PMO unveils sweeping jobs, energy and welfare push as Moody’s lifts Bangladesh outlook

The government on Wednesday unveiled a sweeping list of economic, energy, welfare and infrastructure initiatives, ranging from drilling 300 gas wells and providing start-up financing to young entrepreneurs to building new hospitals, expanding solar power and pursuing overseas labour markets.

Prime Minister’s Office spokesperson Dr Mahdi Amin, speaking at a press briefing at the PMO, said the measures were part of the elected government’s efforts to address immediate economic pressures while pushing ahead with longer-term reforms.

Amin said gas supply had begun to improve after Prime Minister Tarique Rahman recently met leaders of 21 major business and industry organisations and representatives of the media and pledged to address the supply crisis.

“We are seeing significant improvement in gas supply today and, Insha’Allah, this trend will continue in the coming days,” he said.

He also highlighted Moody’s Ratings’ decision on Tuesday to revise Bangladesh’s sovereign outlook to “stable” from “negative,” while keeping its long-term issuer and senior unsecured ratings unchanged at B2. Moody’s cited easing political and external pressures, stronger foreign exchange reserves and record remittance inflows.

Amin said the improved outlook would strengthen Bangladesh’s international standing, encourage foreign investment and bilateral and multilateral trade, and support employment creation, particularly for women and young people.

He said inflation had also eased compared with the same period last year, citing Bangladesh Bureau of Statistics data, with lower food prices playing the main role. Supplies of essential food items were also better than last year, he said.

Amin said diesel prices remained lower than in neighbouring countries because of government subsidies intended to reduce pressure on consumers.

He grouped the government’s initiatives into seven broad areas: youth empowerment, education and technology; public welfare and living standards; women and social protection; energy, agriculture and climate-resilient industrialisation; healthcare; transport and traffic management; and institutional governance and foreign relations.

Youth financing, education and social protection

Amin said Bangladesh Bank had established a 500 million taka special loan fund for an upazila-based programme to identify and finance young entrepreneurs, with 5,000 promising entrepreneurs expected to receive start-up capital annually.

The government is also introducing collateral-free, interest-free digital “e-loans” for marginal and small entrepreneurs and opening nationwide access to an online start-up fund.

A national Bangladesh Innovation Fair is planned to connect young innovators directly with international investors, while a Cyber Incident Reporting System and National ICT and Cyber Security Rating System have been launched.

Amin said the government was preparing incentives for local production of affordable smartphones, with an initial target of bringing their effective price down to 2,000-3,000 taka for farmers, agricultural labourers, rickshaw pullers and other low-income groups. The programme ultimately aims to reach 50 million people.

Technical education is to become compulsory from Grade Six and for National University students, while four new books — two each at primary and secondary levels — are being introduced into the curriculum.

The government has also adopted the “Alpha” project to provide practical employment skills to around 4.5 million people and signed an agreement with China on modernising technical education.

A specialised public university focusing on marine resources and the blue economy is planned for Cox’s Bazar, while 509 meritorious students a year are expected to receive fully funded Saudi government scholarships.

The government has also decided in principle to provide bicycles to high-performing female students and recognise top SSC performers. A programme is being developed to provide free balanced lunches to Qawmi and Alia madrasa students from 2026 to 2031.

Solar panels will gradually be installed on educational institutions, while unused government water bodies will be renovated and allocated to young people to create employment. A master plan is also being prepared to make operational technology parks involving investment of around 80 billion taka that are currently inactive.

On public-sector employment, Amin cited the government’s approval of the National Pay Scale 2026, setting basic salaries from 20,000 taka to 156,000 taka, alongside expanded mobile allowances.

Net pensions are to rise by up to 100%, while retired government employees with children with special needs will receive a monthly 3,000 taka allowance.

The government has also removed the requirement for prior Finance Division approval when hiring or renewing outsourced staff and decided to prevent land administration officials from remaining at the same posting for extended periods.

A new property protection law, Amin said, would guarantee parents lifelong possession and social protection even after transferring property to their children.

The government plans to award 100,000 taka each to 100 outstanding teachers on World Teachers’ Day and increase the Journalists’ Welfare Trust into a permanent 250 million taka fund.

Family Cards, Farmer Cards and regular government allowances for imams and muezzins are also being expanded.

