Sector-based planning, long-term energy security and automation of the revenue management system to expand the tax net are essential to address Bangladesh’s economic challenges, Dhaka Chamber of Commerce and Industry (DCCI) President Taskeen Ahmed said on Sunday.
He made the remarks at a seminar titled “Bi-annual Economic State & Future Outlook of Bangladesh Economy — Private Sector Perspective” organised by DCCI at its auditorium in the capital.
Planning State Minister Zonayed Abdur Rahim Saki joined the event virtually as chief guest, while Bangladesh Planning Commission General Economics Division Member Secretary Monzur Hossain, Support to Sustainable Graduation Project Project Director A H M Jahangir and Bangladesh Bank Chief Economist Mohammad Akhtar Hossain attended as special guests.
Highlighting the challenges facing the private sector, Taskeen Ahmed said global trade disruptions caused by the conflict involving Iran, the United States and Israel have created uncertainty in supply chains and energy markets.
He said Bangladesh’s industries remain heavily dependent on imported energy from the Middle East, making the private sector vulnerable to geopolitical tensions.
The DCCI president also warned that the new tariff policy introduced by the United States could negatively affect both domestic and global trade and investment.
Considering the overall economic situation, he proposed deferring Bangladesh’s graduation from the Least Developed Country category by another three years while ensuring trade facilitation and export diversification to remain competitive in global markets.
He also called for simplifying import procedures for capital machinery, strengthening supply chain and market management systems and maintaining stability in the foreign exchange market to help control inflation.
Bangladesh Planning Commission General Economics Division Member Secretary Monzur Hossain said restoring macroeconomic stability is essential if Bangladesh aims to transform into a $1 trillion economy by 2030.
He emphasised prioritising manufacturing sectors and introducing alternative financing mechanisms beyond the banking system to support small and medium enterprises.
Bangladesh Bank Chief Economist Mohammad Akhtar Hossain said inflation currently stands at around 9 per cent and warned that the Middle East crisis could trigger further economic instability.
“In such a situation, Bangladesh Bank may need to maintain contractionary monetary policies to control inflation,” he said.
Policy Research Institute of Bangladesh Chairman Zaidi Sattar emphasised reducing excessive dependence on tariffs and introducing time-bound protection measures for domestic industries.
Bangladesh Institute of Development Studies Director General A K Enamul Haque said agriculture is becoming increasingly commercialised but declining profitability in rice cultivation may discourage farmers in the future.
Research and Policy Integration for Development Executive Director Mohammad Abu Eusuf stressed the need to restore business confidence and strengthen trust among bank depositors.
He said coordinated fiscal and monetary policies along with improved market management are necessary to control inflation.
BGMEA Director and Surma Garments Ltd Managing Director Faisal Samad said Bangladesh’s ready-made garment sector has grown from the eighth largest exporter in 2006 to the second largest globally but warned that the absence of free trade agreements with the United States and the European Union makes the industry vulnerable.
He also noted that high bank lending rates are creating difficulties for entrepreneurs.
Professor M Niaz Asadullah called for innovative policies to reduce the cost of doing business and emphasised updating education curricula to improve workforce skills.
Former DCCI Director A K D Khayer Mohammad Khan and other participants also spoke during the open discussion session.
DCCI Senior Vice President Razeev H Chodhury, Vice President Md Salem Sulaiman, board members and representatives from the government and private sectors attended the seminar.
