B Mirror Report: The Dhaka Chamber of Commerce and Industry today urged Bangladesh Bank to take immediate steps to address a 22-year low in private sector credit growth, as the central bank signaled a strategic shift toward CMSME and agricultural sectors to stabilise the economy.
A DCCI delegation, led by its President Taskeen Ahmed, held a courtesy meeting with BB Governor Md. Mostaqur Rahman at the central bank’s headquarters in Motijheel, according to a press release.
During the meeting, Taskeen Ahmed highlighted the deteriorating investment climate, noting that private sector credit growth has fallen to its lowest level in more than two decades. He said high policy rates and a widening interest rate spread have made borrowing costly and less accessible, particularly for manufacturing industries and small and medium enterprises.
To support economic recovery, the DCCI called for a gradual reduction in the policy rate to ease borrowing costs. Alternatively, it proposed subsidised loans for priority sectors, including manufacturing and export-oriented SMEs.
The chamber also expressed concern over the recent tightening of loan classification rules, which reduced the grace period from nine months to three months. According to the DCCI, this move combined with energy shortages and weak demand—has increased pressure on businesses.
Taskeen Ahmed suggested reconsidering loan rescheduling facilities for unintentional defaulters and extending the classification period to at least six months.
In response, Governor Md. Mostaqur Rahman said the economy has become overly dependent on a narrow range of products and export markets. He stressed that prioritising the CMSME and agricultural sectors is essential to boosting domestic economic activity and employment.
Addressing inflation, the governor attributed persistent price pressures to high logistics and product management costs, urging coordinated efforts to resolve these challenges.
He also emphasised the need for policy reforms to improve competitiveness and attract investment, noting that slower GDP growth in recent years has hindered both domestic and foreign investment inflows.
The governor assured that Bangladesh Bank remains committed to supporting sustainable industrial growth while maintaining control over inflation.
The meeting was attended by DCCI Senior Vice President Razeev H Chowdhury, Vice President Md. Salem Sulaiman, members of the board, and senior officials of Bangladesh Bank.
