Special measures included in FY27 budget to tackle external risks: Finance minister

The government has incorporated a number of special measures in the proposed national budget for FY2026-27 (FY27)  to address global economic uncertainty, conflict in the Middle East and possible pressures on the external sector, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (24 June).

Responding to a written tabled question by ruling party lawmaker for Chandpur-2 Md Jalal Uddin in the House, the minister said the government has adopted strategies to maintain external sector stability through export diversification and expansion, increased remittance inflows and the control of non-essential imports to ensure balance in external transactions.

He said the government is also placing emphasis on strengthening foreign exchange reserves and maintaining exchange rate stability.

Referring to the Middle East crisis, the minister noted that the conflict could trigger increases in international prices of fuel, liquefied natural gas (LNG) and fertilisers. 

To mitigate potential impacts, the budget includes plans to diversify energy sources, intensify domestic gas exploration, improve power and energy supply systems and continue subsidy support where necessary.

The minister said the government is pursuing its "Three-R Strategy" to address external sector risks. 

Under the strategy, the recovery phase focuses on ensuring macroeconomic stability; the transition phase emphasises export diversification and strengthening the external sector; and the restructuring phase aims at building a productive and competitive economy.

He also pointed out that prolonged instability in the Middle East could affect employment opportunities and remittance inflows, as the region remains the primary destination for Bangladeshi migrant workers. 

Consequently, the government is giving special importance to creating new overseas labour markets, he added. 

As part of this initiative, Bangladesh has undertaken efforts to sign bilateral agreements with Russia, Portugal, Romania, Brazil, Greece, Serbia and North Macedonia as alternative labour destinations, he mentioned.

The minister added that the process of reopening long-suspended labour markets in Malaysia, Oman, the United Arab Emirates and Kuwait has already begun.

To sustain remittance inflows, he said, the existing 2.5% incentive on remittances sent through formal channels will continue.

"The government has also adopted contingency measures to address potential external sector pressures," he added.