Budget aims to boost investment, foster business-friendly environment: PM

Prime Minister Tarique Rahman has said his government's first budget will focus on creating a business-friendly environment and attracting both local and foreign investment through a range of reform initiatives.

Replying to a question in parliament yesterday (10 June), he said the FY2026-27 budget has been prepared with an emphasis on supporting businesses and generating employment.

"We have tried to create facilities for all kinds of businesspeople – whether traders or industrialists – so that they can operate smoothly and create employment opportunities," he said.

"As part of this effort, the government has taken various initiatives to attract local and foreign investors and simplify investment procedures," he added.

In response to a question from Cumilla-10 lawmaker Md Mobasher Alam Bhuiyan, Tarique said the government has taken several measures to facilitate investment and trade, including speeding up import and export registration through online systems and updating both export and import policies. 

He also mentioned steps to remove non-tariff barriers for imports intended for exports and expand facilities allowing both bonded and non-bonded institutions to import on a free-of-cost (FoC) basis.

The prime minister further said initiatives have been taken to reduce institutional complexities and improve efficiency in investor services by integrating the Bangladesh Investment Development Authority (Bida), Bangladesh Economic Zones Authority (Beza), Public-Private Partnership Authority (PPPA), and Bangladesh Hi-Tech Park Authority.

At the same time, regular policy coordination with ministries and agencies has been strengthened, while capital repatriation and licensing procedures have also been simplified, he added.

The prime minister also said the government is implementing various programmes to improve infrastructure and increase the efficiency of goods transportation to support investment and trade expansion.

He shared that the Laldia Terminal in Chattogram is being prepared for operations this year, while implementation of the Bay Terminal project is progressing rapidly.

Construction of the Matarbari deep seaport is also advancing, he said, adding that once completed, large vessels will be able to dock directly at Bangladeshi ports, significantly boosting the country's foreign trade capacity.

The prime minister also responded to a concern raised by reserved-seat lawmaker Begum Sabikun Nahar, who argued that the high-interest-rate policy adopted to curb inflation is discouraging businesses from taking new loans.

Citing Bangladesh Bank data, the lawmaker said excess liquidity in the banking sector stood at Tk3,78,135 crore at the end of March this year, up 58.3% from a year earlier. She noted that analysts have linked the rise in idle funds to high lending rates, which have reached around 14% in some cases.

Tarique said reducing interest rates does not always yield positive outcomes, so the government would only consider lowering rates if it clearly benefits businesses and the overall economy.

The prime minister further said, "Business and the economy are areas where the effects of policies are not immediate. It takes time to assess whether a policy is producing positive or negative results."

He also pointed out that Bangladesh Bank recently established a Tk60,000 crore fund to support industries facing difficulties.

Answering another supplementary question from reserved-seat MP Jahrat Adib Chowdhury, the prime minister announced a new incentive aimed at attracting foreign direct investment (FDI).

He said expatriate Bangladeshis who help bring foreign investment into the country will receive an incentive equivalent to 1.5% of the investment amount.

"We hope this measure will encourage Bangladeshis living abroad to facilitate investment inflows and help attract more FDI," he said, adding that the government has simplified profit repatriation rules for foreign investors.