Business leaders and entrepreneurs say the prevailing situation over the past one and a half years has made investment difficult. They now want tomorrow’s national election to be held peacefully, followed by a smooth and orderly transfer of power. Regardless of the outcome, they expect the formation of a newly elected political government to usher in a stable and investment-friendly environment.
Although the interim government has achieved some success in stabilising foreign exchange reserves and boosting remittance inflows, it has failed to rein in high inflation. The period was also marked by weak law and order and elevated lending rates. As a result, private investment and credit growth stagnated, negatively affecting job creation. At the same time, a trust deficit and distance between the government and the business community persisted. The 13th national parliamentary election and referendum will be held tomorrow. Businesspeople and industrialists across the country are now looking forward to a peaceful vote and a smooth handover of power. They believe such an outcome would enable the overall economy and investment initiatives to regain momentum.
Industrialists say that those who looted banks and were involved in irregularities during the ousted Awami League government must face justice through due process. However, they caution that the damage caused by such misconduct cannot be remedied by targeting the entire business community or obstructing business activities.
Business leaders want to be partners in Bangladesh’s next phase of transformation. They emphasise the need for a peaceful environment and believe that if major challenges — particularly in the energy sector — are addressed sustainably, the economy could undergo a significant transformation within three years.
Tapan Chowdhury, director of Square Group, told Bonik Barta, “The interim government has been running the country for the past one and a half years. They have made their best efforts. Some industries have suffered during this time. Port operations were recently disrupted. Overall, there has been a degree of instability. Now the time has come for an elected government to assume responsibility through a peaceful election. We expect them to at least think about the country’s future. In such a densely populated country, job creation is crucial. We hope better days lie ahead.”
Highlighting that business interests are closely tied to national interests, Chowdhury said they do not want to risk further instability. “Those operating factories, in particular, want the country to run smoothly. Personally and collectively, I believe industrialists will fully support whichever government comes to power. Whoever forms the government will have the full backing of the business community, because we can’t afford instability. Looking at the global context, it’s clear that we aren’t in a comfortable position. There is no alternative but to ensure the country is run properly.”
High inflation has remained in the country since 2022. When the interim government assumed office in August 2024, the rate was hovering above 11 percent. To contain such high inflation, Bangladesh Bank raised the policy rate to 10 percent, pushing bank lending rates close to 15 percent. Despite these measures, the government has not achieved notable success in curbing inflation over the past year and a half. In January, inflation stood at 8.58 percent and has been on an upward trend since October. However, the interim government had pledged to bring inflation down to 6.5 percent. Business leaders say that tackling this situation and advancing the economy will require close collaboration between the new government and the business community.
Alihussain Akberali, chairman of BSRM, told Bonik Barta, “The mandate of the interim government was to hold elections, and as promised, that election is now imminent. One of its major achievements has been bringing all political parties to a consensus on reforms. Over the past year and a half, the government hasn’t undertaken any large development projects. However, it worked on infrastructure and introduced reforms at the Bangladesh Bank and in the banking sector. I believe that whichever government assumes office now will find the economy ready to move forward rapidly. The mandate of any incoming government is to advance and perform. The only way forward is performance. The new government must demonstrate corruption-free performance and ensure accountability and transparency. If capable and credible businesses receive proper support, the country can move ahead swiftly. Transformation must take place through engagement with the private sector. Whichever party takes charge must prioritise performance above all else; otherwise, fascism may return.”
Various positions taken by the interim government created adverse circumstances for many businesspeople. Policy initiatives also led to divisions within associations representing the same sectors. A degree of distance emerged between the government and the private sector over different actions taken during this period.
In this context, Mohammad Mustafa Haider, Group Director of TK Group, said he expects a peaceful election and an orderly transfer of power to help accelerate economic momentum. He told Bonik Barta, “The government must sit with stakeholders — not merely for optics, but on a regular basis. Engagement with stakeholders must be ensured to navigate the economy out of its current challenges.”
He added, “Recently, we’ve seen divisions even within business associations of the same sector. This situation cannot be allowed to continue. A coordinated framework must be created to ensure coexistence and equal opportunity for all to demonstrate competence. There are many such challenges. The new government must listen to and address them. I hope that, following peaceful elections and an orderly power transfer, it’ll be possible to move forward quickly with the desired engagement. Given the current state of the economy, we’ve little room for delay.”
A daily gas shortfall of around 1,000 million cubic feet has disrupted industrial production, in some cases reducing output by 35 to 40 percent. With limited growth in domestic gas production, the interim government relied heavily on costly LNG imports. As a result, LNG imports alone cost approximately BDT 407.52 billion in FY 2024-25. Although efforts have been made to reduce subsidies and pursue legal reforms due to macroeconomic pressures, structural crisis in the energy sector, and outstanding payment liabilities remain significant challenges.
