Bangladesh’s economy is facing mounting pressure from persistently high inflation, weakening foreign exchange reserves, sluggish investment growth and energy shortages, according to leading business figures and economists speaking at a major economic seminar in Dhaka on Friday.
Taskeen Ahmed, President of the Dhaka Chamber of Commerce and Industry (DCCI), said rising manufacturing costs and declining employment opportunities were intensifying stress across the country’s macroeconomy.
Speaking at a seminar titled “Economic Position Index (EPI): Quarterly Macroeconomic State of Dhaka”, Ahmed warned that traditional macroeconomic indicators were failing to capture the country’s rapidly changing economic realities.
“The Economic Position Index developed by DCCI is a timely initiative that will help policymakers, entrepreneurs and researchers take decisions based on actual economic conditions,” he said.
The seminar, organised by the DCCI at its auditorium in Dhaka on 16 May, unveiled findings from the newly introduced quarterly Economic Position Index (EPI), aimed at providing a more immediate assessment of business and economic conditions in Bangladesh.
The keynote paper was presented by DCCI Acting Secretary General Dr A.K.M. Asaduzzaman Patwari, who said the initiative was designed to address shortcomings in economic forecasting, investment planning and business data analysis.
The research focused on Dhaka, Bangladesh’s main industrial and commercial hub, and analysed data collected during the first two quarters of the 2025–26 fiscal year. The survey covered 762 respondents, including 330 representatives from the manufacturing sector and 432 from the service sector.
According to the findings, climate change is increasingly affecting agricultural output, while energy shortages are slowing industrial production. At the same time, declining consumer purchasing power is constraining growth in the service sector.
Patwari called for a range of policy measures to stabilise the economy, including improving supply chains, ensuring uninterrupted energy supplies for industry, reducing VAT rates, simplifying trade licensing procedures and accelerating cargo clearance at ports. He also urged easier access to low-interest financing for cottage, micro, small and medium-sized enterprises (CMSMEs).
Several economists and policymakers attending the event echoed concerns over Bangladesh’s economic outlook.
Dr Zaidi Sattar, Chairman of the Policy Research Institute of Bangladesh (PRI), said the index would become more effective if expanded nationwide, arguing that it could help businesses better assess market conditions and make informed investment decisions.
International trade expert Nesar Ahmed warned that Bangladesh could face fresh challenges after graduating from Least Developed Country (LDC) status, particularly if it loses duty-free access to European markets.
“There is no alternative to reducing the cost of doing business and ensuring supportive business policies,” he said.
Shibir Bicitro Barua, Additional Secretary at Bangladesh’s Ministry of Commerce, identified inflation, weak investment trends and fragility in the banking sector as major economic vulnerabilities. He also said reforms to the country’s Import Policy Order were expected to be finalised within the next few months.
Professor Dr Mizanur Rahman of Dhaka University said public and private sector spending had exceeded income growth in recent years, contributing to slower economic activity and weaker investment momentum. He stressed the need for institutional reforms, particularly in the financial sector.
Meanwhile, Dr Syed Muntasir Mamun of the Ministry of Foreign Affairs argued that Bangladesh should rely more heavily on capital markets rather than the banking sector for long-term financing, noting that the country’s capital market remained underdeveloped.
Former Bangladesh Investment Development Authority (BIDA) Director General Md Ariful Hoque said better sector-specific data could support policymaking and institutional reform, while greater digitalisation of public services would reduce administrative burdens on businesses.
Bangladesh Bank Chief Economist Professor Dr Akhand Mohammad Akhtar Hossain said attracting greater foreign direct investment (FDI) would be essential for sustaining long-term economic growth.
Miah Rahmat Ali, Senior Private Sector Specialist at the International Finance Corporation (IFC), called on the government to provide stronger policy and financial support to businesses facing global economic instability linked to geopolitical tensions and climate change.
The seminar was attended by senior representatives from Bangladesh’s public and private sectors, including DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman and members of the chamber’s board of directors.