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Seminar on “Biannual Economic State in FY2026
Dhaka Chamber of Commerce & Industry (DCCI) organized a seminar on “Biannual Economic State in FY2026: Fiscal & Monetary Perspective and Private Sector Expectations” on August 22, 2026 at the DCCI Auditorium. Amir Khosru Mahmud Chowdhury, MP, Honorable Minister, Ministry of Finance, GoB attended the event as the Chief Guest while Dr. Hossain Zillur Rahman, Executive Chairman, Power and Participation Research Centre (PPRC) and Chairman, BRAC, Mr. Mahbubur Rahman, President, International Chamber of Commerce (ICC) Bangladesh, Dr. Zaidi Sattar, Chairman, Policy Research Institute of Bangladesh (PRI) and Professor Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue (CPD) were present as Special Guests.
Amir Khosru Mahmud Chowdhury, MP, Honorable Minister for Finance said that the government is working relentlessly to ensure a business-friendly environment in the country, as attracting foreign investment would not be possible without expanding domestic investment. He said that regardless of how deep the existing barriers to trade and investment may be, the government is committed to addressing them. He noted that although implementation of deregulation is challenging, the government remains determined to pursue it and no one will be given special consideration in this regard. He informed that the government has taken an initiative to establish a website to identify the complications faced by the business community and undertake effective measures resolve those issues accordingly. Regarding the existing electricity and gas shortages, he said that the problems could not be resolved overnight and would require time. He added that the government is working relentlessly to ensure a three-month energy reserve to mitigate the impact of any future crisis. The Minister informed that the government has already announced a Tk. 60,000 crore stimulus package to support the troubled private sector, boost investment, and revive the economy. He assured that only eligible businesses who would meet the conditions set by the central bank would receive loan support.
He further said that the government is undertaking a project titled “Creative Economy,” particularly for small entrepreneurs, which will provide support for access to finance, skills development, product design and marketing. He noted that none of the government’s initiatives would be successful unless the tax-to-GDP ratio is increased. In this regard, he emphasized that there is no alternative to automation. Referring to the ongoing crisis in the Middle East, the Finance Minister said that the government has incurred an additional US$4–5 billion in energy-related payments. He said that ensuring coordination among all sources of energy is one of the government’s key priorities. However, he noted that greater emphasis is initially being placed on solar energy, with various incentives provided in the national budget, and urged entrepreneurs to come forward and invest in the sector by utilizing these facilities.
In his keynote presentation DCCI President Taskeen Ahmed said that global economic growth for 2026 has been projected at 3.1%, primarily due to trade barriers, the Middle East crisis, disruptions in supply chains, rising energy prices and a doubling of transportation costs, among other factors. As a result, a downward trend is being observed in overall investment, business and trade activities. He noted that several reform initiatives have been incorporated into the current fiscal year’s budget, including completing company registration within 48 hours through digitization, extending bonded warehouse facilities for the leather, footwear and home-textile sectors by three years, providing new duty-free benefits for 10 new sectors to enhance export capacity, expanding automation in tax administration, expediting customs procedures, and accelerating the signing of PTAs and FTAs with promising export destinations as part of preparations for LDC graduation. He expressed hope that effective implementation of these reforms would make doing business in Bangladesh easier. Referring to persistent high inflation, he said that while public-sector credit growth stood at 25.9%, private-sector credit growth was only 5%, which is a matter of concern for investment.
He emphasized that, in the long run, dependence on the banking system for financing needs to be reduced by strengthening the capital market. He also stressed the need to ensure uninterrupted access to all essential services in industrial zones to reduce export lead times. He said that actual credit flow to the CMSME sector remains at only 16.8%, against the target of 25%, while rising business costs have contributed to an increase in non-performing loans in the sector to 24.1%. To address these multidimensional challenges, he proposed increasing cash flow through digital scoring instead of conventional collateral-based lending, along with establishing special funds for affordable machinery and equipment. In addition, particularly in view of the ongoing energy crisis, DCCI President proposed introducing low-interest financing facilities to facilitate investment by small and marginal farmers in solar-powered irrigation systems. He also proposed reviewing power purchase agreements to reduce unnecessary subsidy burdens while ensuring stable and affordable electricity prices for consumers in the long term.
