B Mirror Report: Rampant extortion, worsening law and order and a lack of transparency in a recent trade agreement with the United States are posing serious risks to Bangladesh’s fragile economic recovery, the Dhaka Chamber of Commerce & Industry (DCCI) has warned.

Speaking at a press conference titled “Expectations from the new government to address the current economic situation” held at the DCCI auditorium in Motijheel on Monday, DCCI President Taskeen Ahmed said businesses across the country were struggling to cope with what he described as “unbearable extortion” throughout the supply chain.

He alleged that extortion has surged by 20 to 40 percent in recent months, affecting factory operations, transportation and logistics. Illegal tolls are reportedly being collected from trucks entering or leaving factories, while even small boats transporting goods are being stopped mid-route for payments.

Ahmed said such practices were not limited to transport routes but also existed within public offices, including trade licensing, income tax and VAT departments. He warned that these unofficial payments were significantly increasing the cost of doing business, ultimately burdening both producers and consumers.

“If extortion and corruption are not controlled urgently, many businesses may be forced to shut down,” he cautioned.

The DCCI also urged the newly elected government to review and renegotiate the recently signed trade agreement with the United States, expressing concern over its lack of transparency and potential impact on national economic interests.

Ahmed criticised the previous interim administration for signing the agreement under a non-disclosure arrangement without consulting stakeholders or ensuring parliamentary oversight.

He questioned key provisions of the deal, particularly those related to reciprocal tariff reductions, saying it remained unclear what proportion of cotton usage would qualify Bangladeshi garment exports for duty benefits. He also noted that even if reciprocal tariffs were reduced to zero, a standard tariff of around 16.5 percent might still apply.

The DCCI president further referred to reports suggesting Bangladesh could be required to import up to USD 15 billion worth of liquefied natural gas (LNG) from the United States over 15 years, though pricing and other terms were not fully disclosed.

He warned that importing LNG from distant markets could increase costs and lead times compared to sourcing from closer suppliers such as Oman or Qatar.

Ahmed also expressed concern about possible restrictions on government subsidies for state-owned enterprises, saying such limitations could affect agricultural support programmes, including fertiliser and fuel subsidies.

He added that clauses restricting trade with countries facing US sanctions might complicate Bangladesh’s future trade agreements with other global partners.

Calling for a “win-win” outcome, he urged the government to reopen negotiations to protect Bangladesh’s economic sovereignty and national interests.

The chamber also highlighted mounting pressure on businesses due to high borrowing costs, with interest rates currently ranging between 16 and 17 percent.

According to the DCCI, rising non-performing loans and the reduction of the loan classification period from nine months to three months have further strained the financial and industrial sectors.

It recommended rationalising lending rates and providing working capital support to non-wilful defaulters to help sustain business operations.

Industrial production has also been affected by inadequate gas supply and rising energy costs. Recent gas price hikes Tk 40 per unit for new industries and Tk 42 per unit for captive power plants have disrupted manufacturing and export activities.

The chamber said delays in land acquisition, high land prices, increased service charges at Chattogram Port and underutilisation of inland waterways have added to logistics and operational costs, contributing to inflationary pressures.

Ahmed criticised the lack of automation in the tax system, saying it exposed businesses to harassment while allowing many taxpayers to remain outside the tax net. He called for urgent reforms and automation at the National Board of Revenue to improve transparency and efficiency.

The DCCI also emphasised the need for effective implementation of the Bangladesh Investment Development Authority’s one-stop service to facilitate investment.

Highlighting employment concerns, the chamber noted that over two million educated youths remain unemployed and warned of potential social risks if job creation does not improve. It urged expanded skills development programmes and easier access to financing for young entrepreneurs.

Regarding Bangladesh’s upcoming graduation from least developed country (LDC) status, Ahmed cited UNCTAD projections that exports could decline by 5.5 to 7 percent, equivalent to about USD 2.7 billion.

He recommended seeking a three-year deferral to ensure a smoother transition amid global economic uncertainty.

Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman and other DCCI board members were present at the briefing.

The chamber concluded that restoring law and order, eliminating extortion, ensuring transparent trade agreements and stabilising macroeconomic conditions are essential to restoring investor confidence and sustaining economic growth.