Business leaders on Saturday said that Bangladesh was facing significant economic challenges—such as slow GDP growth, currency devaluation, rising inflation, and labour unrest—that threatened its stability.

They expressed concerns about financial instability, particularly due to high levels of non-performing loans and liquidity shortages in the banking sector.

During a roundtable on the ‘Current State of the Economy and Outlook of Bangladesh,’ organised by the DCCI, the business community stressed the urgent need to restore law and order to stabilise the business environment.

They advocated for banking reforms to address non-performing loans and liquidity issues, as well as supply-side reforms to combat inflation and enhance energy security.

Former president of the Federation of Bangladesh Chambers of Commerce and Industry Mir Nasir Hossain said that high interest rates have been hindering competitiveness.

He also pointed out that domestic industries required attention alongside export-oriented sectors.

Nasir said that the manufacturing industries have been severely suffering due to a lack of uninterrupted gas supply and suggested strengthening onshore and offshore gas exploration in the sea.

Bangladesh Knitwear Manufacturers and Exporters Association president Mohammad Hatem called for improved relations between workers and owners to mitigate ongoing unrest in the readymade garment sector.

He said that factory owners suffer when they do not receive fair prices from buyers, a concern that many, including workers, are unaware of; he also urged Bangladesh Bank to grant industry owners more time to repay loans.

Dhaka Chamber of Commerce & Industry president Ashraf Ahmed called for the immediate restoration of law and order to stabilise the business environment and emphasised the urgency of banking reforms to address non-performing loans and liquidity issues.

To combat inflation, he proposed supply-side reforms for the efficient distribution of essential goods.

Ashraf also stressed the importance of diversifying the energy mix and investing in the energy sector, alongside developing planned housing, education, and healthcare facilities in Ashulia to improve living conditions for workers.

Leather Goods and Footwear Manufacturers & Exporters Association of Bangladesh president Syed Nasim Manzur expressed concerns about the insecurity felt by business owners due to labour unrest and vandalism, which have led to a significant decline in consumer spending on food and services.

He also said that the high double-digit interest rates on industrial loans were unsustainable in a competitive market and emphasised the need for foreign direct investment, which remains stagnant due to low investor confidence.

Policy Exchange Bangladesh  chairman M Masrur Reaz said that the failure to implement timely policies has led to a recent macroeconomic crisis, with eroded investor confidence, law and order issues, labour unrest, and inflation being major challenges.

‘We have seen a commendable progress in the banking sector reforms recently but in the other areas we are yet to see the policy governance,’ he said.

Former DCCI president Shams Mahmud said that ongoing labour unrest in Ashulia disrupted factory production and could lead to lost business to competitors if law and order does not improve.

He called for discussions to resolve wage-related issues rather than vandalism and urged for better support for SMEs and accountability in the banking sector to protect genuine businesses from mismanagement.

PRAN-RFL Group chairman Ahsan Khan Chowdhury highlighted Bangladesh’s potential as a manufacturing hub, but noted that labour unrest hindered employment creation.

He called for a restoration of effective law enforcement and suggested that high interest rates made sustainability difficult for businesses.

He proposed rewarding good borrowers to mitigate non-performing loans and removing restrictions on letters of credit to boost industry activity.

Country manager for Mastercard Bangladesh Syed Mohammad Kamal conveyed a significant drop in digital spending due to recent political turmoil and disruptions in the tourism sector, urging for incentives for digital payments to maintain forex reserves.

Foodpanda Bangladesh Co-Founder Ambareen Reza advocated for low-cost funding for SMEs and emphasised the need for widespread low-cost internet access, viewing it as a vital utility.

DCCI senior vice-president Malik Talha Ismail Bari also attended the discussion.