Bangladesh business leaders voice escalating alarm about the investment climate as gas shortages, dollar scarcity, elevated bank interest rates, political turbulence, and unclear labor law reforms undermine confidence. Entrepreneurs hesitate to launch ventures while existing investments face growing threats, and firms struggle to secure letters of credit for importing machinery.
Interest rates have climbed to 16 percent, a threshold entrepreneurs say makes sustainable operations impossible. Factories operate at reduced capacity or remain idle, resulting in thousands of job losses. Business groups assert that political instability compounds economic pressures, eroding investor trust.
Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, stated that society lacks confidence across all sectors. He emphasized that neither foreign nor domestic capital flows into new projects, with current activity limited to completing earlier commitments.
Dr. Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, identified confidence as the missing ingredient for commerce and investment. He warned that economic stagnation will persist until elections restore political certainty and attract investors seeking stable conditions.
Interest rates have climbed to 16 percent, a threshold entrepreneurs say makes sustainable operations impossible. Factories operate at reduced capacity or remain idle, resulting in thousands of job losses. Business groups assert that political instability compounds economic pressures, eroding investor trust.
Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, stated that society lacks confidence across all sectors. He emphasized that neither foreign nor domestic capital flows into new projects, with current activity limited to completing earlier commitments.
Dr. Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, identified confidence as the missing ingredient for commerce and investment. He warned that economic stagnation will persist until elections restore political certainty and attract investors seeking stable conditions.
