Net sales of state-run savings instruments in Bangladesh experienced negative growth of Tk 23.05 billion in the first four months of the current fiscal year 2023-24, signaling a preference for higher-paying encashment over investment. Factors such as inflationary pressures, financial crises, reduced bank profitability, and challenging investment conditions contributed to this decline.
The negative growth in October surpassed that of September, indicating a lack of confidence in these government borrowing tools. The government has set a net borrowing target of Tk 180 billion from savings schemes for the current fiscal year. The negative trend in savings tools may be influenced by recent government rules, hesitancy, and inflationary pressures.