Former Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) president Abdul Awal Mintoo warned on Monday that high inflation would likely continue, while investments in Bangladesh could remain stagnant in the coming years.

He highlighted the challenges facing the country’s manufacturing sector, which are exacerbated by a lack of alignment among key macroeconomic indicators.

At an event titled ‘A conversation with ERF members’ held at the Economic Reporters Forum auditorium in the capital Dhaka, Mintoo said that the country’s manufacturing sector was facing its toughest challenges from the prevailing law and order situation and issues in the banking sector.

He apprehended that non-performing loans would increase more in the coming days due to the recent circular issued by the Bangladesh Bank in this regard.

The business leader mentioned that it was an alarming issue for the country that private sector credit growth had decreased to 8 per cent from the previous 13-14 per cent.

He said that the previous government had institutionalised authoritarianism and factionalism while weakening public welfare institutions through excessive party influence.

This led to market mismanagement and the prioritisation of policies favouring self-serving politicians and ruling party supporters, Mintoo said.

He accused the previous government of enabling corruption, providing legal protection for party-affiliated businesses and facilitating the misuse of state resources.

Mintoo said that the low-level weak governance in Bangladesh had become a major urgent headache and cause for concern.

The business leader said that a crisis in governance was crippling Bangladesh’s economy, financial systems, and institutions, pulling the country and its labour force into the abyss of degradation.

Mintoo, also the chairman of National Bank Limited, criticised the economists who recommended not providing cash support to the country’s week bank any more.

Regarding the performance of the capital market, he said that the governments of Bangladesh had failed to establish a functional capital market, which instead of being a platform for long-term investment, had turned into a lottery-like playground.

He recommended strengthening the regulatory body first and then enacting policies that support general investors to make the market functional.

Regarding the freezing of accounts of businesspersons and their family members, Mintoo said that it was unlawful and that the government should follow due legal processes in such matters.

ERF president Refayet Ullah Mirdha and general secretary Abul Kashem also spoke at the event.