Dhaka Chamber of Commerce and Industry President Taskeen Ahmed said that Bangladesh requires some additional time to adequately prepare for its graduation from the Least Developed Country status.
He also stated that due to a significant rise in tariffs and trade barriers, global economic growth has slowed, with forecasts projecting global GDP growth at only 2.3 per cent in 2025.
鈥楥onsequently, most economies are expected to experience further slowdown compared with the past year,鈥� he added.
He was speaking at a seminar titled 鈥楤i-annual Economic State and Future Outlook of Bangladesh Economy-Private Sector Perspective,鈥� organised by the DCCI on Sunday in the capital.
He said that, considering the multidimensional challenges of LDC graduation, Bangladesh should defer graduation for at least three years to enhance competitiveness, implement a strong transition strategy, and update relevant policies.
He also stated that private investment has decreased to 22.48 per cent of GDP in FY 2025, the lowest level in the last five years.
鈥楾o restore investors鈥� confidence, government must ensure stability in the banking sector, retain political stability, and remove bureaucratic bottlenecks, which would improve the ease of doing business,鈥� he added.
He also emphasised that corporate tax, particularly for non-listed companies, should be more competitive to encourage greater investment.
To accelerate exports, he called for value addition, diversification, exploring new markets, strengthening supply chain connectivity, and enhancing multilateral trade diplomacy.
鈥楢lthough the US reduced tariffs on Bangladeshi products from 35 per cent to 20 per cent, we cannot be self-contended with this margin,鈥� he added.
He said the government should strive for further tariff cuts, which would enhance export competitiveness in global trade.聽
Meanwhile, speaking as the chief guest, Monzur Hossain, member (secretary) of the General Economics Division, Bangladesh Planning Commission, said that the final decision on whether to proceed with or defer the LDC graduation might rest with the next government.
鈥楪overnment agencies and institutions are continuing preparations, but this is not only the government鈥檚 responsibility. The private sector also needs to prepare; otherwise, even after five years, we might still be unprepared, he added.
The government views LDC graduation positively, but stronger preparedness and productivity enhancement are a must, he added.
鈥業f we could accept Donald Trump鈥檚 20 per cent tariffs, we can overcome this challenge too,鈥� he added, saying that Nepal is moving forward with graduation.
He called for restructuring the banking sector and focusing on sustainable economic transformation.
Professor Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue, said that although inflation has declined, the overall price level remains high, eroding consumers鈥� purchasing power.
He said that the RMG sector has come this far by enjoying bonded warehouse and bank-to-bank LC facilities.
鈥楨xtending these same facilities to other promising export sectors would expand Bangladesh鈥檚 export basket,鈥� he added.
The lack of strong anti-corruption measures and weak progress in digitalisation resulted in a low tax-to-GDP ratio.
He called for mobilising domestic savings and increasing tax revenue, emphasising that heavy reliance on loans to finance the ADP is unsustainable.
He also recommended seeking an LDC graduation deferral if needed, while simultaneously enhancing the business environment and skills development, particularly for SMEs.
AK Enamul Haque, director general of Bangladesh Institute of Development Studies, Mahmud Salahuddin Naser, director (research) of Monetary Policy Department of Bangladesh Bank, Nawshad Mustafa, director, SME and Special Programmes Department of the bank, Md Rabiul Islam, economics officer, South Asia Department, Bangladesh resident mission of Asian Development Bank, also spoke at the event.