A proposal backed by 100 billion taka in Chinese financing envisages free apartments in 20-storey buildings for residents of Korail, Bhasantek and Sattala slums in Dhaka.

The government is establishing modern meat-processing centres in every district, while a domestically developed vaccine against lumpy skin disease has been deployed. Recruitment is underway for livestock personnel across unions and upazilas.

Piped drinking water is being extended to around 50 remote hill communities in Bandarban, Dhaka’s Central Shishu Park is scheduled for renovation with 15 modern rides, and NID and passport services are being expanded across 41 countries for expatriates.

For women, the government is pursuing an institutional arrangement with an international cybersecurity network to combat online harassment and violence.

It also plans universal stipends for female students at primary and secondary levels and regular nutritious school meals. Some 20,000 female tea workers in Sylhet, Moulvibazar and Habiganj have received raincoats as part of workplace health and safety measures.

Amin said agreements had been reached with 22 international law firms in 13 countries to provide legal protection to Bangladeshi migrant workers.

The government has also introduced virtual meetings between prisoners and their families.

He cited Prime Minister Rahman’s visit to an army officer injured in a field-firing accident and financial assistance provided by Rahman and his wife, Dr Zubaida Rahman, to the families of two soldiers killed in an explosion during tank firing at the Hathazari Field Firing Range.

300 gas wells, more LNG terminals and new hospitals

Energy formed one of the largest components of the government’s programme.

Amin said work had begun on drilling 150 new gas wells as a medium-term response to shortages, with another 150 planned in a second phase.

The government plans to increase the country’s FSRUs from two to five and aims to commission a third LNG terminal before 2028.

It has approved in principle the direct procurement of 18 LNG cargoes from TotalEnergies and secured $1 billion in international financing to expand Eastern Refinery in Chattogram.

Technical repairs have restored 1,046.73 megawatts of previously unavailable generation to the national grid, Amin said.

A 500MW power plant and a large fertiliser factory are planned for Bhola, while another 200MW of solar electricity has been added to the national grid.

The government also plans to convert all diesel-powered irrigation pumps to solar power within five years and provide solar panels to 300 primary schools without electricity in Rangamati.

Households producing surplus rooftop solar electricity will be able to sell it to the national grid at 10.50 taka per unit, while the government has announced a 180-day exemption from duties and taxes on imports of modern solar-power equipment.

A waste-to-energy project at Aminbazar is expected to generate 42.5MW.

Other environmental programmes include producing bricks from dredged river silt instead of agricultural soil, using vetiver grass to protect riverbanks and embankments, and modernising the Central Effluent Treatment Plant at the Savar Tannery Industrial Estate.

The government is preparing a policy to bring loss-making state industries and unused public land into private-sector partnerships, while several countries have expressed interest in helping reopen and modernise closed state-owned sugar mills.

Amin said the government had arranged 5.155 million metric tons of fertiliser through next February, leaving supply 1.568 million tons above projected demand, and established a central control room.

Chattogram Urea Fertilizer Limited has resumed production after a six-month shutdown, while the government is pursuing the reopening of other closed factories. Investors could also be offered a 7% incentive for reviving inactive state enterprises.

In healthcare, the government plans 15-storey specialised general hospitals in Dhaka and the other eight divisional cities.

The newly constructed Super Specialized Hospital is to be operated under an international corporate management model, while affordable dialysis services are planned for every district and upazila.

Shaheed Ziaur Rahman Medical College Hospital in Bogura is to be expanded to 1,800 beds, and an international-standard burn and plastic surgery centre is being built at Rangpur Medical College.

A National E-Health Platform will eventually bring patient information and health services onto a single digital system.

Essential medicines and medical equipment are being restored to community clinics, while Amin said 19.771 million children had received measles-rubella vaccines over the past five months.

Land acquisition is underway for a domestic vaccine-manufacturing plant intended to meet World Health Organization standards.

The government has also adopted a public-private drinking-water project for Patenga in Chattogram and launched a three-month nationwide cleanliness campaign against dengue.

The minimum retail price of a packet of 10 cigarettes has been raised to 65 taka, while government food-grain stocks have increased by 150,000 metric tons over six months, Amin said.

