The recent quota reform unrest, which led to the downfall of the Awami League (AL) government, has severely damaged Bangladesh's global image, causing investors to withdraw and deterring potential new investments.
Despite this, there is cautious optimism as Chief Adviser Dr Muhammad Yunus, an internationally recognised individual, takes the helm of the interim government, offering hope for the nation's future.
However, business leaders are calling on the interim government to disclose its tenure and release a white paper outlining steps to restore financial stability, law and order, and to implement urgent reforms in the banking sector, supply chains, taka devaluation, and trade to combat inflation and other economic challenges.
According to Centre for Policy Dialogue (CPD), a non-government think tank, a staggering Tk 92,261 crore was siphoned off through 24 major banking scams between years 2008 to 2023—equivalent to about 12 per cent of the national budget for Fiscal Year 2023-24 or two per cent of the FY23 GDP.
Dhaka Chamber of Commerce and Industry (DCCI) President Ashraf Ahmed emphasised the urgent need for the government to restore law and order, saying, “The recent unrest has severely disrupted business activities. To get back on track, we must take immediate steps to stabilise commodity prices, reduce inflation, increase credit flow, and ensure banking stability.
"The widespread embezzlement across all sectors over the past decade and a half cannot be undone overnight, but the interim government has begun taking necessary actions. We expect them to continue engaging with trade bodies like the DCCI at the appropriate time to address these challenges collaboratively."
Bangladesh Bank (BB) recently revised the actual exports’ figures for the July-April period of FY24 by correcting anomalies worth nearly $14 billion as compared to the inflated economic picture painted by the Export Promotion Bureau (EPB).
Metropolitan Chamber of Commerce and Industry (MCCI) President Kamran T Rahman underscored the importance of the white paper, stating, “While the government undoubtedly has reform plans, it is crucial for us to understand the true state of Bangladesh's economy. A white paper would provide the clarity needed."
Foreign investors are hesitant to commit without the assurance of a stable government. Everyone is asking how long this interim government will remain in place. The sooner we transition to a political government, the better. However, the timing of that transition is a key concern,” he added.
FBCCI Senior Vice President Md Amin Helaly, as he expressed hope, said, “The new government will sit with us today and talk about the reformation needed in the banking sector and other side-line issues like the state of the National Board of Revenue (NBR).”
Meanwhile, CPD has raised alarms over the soaring defaulted loans, which have surged from Tk 22,481 crore in 2009 to Tk 1,82,295 crore as of March this year. The prolonged investigation into the 2016 Bangladesh Bank reserve heist, with the CID making 79 attempts, further highlights the need for comprehensive reforms. However, CPD emphasises that political will is essential to drive these reforms forward.
Executive Director of the Foreign Investors' Chamber of Commerce & Industry (FICCI) TIM Nurul Kabir explained, “We are working on the issues which we will discuss with the advisers towards enhancing the business-enabling environment in the last week of this month.”
