Persistent inflation has pushed an estimated 8 million to 10 million people in Bangladesh below the poverty line, according to a report citing finance adviser Rashed Al Mahmud Titumir, amid rising living costs, household debt, unemployment and energy insecurity.
Persistent inflation has pushed an estimated 8 million to 10 million people in Bangladesh below the poverty line, according to a report citing Prime Minister’s Adviser on Finance and Planning Rashed Al Mahmud Titumir. Rising living costs, declining household savings, mounting debt, unemployment and energy insecurity are putting additional pressure on low- and middle-income families.
According to a report published by The Business Standard, citing information from the Cyprus-based publication Traders Union, Titumir said Bangladesh was facing a critical economic transition. He described the economy inherited by the current government as fragile, with high inflation, rising unemployment and weak private-sector investment contributing to the difficulties faced by households.
Titumir said persistent price increases had weakened people’s purchasing power, particularly among low- and middle-income groups. Many families have been forced to use their savings or borrow money to meet everyday expenses, leaving them increasingly vulnerable to financial shocks.
The pressure on household finances is also reflected in a separate survey by the Bangladesh Bureau of Statistics (BBS). According to its Living Standard Survey 2025, 47.42 per cent of households across the country had fallen into debt to cover rising living expenses while earnings remained relatively stagnant. The proportion was higher in rural areas, where 51.91 per cent of households reported borrowing, compared with 40.19 per cent in urban areas and 32.11 per cent in city corporation areas.
The survey found that average monthly household expenditure nationwide stood at Tk 35,311, exceeding average monthly income of Tk 33,513. The figures highlight the financial gap confronting many families as the cost of essential goods and services continues to rise.
Titumir also identified youth unemployment, particularly among educated young people, as a major concern. He said limited employment opportunities and weak private investment were creating additional challenges for the economy. Recent tensions in the Middle East have also contributed to higher fuel prices, increasing economic pressure and raising concerns about energy security.
Addressing the country’s financial sector, the adviser alleged that cronyism and patronage had weakened the banking system. He estimated that approximately US$40 billion would be required to repair the sector. His remarks highlighted the scale of the financial challenges facing the country as the government seeks to restore stability and improve investment conditions.
Titumir stressed that education reform and skills development would be important in addressing unemployment. He said the government planned to allocate 2 per cent of gross domestic product (GDP) to education, with the aim of developing a skilled workforce capable of meeting the country’s future economic needs.
The adviser also highlighted the government’s Family Card and Farmer Card initiatives as measures intended to support vulnerable households and farmers. Citing assessments by the World Bank and the International Monetary Fund (IMF), he said such social protection programmes could help reduce poverty and ease the financial burden on disadvantaged communities.
Energy security was another major issue raised by the adviser. He criticised the previous administration for, as he alleged, failing to sufficiently expand solar energy, explore domestic natural gas resources and establish a sustainable energy strategy. He called for greater investment in renewable energy and reduced dependence on imported fuel to strengthen energy security, attract investors and create employment opportunities.
Titumir also raised concerns about misleading information and distorted GDP figures circulating on social media, stressing the importance of accurate economic information during a period of uncertainty.
| Also Read: India and Poland Target Doubling Bilateral Trade by 2030 |
The latest poverty estimate and household debt findings underline the economic pressures facing Bangladesh, particularly among families whose incomes have not kept pace with living costs. Addressing persistent inflation, expanding employment opportunities, strengthening the banking sector and improving targeted social assistance will remain important challenges as the country works to restore household purchasing power and reduce poverty.
