The proposed FY2026–27 national budget faces key risks from weak revenue mobilisation and potential strain on bank lending, even as it introduces several measures aimed at investment, sustainability and digitalisation, the American Chamber of Commerce in Bangladesh (AmCham) said on Monday.
The assessment came at a post-budget discussion titled “National Budget FY2026–27: Building Confidence & Competitiveness for Investment-Led Growth” held at Sheraton Dhaka.
AmCham President Syed Mohammad Kamal, opening the session, welcomed VAT exemption on recycled cotton, zero per cent turnover tax incentives for startups and technology-driven businesses and continued tax support for renewable energy through exemptions and rebates. He said parts of the business community’s concerns remained and called for further tax rationalisation to support investment and long-term growth.
Policy Exchange Bangladesh Chairman and CEO Masrur Reaz, presenting the keynote, described the budget as a pragmatic attempt to support recovery while laying the foundation for longer-term economic transformation.
He said the FY2026–27 framework signals support for private sector-led growth through measures to ease business costs, encourage investment and strengthen social protection. However, he cautioned that achieving its objectives would require overcoming major challenges, including a 6.5 per cent GDP growth target, higher revenue mobilisation needs, persistent inflation and vulnerabilities in the banking and energy sectors.
“Effective implementation will be critical to translating policy intent into outcomes,” he said.
A panel discussion moderated by MetLife Bangladesh CEO Ala Uddin Ahmad brought together AmCham President Syed Mohammad Kamal, former Standard Chartered Bank Bangladesh CEO Naser Ezaz Bijoy, Centre for Policy Dialogue Executive Director Fahmida Khatun and PRAN-RFL Group Chairman and CEO Ahsan Khan Chowdhury.
Speakers highlighted weak revenue mobilisation as a central concern, saying targets appeared ambitious in a subdued economic environment. They warned that higher government borrowing from the banking system to finance fiscal deficits could crowd out private sector credit, push up interest rates and constrain investment, business expansion and job creation.
On inflation and social protection, panellists said government efforts to expand coverage were positive but pointed to persistent weaknesses in targeting and beneficiary selection, which they said often resulted in support reaching less vulnerable groups while excluding those most in need.
AmCham said the budget includes encouraging measures for sustainability, entrepreneurship, digitalisation and renewable energy but stressed that several key recommendations from the business community remain unaddressed. It called for continued policy reforms to strengthen competitiveness, improve investor confidence and support private sector-led growth.
The event concluded with a vote of thanks from AmCham Treasurer Reza-Ur-Rahman Mahmud. It was attended by AmCham executive committee members, former presidents, United States Embassy officials, senior government representatives, business leaders, media personnel and AmCham Executive Director Chowdhury Kaiser Mohammad Riyadh.
