Political stability vital to sustain economic momentum: DCCI

Dhaka Chamber of Commerce & Industry (DCCI) has called for prudent, timely and effective economic measures to safeguard Bangladesh's economic momentum in 2026, amid political tension ahead of the 13th national election scheduled to be held on 12 February.

In this context, DCCI urges the interim government, political parties and all relevant stakeholders to ensure a peaceful, inclusive and credible election process, as political stability is the key to sustainable economic recovery and investment growth.

Dhaka Chamber believes that a stable political environment during the post-election period will boost the confidence of the local entrepreneurs and foreign investors, according to a statement issued on Saturday.

To accelerate economic recovery this year, DCCI calls upon the government to prioritise the improvement of overall law and order situation, ensure uninterrupted and affordable energy supply to industries, enhance ease of doing business, reduce the cost of doing business and strengthen infrastructure and policy frameworks to attract both domestic and foreign investment.

DCCI further stressed the need for export diversification, targeted support for potential export sectors, easier access to finance for CMSMEs and the development of a skilled workforce to complement the process.

The ongoing energy crunch and high energy prices continue to disrupt manufacturing and industrial production, eroding Bangladesh's competitiveness in international markets.

DCCI reiterates the need for a long-term, predictable energy pricing policy, alongside accelerated gas exploration, diversification of energy import sources, and the expansion of  long-term energy supply agreements.

The persistent foreign exchange pressure and currency depreciation have further negatively impacted the financial sector, also affecting imports of fuel, raw materials, and intermediate goods for export-oriented industries, as per the statement.

DCCI is of the opinion that currency swap can be considered on a priority basis for essential import payments. Besides enhanced incentives for remittance inflows are necessary to stabilise foreign exchange reserves.

At the same time, fiscal discipline, improved project implementation efficiency, reduced reliance on bank borrowing and good governance are essential to ease liquidity pressure in the financial sector, it stated.

DCCI also expresses concern that excessive government borrowing from the banking sector could shrink private-sector credit growth. This tendency also contracts the investment and employment growth of the local manufacturing and CMSMEs.

Dhaka Chamber also underscores the importance of full automation of revenue management, modernisation of tax laws, expansion of the tax base and strict measures to prevent harassment of compliant taxpayers.

sajibur@gmaiil.com