Business leaders look ahead with optimism

The country’s leading business figures are looking towards the incoming political government with optimism. They believe the ongoing political transition will help restore the confidence of both domestic and foreign investors, as well as international buyers. At the same time, they have highlighted the major challenges facing economic recovery.

The Bangladesh Nationalist Party (BNP) is preparing to form the government after securing an absolute majority in the 13th National Parliamentary Election. In this context, business leaders hope that a stable and elected government will create a favourable environment for trade and investment, particularly after a prolonged period of fragile investor confidence and a cautious approach adopted by many foreign buyers.

Shawkat Aziz Russell, President of the Bangladesh Textile Mills Association (BTMA), congratulated BNP Chairman Tarique Rahman on leading the party to a landslide victory with a two-thirds majority in the 13th Parliament. He expressed hope that under the new government’s leadership, Parliament would play an effective role in accelerating industrialisation, particularly by resolving long-standing issues in the textile sector to ensure investment and sustainable economic growth.

To restore business confidence, he urged the new government to undertake immediate reforms of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country’s apex trade body. In his view, trade organisations must be treated as key partners of the government, with regular consultations on important national economic issues. He noted that investment and business activities are being severely hampered by delays in decision-making, as files move from one ministry to another without timely resolution.

Russell further said that leaders of the textile sector, which contributes nearly 13 per cent to the country’s gross domestic product (GDP), had not been granted even 18 minutes of meeting time with the top leadership of the government over the past 18 months. During the same period, he alleged, substantial financial assistance was provided to several reportedly ineffective banks, while entrepreneurs were deprived of necessary policy support.

Former President of the Dhaka Chamber of Commerce and Industry (DCCI), Shams Mahmud, said the peaceful conduct of the election and the high voter turnout had sent a positive message to the business community. A two-thirds majority would ensure political stability and enable the government to implement necessary reforms. However, he noted that improving the law and order situation would be the most pressing challenge in creating a business-friendly environment.

The new government will also have to tackle serious macroeconomic pressures, including the energy crisis, dollar shortage and high inflation. He added that private sector credit growth has remained weak in recent years, and neither the previous government nor the interim administration had been able to provide effective solutions to structural economic problems. Restoring investor confidence, controlling inflation and reassessing major development projects in light of balance of payments realities are, in his view, essential.

Fazlee Shamim Ehsan, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said a credible and acceptable election had conveyed a positive message to foreign stakeholders. A controversial or disorderly election would have severely damaged business confidence. Maintaining stable law and order is crucial for sustaining global trade relations, and any rise in “mob culture” could harm Bangladesh’s international reputation.

Anwar-ul Alam Chowdhury (Parvez), President of the Bangladesh Chamber of Industries (BCI), said the completion of a free and fair election had brought relief to the business community after months of uncertainty. The election outcome would help restore the confidence of international trade partners and improve Bangladesh’s image abroad. He cautioned that high inflation could pose a major obstacle to addressing the banking sector crisis, though IMF-supported policies may help mitigate these challenges. He also emphasised the need to resolve the energy crisis, improve law and order, and hold coordinated discussions with business leaders.

In addition, he called for a thorough review of existing tariff arrangements with the United States and urged stronger preparations for the country’s upcoming graduation from least developed country (LDC) status.