persistently weak revenue collection. Bangladesh’s tax-to-GDP ratio has declined over time and currently stands at around 7 per cent, placing it among the lowest in the world, according to the IMF.
The IMF stressed the need for a coordinated effort to increase revenue collection, saying higher government revenues were essential to finance development expenditure and strengthen the financial sector.
It called for necessary reforms to the revenue system and effective measures to improve the government’s capacity to generate income.
Talks Under Way on New IMF Programme
Meanwhile, discussions are continuing on a potential new lending programme for Bangladesh.
Jain-Chandra said Bangladeshi authorities approached the IMF in May for support under a new programme after deciding not to draw further instalments under the previous arrangement.
In response to the request, an IMF mission visited Dhaka in July to discuss various aspects of Bangladesh’s economic reform agenda.
According to Jain-Chandra, the reform issues discussed during the visit were closely aligned with the recommendations outlined in the IMF’s Article IV consultation for Bangladesh earlier this year.
The IMF has remained in regular contact with Bangladeshi authorities since the July visit, she said.
Jain-Chandra added that the fund remained closely engaged with the authorities and was ready to support Bangladesh in initiating the reforms needed to address its economic challenges.
The International Monetary Fund (IMF) has projected that Bangladesh’s gross domestic product (GDP) will grow by 3.2 per cent in the 2026-27 fiscal year, while average inflation could rise to 10.9 per cent, signalling mounting pressure on the country’s economy.
The projections were outlined in the IMF’s World Economic Outlook (WEO) report, released on Tuesday.
The latest growth forecast marks a significant downward revision from the 4.3 per cent projected by the IMF in April. The fund had subsequently forecast growth of 3.5 per cent in July before lowering its estimate further to 3.2 per cent.
The IMF has also sharply revised its inflation outlook for Bangladesh. In April, it projected average inflation of 6 per cent for the 2026-27 fiscal year. The latest estimate raises that figure to 10.9 per cent.
The combination of slower economic growth and persistently high inflation points to continued pressure on Bangladesh’s macroeconomic stability.
Bangladesh growth outlook trails other forecasts
The IMF’s latest growth projection for Bangladesh is lower than those of other major international development institutions.
The World Bank has forecast GDP growth of 3.4 per cent for Bangladesh in the 2026-27 fiscal year, while the Asian Development Bank (ADB) has projected growth of 4 per cent.
According to the IMF, Bangladesh’s economy grew by 3.6 per cent in the 2025-26 fiscal year, following growth of 3.5 per cent in the preceding fiscal year.
India, Bhutan expected to grow faster
The IMF has projected stronger economic growth in neighbouring countries, with India’s economy expected to expand by 7 per cent and Bhutan’s by 6.9 per cent in the relevant fiscal year.
The contrasting forecasts highlight the challenges facing Bangladesh as it seeks to restore economic momentum while tackling persistent inflation.
The IMF’s latest projections come as the annual meetings of the IMF and the World Bank Group are underway in Bangkok, Thailand.
Bangladesh’s economic situation, reform programmes and efforts to secure financing from development partners are among the key issues receiving attention during the meetings.
The World Bank supports the Bangladesh government’s policies to address the country’s current economic challenges, restore stability and implement medium- and long-term development plans, Finance Minister Amir Khasru Mahmud Chowdhury said on Tuesday.
He said the global lender was broadly aligned with Bangladesh’s economic programmes and policy priorities and would continue to support the country’s economic recovery and future development.
The finance minister made the remarks while speaking to journalists after a meeting with a World Bank managing director in Bangkok, Thailand, on October 13.
Amir Khasru said Bangladesh’s economy was facing significant challenges when the current government took office. Alongside dealing with the financial and economic burdens inherited from the previous period, the country was also having to navigate global economic disruptions caused by ongoing wars and geopolitical tensions.
He said the World Bank understood the realities facing Bangladesh and supported the government’s policy approach to overcoming the economic difficulties.
“The World Bank is aligned with the programmes and policy direction we have set to restore economic stability and ensure future development,” the minister said, adding that both sides would continue working together.
He said the World Bank was willing and prepared to provide the assistance Bangladesh needed.
No decision yet on proposed $10 billion in additional assistance
Clarifying reports that Bangladesh had sought an additional $10 billion in assistance from the World Bank, the finance minister said no final decision had been made.
He said discussions with the lender were ongoing and that possible proposals would be reviewed in light of those discussions. The process could take several months to complete, he added.
“No decision is being made at this stage. I have seen several inaccurate reports here and there. This is a discussion, and there will be follow-up based on these talks. It is a process that will continue over the next few months,” he said.
The minister stressed that the ongoing discussions should not be interpreted as a final agreement. Rather, they were intended to establish a basis for determining the next steps and considering possible decisions.
Further discussions would also take place in Dhaka, he said.
Expressing satisfaction with the progress of the talks, Amir Khasru said Bangladesh was in a favourable position to establish a framework for future cooperation.
He reiterated that the government’s economic policies, programmes and medium- and long-term development plans were broadly aligned with the World Bank’s position.
Government’s economic agenda aligned with BNP manifesto
The finance minister also said the World Bank’s position was consistent with the government’s economic plans and the Bangladesh Nationalist Party’s (BNP) election manifesto.
He said discussions were underway on how to address the country’s economic challenges and achieve the government’s development objectives.
According to the minister, the government has submitted a written proposal outlining a framework for partnership with the World Bank. Discussions on the proposed framework will continue.
He said the World Bank had provided various recommendations and suggestions, while Bangladesh had also presented its own proposals and recommendations.
Further discussions would be based on these submissions, he added.
Government optimistic about inflation and GDP targets
Asked about forecasts by the World Bank and the Asian Development Bank (ADB) on inflation and gross domestic product (GDP) growth, and how they compared with the government’s targets, the finance minister said the government did not intend to dispute the projections made by other institutions.
He said the institutions had prepared their forecasts based on their own calculations and analyses, adding that the country’s economic performance would become clearer as progress on key indicators was assessed over time.
“We do not want to dispute anyone’s projections. They have made their estimates based on their own calculations. We are carrying out our work, and they are doing theirs. What matters most is that the cooperation we need continues,” he said.
The minister expressed optimism that the government would be able to meet the inflation targets set out in the national budget.
He said the government was working to restore economic stability through continued engagement with the World Bank, implementation of its economic policies and progress on medium- and long-term development plans.
