Govt ready with strategy to tackle emerging challenges: Khosru

Finance and Planning Minister Amir Khosru Mahmud Chowdhury on Friday said the government is fully prepared to tackle emerging global challenges, emphasising that the primary objective is not just GDP growth, but building a sustainable, transparent, and inclusive economy.

He made the remarks while delivering a statement under Rule 300 in Parliament. The session was presided over by Speaker Hafiz Uddin Ahmad, Bir Bikram.

The minister highlighted that within just 10 days of the new government taking office, the outbreak of the US-Israel war on Iran created fresh uncertainties in the global energy market, supply chains, and international trade.

He informed the House that the price of fuel oil and LNG has more than doubled in the international market.

Despite the soaring costs, Khosru said the government has maintained existing energy prices to shield citizens from further hardship.

Consequently, it will need to provide an additional subsidy to the tune of approximately Tk 360 billion for electricity and energy in the current fiscal year, beyond the original budgetary allocation, he said.

The minister warned that this unexpected expenditure will likely increase the budget deficit and exert significant pressure on foreign exchange reserves, requiring nearly USD 3.0 billion for additional import payments.

To mitigate this, he said, the government has already initiated several measures to encourage public austerity in energy and electricity consumption.

Khosru noted that while additional subsidies are a burden on the state treasury, the government has refrained from price adjustments, considering the struggles of the people.

Looking ahead, he announced that the government has started work on the national budget for the 2026-27 fiscal year, focusing on the restoration of discipline across various economic sectors.

The minister stated that the goal is to move beyond mere growth to ensure a sustainable and inclusive economic framework.

While acknowledging the inherited challenges and current limitations, he expressed confidence that the visionary leadership of Prime Minister Tarique Rahman and the government's strategic planning - rooted in transparency and accountability - will fulfil the high expectations of the public.