Govt targets 8.5% GDP growth by FY31 under 3R strategy: Finance minister

Finance Minister Amir Khosru Mahmud Chowdhury has said the government is implementing a "Three-R Strategy" - Recovery and Stabilisation, Restoration, and Reconstruction for Acceleration - to increase foreign direct investment (FDI) and accelerate economic growth.

Under the medium-term economic strategy, the government aims to raise real GDP growth to 8.5% by FY2030-31, increase FDI to 2.7% of GDP and lift total investment to 40% of GDP, he told parliament today (24 June).

The minister disclosed the information while responding to a starred question from ruling party lawmaker Rafiqul Islam Hilaly of Netrakona-3.

He said the government is undertaking legal and institutional reforms after identifying barriers to business in an effort to create a more investment-friendly environment.

According to the minister, the reforms are aimed at reducing business costs and uncertainty, improving the ease of doing business, ensuring investment security and promoting deregulation across the economy.

To attract investment, the government has already launched BanglaBiz, a one-stop digital platform for investors, and published a heat map identifying 19 high-potential sectors for foreign direct investment.

The government has also taken initiatives to establish new export processing zones (EPZs) in Patuakhali and Jashore, alongside economic zones in Kurigram, Nilphamari, Chandpur and Kushtia.

These projects are expected to create around 250,000 jobs, the minister said.

Amir Khosru further said the government is pursuing Free Trade Agreements (FTAs), Preferential Trade Agreements (PTAs) and Economic Partnership Agreements (EPAs) with potential partner countries to expand trade and investment cooperation.

As part of efforts to diversify exports, duty-free imports of raw materials against bank guarantees have been allowed for food processing, light engineering, furniture, electronics, steel, plastics and leather industries.

The government is also expanding bonded warehouse facilities for promising export-oriented sectors, he added.

The finance minister said priority is being given to strengthening long-term financing mechanisms, including the capital market, corporate bond market, mutual funds, green bonds and sukuk.

Measures have also been taken to simplify stock market listings for eligible companies, make disclosure requirements more practical and strengthen investor protection, he said.

The combined initiatives will further strengthen Bangladesh's investment climate and support sustainable economic growth, the minister added.

Budget includes safeguards against global uncertainty, Middle East conflict

Responding in another question from ruling party lawmaker Md Jalal Uddin of Chandpur-2, the minister said in a written reply the FY2026-27 budget includes special measures to address risks arising from global economic uncertainty, the ongoing conflict in the Middle East and potential pressures on Bangladesh's external sector.

According to the finance minister, the government has adopted a strategy focused on export diversification and export growth, expanding remittance inflows and controlling unnecessary imports to maintain stability in the external sector.

He said strengthening foreign exchange reserves and ensuring exchange rate stability are also among the government's priorities.

Amir Khosru said the budget includes a number of measures to address the potential impact of rising international prices of fuel, liquefied natural gas (LNG) and fertilisers due to the Middle East conflict.

These measures include diversifying energy sources, accelerating domestic gas exploration, improving power and energy supply systems and continuing subsidy support where necessary, he said.

Amir Khosru said prolonged instability in the Middle East could negatively affect employment opportunities for Bangladeshi migrant workers and reduce remittance inflows, as the region remains the country's primary overseas labour market.

To reduce that risk, the government is placing special emphasis on creating new labour markets abroad.

He said Bangladesh is pursuing bilateral agreements with Russia, Portugal, Romania, Brazil, Greece, Serbia and North Macedonia as alternative destinations for migrant workers.

At the same time, efforts are underway to reopen labour markets in Malaysia, Oman, the United Arab Emirates and Kuwait, which have remained largely closed to Bangladeshi workers in recent years.

The finance minister also confirmed that the existing 2.5% incentive on remittances sent through formal channels will continue.

He said the government has adopted contingency plans to deal with any potential external sector shocks arising from global and regional developments.