Advertisement

DCCI urges stability, policy continuity as election-year risks cloud recovery

DCCI urges stability, policy continuity as election-year risks cloud recovery
DCCI logo: Collected
Advertisement
Advertisement

Dhaka Chamber of Commerce & Industry (DCCI) has urged prudent, timely and effective economic measures to safeguard Bangladesh’s economic momentum in 2026, warning that political tension ahead of the 13th national election could complicate recovery if stability is not ensured.

In a statement, the chamber called on the interim government, political parties and all relevant stakeholders to ensure a peaceful, inclusive and credible election process, saying political stability during and after the election is “the key to sustainable economic recovery and investment growth.”

DCCI said a stable political environment would help restore confidence among local entrepreneurs and foreign investors, which it described as critical at a time when the economy is seeking to regain momentum.

To accelerate economic recovery in 2026, the chamber urged the government to prioritise improvement of the overall law and order situation and ensure uninterrupted and affordable energy supply to industries. It also called for enhanced ease of doing business and a reduction in the cost of doing business.

Advertisement
Advertisement

Strengthening infrastructure and policy frameworks to attract both domestic and foreign investment must move in parallel, DCCI said, stressing that recovery will not be durable without a supportive investment climate.

The chamber also highlighted the importance of export diversification, targeted support for potential export sectors, easier access to finance for cottage, micro, small and medium enterprises and the development of a skilled workforce to support growth.

Turning to energy, DCCI said the ongoing energy crunch and high energy prices continue to disrupt manufacturing and industrial production, eroding Bangladesh’s competitiveness in international markets.

Related News

It reiterated the need for a long-term and predictable energy pricing policy, alongside accelerated gas exploration, diversification of energy import sources and expansion of long-term energy supply agreements.

DCCI said persistent foreign exchange pressure and currency depreciation have further weakened the financial sector, affecting imports of fuel, raw materials and intermediate goods for export-oriented industries.

To address this, the chamber suggested that currency swaps be considered on a priority basis for essential import payments and said enhanced incentives for remittance inflows are necessary to stabilise foreign exchange reserves.

At the same time, DCCI stressed the need for fiscal discipline, improved project implementation efficiency, reduced reliance on bank borrowing and good governance to ease liquidity pressure in the financial sector.

Expressing concern over rising government borrowing from the banking system, the chamber warned that excessive public-sector borrowing could shrink private-sector credit growth, slowing investment and employment, particularly in manufacturing and CMSMEs.

DCCI underscored the importance of full automation of revenue management, modernisation of tax laws, expansion of the tax base and strict measures to prevent harassment of compliant taxpayers.

As Bangladesh moves further along its transition from least developed country status, the chamber stressed the need for comprehensive economic preparedness.

To sustain export growth in the post-LDC era, DCCI urged accelerated efforts to sign free trade agreements with key trading partners and regional economic blocs to expand market access and reduce tariff-related vulnerabilities.

Export diversification, uninterrupted industrial manufacturing, stronger local industries, modern infrastructure, skilled human resources, technological upgradation, expansion of backward linkage industries and rational tax and tariff reforms will be the key determinants of maintaining economic growth in 2026, the chamber said.

Follow TIMES on Google News

Get trusted updates and editor-picked stories in your feed.

Follow
Related News