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02 June 2025 : The development allocation for Bangladesh Railway is set to be reduced by nearly half for the 2025-26 fiscal year. Several major ongoing projects have already been completed, while the current interim government has slowed down some projects and canceled others, leading to a significant reduction in railway sector funding.
On June 2, 2025, Dr. Salehuddin Ahmed, the Finance Adviser of the interim government, presented the proposed budget, which is set at 7.90 lakh crore taka. Analysis of the budget reveals that while the allocation for the railway sector in the current 2024-25 fiscal year was 13,725.64 crore taka, it has been proposed to be reduced to 7,714.99 crore taka for the upcoming fiscal year. Additionally, the allocation for the Ministry of Railways, which was 600.25 crore taka in the current fiscal year, has been proposed to be slashed to 179.77 crore taka for 2025-26.
When contacted, Muhammad Faozul Kabir Khan, Adviser to the Ministry of Railways, told Kalabela, “We have canceled several unnecessary projects. What’s the use of railway lines without trains? So, those projects won’t proceed for now. Instead of infrastructure projects, we will undertake a new project to improve the quality of train services.” He further noted that the government is aiming to make the budget more realistic by eliminating non-essential projects.
This reduction in allocation is expected to shift the focus from new infrastructure projects to improving train service quality and passenger amenities. However, experts are discussing the potential impact of this decision on the long-term development plans of the railway sector.
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