Businesses said that policy uncertainty and political transition have kept private investment on hold, and the country鈥檚 investment climate is unlikely to recover until a new elected government takes charge.
They also said that without an elected government ensuring policy continuity and political stability, Bangladesh鈥檚 private sector cannot regain momentum.
They were speaking at a roundtable titled 鈥楤usiness Climate: Reforms, Opportunities, and Challenges Ahead鈥� organised by The Financial Express at a hotel in the capital on Monday.
They also stressed that despite the interim government鈥檚 reform initiatives, the business community remains cautious until an elected government with a public mandate takes office.
In his speech, Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry, said that private investment has clearly slowed, as evidenced by Bangladesh Bank鈥檚 data.聽
鈥楾o revive confidence, we need political stability and an elected government that can ensure long-term policy continuity,鈥� he added.
Moynul Islam, president of the Bangladesh Ceramic Manufacturers and Exporters Association, said the construction sector is stagnant, and the cement and rod producers were suffering as part of that chain.
Shams Mahmud, president of the Bangladesh-Thai Chamber of Commerce and Industry, said that the interim government has introduced several reforms, but none are yet visible.
鈥業t鈥檚 time to pause further policy changes and focus on holding the election so an elected government can take up reforms with legitimacy,鈥� he added.
In his speech as the chief guest, Lutfey Siddiqi, special envoy on international affairs to the chief adviser, urged business leaders to play a proactive role in pushing the next government to undertake structural reforms.聽
鈥榃e need a complete redesign of the administrative and governance system,鈥� he said. 鈥淧iecemeal reforms won鈥檛 deliver long-term efficiency or growth,鈥� he added.
He also said that the country has the technology and supports rules to digitalise the port system. But it has not worked mainly because some ministries鈥� departments and middlemen have been reluctant to adopt digitalisation.
鈥楾here鈥檚 no single authority responsible for the entire economic ecosystem, especially logistics and exports. In countries like Singapore and Malaysia, inter-ministerial coordinators under the prime minister鈥檚 office ensure policy coherence. We need similar structural redesigns,鈥� he added.
Showkat Aziz Russell, president of the Bangladesh Textile Mills Association, questioned the government鈥檚 strategy to attract foreign direct investment.
鈥榃hen a country can鈥檛 even extinguish a fire at its international airport due to lack of equipment, lacks policy consistency, and faces an energy crisis鈥攚ho would invest here?鈥� he asked.
Instead of chasing foreign investors, the government should focus on facilitating local investors. They are the ones generating revenue and creating jobs, he added, saying that the local private investment accounts for the bulk of GDP, while FDI remains below one per cent.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, criticised the turnover tax policy.
鈥楾he government first introduced it as adjustable, but later made it non-adjustable鈥攅ffectively treating it as income tax, regardless of profit or loss. Even the NBR chairman admitted it鈥檚 a business-unfriendly policy, but said he couldn鈥檛 change it,鈥� he added.
Abul Kasem Khan, chairperson of Business Initiative Leading Development, highlighted the lack of bureaucratic accountability.
鈥楢s businessmen, we are accountable to the government, NBR, and the people. But bureaucrats, whose salaries are paid for by our taxes, face no accountability. That must change,鈥� he said.
However, Siddiqi said that bureaucratic processes have improved significantly.
Lutfey Siddiqi also highlighted progress made under the interim government, including the National Single Window, the introduction of e-gates at ports, and the containment of inflation despite global turmoil.
Business leaders from various sectors聽also spoke at the event.