Rejaul Karim Byron

Surplus liquidity in the banking sector surged 45 percent over the past year to cross Tk 4 lakh crore, but the vast majority of the funds are parked in government treasury bills and bonds rather than trickling into private sector credit, according to a central bank report.

Government officers and employees will receive four months’ salary under the new pay scale, including three months’ arrears, in the last week of this month, but teachers and staff under the MPO scheme, along with judges and judicial service employees, will have to wait longer.

After an 11-year gap, the government is set to provide Bangladesh Petroleum Corporation (BPC) with a Tk 4,500 crore interest-free loan to help ensure uninterrupted fuel supplies.

The government is considering issuing a sovereign bond of up to $1 billion to the international capital market to diversify its funding sources.

The government had budgeted Tk 42,000 crore for electricity and LNG subsidies in the ongoing 2026-27 fiscal year, but it has already released nearly Tk 19,000 crore in the first three months.

Bangladesh’s recent easing of inflation may prove short-lived, with higher fuel prices, the new public-sector pay scale, energy shortages, and persistent supply-side problems threatening to keep price pressures elevated.

Unreliable energy supplies, logistics constraints and lengthy regulatory and approval procedures are further dampening investment demand

The implementation of the new pay scale’s basic salary in two phases will cost the government Tk 37,372 crore, covering civil, defence services and judicial personnel, alongside pensioners, according to a preliminary estimate of the finance division.