Thu Nov 21 19:38:21 UTC 2024: ## Bangladesh Business Leaders Urge Increased Government Engagement Amidst Economic Challenges
**DHAKA, BANGLADESH** – Leading Bangladeshi business figures have called for greater government collaboration to address significant economic hurdles facing the private sector. Speaking at a discussion titled “100 Days of the Interim Government: Economic Review,” organized by *The Daily Star*, they highlighted challenges including high inflation, rising interest rates, slowing demand, and investment stagnation.
Participants emphasized the private sector’s crucial role in driving Bangladesh’s economy. They argued that increased government engagement would facilitate solutions to existing problems, remove investment bottlenecks, and stimulate both employment and economic growth.
Tanvir Ahmed of Envoy Textiles described a stagnant economy and dwindling businesses, urging swift action to prevent further financial sector instability. He stressed the need for the government to engage with stakeholders, a step he said hasn’t yet been taken.
Mir Nasir Hossain, a former FBCCI president, attributed recent unrest, including in the garment sector, to a combination of factors: weak law and order following a period of political upheaval, worker dissatisfaction over benefits and delayed salaries, and external instigation. He also highlighted the need for improved factory owner-community relations.
While acknowledging positive steps like improved energy supply, Hossain and other speakers expressed serious concerns about high bank interest rates stifling investment. They also emphasized the need for improved law and order and a crackdown on extortion.
Mostafa Kamal of Meghna Group of Industries and Kamran T Rahman of the MCCI echoed these concerns, highlighting the ailing banking sector with its high non-performing loans and the need for banking reform. Rahman also stressed the urgency of meeting EU environmental standards to avoid devastating impacts on the RMG sector, proposing a significant investment in solar power.
Abrar Hossain Sayem of BAYLA noted the positive international perception of the interim government but emphasized the challenges faced by small and medium enterprises due to rising costs. Monzur Hossain of BIDS highlighted the need for managing inflation and implementing sound financial reforms, including continued liquidity support for struggling banks.
The discussion concluded with a call for the interim government to focus on restoring law and order and rebuilding confidence, particularly within the police force. Participants also stressed the potential for significant export losses if Bangladesh fails to adapt to its graduation from LDC status in 2026. The *Daily Star* reaffirmed its commitment to supporting a thriving Bangladeshi private sector.
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