Bangladesh’s National Board of Revenue (NBR) Chairman Md Abdur Rahman has warned that the country is already caught in a debt trap, stressing that acknowledging this reality is essential for moving forward. Speaking at a seminar in Dhaka’s NEC conference hall, he highlighted the sharp decline in the tax-to-GDP ratio—from over 10 percent a few years ago to around 7 percent now—and called for identifying the structural weaknesses behind this fall.

The seminar, organized by the General Economics Division (GED) of the Planning Commission, also unveiled the ‘Bangladesh State of the Economy 2025’ and the ‘SDG Progress Report 2025’. Policy experts, including CPD’s Mustafizur Rahman and former World Bank economist Zahid Hossain, expressed concern that rising debt servicing costs are crowding out spending on vital sectors such as agriculture and education. Rahman noted that interest payments have now become one of the largest budgetary expenditures.

Analysts warned that unless revenue mobilization improves, Bangladesh may face increasing pressure to borrow to repay existing loans, risking long-term fiscal sustainability and development priorities.