B Mirror Report: Bangladesh’s private sector is facing growing challenges in maintaining steady progress as global trade disruptions, energy supply uncertainty, persistent inflation and weak investment continue to affect business activities, the Dhaka Chamber of Commerce and Industry (DCCI) said yesterday.
DCCI President Taskeen Ahmed said the ongoing US-Israel conflict with Iran has created uncertainty for Bangladesh’s private sector, particularly due to the country’s heavy dependence on imported energy.
“Since a large portion of energy used in Bangladesh’s industries is imported, especially from the Middle East, the current conflict in the region has created tension and uncertainty for businesses,” he said.
He made the remarks while speaking at a seminar titled “Bi-annual Economic State & Future Outlook of the Bangladesh Economy: Private Sector Perspective” held at the DCCI auditorium.
Ahmed said the ongoing Middle East crisis poses a serious threat to global trade and supply chains, while the new tariff policy introduced by the United States may also negatively impact both domestic and international trade and investment.
To strengthen revenue collection, the DCCI urged the government to expand the national tax base by bringing informal and underreported sectors under the tax net.
The chamber also recommended introducing end-to-end digital tax services, including e-registration, e-filing, e-payment, e-audit and e-refund, and developing a centralised integrated tax database linking VAT, income tax and customs systems.
On the monetary front, Ahmed suggested that authorities gradually reduce the policy rate to encourage investment and support economic growth.
Currently, Bangladesh Bank maintains a tight monetary policy, with the policy rate at 10 percent, while lending rates have increased to around 16 percent or higher, slowing private sector borrowing.
Speaking at the event, Mohammad Akhtar Hossain, chief economist of Bangladesh Bank, said inflation remains around 9 percent, warning that the Middle East crisis could further increase economic uncertainty.
In such circumstances, he said, the central bank may need to continue a contractionary monetary policy to control inflation, adding that excessive liquidity and lower interest rates could destabilise the economy.
Mohammad Abu Eusuf, executive director of Research and Policy Integration for Development (RAPID), stressed the need to restore business confidence and strengthen the confidence of bank depositors.
To control inflation, he emphasised the importance of coordinated measures through fiscal policy, monetary policy and effective market management.
State Minister for Finance and Planning Zonayed Abdur Rahim Saki said the government is closely monitoring the situation in the Middle East and remains aware of its potential economic impact.
Meanwhile, AK Enamul Haque, director general of the Bangladesh Institute of Development Studies (BIDS), pointed out weaknesses in supply chain management that need urgent attention.
Monzur Hossain, a member of the General Economics Division of the Bangladesh Planning Commission, said Bangladesh must first restore economic stability to achieve its goal of becoming a $1 trillion economy by 2030.
He added that the manufacturing sector should be prioritised, and alternative financing mechanisms outside the banking system should be introduced to support small and medium enterprises (SMEs).
Zaidi Sattar, chairman of the Policy Research Institute (PRI), also stressed the need to reduce excessive dependence on tariffs, suggesting that protection for domestic industries should be time-bound and rational.
