Abdur Rahman, Secretary of the Internal Resources Division and Chairman of the National Board of Revenue (NBR), has stated that no other nation in the world pays as little tax as Bangladesh. “We have become a debt-ridden nation,” he said, adding that the country has expanded its budget every year for the past 52-53 years by taking on more loans. The burden of repaying those loans, along with accumulating interest, has now become overwhelming. He emphasized the need for increasing internal revenue through automation, revealing that out of 11.2 million TIN holders, only 4 million file tax returns, and 2.5 to 2.6 million contribute little to no tax. The NBR is now focusing on stricter enforcement to collect outstanding taxes.

Bangladesh’s foreign reserves have surged to $20.85 billion, driven by a steady flow of remittances from expatriates. In February alone, remittances amounted to $1.93 billion, pushing reserves closer to the $21 billion mark. The country’s gross reserves now stand at $26.11 billion. Bangladesh’s usable reserves are also above $15 billion, well beyond the threshold required to cover three months of imports. These positive developments reflect the country’s financial stability, with a consistent remittance inflow supporting the growth of reserves.

A severe funding crisis has halted government incentives for leather and garment exports, while tax revenues continue to decline. Amid this turmoil, the International Monetary Fund (IMF) has withheld loan disbursements until at least June. The government faces financial strain due to subsidies in electricity, fertilizer, food, and LNG sectors, while foreign debt and interest payments have also surged. Economic uncertainty is mounting, with inflation rising, foreign reserves dwindling, and exchange rates becoming unstable. The IMF has conditioned the loan on subsidy reductions, but the government remains reluctant to comply.

The Reserve Bank of India (RBI) is set to auction $10 billion through a three-year currency swap to address the banking sector’s liquidity crisis. This initiative, starting February 28, aims to inject approximately 870 billion rupees into the system. Analysts suggest it may also signal a shift in RBI’s forex policy. Despite a recent repo rate cut, cash shortages persist. The RBI has already infused 3.6 trillion rupees into banks, but further measures are needed as the liquidity deficit reaches 1.7 trillion rupees.

U.S. President Donald Trump has expressed support for Russia’s return to the G-7, calling its exclusion a “big mistake.” He emphasized that Russia should be part of the group, citing it was originally known as G-8. Trump also believes Russia is eager to rejoin. His comments come amid Canada’s presidency of the G-7 this year, although no immediate reaction has been received from Canada regarding his statement.

Bangladesh’s economy has made a strong recovery, with key indicators showing significant improvement, according to Chief Advisor Professor Muhammad Yunus’s Press Secretary, Shafiqul Alam. Speaking at a press briefing, he stated that macroeconomic stability has returned, with foreign reserves at $20 billion, covering 3.5 months of imports. Export growth has reached 10%, new jobs are being created, and inflation has dropped from 12% to 9%. The government expects inflation to fall further to 7.5% by July, ensuring price stability during Ramadan.

Bangladesh Bank will announce a new monetary policy tomorrow for the last six months of the fiscal year, prioritizing inflation control, foreign reserves, and exchange rate stability. Despite previous rate hikes failing to curb inflation, the central bank will keep policy interest rates unchanged. Experts argue that raising rates increases production costs and worsens inflation. Governor Dr. Ahsan H. Mansur, announcing his first policy, aims for a cautious approach. Analysts stress the need for market regulation and coordinated institutional efforts to tackle inflation effectively.

The economic policies of the previous Awami League government trapped the country in a vicious cycle of corruption and mismanagement. Despite various rescue efforts, the economy continues to suffer from these systemic issues. One major problem is inflation, as commodity prices remain high. Although inflation has gradually decreased since October, consumers remain at the mercy of powerful syndicates that manipulate supply to charge higher prices. According to a former World Bank official in Dhaka, $16 billion was smuggled out of the country annually under Awami League rule, leaving the economy in a depleted state. Excessive printing of money led to rampant inflation, which peaked at 11.66% in July but has now dropped to 9.94%. The current administration is focused on reducing inflation and controlling capital flight, but the economy’s recovery remains uncertain due to continued dominance by corrupt business elites.

