Businesses said that prolonged judicial processes of the trade dispute resolution are hampering both local and foreign investment.
They聽demanded a separate Commercial Court to resolve the issues as the economic activities in the country are growing significantly, so as the disputes.
They were speaking at a seminar titled 鈥楢dvancing Dispute Settlement and Contract Enforcement for Businesses鈥�, organised by the Dhaka Chamber of Commerce and Industry in the capital on Tuesday.
In his speech, DCCI president Taskeen Ahmed stated that as economic activities in the country are growing significantly, disputes related to business contracts, investments, and intellectual property are also increasing.
鈥楥urrently, around 4 million cases remain unresolved in lower and higher courts of Bangladesh and those prolonged judicial processes are hampering both local and foreign investment,鈥� he added.
He also said that although the Arbitration Act was passed in 2001, it has not been implemented effectively.
鈥業n this context, it is important to establish a separate Commercial Court with the appointment of experienced judges and reforming the existing legal framework which would accelerate the pace of trade and investment,鈥� he added.
Michael Miller, ambassador and head of delegation of the European Union in Bangladesh, said that in order to reform the legal process, the EU has been working closely with the government.
He expressed that the reform of the legal system would significantly improve the people鈥檚 quality of life.
鈥楢s Bangladesh moves toward LDC graduation and pursues export diversification, the formation of Commercial Courts would be crucial to attract foreign investment,鈥� he added.
Such courts would facilitate both domestic and foreign investment expansion, he added, saying that the government would prioritise this issue for the greater interest of the economy.
鈥楽trengthening arbitration mechanisms would help to reduce the current investment stagnation,鈥� he added, saying that the European companies are keen to invest in Bangladesh鈥檚 logistics and shipping sectors.
Mahbubur Rahman, secretary of the Ministry of Commerce, said that as Bangladesh is one of the most densely populated countries, the number of cases in courts is increasing every day, making judicial delays intolerable.
鈥業f trade-related disputes can be resolved outside traditional courts, it would reduce the overwhelming pressure on the judiciary substantially and improve the overall business climate,鈥� he added.
He also informed that the process of establishing a Commercial Court is ongoing, and he expressed hope that the draft would be finalised within a month.
Md Abdur Rahim Khan, additional secretary (export wing) of the Ministry of Commerce and vice chairman of the Export Promotion Bureau (additional charge), said that delays in resolving trade disputes not only hinder FDI attraction but also negatively impact export expansion.
To overcome this, he also proposed forming 鈥榣egal institutions鈥� outside traditional courts to resolve disputes through negotiations in a comparatively shorter time.
Barrister Md Sameer Sattar, former president, DCCI, presented the keynote paper.
Officials from the Bangladesh Investment Development Authority, the Bangladesh International Arbitration Centre, judges, representatives from international consultancy firms, former leaders of the DCCI, and board members of the DCCI also spoke at the event.