The Bangladesh government is facing severe fiscal pressure as revenue collection in the first eight months of the 2025–26 fiscal year fell short by over Tk 710 billion, while foreign loan disbursements remained far below expectations. To cover expenses, the government borrowed Tk 1.05 trillion from domestic sources, mostly from the banking sector. Rising global oil prices have increased import costs, forcing the government to provide large fuel subsidies, including Tk 160.45 billion for diesel and octane between March and June.

Exports have declined for eight consecutive months, with earnings down 4.85 percent in the first nine months of the fiscal year. Despite record remittance inflows of USD 3.75 billion in March, economists warn that the Middle East conflict could disrupt this key source of foreign exchange. Former World Bank economist Dr. Zahid Hossain noted that balancing income and expenditure has become difficult and warned that further borrowing or money printing could fuel inflation.

Finance Minister Amir Khosru Mahmud Chowdhury acknowledged three major challenges—weak inherited economy, election pledges, and rising oil prices—while emphasizing investment and resource efficiency over money printing. Economic advisers stressed the need to rely on revenue mobilization and reduce subsidies to maintain stability.