DCCI urges govt to curb extortion, restore business confidence

The Dhaka Chamber of Commerce and Industry (DCCI) has urged the government to take stern action against extortion and corruption and to improve law and order, warning that deteriorating conditions have become major obstacles to doing business amid ongoing economic challenges.

“If extortion is not stopped, business owners will be forced to shut down their operations,” DCCI President Taskeen Ahmed said at a press conference titled “Expectations from the New Government to Address the Current Economic Situation” held at the chamber’s office in the capital.

The chamber also called on the newly formed government to reform the revenue system and ensure a stable, investment-friendly environment.

Taskeen Ahmed said the absence of policy continuity in industrial regulations, coupled with an unstable law and order situation and what he described as “unbearable extortion,” has eroded confidence among both local and foreign investors.

He alleged that incidents of extortion have increased by 20% to 50% since the fall of the previous government, claiming that members of the ruling party, police personnel and revenue officials are involved in such activities.

High interest rates, energy uncertainty add pressure

“High interest rates, unstable law and order, extortion, energy uncertainty and lack of coordination in the revenue management system are suicidal for the economy,” he said.

The DCCI president raised concerns about the financial sector, energy supply, industrialisation, tariff policy, logistics infrastructure, employment and skills development, LDC graduation and trade agreements with the United States.

He noted that the unchanged policy rate has pushed lending rates for businesses to 16-17%. 

In addition, rising non-performing loans (NPLs) and the reduction of the loan classification period from nine months to three months have created instability in the financial and industrial sectors.

In the energy sector, he said inadequate gas supply to industries, along with recent increases in gas prices for new industries and captive power plants by Tk40 and Tk42 per unit respectively, has severely disrupted production. As a result, local demand and export targets are not being met.

Taskeen Ahmed also criticised the lack of automation in the revenue management system, saying both individual taxpayers and businesses often face harassment while many remain outside the tax net, depriving the government of due revenue.

He added that delays in land acquisition, high land prices, a 41% average increase in service charges by the Chattogram Port Authority and the underutilisation of inland waterways have significantly raised the cost of doing business. Rising production and distribution costs, he said, are also contributing to inflationary pressure.

Call to defer LDC graduation

On Bangladesh’s graduation from the Least Developed Country (LDC) category, Taskeen Ahmed cited UNCTAD estimates suggesting exports could decline by 5.5% to 7%, or approximately $2.7 billion, following graduation.

Given global economic uncertainty and current domestic conditions, he urged the government to seek a deferment of LDC graduation by at least three years to protect the export sector.

Urges renegotiation of US agreement

Referring to a recently signed agreement with the United States, he said it would not guarantee duty-free access for the ready-made garment sector. 

He also expressed concern that conditions attached to LNG and other imports could increase business costs.

He called on the government to renegotiate the terms of the agreement with the US authorities.

Highlighting the issue of unemployment, Taskeen Ahmed noted that more than 20 lakh educated youths remain jobless, warning that prolonged unemployment could fuel social instability.

To address the issue, he emphasised strengthening skill development initiatives, simplifying business procedures and ensuring easier access to loans for young entrepreneurs, particularly for startups under simplified conditions.