American Chamber of Commerce in Bangladesh president Syed Ershad Ahmed identified unemployment, inflation, lack of adequate logistics and policy uncertainty as major challenges for the business and investment in Bangladesh.

Despite Bangladesh’s significant progress, the country is going to lose several benefits upon graduating from LDC status in 2026, necessitating a focus on reducing management expenses, operational costs, and enhancing efficiency in tInflation, policy uncertainty key business challenges for Bangladesh: AmChamhe RMG sector and all other exports, AmCham president said.

Despite Bangladesh’s significant progress, the impending loss of several benefits upon graduating from LDC status in 2026 necessitates a focus on reducing management expenses, operational costs, and enhancing efficiency in the RMG sector and all other exports, AmCham said at its luncheon meeting held at Westin Hotel in Dhaka on Tuesday.

Ershad noted that each year, an additional two million graduates compound the ongoing shortage of employable skills, amidst the challenges posed by artificial intelligence and automation.

He emphasized the need to diversify the country’s exports and facilitate increased local and foreign investments to create more employment opportunities.

Regarding inflation, Ershad identified it as a significant challenge for Bangladesh.

The AmCham president pointed out that despite having good policies, widespread implementation gaps persist in the country.

He also highlighted inadequate logistics infrastructure and policies that result in longer lead times and higher costs compared to competitors, impacting business competitiveness.

Advocating for automation of the National Board of Revenue, the AmCham president underscored that automated taxation systems would enhance revenue generation.

He urged the government to streamline customs procedures, foster a more business-friendly environment, and reduce the cost of doing business.

At the meeting, state minister for finance Waseqa Ayesha Khan said that the government intensified its efforts to transform Bangladesh into a developed nation by 2041 through economic stability, scientific education, research, innovation and support for the agriculture sector to ensure food security.

She outlined the government’s strategic aims, including leveraging technology across sectors, digitizing services, optimizing marine resource utilization, enforcing financial sector discipline, and fostering a conducive environment for industries and investments.

The event, titled ‘Driving Financial Inclusion for Smart Bangladesh’, the state minister outlined ambitious targets for Smart Bangladesh, aiming for a per capita income of at least $12,500, reducing the poverty rate to below 3 per cent, keeping inflation between 4-5 per cent, and maintaining a budget deficit below 5 per cent of GDP.

She also reaffirmed plans to advance towards a fully digital economy and enhance science and technology-based literacy.

Emphasizing Prime Minister Sheikh Hasina’s dedication to promoting cashless transactions, Waseqa stressed the importance of financial inclusion and easy access to financial services in reducing poverty and boosting e-commerce.

The state minister disclosed the government’s active promotion of digital payments, aiming for 30 per cent cashless transactions by 2025 and full adoption by 2031, as discussed during the inauguration of the Smart Bangladesh Taskforce Meeting.

She noted the steady progress of financial inclusion in Bangladesh, marked by growth in deposits, loans, and mobile financial services accounts.

Companies like bKash and Nagad have significantly expanded financial access, especially in rural areas, she added.

Waseqa urged AmCham and its members to invest in textiles, gas and petroleum, pharmaceuticals, banking, and fintech sectors to contribute to Bangladesh’s development into a smart nation by 2041.