Bangladesh's legal, judicial and business communities at a meeting in Dhaka on Saturday made a united call for carrying out comprehensive reform of the country's commercial dispute -resolution framework.
The call came at a cutting-edge congregation as the Bangladesh International Arbitration Centre (BIAC) celebrated its 15th anniversary alongside the inaugural Bangladesh ADR Summit.
The gathering brought together the immediate past Chief Justice of Bangladesh, senior judges, business leaders, banking executives, legal practitioners, arbitrators and international experts, who agreed that efficient alternative dispute resolution (ADR) has become indispensable to improving Bangladesh's investment climate, lowering the cost of doing business and strengthening investor confidence.
Throughout the daylong summit, speakers argued that modernising dispute resolution is no longer merely a legal necessity but an "economic imperative".
They warned that prolonged litigation, judicial uncertainty and weak enforcement continue to undermine Bangladesh's competitiveness and discourage both domestic and foreign investment.
Delivering the keynote address, immediate-past Chief Justice Dr Justice Syed Refaat Ahmed described judicial reform as central to Bangladesh's economic future.
"I have always maintained that the quality of a nation's judiciary is a primary economic indicator," he said, noting that investors seek certainty that contracts will be honoured and disputes resolved within months rather than decades.
He acknowledges that problems in enforcing commercial contracts has long discouraged investment and slowed business activity.
"For too long, enforcing a commercial contract in Bangladesh has been a deterrent to foreign investment and a brake on domestic entrepreneurship," he observed.
Justice Refaat stressed that "time is a critical element of justice" and said judicial delays impose significant economic costs.
He highlighted the proposed Commercial Court Act 2026, which aims to introduce specialised commercial courts, technology-driven case management and modern procedures to accelerate dispute resolution.
Calling on judges, lawyers, businesses and policymakers to embrace institutional arbitration and mediation, he urged Bangladesh to move beyond traditional litigation.
"Let it be said that we chose... to cross the bridge between legal promise and economic reality together."
Opening the ceremony, BIAC Chairman Mahbubur Rahman reflected on the institution's transformation over the past 15 years into Bangladesh's only dedicated institutional ADR centre administering arbitration and mediation under internationally recognised rules.
"Justice therefore is not merely a legal principle. It is an economic necessity," he told the meet.
Rahman noted that BIAC has steadily expanded its credibility by providing arbitration and mediation services aligned with international standards while investing in capacity building for judges, lawyers, bankers and engineers.
He said BIAC's long-term vision is to integrate ADR into major commercial transactions and establish Bangladesh as a trusted regional destination for commercial dispute resolution.
Justice Fatema Anwar of the High Court Division of the Supreme Court argued that Bangladesh has already laid the foundations for institutional arbitration but now needs to strengthen the broader ecosystem.
"The question is not anymore whether we have built something. We already have. The question is whether we have enough."
Describing legal uncertainty as an invisible economic burden, she remarked: "Uncertainty in commercial life is by itself a tax... which no finance ministry ever collects but every business quietly pays."
Representing the business community, former BIAC Board Member Rizwan ur Rahman offered a candid assessment of commercial litigation.
"When I have been a naughty client, I want to delay the case in court forever and ever. But when I know I'm innocent, I want to get my justice immediately."
He argued that existing incentives often encourage parties to prolong litigation through filibustering, and called for government support.
"If the government pushes mandatory arbitration and provides financial and judicial incentives, then only we can see the effect."
He also warns that lengthy legal proceedings continue to discourage foreign investors.
Aftab Ul Islam, Chairman of Asia-Pacific General Insurance, described the anniversary as a milestone for Bangladesh's economic future rather than merely a celebration.l
"It is not just a celebration today of 15 years of BIAC; it is a moment for us to make a big decision about our economic future."
He praised BIAC's resilience through economic crises, the COVID-19 pandemic and political transitions, noting that the institution was established to reduce the cost of doing business in Bangladesh.
Highlighting BIAC's growing international profile, its Chief Executive Officer KAM Majedur Rahman said the organisation has signed memoranda of understanding with 12 arbitration organisations in China while maintaining partnerships across India, the Netherlands, Pakistan, Malaysia, Vietnam, Thailand, Singapore, Sri Lanka, the Philippines, Indonesia, Ethiopia, the Maldives, Bhutan and Nepal. Additional international partnerships are under discussion.
Veteran arbitrator and former judge Justice Md Awalad Ali explained that arbitration rests on agreements between disputing parties and is intended to provide speedy justice without the procedural complexities of civil litigation.
"The object of arbitration is to give expeditious relief to the parties concerned, unhampered by the rules and procedures prescribed by the Code of Civil Procedure and the Evidence Act," he said.
BIAC Board Member Anis A Khan highlighted Bangladesh's culture of prolonged litigation.
"Bangladeshis tend to go for long-drawn litigation which stretches and people pass away without a resolution," he noted, recalling that BIAC introduced the country's first institutional arbitration rules in 2012.
Dispute-management expert Dr Khaled Hamid Chowdhury challenged common misconceptions surrounding mediation.
"Mediation is not a sign that a party lacks confidence in its legal case; it is often an intelligent attempt to preserve time and cost," he said, adding that institutional ADR has taken years to gain acceptance within Bangladesh's litigation-oriented legal culture.
Another dispute -management expert, Mohammed Forrukh Rahman, pointed to weaknesses in commercial contracting.
"Most agreements which are supposed to have an arbitration clause most of the time do not have any arbitration," he said, citing one BIAC-administered dispute that was resolved within only three months.
From the banking sector, UCB Bank Managing Director and CEO Mamdudur Rashid said prolonged legal proceedings remain a major concern for financial institutions.
He noted that loan- recovery cases generally take between three and eight years, while non-performing loans have exceeded 30 per cent.
"In absolute terms that's Tk 5.8 trillion," he said, arguing that faster dispute resolution would significantly strengthen the banking sector.
Legal expert Margub Kabir argued that delays arise mainly from systemic shortcomings rather than deficiencies in the law itself.
"The bottleneck is basically systematic," he said, citing institutional culture, court congestion and litigation practices. He stressed the need to facilitate court proceedings so disputes can be resolved more efficiently.
Moderating one session, Barrister Sameer Sattar questioned whether ADR is still viewed merely as an additional mechanism instead of a genuine alternative to litigation.
"Nothing is predictable, nothing is certain in Bangladesh-but at least with arbitration that should be the case," he remarked.
Advocate Tanim Hussain Shawon said Bangladesh still lacks an effective arbitration ecosystem and criticised the reluctance of some government institutions to honour arbitral awards.
Professor Melita Mehjabeen of the Institute of Business Administration, the University of Dhaka, emphasised that successful arbitration increasingly depends on technical expertise and stronger coordination among regulatory institutions.
"This ecosystem, this alignment and collaboration between all the regulatory bodies is very important," she said, also calling for greater involvement of specialised experts in technically complex sectors such as telecommunications.
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