Transport, governance and overseas jobs

Amin said feasibility and design work had been completed for electric traction on the Dhaka-Chattogram railway corridor, while the government was planning a continuous four-lane expressway between Dhaka and Chattogram City Gate.

The Mahanagar Express service is being extended to Cox’s Bazar.

The government has ordered the introduction of fully cashless RFID tolling within four months and is working to relocate the Karwan Bazar wholesale kitchen market to Gabtoli and the Fulbaria bus terminal to Keraniganj.

Battery-powered auto-rickshaws are to come under digital registration, QR tracking and speed-control systems.

BUET experts have been asked to propose solutions to congestion on the Jatrabari-Gulistan flyover, while agencies involved in Dhaka traffic management will hold coordination meetings every 15 days.

The government also plans a life-support ambulance network at 10-kilometre intervals along highways to provide treatment within the “golden hour” after crashes.

Fast-charging stations for electric vehicles and battery-recycling plants are planned, alongside police drives against unfit and high-emission vehicles.

A special operation is clearing accumulated waste along the Dhaka-Aricha highway, while a high-level task force has been formed to remove illegal encroachments from rivers and canals around Dhaka and implement a circular-waterway master plan.

On governance, Amin referred to a court verdict sentencing seven people to death over crimes linked to the July 2024 uprising. He said the court also ordered 50% of the movable and immovable property of five of those sentenced to be confiscated, with proceeds to compensate families of those killed and people injured during the uprising through the July Foundation or another statutory body.

Rahman has also handed permanent government job appointment letters to eligible members of 74 families of people killed in the uprising, Amin said.

The government is moving to rapidly establish parliamentary standing committees and require regular meetings to strengthen scrutiny of ministries.

It has also decided to drop honorifics such as “Honourable” and “His Excellency” before the president and prime minister in official correspondence.

A “One Citizen, One ID” project is being developed to integrate public services, voting and state benefits.

Police stations in all 64 district headquarters are to be transformed into “Zero Complaint” service centres in the first phase of a policing reform programme, while 22 special tribunals have been established to accelerate pending narcotics cases.

Biometric attendance is being introduced in upazila and union land offices.

The Postal Department’s Speed Post service transported 400 tons of goods in two months, while 9,000 post offices are undergoing modernisation.

Bangladesh also plans to connect to a third submarine cable by 2027, adding 34,000 Gbps of international bandwidth.

Amin said Bangladesh had repaid $2.0476 billion, equivalent to 251.63 billion taka, in foreign loan principal and interest over five months.

Remittances, meanwhile, had increased 13.1% over six months to $18.94 billion, he said.

The government has asked Malaysia to allow 10,000 skilled Bangladeshi workers to migrate without recruitment costs once its labour market opens, while arrangements are being pursued for 10,000 Bangladeshis annually to migrate legally to Italy after language and technical training.

Bangladesh is also seeking an agreement with Oman to send another 10,000 workers into agriculture and modern fisheries.

Amin said Bangladesh had resolved 48 of 61 trade barriers identified by the European Union as negotiations continued over arrangements intended to preserve access to the European market.

The government has approved a bilateral investment protection and promotion agreement with Hong Kong and secured access to up to £2 billion in UK Export Finance-backed financing for infrastructure and procurement.

Bangladesh has also sent $1 million in emergency humanitarian assistance to flood-hit Nepal.

On defence, Amin said the government had begun the final agreement process to purchase 20 J-10CE fourth-generation fighter jets from China. Border Guard Bangladesh is also being equipped with surveillance drones, while a specialised drone-warfare training centre is planned in Sylhet.

Formal discussions have begun on direct scheduled flights between Dhaka and Seoul, while the annual foreign travel quota has been increased to $18,000 per person.

Amin said the government was seeking to address problems inherited from the previous 16 years while acknowledging that all of them could not be resolved within seven months.

He described the administration as elected and accountable and said its programmes were aimed at building a more self-reliant economy and improving public services.

Moody’s, while shifting Bangladesh’s outlook to stable, has cautioned that substantial structural vulnerabilities remain, particularly a narrow revenue base, weak debt affordability and significant banking-sector weaknesses.

The agency expects inflation to remain around 9% before gradually declining and has identified energy constraints as a continuing risk to economic growth.

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