Dhaka Chamber of Commerce & Industry (DCCI) has called for a long-term, energy-supportive policy for the industrial sector to promote sustainable growth.
The Chamber also urged for effective initiatives to increase private sector credit flow, enhance revenue generation, and curb inflation.
The DCCI made these calls during a seminar on “Bi-Annual Economic State and Future Outlook of Bangladesh Economy – Private Sector Perspective (July-December 2024),” held on February 22, 2025.
To foster a business and investment-friendly environment, the DCCI emphasized the need for raising credit flow to double digits in the private sector, ensuring good governance and transparency in the financial sector, reducing loan interest rates, and continuing policy support to expand both local and foreign investments. The Chamber also called for the integrated development of infrastructure, improved market management to reduce inflation, and a reduction in VAT on essential commodities.
DCCI President Taskeen Ahmed, presented the keynote paper, which provided an overview of the economy during the July-December period of FY 2024. He discussed key aspects of the global economic situation, monetary policy, inflation, private investment, FDI, agriculture, industry, services sector, CMSME, energy and power, logistics infrastructure, skill development, and the financial sector.
Ahmed suggested curbing public expenditure through austerity measures as revenue generation remains a concern. He also proposed increasing private sector credit flow, reducing non-performing loans, enhancing financial sector governance, and lowering interest rates to restore entrepreneurial confidence. Additionally, he recommended improving market monitoring, enforcing strict law and order to dismantle illegal syndicates, and increasing VAT on luxury goods while reducing VAT on essentials.
He emphasized the need for continued policy support to expand investments and develop the infrastructure sector. Ahmed also highlighted African and Latin American markets as key export destinations for Bangladeshi products. For smooth industrial operations, he called for safety and security, low-cost finance, and uninterrupted energy and power supply.
For the SME sector’s development, Ahmed advocated simplifying policies for loans, introducing alternative financing systems for low-cost financing, and expanding digital financing.
He also stressed the importance of long-term planning in the energy sector, alongside network management development and setting affordable energy prices for both industries and consumers.
Commerce Ministry’s Acting Secretary, Md. Abdur Rahim Khan, in his address as the chief guest, remarked that a $40 billion revenue in a $500 billion economy is mismatched and unacceptable. He also noted concerns over the lack of full automation in government services and the implementation of the National Single Window.
Khan suggested that reducing trade costs by 10-15% is possible if the logistics policy and WTO trade facilitation agreements are fully implemented. He highlighted the light engineering industry as a game-changer for the economy, announcing a ministry initiative to establish a ‘Technology Centre’ in Gazipur to support light engineering sector entrepreneurs.
He also emphasized increasing revenue generation and attracting export-oriented foreign direct investment to reduce the investment gap. He noted that there is no gap between the bureaucracy and the private sector and urged improved export competitiveness to face the challenges of LDC graduation.
As a discussant, Policy Exchange of Bangladesh Chairman Dr. M Masrur Reaz discussed the inflationary pressures caused by delayed actions from the central bank, supply-side constraints, and international factors. He expressed optimism that with increased reserves, the supply side and import sectors would improve, helping control inflation.
Dr. Reaz also emphasized strengthening the Bangladesh Competition Commission and other agencies to curb price manipulation. He projected that if uninterrupted energy supply and industrial stability are ensured, exports could increase by $5-7 billion this year, benefiting the country’s reserves.
University of Dhaka’s Professor, Dr. Mohammad Abu Eusuf, advised against declaring a traditional budget with a huge deficit in the next fiscal year, noting the negative impact of borrowing from the banking sector on private sector credit flow. He stressed the importance of coordinating the budget, monetary policy, and market mechanisms to control inflation and increase revenue collection through VAT system automation.
Research Director of BIDS, Dr. Mohammad Yunus, highlighted the importance of increasing industry compliance and public-private coordination to tackle post-LDC challenges. He recommended expanding foreign direct investment and joint ventures in sectors like leather and pharmaceuticals, which have significant potential.
Bangladesh Bank’s Executive Director (Research), Dr. Sayera Younus, explained that inflation increased due to supply-side factors, but the central bank’s interventions had a positive impact by the end of 2024. She expressed hope that inflation would fall below 7% by 2026 and that private sector credit flow would increase to double digits by next year.
Additional Secretary of ERD, A. H. M. Jahangir, mentioned that Bangladesh is fully prepared for LDC graduation but emphasized that a smooth transition strategy should be developed by both the public and private sectors. He stressed that this transition would require careful planning to maximize the benefits of the country’s upgraded status.
DCCI Vice President Md. Salem Sulaiman and other board members also attended the seminar.
