A clear and long-term political commitment is essential to restore stability, revive investment and address the deep structural problems currently unsettling the economy, entrepreneurs and economists said on Saturday.
Speaking at the Bangladesh Economic Summit 2025, organised by The Daily Bonik Barta, they noted that the economic slowdown – from 4.2% to a projected 3.97% this fiscal year – reflects inflation-control measures, stalled development projects and a sharp decline in private investment.
Held for the fourth time under the theme “Future Economic Roadmap and Political Commitment”, the summit brought together policymakers, business leaders, researchers and development partners.
Participants described an economy in the midst of a “breathtaking transition” after a 15-year political arrangement was upended.
Interest from global financiers remains intact even amid domestic uncertainty, said Association of Bankers Bangladesh Chairman and City Bank Managing Director Mashrur Arefin.
Highlighting the economy’s potential, he said global banks such as JP Morgan are now keen to correspond with strong local banks. To fill the liquidity gap in the banking system, he stressed the need to channel the Tk2 lakh crore in cash lying outside the formal banking sector through digitisation.
Business leaders said the problems they face are deep, structural and worsening, and that only meaningful political commitment can restore trust and investment.
Bangladesh Steel Manufacturers Association President and GPH Group Chairman Mohammad Jahangir Alam said the mounting distress in heavy industries shows how sharply conditions have deteriorated.
He said working capital requirements have jumped by 60%, while high borrowing costs and delayed LCs have left steel and cement producers struggling to operate.
He urged the next elected government to revive megaprojects, expand the tax base and reduce borrowing costs to prevent further contraction.
The scale of the slowdown is visible in job losses, shrinking credit and stalled factory expansion, said Ha-Meem Group Chairman and Managing Director AK Azad.
He said 1.4 million jobs have already disappeared, while the private sector is absorbing less than one-third of the three million new jobseekers entering the market each year.
Declining capital machinery imports and a record-low 6% private sector credit growth indicate the worrying state of job creation, the business leader said.
He warned that non-performing loans – now around 35% – pose the gravest threat and require political commitment to resolve.
He noted how Pakistan’s Pervez Musharraf restored discipline by compelling defaulters to repay to avoid detention.
Restoration of trust is central to economic recovery, said Bangladesh Institute of Development Studies Director General AK Enamul Haque.
Institutions must be overhauled and regulators made accountable, with reforms ensuring that economic benefits reach ordinary citizens rather than a privileged few, he added.
A fundamental overhaul of the financial sector is already under way, said Bangladesh Bank Governor Ahsan H Mansur.
Stricter scrutiny is revealing the true scale of non-performing loans, but improvement is expected after December as resolutions take effect, he said.
Quick distribution of the remaining Tk25,000 crore in undisbursed SME credit is essential to support small businesses, he said, warning that excessive state interference fuels corruption and weakens institutions.
He said the Bangladesh Bank is forming a dedicated body to curb illicit financial flows and economic crimes, and that reforms such as amendments to the Bank Company Act, stronger money loan courts and an asset management company for distressed loans are progressing.
“The reforms will only deliver sustained benefits if backed by consistent political commitment,” he cautioned.
At the programme, political leaders pledged stability and reform, but businesses said the real test will be how consistently that commitment is upheld in the months ahead.
BNP Standing Committee member Amir Khasru emphasised that economic democracy is essential so that growth benefits all citizens, not just a privileged few.
He pledged to create one crore jobs, revitalise rural and cottage industries, and improve power and internet infrastructure if the BNP comes to power.
He said the capital market must be strengthened to reduce dependence on banks and that key institutions must be led by qualified professionals, free from political pressure. “Investment decisions must prioritise value for money, returns, job creation and environmental balance,” he said.
Ganosamhati Andolon Chief Coordinator Zonayed Saki said a large pool of cheap labour could expose Bangladesh to exploitation by global capital unless incomes rise and the country’s economic base is strengthened.
National Citizen Party Convener Nahid Islam said reform, stability and development must advance together, and that the entrenched alliance of corrupt bureaucrats, politicians and business groups must be dismantled.
Corruption and extortion are driving away both local and foreign investors, said Bangladesh Jamaat-e-Islami Ameer Shafiqul Rahman, who called for skill-based education, justice and strong anti-corruption measures.
