The government is going to form the banking sector reform commission, the revenue reform commission, and the public expenditure reform commission, said Finance Minister Abul Hassan Mahmood Ali yesterday.

"The discussion is underway."

He, however, could not say immediately when exactly the commissions will be constituted.

Mahmood Ali was speaking to a group of members of the Economic Reporters' Forum (ERF) during a pre-budget meeting at his secretariat office in Dhaka.

Experts have long calling for initiating drastic steps aimed at restoring discipline in the banking sector and bringing down bad loans, and reforming the revenue sector. Bangladesh has one of the lowest tax-to-GDP ratios in the world.

Rationalising public expenditures is another demand as taxpayers' funds reportedly see leakage through subsidies, incentives and cost over-runs of projects.

The finance minister also dispelled rumours that the economy is facing any major challenge.

The opposition parties used to say that the economy would experience the volatility as seen by Sri Lanka, he said.

"However, it did not happen."

He said the economy is on track despite facing several challenges.

"The preparation to formulate the national budget for the fiscal 2024-25 is underway."

The minister said the country is doing well and essentials goods are available in the local markets.

He said inflation was now in a stable position.

"One of the major challenges is now lowering the inflation."

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BB asks banks to prepare for harsh reforms

The overall inflation in Bangladesh slid 19 basis points to 9.67 percent in February. It, however, has stayed above 9 percent since March last year.

The Consumer Price Index surged to a 12-year high of 9.02 percent in the previous financial year, both for external and internal factors.

According to the minister, Bangladesh is following austerity measures and the next budget would be prepared in line with the same policies.

When drawn his attention to the United States Trade Representative's report on trade and investment environment in Bangladesh, Mahmood Ali declined to comment.

The report from the American government's chief trade negotiating body cited corruption and bribery as major barriers to trade and investment in the country.