One year after the July Uprising, Bangladesh stands at a critical juncture in its economic recovery. While some macroeconomic indicators show signs of stability, the business community remains cautious. In an exclusive interview with Jago News’ special correspondent Ibrahim Hussain Ovi, Anwar-ul-Alam Chowdhury (Parvez), President of the Bangladesh Chamber of Industry (BCI), discusses the achievements, challenges, and urgent reforms needed to restore investor confidence and drive sustainable growth.
Jago News: What tangible economic reforms or achievements has the business community seen in the past year following the student-led mass uprising?
Anwar-ul-Alam Chowdhury: That’s a question the general public may be best placed to answer. From the business sector’s perspective, however, there have been a few positive developments. The banking sector has shown some improvement. According to Bangladesh Bank, we now have a surplus in the balance of payments, and the current account surplus stands at around $1 billion. Foreign exchange reserves have also stabilised, exceeding $30 billion.
There has been a partial restoration of discipline in the banking sector. However, this has come with a conservative policy approach. Interest rates have been raised to control inflation, which has led to a sharp slowdown in private sector credit growth – down to just 6 per cent in June. The target for the next six months is only 7.2 per cent. This suggests the government and central bank do not currently see a need for aggressive credit expansion in the private sector.
Jago News: What impact is this limited credit growth having on the broader economy and business activities?
Anwar-ul-Alam Chowdhury: Slower credit growth in private sector does not mean investment is rising. In fact, the opposite is true. Employment is declining, and in some sectors, we’re even seeing negative growth. Many industrial enterprises are gradually losing production capacity.
Multiple factors are behind this: rising interest rates, weak market demand, persistent inflation, and the ongoing gas and energy crisis. As a result, non-performing loans in the industrial sector have surged – reaching approximately Tk 5,30,000 crore by June. This is deeply concerning. It could affect our international credit ratings and create further difficulties in opening letters of credit or attracting foreign investment.
Jago News: Given these reforms, is the business community optimistic about the future, particularly regarding new investments or expansion of existing operations?
Anwar-ul-Alam Chowdhury: Sadly, no. There is little to no optimism – neither for new investments nor for expanding existing industries. Law and order has not improved; in many areas, it has deteriorated. Although an election schedule has been announced, the political situation remains uncertain. There is a lack of clarity about the future government’s plans.
Moreover, businessmen feel that the current administration is not engaging in regular dialogue with them or taking concrete steps to rebuild trust. Without predictability and consultation, confidence cannot return.
Jago News: In your view, why haven’t the reform initiatives delivered the expected results?
Anwar-ul-Alam Chowdhury: There are three main reasons. First, there have been no meaningful structural or institutional reforms. A lot of time has been spent talking about reforms, but very little has been implemented. The business community is calling for real change in the judiciary, bureaucracy, and the National Board of Revenue (NBR) –yet we’ve seen no visible progress in these critical areas.
Second, there is a lack of political will and policy stability. Frequent shifts in direction and unclear implementation undermine confidence and long-term planning.
Third, there is overreliance on IMF-prescribed policies, which often fail to account for Bangladesh’s unique economic and social realities. As a result, the reforms being implemented do not always address the root problems or deliver the intended outcomes.
Jago News: What steps should be taken to restore business confidence and ensure sustainable economic progress?
Anwar-ul-Alam Chowdhury: Five key actions are essential. First, ensuring political stability. A predictable and stable political environment is the foundation of economic recovery. Second, accelerating structural and institutional reforms. Real, measurable changes must be made in the judiciary, NBR, and bureaucratic processes to reduce red tape, ensure accountability, and uphold the rule of law.
Third, improving law and order visibly. Businesspeople need to feel safe investing their time, capital, and energy. A tangible improvement in security and public order is non-negotiable.
Fourth, boosting credit flow while maintaining banking discipline. While financial prudence is important, the current credit squeeze is harming growth. The government and central bank must find ways to increase credit access for productive sectors without compromising stability.
Fifth, engaging in regular dialogue with the private sector. Policymakers must consult business leaders, listen to their concerns, and incorporate their feedback into national planning. Inclusion builds trust and leads to better policies.