Business leaders look to elected govt with cautious optimism

Business leaders look to the oncoming political government with cautious optimism that the transition would restore confidence among local and foreign investors and international buyers.

They expressed such optimism as the Bangladesh Nationalist Party (BNP) prepares to form the government with a commanding majority scored in the 13th parliamentary election, while pointing out a daunting task of economic recovery.

They believe a stable, elected government will help create a predictable policy environment for trade and investment, particularly after prolonged fragile investor sentiment and a "go-slow" approach adopted by many foreign buyers.

Showkat Aziz Russell, president of Bangladesh Textile Mills Association (BTMA), congratulates Tarique Rahman, chairman of the Bangladesh Nationalist Party, on leading his party to a landslide victory with a two-thirds majority in the 13th National Parliament.

He hopes under the party's leadership, parliament would play an effective role in accelerating industrialisation-particularly by addressing longstanding challenges in the textile sector-while promoting investment and sustainable economic growth.

To restore business confidence, Russell has urged the new government to immediately reform the apex trade body, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). He stresses that trade bodies should be treated as key partners and that the government should hold regular consultation with them on pressing economic issues.

He criticises what he describes as a longstanding bureaucratic culture of "passing the pillow," where files circulate among ministries without timely decisions, causing delays and frustration.

Russell also notes that during the last 18 months of the interim government, business leaders could not secure even 18 minutes with its top leadership, despite the textile sector contributing nearly 13 per cent to the country's GDP.

He further questions the interim government's approval for substantial financial support for several allegedly dysfunctional banks, while entrepreneurs struggled to obtain adequate policy support.

He urges the winning party to form a cabinet comprising skilled, efficient and knowledgeable ministers capable of addressing complex economic challenges.

Shams Mahmud, president of the Bangladesh-Thai Chamber of Commerce and Industry, says the peaceful conduct of the election and the strong voter turnout sent a positive signal to the business community.

"A two-thirds majority would help ensure political stability and enable the government to implement necessary reforms," he told The Financial Express on a note of optimism about a turnaround.

However, he cautions that restoring stable law and order conducive to a business-friendly environment would be the most immediate and critical challenge. He mentions that the new government might inherit serious macroeconomic pressures, including energy shortages, a dollar crisis and high inflation.

Mahmud notes that private-sector credit growth has remained weak in recent years and says neither the previous government nor the interim administration had adequately addressed structural economic challenges.

He urges the new administration to restore investor confidence at home and abroad, control inflation and reassess large-scale development projects in the light of the balance-of-payments situation.

Taskeen Ahmed, president of Dhaka Chamber of Commerce and Industry (DCCI), feels the country's return to a democratic government has created visible relief across society and boosted business confidence.

Nonetheless, he has emphasised that the government must prioritise maintaining law and order and immediately curb extortion to strengthen investor sentiment.

"Ensuring uninterrupted energy supply and implementing meaningful banking-sector reforms would also be essential for economic recovery," he says, adding that close consultation with the business community should guide policymaking.

Fazlee Shamim Ehsan, executive president of Bangladesh Knitwear Manufacturers and Exporters Association, thinks a credible and widely accepted election would be viewed positively by foreign stakeholders. "Any disputed or chaotic poll could have undermined business confidence," he notes.

He has stressed that a stable law-and-order situation is essential for maintaining global trade relations and warned that mob culture could damage Bangladesh's international standing.

"Sustained confidence among domestic and foreign investors," he says, "will depend on how effectively the government tackles law and order, extortion and corruption."

Anwar-Ul Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Industries, has said the completion of a free and fair election brought relief to the business community after months of uncertainty.

He says the outcome would help restore confidence among international trading partners and improve Bangladesh's image abroad.

"Everyone has lost their confidence on the interim government as they failed to control law-and-order situation," he says, adding that the new government's biggest challenges would include restoring law and order and preventing mob violence.

"High inflation will be a major obstacle in addressing the banking crisis," he notes, adding that IMF-backed policies would help tackle the issue.

He suggests that the government should sit with business leaders to find solutions, noting that the energy crisis would be another significant challenge for the new administration.

He also urges the new government "to analyse the US tariff agreements in detail and take necessary preparation for the country's LDC graduation".

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