Finance and Planning Minister Amir Khasru Mahmud Chowdhury on Sunday said the government has set an ambitious target of transforming Bangladesh into a trillion-dollar economy by 2034, stressing the need for prudent borrowing, fiscal discipline and sustainable financing.
Addressing the inaugural session of the two-day International Debt Conference Bangladesh 2026 here in Cox's Bazar, the minister highlighted mounting debt-servicing obligations, weak revenue mobilization and limited fiscal space as major economic challenges.
"Our objective must be to ensure that every Taka borrowed contributes meaningfully to economic growth, productivity and public welfare," the minister said, adding, "Our ambition is not simply to access international capital markets, but to do so responsibly and sustainably."
The minister said the government is also considering innovative financing instruments, including sovereign Sukuk, green and blue bonds, and blended finance.
"The true measure of successful sovereign borrowing is not how much a country borrows, but how effectively those resources contribute to economic growth, public welfare and long-term prosperity," the minister added.
The Finance Division and the Asian Development Bank (ADB) jointly organized the conference from November 15-16, under the theme "Sovereign Debt Management in a Changing Global Landscape".
The two-day international conference on sovereign debt management brought together policymakers, government officials and financial experts from Bangladesh and abroad to explore sustainable borrowing strategies amid rising financing costs, global economic uncertainty and changing international capital markets.
Officials from the Finance Division, Economic Relations Division, Internal Resources Division, Financial Institutions Division, National Board of Revenue and Bangladesh Bank, as well as representatives from the debt offices of Sri Lanka, Pakistan, Indonesia and Malaysia, participated in the conference. Officials from the Asian Development Bank, World Bank and International Monetary Fund, along with national and international experts, also attended.
The opening session was chaired by Finance Division Secretary Dr Md Khairuzzaman Mozumder and addressed by Prime Minister's Special Assistant Tanvir Shahriar Ghani, Financial Institutions Division Secretary Nazma Mobarek and ADB Country Director for Bangladesh Qingfeng Zhang.
Finance Division Additional Secretary Hasan Khaled Foisal gave an overview of the conference while ADB-BRM Lead Social Sector Officer S M Ebadur Rahman made welcome remarks.
Tanvir Shahriar Ghani said Bangladesh should explore raising funds through dollar-denominated Eurobonds and sukuk while weighing how much it can afford to borrow.
He also said that Bangladesh's inclusion in a JP Morgan emerging-market government bond index could raise the profile of its securities, while attracting foreign investors would require sound economic fundamentals, transparent trading and reliable arrangements for repatriating investment proceeds.
Ghani also called for better links with international settlement platforms and closer ties between banks and capital markets to finance large industrial projects.
Dr Md Khairuzzaman Mozumder said the Finance Division is working to publish an annual borrowing plan to make government financing more predictable and transparent as Bangladesh prepares to graduate from the least developed country (LDC) category.
He said shifting global interest rates and exchange-rate volatility made government borrowing more complex. The secretary outlined plans to improve reporting on domestic and external debt and debt-service obligations, strengthen auctions for Treasury bills and bonds, and broaden the investor base.
Nazma Mobarek said Bangladesh's annual interest payments on external debt, measured in taka, are projected to more than double between FY25 and FY29.
She said public debt stood at under 39% of GDP at the end of FY25 and is expected to remain near that level through FY29.
Qingfeng Zhang said that rising debt servicing costs of Bangladesh are squeezing development spending and increasing reliance on domestic borrowing. He added that total debt servicing rose to 3% of GDP in FY25 from 2.3% in FY21.
Zhang called for fuller disclosure of public debt, including government guarantees, and closer coordination of borrowing, cash management and budget planning to smooth repayments.
He also urged Bangladesh to deepen its domestic bond market, strengthen project appraisal and procurement, and tighten oversight of state-owned enterprises and public-private partnerships to contain fiscal risks.
A central focus will be how countries can use borrowing to support infrastructure development, employment generation and economic growth without creating unsustainable fiscal pressures.
Prasad Ananthakrishnan, an ADB consultant and former adviser at the International Monetary Fund (IMF), delivered a special address examining the relationship between sovereign borrowing, productive investment and economic growth.
His presentation explored the circumstances under which public borrowing generates economic benefits and when excessive debt risks undermining fiscal stability or crowding out private investment.
The implications for economies graduating from least developed country (LDC) status will receive particular attention, especially as they seek to diversify financing sources and expand access to international capital markets.