The finance minister, Amir Khasru Mahmud Chowdhury, told the parliament on Thursday that it would take at least two more years for economy to recover from its current fragile condition, warning that the period ahead would be challenging and require difficult policy decisions.

‘We need cushions to support the economy for two years. The next two years will be difficult. We will have to make many decisions and take measures that may not be popular,’ he said while participating in the discussion on the motion of thanks on the president’s address in the Jatiya Sangsad.

He sought cooperation from the opposition, saying that all sides must work together in the national interest to overcome the economic challenges.

The minister said that although the task would not be easy, Bangladesh would be able to recover from the current situation with collective efforts.

He emphasised the need to curb unnecessary expenditure, noting that the country could no longer afford to spend beyond its means.

Amir Khasru also highlighted the ongoing reform initiatives by the Bangladesh Nationalist Party-led government, saying that various changes, including reforms and deregulation measures, had already been undertaken, while additional steps were in progress.

He said that implementing necessary reforms would be essential to restore the economy to its previous state or to take it to a stronger level.

Presenting the current bleak picture of the economy, the minister said that Bangladesh’s tax-to-GDP ratio had fallen below 7 per cent, making it the lowest in South Asia and among the lowest globally.

He said that the ratio had been about 10 per cent in the 2005–06 financial year and had shown a rising trend during the previous administrations led by the BNP.

He said that the poverty rate had increased from 17.18 per cent in 2022 to 20.5 per cent in 2024 and reached 29.93 per cent in 2025, according to estimates by the Bangladesh Bureau of Statistics.

Private sector credit growth, which is crucial for investment, production and employment, has declined sharply to about 6 per cent of GDP compared with that of 18.27 per cent in FY 2005–06, he said.

The minister said that export growth had also turned negative, falling by 2.6 per cent, whereas it had recorded about 14 per cent growth when the BNP left office in 2006.

The minister expressed concern over the rising volume of non-performing loans in the country’s banking sector, saying that it had exceeded 30 per cent.

‘When non-performing loans go beyond 30 per cent, the economy almost comes to a standstill,’ he warned, noting that the figure had been about 13 per cent in 2005.

He also pointed to mounting fiscal pressures due to large subsidies in the power and energy sectors, saying that the government was currently providing about Tk 36,000 crore in power subsidies and might need to allocate an additional Tk 20,000 to Tk 30,000 crore for the purpose.

The February 28 joint-strike by the United States and Israel on Iran and retaliation from Tehran on the US interests in the Gulf countries and the subsequent closure of the Strait of Hormuz, a key route for the global fuel oil supply, has left the BNP, which inherited a fragile economy, in a tight spot amid the soaring prices of global fuel oil prices and lower energy supply.

Responding to remarks by opposition chief whip Md Nahid Islam that many ruling party lawmakers were loan defaulters, the finance minister said that loan rescheduling was a common global banking practice and not something newly introduced by any political party.

He said that many BNP-linked businesspeople had faced obstacles over the past 17 years, including difficulties in accessing bank loans and continuing business operations.

In some cases, even approved loans were not disbursed, repayment periods were not extended and administrative barriers were created, forcing businesses to shut down their entities.

Amir Khasru said that some businesspeople were unable to remain in their homes, while others went into hiding or were imprisoned, making loan repayment extremely difficult.

The minister said that the BNP did not own any banks, while alleging that other political parties had banking interests that allowed them to protect their members from becoming defaulters.

Referring to recent debates in the JS, he stressed the importance of respecting constitutional institutions, including the office of the president.

‘The president is an institution, not an individual. If we believe in constitutional democracy, we must respect institutions,’ he said.