30th Annual Council of ICC Bangladesh held

The 30th Annual Council of the International Chamber of Commerce – Bangladesh (ICCB) was held on 26 July in Dhaka.

Mahbubur Rahman, President of the International Chamber of Commerce – Bangladesh, on behalf of the Executive Board, presented a comprehensive report on the evolving global and national economic landscape and its implications for Bangladesh, according to a media release. 

As the world continues to face a volatile mix of geopolitical tensions, climate risks, and economic disruptions, the ICCB Council underscored the urgent need for Bangladesh to adapt strategically in order to navigate the complex challenges of 2025.

The global backdrop remains unstable—marked by the Red Sea crisis, ongoing wars in Ukraine and the Middle East, and a resurgence of economic nationalism, especially following the return of Donald Trump to the U.S. presidency.

The Council noted that the global economy is expected to grow by just 2.8 per cent in 2025, with the U.S.–China trade war further aggravating uncertainties. Inflationary pressures and protectionist policies risk fragmenting global supply chains—an alarming trend for developing economies such as Bangladesh.

In this context, Bangladesh’s economy faces significant headwinds. The World Bank projects GDP growth to slow to 3.3 per cent in FY2024–25, while the IMF and ADB forecast growth at 3.8 per cent and 3.9 per cent, respectively. High inflation—exceeding 10 per cent overall and 14 per cent for food—combined with declining investment and political uncertainty, has deepened the economic slowdown.

A major concern is the fragile state of Bangladesh’s financial sector. Non-performing loans (NPLs) hit a record Tk 3.45 trillion by December 2024, with state-owned banks the worst affected. Nineteen banks have reported a capital shortfall of Tk 1.71 trillion, prompting the interim government to initiate banking reforms, including board dissolutions, bank mergers, and stronger oversight.

The ICCB also addressed the implications of Bangladesh’s planned graduation from Least Developed Country (LDC) status by November 2026.

With the likely loss of preferential trade terms—especially in the RMG sector—the country risks facing tariffs of up to 11.5 per cent in major markets such as the EU and the UK.

The Council emphasised the importance of a transition strategy to safeguard export competitiveness and maintain foreign investment flows.

In addition to banking and trade concerns, the Council highlighted several key challenges:

Energy Security: Rising costs from increased reliance on imported fossil fuels and currency depreciation require urgent domestic exploration and investment in renewable; Fiscal Pressure: With a tax-to-GDP ratio below 10 per cent, revenue mobilisation remains weak. The restructuring of the National Board of Revenue is expected to improve efficiency and fiscal space; Climate and Food Security: Ranked among the most climate-vulnerable nations, Bangladesh faces serious risks from floods, droughts, and salinity intrusion. Climate change may cut annual GDP growth by 2 per cent if not addressed; FDI and Export Diversification: FDI remains far below regional peers, at $3 billion in 2023 compared to Vietnam’s $39 billion. Export reliance on garments must be reduced by promoting sectors like pharmaceuticals, agro-processing, and IT; Cybersecurity: As the digital economy expands, the threat of cyberattacks grows.

The ICCB urged swift action to strengthen national cybersecurity infrastructure and regulation; U.S. Tariffs: A proposed 37 per cent tariff on Bangladeshi exports to the U.S. could severely affect RMG exports and job creation.

The ICCB suggested forming a task force under the Ministry of Commerce to negotiate fairer trade terms and ensure continuity of access.

Finally, the Council emphasised the potential of the Bangladesh-Bhutan-India-Nepal (BBIN) corridor to enhance regional connectivity and trade. With improved infrastructure and stronger cooperation, BBIN’s combined GDP could reach $8.3 trillion by 2035, positioning Bangladesh as a strategic transit hub.

President Mahbubur Rahman reiterated ICC Bangladesh’s commitment to supporting reform, resilience, and regional integration as key pillars for sustainable economic recovery.

The Council approved the Auditor’s Report of 2024 and appointed Auditor for the year 2025.

The High Commissioner of Brunei Darussalam, H.E. Mr. Haji Haris Bin Haji Othman; the Ambassador of the Republic of the Union of Myanmar, H.E. Mr. U Kyaw Soe Moe; the Chargé d’Affaires of Argentina, Mr. Maximiliano Romanello and Senior Economic Officer Asian Development Bank Barun Kumar Dey attended the Council Meeting as Special Guests.

The Council Meeting was attended, among others, by the ICCB Vice President Mr. Naser Ezaz Bijoy; ICCB Executive Board Members: Mr. Kutubuddin Ahmed, Mr. Anwar-ul-Alam Chowdhury (Parvez), Mr. Aftab Ul Islam, FCA; Mir Nasir Hossain, Mr. Kamran T. Rahman, Mr. Sayeed Ahmed, Mr. Mahmud Hasan Khan, Mr. Mohammed Hatem & Mr. Showkat Aziz Russell; ICCB Members : Azim Group Chairman Mr. Mohammad Fazlul Azim, FICCI President Zaved Akhtar; DCCI Sr. Vice President Razeev H Chowdhury; Arlinks Limited Chairman & MD Mr. Imran Faiz Rahman, DBL Ceramics Limited Managing Director Mr. Mohammad Abdul Jabbar, ETBL Securities & Exchange Ltd. Managing Director & CEO Mr. Rizwan Rahman; Ha-meem Group Director Sajid Azad; Meghna Group of Industries Chairman & Managing Director Mr. Mostafa Kamal, New Zealand Dairy Products Bangladesh Limited Managing Director Mr. Mohammad Samsul Alam Mallick, Summit Alliance Port Limited Managing Director Syed Ali Jowher Rizvi; Islam Aftab Kamrul & Co  Managing Partner AKM Kamrul Islam; United Insurance MD Khawja Manzer Nadeem; green Textile MD Mr. Tanvir Ahmed; Swisscontact Country Director Mr. Md. Helal Hussain, Tyser Risk Management Bangladesh Ltd. Managing Director Mr. S. M. Moinul Islam, Karnaphuly Ins. Co. CEO Mr ANM Fazlul Karim Munshi; DSE COO & MD  Mr. Mohammad Asadur Rahman ICC Bangladesh Banking Commission Chairman Mr. Muhammad A. (Rumee) Ali & ICCB Secretary General Ataur Rahman.