Bangladesh’s foreign exchange reserves have once again surpassed the $20 billion mark. At the beginning of the year, the gross reserve stood at $26.20 billion, while the BPM6-adjusted reserve was $21.36 billion. According to the latest data released on Thursday, the gross reserve now stands at $25.54 billion, while the BPM6-adjusted reserve is $20.20 billion. Earlier, on January 9, after clearing a $1.67 billion payment to the Asian Clearing Union (ACU) for November and December imports, the reserve had dropped to $20 billion. Under the previous Awami League government, reserves had once fallen below $14 billion, which was then artificially inflated through foreign loans and dollar purchases from commercial banks. However, under the new administration, the central bank has halted reserve sales and is now working to source dollars from various channels.

The interim government has set a target to bring inflation down to 8% by June of the current fiscal year. This decision was made in a meeting chaired by the Chief Adviser on Wednesday. The meeting also discussed the revised budget for the 2024-25 fiscal year. The previous government allegedly did not present the real picture of inflation. Although the last finance minister had set a target of 6.5% inflation, post-government collapse instability led the economic adviser to revise the target to 7%. Currently, inflation stands at 9.94%. Additionally, the GDP growth target for 2024-25 was initially set at 6.8% but has now been revised down to 5.25% by the interim government. The revenue collection target has also been reduced from BDT 6.8 trillion to BDT 4.635 trillion.

Fears of a global trade war emerged after Donald Trump imposed tariffs on Canada, Mexico, and China, causing the rupee to drop by 67 paise to 87.29. As investors sought safe-haven assets, the US dollar strengthened, weakening Asian currencies. Last week, India’s foreign exchange reserves faced a slight crisis, declining by $1.888 billion to $623.983 billion. The Indian stock market also saw a downturn, with the Sensex losing 575 points and the Nifty falling by 206 points.

According to Bangladesh Bank, remittances from expatriates amounted to $2.18523 billion in January. Due to the blockade, internet shutdown, and bank closures, remittances declined in July, the month of the mass uprising. However, after the victory of the uprising, expatriates began sending more remittances. • August: $2.22415 billion • September: $2.40479 billion • October: $2.39508 billion • November: $2.63878 billion Following this trend, January saw a significant inflow of remittances. The largest share of these funds was received by private banks.

China has pledged to take countermeasures against the 10% tariff imposed by the Trump administration on Chinese imports but has not escalated tensions immediately. Unlike the confrontational approach seen during Trump’s first term, Beijing’s response remains measured. On Sunday, China condemned the US move while signaling openness to negotiations to prevent further deterioration of trade relations. The measured stance suggests China aims to balance retaliation with diplomacy, keeping the possibility of resolution through talks or a challenge in the WTO.

Canada has imposed 25% retaliatory tariffs on $155bn worth of US goods, mirroring President Trump’s tariffs on Canadian and Mexican imports. Prime Minister Trudeau emphasized standing up for Canadians while warning of economic consequences. The tariffs target American beer, wine, household appliances, and more. Economists predict rising consumer prices as the trade war escalates. The White House defends tariffs as a crackdown on drug trafficking, but Trudeau refutes security concerns. Trump signals further tariff hikes if met with retaliation, deepening tensions between the neighboring nations.

The Asian Development Bank (ADB) has agreed to provide up to $1 billion in budget support to Bangladesh by June, subject to banking sector reforms, including reducing private bank directors and their tenure. ADB may also offer $300–$500 million for climate change initiatives if Bangladesh meets 16 conditions, such as implementing a national strategy and transport master plan. Other requirements include AI-based early warning systems for farmers and improved waste management. Economic Adviser Salehuddin Ahmed emphasized that Bangladesh will accept only low-interest loans.