Businesses have urged the establishment of a separate Commercial Court to address trade-related disputes, warning that prolonged judicial processes are hampering both local and foreign investment.

The call came at a seminar titled ‘Advancing Dispute Settlement and Contract Enforcement for Businesses’ organised by the Dhaka Chamber of Commerce and Industry (DCCI) in the capital on Tuesday.

DCCI president Taskeen Ahmed said that with Bangladesh’s growing economic activities, disputes linked to business contracts, investments and intellectual property are also on the rise.

‘Currently, around four million cases remain unresolved in lower and higher courts of Bangladesh, and these prolonged judicial processes are hampering both local and foreign investment,’ he said.

He added that although the Arbitration Act was passed in 2001, it has not been effectively implemented.

‘In this context, it is important to establish a separate Commercial Court with experienced judges and reforms to the existing legal framework, which would accelerate the pace of trade and investment,’ Taskeen said.

Michael Miller, ambassador and head of delegation of the European Union in Bangladesh, said the EU has been working closely with the government on legal reforms.

He stressed that the formation of Commercial Courts would be crucial for Bangladesh as it approaches LDC graduation and pursues export diversification.

‘Such courts would encourage both domestic and foreign investment. Strengthening arbitration mechanisms would also help reduce the current investment stagnation,’ he said, noting that European companies are interested in Bangladesh’s logistics and shipping sectors.

Commerce secretary Mahbubur Rahman said judicial delays were becoming intolerable given Bangladesh’s large population and the increasing number of cases.

‘If trade-related disputes can be resolved outside traditional courts, it would substantially reduce pressure on the judiciary and improve the business climate,’ he said.

He informed the seminar that the process of establishing a Commercial Court is ongoing and expressed hope that a draft proposal would be finalised within a month.

Md Abdur Rahim Khan, additional secretary (export wing) of the Ministry of Commerce and vice chairman (additional charge) of the Export Promotion Bureau, said delays in dispute resolution not only deter foreign direct investment but also hinder export growth.

He suggested forming legal institutions outside traditional courts to resolve disputes more quickly through negotiations.

The keynote paper was presented by barrister Md Sameer Sattar, former president of the DCCI.

Officials from the Bangladesh Investment Development Authority, the Bangladesh International Arbitration Centre, members of the judiciary, international consultancy representatives, and current and former DCCI leaders also took part in the event.