Govt charts path to $1tn economy by 2034: Titumir

The government is developing a new economic model aimed at transforming Bangladesh into a $1 trillion economy by 2034, while ensuring growth benefits are shared across society, Rashed Al Mahmud Titumir, prime minister’s adviser on planning and economic Affairs, said yesterday.

“The ideological base of this model is the democratisation of the economy,” he said at a roundtable on the upcoming budget, organised by online platform Charcha.com at the CIRDAP International Conference Centre in Dhaka.

The PM’s adviser said the government’s vision for addressing current economic challenges is anchored in the principle of “Bangladesh for Everyone.”

“We want to ensure an economic growth model whose benefits reach people from all walks of life,” he said.

Titumir emphasised reducing bureaucratic complexity, creating a level playing field for domestic and export-oriented industries, and implementing administrative reforms to improve the investment climate.

He also mentioned that a restructuring package worth around Tk 60,000 crore is being prepared to revive closed industrial enterprises.

He further outlined plans for long-term reforms in agriculture, improved water resource management, higher spending on health and education, and expanded public services at the grassroots level.

Titumir also defended the government’s position in negotiations with the International Monetary Fund on loan-related conditions, saying the country would not adopt a uniform 15 percent value-added tax rate despite pressure from the lender.

“If a flat 15 percent VAT is imposed on all goods and services, 1.65 crore people could fall below the poverty line,” he said.

The adviser said the government inherited a fragile economic situation marked by mounting debt, weakened fiscal capacity, and declining international credit assessments.

He added that the government’s economic strategy would be guided by domestic policy priorities rather than externally imposed prescriptions.

According to Titumir, expanding the economy and creating jobs are the most sustainable ways to increase government revenue, with higher employment and business activity naturally boosting direct tax collection, corporate earnings, and VAT receipts without raising tax rates.

Titumir also identified tax evasion, customs irregularities, and inefficient revenue administration as major challenges. To address these issues, he added that the government plans to strengthen digital tax systems, adopt risk-based management practices, and expand cashless transactions.

Also speaking at the event, Planning State Minister Zonayed Saki said Bangladesh suffers more from resource wastage than from corruption.

“In my view, resource wastage is an even bigger problem than corruption,” Saki said. “A hospital may be constructed, but without the necessary equipment, skilled technicians, or doctors, it remains unused for years. Such unplanned initiatives amount to nothing but a waste of national resources.”

Syed Nasim Manzur, managing director of Apex Footwear Ltd, called for major reforms in the tax structure to encourage private-sector growth and attract investment.

He proposed cutting the corporate tax rate from 27.5 percent to 20 percent, in line with Vietnam, and said investors need stable tax policy for at least three years.

The Apex MD also pointed to the absence of modern warehousing facilities at airports, which he said costs hundreds of millions of dollars in raw material losses annually.

Researcher Maha Mirza urged the government to raise agricultural budget allocations from 5 percent to 10 percent to strengthen food security and rural development, and called for affordable crop dryers, combine harvesters, and other modern equipment to be made directly available to farmers.