Finance Minister Amir Khasru Mahmud Chowdhury has pledged to remove all existing barriers to business and investment in the country.
Speaking as the chief guest on Saturday (August 22) at a seminar titled "Bi-Annual Economic Situation for FY2026: Perspective on Revenue, Monetary Policy, and Private Sector Expectations" organized by the Dhaka Chamber of Commerce & Industry (DCCI), he stressed that attracting foreign direct investment is impossible without first expanding local investment. Consequently, the government is working tirelessly to ensure a business-friendly environment.
The minister noted that while advocating for deregulation and removing unnecessary restrictions is easy, implementing those changes in practice is difficult.
However, he reaffirmed that the government remains fully committed and will offer no leniency in execution.
He revealed that the government is launching a dedicated website where businesses can directly report operational bottlenecks for quick resolution.
Addressing energy constraints, the minister acknowledged that gas and electricity shortages cannot be solved overnight.
To ensure future energy security, the government is actively building a three-month strategic energy reserve.
He highlighted that the government has already announced a Tk60,000 crore stimulus package, assuring that eligible entrepreneurs will receive loan support without any political interference.
He also disclosed a new project titled "Creative Economy" to support small entrepreneurs through credit access, skill development, product design, and marketing assistance, emphasizing that the government is steering the nation from a patron-based economy toward a democratic one.
Underlining that sustainable development requires expanding the tax-to-GDP ratio, Chowdhury stressed that automation is essential for transparency and efficiency in tax administration.
He also urged reducing long-term reliance on bank loans by diversifying alternative financing channels, noting active initiatives to strengthen the capital market and introduce several new bond instruments.
Furthermore, he shared that ongoing Middle Eastern crises added $4–5 billion to the state energy bill, prioritizing an energy-mix model focused on solar and renewable sources, supported by budget incentives.
Economic perspectives and challenges raised by experts
Panelists and business leaders at the seminar highlighted high operational costs, elevated interest rates, energy shortages, stagnant investment, and declining credit flow to the private sector as primary economic bottlenecks:
Hossain Zillur Rahman, executive chairman, PPRC & chairman, Brac, stated that the economy sits at a critical junction requiring prompt decisions.
He pointed out that systemic harassment acts as a negative tax, undermining reforms, and proposed creating an "Economic Reform Acceleration Unit" to speed up structural changes, address defaulted loans, and secure SME financing.
Prof Mustafizur Rahman, distinguished fellow, CPD, called for a "revolution" in tax collection to meet Annual Development Program (ADP) targets, expressing skepticism about current revenue projections.
He noted that monetary policy needs urgent reform to tackle persistent inflation and urged caution regarding foreign debt management.
Zaidi Sattar, chairman, PRI, highlighted the gap between policy formulation and ground execution.
He cautioned that while export policy aims for liberal diversification, import tariffs remain high, worsening local price pressures.
Taskeen Ahmed, president, DCCI, presented the keynote paper, pointing out that private sector credit growth dropped to just 5%, compared to 25.9% in the public sector. High inflation, elevated borrowing costs, and energy shortages have raised operational expenses, pushing SME default rates up to 24.1%.
He advocated moving from collateral-based loans to digital cash-flow assessments.
Mahbubur Rahman, president, ICC Bangladesh, highlighted that weak private sector credit flow and high input costs are forcing many industrial units to operate below capacity, threatening overall employment and export competitiveness.
Simin Rahman, Group CEO, Transcom Ltd, noted that high interest rates, inflation, and heavy government borrowing from banks have disproportionately harmed SMEs, urging immediate efficiency upgrades at ports, customs, and logistics hubs.
Syed Mahbubur Rahman, MD & CEO, Mutual Trust Bank, emphasized the need for structural alignment between monetary policy and the national budget, stating that lowering interest rates alone will not attract investment without guaranteed energy supplies.