The country’s largest-ever budget and the first one by the incumbent government has drawn mixed reactions from economists, business leaders and tax experts, with many welcoming its reform agenda while questioning the feasibility of its achievement.

The proposed budget includes a series of policy measures aimed at attracting foreign investment, boosting export competitiveness and transforming Bangladesh’s logistics sector into a regional hub.

Business leaders in Chattogram largely welcomed the initiatives, saying they could improve the country’s investment environment and strengthen trade infrastructure.

Economists, however, expressed concerns over its achievement and targets amid persistent inflationary pressures and sluggish private investment.

Prof Alauddin Majumder of the Economics department at University of Chittagong said the government’s target of achieving 6.5% GDP growth would be difficult without a significant increase in private-sector investment and employment generation.

“Inflation remains high and bringing it down to 7.5% will require major structural reforms in revenue management, monetary policy and supply chains,” he said.

While appreciating the budget’s welfare-oriented measures, he argued that a smaller and more focused budget could have been more effective.

“People will benefit only if waste is curbed and policies are implemented properly,” he added.

In its reaction, the Chittagong Chamber of Commerce and Industry (CCCI) described the budget as both people and business-friendly, saying that it reflects the government’s ambition to build a trillion-dollar economy by 2034.

The chamber leaders in a statement said the budget was presented at a time of global economic uncertainty and ongoing geopolitical tensions, yet sought to maintain food security, stabilise supply chains and broaden the tax net without placing excessive pressure on taxpayers.

Business leaders particularly welcomed the government’s plans to develop Chattogram Port, attract foreign investment and strengthen logistics infrastructure.

They also hailed implementation of the proposed Dhaka-Chattogram Elevated Expressway and a plan to shorten the Dhaka-Chattogram railway route by around 80 kilometres, describing the projects as potentially transformative for the country’s transport network and trade competitiveness.

The chamber also urged the government to ensure uninterrupted gas, electricity, water and other utility services for industries, particularly in the Mirsharai Economic Zone.

Chittagong Metropolitan Chamber of Commerce and Industry President Khalilur Rahman, however, cautioned that achieving the National Board of Revenue’s (NBR) ambitious Tk6.95 lakh crore revenue target would require stronger governance and effective anti-corruption measures.

He also warned that higher value-added tax (VAT) on several goods and services could create fresh inflationary pressure.

“The impact of VAT increases on consumer prices should be monitored carefully,” he added.

Business leaders also lauded several trade facilitation measures announced in the budget.

One of the most notable proposals is the removal of the existing 49% cap on foreign ownership in private inland container depots (ICDs) and off-dock facilities, opening the door to full foreign investment in the sector.

The plan to transform Chattogram International Airport into a full-fledged logistics and passenger hub, along with the establishment of a new air cargo operator station, was also welcomed by exporters.

BGMEA Vice-President (Chattogram) Rakibul Alam Chowdhury termed the budget as excellent for the readymade garment sector.

He said the decision to retain the existing 1% source tax on garment exports and extend bond audit intervals from one year to three years would significantly ease compliance burdens for exporters.

Rakibul further welcomed the proposal to establish Free Trade Zones through amendments to the Customs Act, saying it would create new opportunities for businesses engaged in export-oriented activities.

According to him, the reforms would allow businesses to import, store, package, process and manufacture goods for export with greater flexibility and fewer regulatory barriers.