Azam J Chowdhury, chairman of East Coast Group, told Bonik Barta, “From the private sector, we seek policy support from the government. The biggest problem has been energy. There was no effective policy support to address this crisis. We hope the new government will provide policy assistance and give equal importance to business and infrastructure development. This will attract investment and create employment opportunities. With elections imminent and a new government set to take office, they will frame a policy structure under which we can work together and move forward.”
A sustainable solution to the energy crisis and improved governance are necessary for Investors. Mostafa Kamal, Founding Chairman of Meghna Group of Industries, expressed hope that the new political government will prioritise the private sector. He told Bonik Barta, “For future industrialisation and job creation, the two most critical elements are good governance and energy. Red tape must be eliminated. Many industrial initiatives are stalled due to energy shortages. Ensuring good governance will curb bribery and corruption. Engagement between the government and the private sector has been almost non-existent. The previous government didn’t listen, and during the interim government’s tenure, requests for engagement went unanswered. We therefore expect closer engagement with the new government. No country in the world is progressing today without the private sector.”
During the ousted Prime Minister Sheikh Hasina’s one-and-a-half-decade tenure, the country’s banking sector was subjected to unprecedented plunder. Several audit reports estimated that more than BDT 5 trillion had been siphoned off from the sector. The non-performing loan ratio has surged to nearly 35 percent. More than half of the country’s public and private banks are now burdened by irregularities and corruption. Amid failures to return depositors’ funds and acute governance deficits, the interim government finalised an initiative to merge five Shariah-based banks into a single entity. The fragility of the banking sector — arguably at its most vulnerable point in history — has had a broader impact on the national economy.
Syed Mahbubur Rahman, managing director of Mutual Trust Bank (MTB), told Bonik Barta, “We expect that once an elected government assumes office, it will attempt to bring change. However, the reality is that discipline hasn’t returned to the banking sector, nor have amendments to banking laws been enacted. More importance must be given to reforming the bureaucracy than to politics. We still don’t know what policies the new government will adopt. The government’s own resources are very limited, while expenditures continue to rise. The situation is difficult, but with political goodwill, there is still room for doing something. There are still outstanding dues of BDT 140–180 billion in the energy sector. If the government fails to settle these payments, a power crisis may emerge during Ramadan, and electricity supply in the summer could become uncertain. We can’t look at the banking sector alone; the situation must be assessed holistically across all sectors.”
During the interim government’s tenure, the investment deteriorated sharply. Private sector credit growth fell to just 6 percent. Over the past 18 months, both domestic and foreign investment have remained sluggish, resulting in a fragile employment situation. While few new jobs were created, many people fell into unemployment, and numerous industrial units shut down. According to the Bangladesh Investment Development Authority (BIDA), registration of domestic and foreign investment proposals declined by 58 percent in FY 2024-25. During the same period, actual foreign direct investment fell by 57 percent, while new foreign investment declined by 16 percent.
Anwar-Ul Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries (BCI), told Bonik Barta, “Everyone is now facing uncertainty. The global political landscape is moving in an unfavourable direction. In this context, the incoming government must be highly visionary. The next government will face multiple challenges. It is unclear how inflation will be brought under control. At the same time, bank lending rates remain high. The banking sector has faced permanent damage. Overall, industrial competitive capacity is at risk. The new government’s mechanisms must be robust enough to address these adverse conditions.”
In the post-uprising period, the breakdown in law and order has not fully recovered under the interim government. Labour unrest and instability at Chattogram Port have placed export trade at risk. Apart from these, mob violence has heightened concerns across both the economic and social landscapes.
Rupali Haque Chowdhury, president of the Foreign Investors’ Chamber of Commerce and Industry (FICCI) and managing director of Berger Paints Bangladesh Limited, told Bonik Barta, “First and foremost, there must be improvement in law and order. Furthermore, social stability and discipline must also be maintained. We expect the new government to formulate business-friendly policies to encourage investment and employment. An environment must be ensured where everyone feels motivated to invest. Bank credit should be more accessible, and lending rates should be reasonable. Only such an environment must be created that restores investor confidence.”
Ahsan Khan Chowdhury, chairman and CEO of PRAN-RFL Group, said that with appropriate support from the new political government, business leaders can steer the economy back onto a positive trajectory. He told Bonik Barta, “Regardless of political distance or differences of opinion, there must be unity of thought when it comes to business and the economy. Bangladesh remains a poor country. If we want overall national progress, economic activities must be given top priority. The reality is that political divisions are harming business in Bangladesh. Therefore, setting aside political differences and making national economic advancement the primary objective — individual and collective — is essential. There can be no compromise on issues such as investment, banking, the overall economic environment, infrastructure, and ports. With consistent support from the government in these areas, businesses will be able to operate with confidence, and from that foundation, the country’s economy can move forward more decisively.”