Insecurity has dragged business confidence to a low, stalling investment and deepening economic strain in Bangladesh, said Dhaka Chamber of Commerce and Industry (DCCI) President Taskeen Ahmed.
“The first challenge was the law-and-order situation, which has brought the business environment to the bottom,” he told TIMES of Bangladesh in an interview, identifying it as the most decisive factor behind the downturn in 2025.
“With such insecurity, we can never drive economic growth,” he added.
He said macroeconomic stability helped ease dollar availability and resume imports, but the recovery remained narrow.
According to the business leader, as an import-dependent economy, Bangladesh restarted consumer edibles imports, while investment-related shipments failed to rebound.
Capital machinery imports are “still almost at zero,” he said, pointing to the absence of fresh investment momentum.
Investment appetite has also been weighed down by persistent “structural pressures.” “Major constraints include the money market situation and the energy crisis,” he said.
High inflation further intensified the strain by pushing borrowing costs higher. Energy shortages have emerged as a binding constraint on expansion and operations, said Taskeen Ahmed.
“Energy security has nearly blocked new investments, and even existing factories are shutting down,” he said.
Limited reform steps have offered a degree of reassurance to businesses, said the DCCI President.
“Reforms in central banks, the Bangladesh Investment Development Authority (BIDA), and the National Board of Revenue (NBR) show light at the end of the tunnel by restoring accountability and curbing corruption,” he said.
He said whether that confidence holds will depend on political commitment. “It is important to see how seriously an elected government takes these reforms forward.”
He also expressed concern that several initiatives launched after the July uprising have strayed from their original intent.
“I believe some reforms are not directly linked to the business environment, and many have lost track of their initial course.”
Looking ahead, he expects economic pressure to persist into next year.
“2026, even with an elected government in place, may see more challenges than prospects,” he said, citing unresolved medium-term risks such as energy and fiscal pressures.
Tracing the downturn, he said the slowdown that began with the Ukraine war in 2022 deepened in 2025 due to the interim government’s “short-term view.”
“The economy has been pushed into a deeper crisis, and the stabilisation we need will now take longer,” he said.
He expects recovery and renewed growth to take at least two to three years.
Across industries, most expansion plans were shelved in 2025. “Very few companies dared to pursue expansion as economic indicators remained largely negative,” he said.
Rising costs and business closures also hurt employment.
“Instead of creating jobs, many firms were forced to cut manpower due to shutdowns or higher expenses,” he said.
Despite the stress, he sees potential opportunities if stability returns.
“The world is shifting global sourcing patterns amid conflicts and United States tariff threats,” he said, adding that with stable growth indicators, investment could continue in the ready-made garment sector.
Also, pharmaceuticals, leather, footwear, engineering, and electronics hold strong investment potential in the coming days, according to Taskeen Ahmed.