Dr. Hossain Zillur Rahman, Executive Chairman, Power and Participation Research Centre (PPRC) and Chairman, BRAC said that the country’s economy is at a critical juncture. He noted that if the right decisions are taken at this stage, the economy could gain the desired momentum; otherwise, there is a risk of falling further behind. He observed that harassment in various areas of the economy has evolved into a negative structural issue, preventing reform initiatives from delivering the desired results. He stressed that the government must pay due attention to this issue and that reducing such harassment is essential for expanding the tax net. Dr. Hossain Zillur also said that structural problems in the financial system must be addressed to reduce non-performing loans, while ensuring access to credit for SMEs. He proposed establishing an “Economic Reform Acceleration Unit” to monitor the implementation of the government’s economic reform initiatives.
Mahbubur Rahman, President, International Chamber of Commerce (ICC) Bangladesh said that in the current fiscal year, inflation has not yet declined to the desired level, while private-sector credit growth remains at its lowest level in many years. Investment has remained stagnant and the industrial sector has been unable to operate at full capacity. He observed that high interest rates, rising production and import costs, exchange-rate volatility and uncertainty over energy supplies have significantly increased the cost of doing business. Emphasizing the crucial role of the private sector in employment generation, investment, industrialization, export expansion and revenue mobilization, he stressed the need to strengthen private-sector confidence, capacity and competitiveness and ensure a stable, predictable and investment-friendly policy environment to move the country’s economy towards sustainable and inclusive growth.
Dr. Zaidi Sattar, Chairman, Policy Research Institute of Bangladesh (PRI) said that there is a significant gap between policy formulation and implementation in Bangladesh, resulting in the country failing to achieve the desired benefits. He observed that while Bangladesh maintains relatively liberal policies for export product and market diversification, its policies on imports remain restrictive, with high tariff rates contributing to higher domestic inflation and increased prices of goods. He also called for the formulation and implementation of appropriate strategies within the available timeframe for Bangladesh’s LDC graduation.
Professor Mustafizur Rahman, Distinguished Fellow, Centre for Policy Dialogue (CPD) said that a revolution in tax collection is essential for implementing the Annual Development Programme (ADP), while there is very little possibility of achieving the revenue collection target set in the national budget. He noted that although the budget contains several positive initiatives, these are not adequately reflected in monetary policy, contributing to rising inflation. Therefore, he stressed the urgent need for monetary policy reforms to address the situation. He further expressed concern that the amount of tax being paid by the people is not being fully deposited into the government treasury. He also advised the government to exercise greater caution in obtaining foreign loans and repaying existing debt.
During the scheduled discussion session, Syed Mahbubur Rahman, Managing Director & CEO, Mutual Trust Bank PLC, Simeen Rahman, Group CEO, Transcom Limited, Dr. A K Enamul Haque, Director General, Bangladesh Institute of Development Studies (BIDS), among others, participated.
Dr. A K Enamul Haque, Director General, BIDS said that the prolonged high rate of inflation is a major concern for a remittance-dependent economy. Given the global economic instability, achieving economic stability in Bangladesh would be challenging. He therefore emphasized the need to focus on increasing liquidity in the banking sector. He also observed that there is no alternative to ensuring an overall business friendly environment.
Simeen Rahman, Group CEO, Transcom Limited said that although the national budget contains business-friendly policies, the desired momentum has not yet returned to the private sector. She attributed this primarily to high interest rates and inflation, the high level of non-performing loans and excessive government borrowing from the financial sector. As a result, small and medium-sized entrepreneurs are among the worst affected. She further noted that high prices of industrial raw materials are reducing production and emphasized the need to prioritize improving the efficiency of port, customs and logistics services.
During the open floor discussion, former DCCI former President Hossain Khaled said that the real estate sector has never been recognized as an industry in Bangladesh, despite creating employment opportunities for a large number of people and making a significant contribution to government revenue. He therefore called for the sector to be formally recognized as an industry.
DCCI former President Abul Kasem Khan said that Bangladesh has approximately 75 years’ worth of coal reserves and suggested that utilizing these reserves for electricity generation could increase the availability of gas for industrial use. He also called for the establishment of national logistic authority for the development of the country’s logistics sector and urged the government to take initiatives to provide tax cards to all taxpayers.
DCCI former President Benajir Ahmed emphasized the need for necessary economic reforms and adequate preparation for the period following Bangladesh’s LDC graduation.
Former DCCI President Rizwan Rahman said that 96% of the government’s total revenue comes from Dhaka and Chattogram. Therefore, rather than increasing the tax burden on existing taxpayers, he emphasized the need to further expand the tax net and increase the use of AI technology in this regard. He also proposed allocating cluster based special economic zones for SMEs in the country.
DCCI Senior Vice President Razeev H Chowdhury, Vice President Md. Salem Sulaiman, members of the Board of Directors and representatives from both the public and private sectors were present on the occasion.
Published on: 2026-08-22