Bangladesh’s Prime Minister Tarique Rahman on Saturday chaired the inaugural meeting of the Private Sector Advisory Council (PSAC), marking the establishment of a formal mechanism for structured dialogue between the government and business leaders aimed at improving the country’s investment climate.

The new council is designed to provide timely, candid and organised feedback to the highest levels of government on business conditions, investment barriers and priority reforms.

Officials said the initiative is intended to narrow the gap between policy formulation and ground-level commercial realities.

Held at the Prime Minister’s Office, the meeting reviewed key constraints affecting investment and economic activity, including regulatory complexity, energy supply challenges, human capital development, tax administration reform and the modernisation of the National Board of Revenue.

Discussions also covered logistics and transport infrastructure, export diversification, foreign direct investment, banking sector efficiency and efforts to rebrand Bangladesh internationally.

A group of leading industrialists has been selected for the council, including Arif Dowla, Managing Director of ACI PLC; Syed Nasim Manzur, Managing Director of Apex Footwear Ltd; Hafizur Rahman Khan, Chairman of Runner Group; Ahsan Khan Chowdhury, Chairman and CEO of PRAN-RFL Group; Ziaur Rahman of Bay Group; Abdul Muktadir of Incepta Group; Md Abdul Jabbar of DBL Group; Sohana Rouf Chowdhury of Rangs Group; and Syed Mohammad Tanvir of Pacific Jeans Group.

Senior policymakers also attended the session, including Finance Minister Amir Khosru Mahmud Chowdhury, Commerce Minister Khandaker Abdul Muktadir, Power and Energy Minister Iqbal Hassan Mahmood Tuku, State Minister Anindya Islam Amit, and BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun, alongside other representatives from the public and private sectors.

Officials said the PSAC will meet quarterly to assess progress on reform measures and implementation challenges.

Speaking after the meeting, Syed Mohammad Tanvir said the council would serve as a ‘sounding board’ for the Prime Minister to better understand operational challenges faced by manufacturers.

He said that discussions focused on policy consistency, simplification of procedures, faster implementation and improved governance.

Finance Minister Amir Khosru Mahmud Chowdhury said the session involved extensive exchanges on trade, commerce and investment barriers, noting that some issues were addressed immediately while others would require further consultation.

He said that discussions also covered the revival of closed industrial units, including state-owned enterprises, and broader efforts to improve energy security with support from multilateral partners.

Business leaders raised concerns over VAT, customs and income tax administration, as well as procedural delays in business registration and renewal.

They also proposed targeted strategies to expand exports in sectors such as active pharmaceutical ingredients, automobiles, semiconductors, agro-processing and light engineering.

According to Prime Minister’s Office officials, directives were issued to relevant ministries to address urgent issues, while longer-term reforms will be pursued in phases under a structured implementation plan.

BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun described the PSAC as a key reform initiative aimed at institutionalising private sector input at the highest level of policymaking, adding that it would support Bangladesh’s broader investment and reform agenda.