Young entrepreneurs call for business-friendly, employment-oriented budget

Young entrepreneurs in Bangladesh have called for a national budget for the 2025-26 fiscal year that is industry-friendly, employment-oriented and supportive of entrepreneurship as they believe such a budget is vital to address youth unemployment and drive economic growth.

They also emphasised that the interim government should present a budget that encourages graduates to pursue entrepreneurship instead of solely seeking government jobs.

To foster a more dynamic economy, the upcoming budget should include incentives for startups and small and medium-sized enterprises (SMEs), a more business-friendly National Board of Revenue (NBR), better public services, investments in skills and human capital, and support for sustainable industries.

Additionally, entrepreneurs stressed the need for increased investment in the technology sector, digitalisation of the ECO system and reliable power and logistics infrastructure.

This will be the interim government’s first budget. With the National Parliament not in session, Finance Adviser Dr Salehuddin Ahmed will present the proposed Tk7.9 trillion budget through a televised address on 2 June 2 at 4pm. The budget size is Tk70 billion smaller than that of the previous fiscal year.

Industry-friendly, youth-inclusive budget crucial

Md Shahriar, managing director of Adzi Trims Ltd and president of the Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association, said, “As a young entrepreneur, I would like to see a national budget for the fiscal year 2025-26 that is industry-friendly, youth-inclusive and practically supportive of sustainable growth.”

He urged the government to introduce tax breaks, subsidised financing, and grants for startups and SMEs to foster innovation and sustainability among young entrepreneurs.

Shahriar emphasised the need to simplify tax and regulatory processes, “We expect the budget to promote a more business-friendly NBR and other offices, ensuring faster VAT refunds, streamlined customs procedures, digitised documentation and fewer bureaucratic obstacles.”

He also called for strong investments in vocational and technical training focused on Industry 4.0, automation and export compliance to build a future-ready workforce.

Highlighting the role of the garments accessories and packaging industry, Shahriar said, “We urge the government to recognise our sector with dedicated policy support for capacity building, modernisation and backward linkage development.”

He further recommended special allocations for environment-friendly initiatives such as eco-packaging, recycling and sustainable production.

Budget must reflect a vision for quality of life

Syed Nasir, managing director of Xclusive Can Ltd, said a national budget should go beyond balancing income and expenditure – it should aim to improve the quality of life for all citizens.

“I come from a lower-middle-class family with a dozen siblings. Our father could not always provide us with food or clothes. Today, some of my brothers are doctors, engineers and government employees. Only I became a businessman,” he said.

“Our ambition should be to enhance knowledge, science and quality of life while reducing income inequality. Developing the SME sector and creating employment can help build a balanced social structure,” he added.

KM Soriatullah, proprietor of Izma Brand, said he started his eco-friendly jute bag and product business after graduating from a madrasah. “I had to overcome many challenges early on. The upcoming budget should prioritise small entrepreneurs. Countries like Japan have grown by empowering their SMEs.”

He noted that while many previous governments had SME plans, implementation was often lacking. “We want actionable plans from the interim government to develop the SME sector. There is huge potential in jute and leather – these should be properly patronised to boost employment and economic growth.”

Soriatullah added that young people should be trained and financially supported to become entrepreneurs.

Health and education must be budget priorities

Sakif Shamim, managing director of Labaid Cancer Hospital and Super Specialty Centre, said, “We want a budget that promotes investment, business and employment. The new budget comes at a critical time for the economy – it presents both opportunities and challenges.”

He warned that the country faces its toughest economic test yet, with high external debt and a growing revenue deficit. Controlling inflation and commodity prices, he said, is essential to ease pressure on the public.

“The upcoming budget must guide the country toward economic stability, responsibility and sustainable development. Increased allocations in the health and education sectors are necessary to reduce the cost of basic services for citizens,” he said.

Shamim thanked the government for amending the trade organisation rules, noting that direct voting would help elect qualified leaders to the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).

Expressing his candidacy for FBCCI vice president, he pledged to cooperate with the government in boosting trade, investment and employment.

He also pointed out that structural flaws in tax policy have long hindered revenue collection. “Corruption in revenue management negatively impacts business, so digitisation is crucial.”

RMG sector seeks policy support amid challenges

Mohiuddin Rubel, additional managing director of Denim Expert Ltd and former director of BGMEA, outlined the serious challenges facing the readymade garment (RMG) industry, which accounts for 84% of Bangladesh’s exports.

“The RMG sector is under pressure from US counter-tariffs, India’s ban on transshipment, high interest rates, rising wages and frequent utility price hikes,” he said. “We are also preparing for LDC graduation in 2026, which will cost us many trade benefits and reduce export competitiveness.”

Rubel warned that the industry’s exports could fall by 5.5-14% due to the loss of duty-free market access. “In this context, the budget is crucial. We urge the government to maintain the current 12% corporate tax rate for the garment industry and reduce the export withholding tax to 0.5% for the next five years.”

He also recommended making products and services of 100% export-oriented RMG firms VAT-free, allowing duty-free import of critical fire safety equipment and granting concessions on solar PV system imports to promote greener factories.

“If import-export processes are not made more efficient, we risk losing clients. This industry is fashion and time-sensitive. Even a day’s delay can lead to order cancellations,” Rubel said, stressing the need to simplify customs regulations and harmonize HS codes to expedite shipments.