DHAKA, Aug 24, 2025 (BSS) - General Economics Division (GED) Member of the Planning Commission Dr Monzur Hossain today said that it is a matter of relief that the country's macro economy has shown some stability with foreign reserves reaching US$30 billion.

"Though the inflation rate has slowed down, due to rising rice prices it still remains a concern. If we can control the rice prices, we believe the inflation will come down significantly," he said.

The GED member said this while addressing a seminar on "Bi-annual Economic State and Future Outlook of Bangladesh Economy-Private Sector Perspective" as the chief guest organised by Dhaka Chamber of Commerce and Industry (DCCI) today held at DCCI auditorium in the capital. 

Dr. Monzur emphasized the need to examine whether high lending rates alone, or an overall lack of an investment-friendly environment, is discouraging overall investment. 

"Inflation control is crucial but it shouldn't come at the expense of declining investment," he added. 

He stressed that boosting private sector credit flow is indispensable to revive growth. 

Dr. Monzur also suggested leaving foreign exchange rates more market-driven rather than through central bank intervention. 

The GED member reiterated that the government views LDC graduation positively but emphasized the need for stronger preparedness and productivity enhancement. 

He also called for restructuring the banking sector and focusing on sustainable economic transformation.

Dr. Mustafizur Rahman, distinguished fellow of Centre for Policy Dialogue (CPD), stated although inflation has declined but the overall price level still remains high, eroding consumers' purchasing power.
 
The RMG sector in the country has come this far by enjoying bonded warehouse and bank-to-bank LC facilities, he added. 

The renowned economist underscored the importance of extending these same facilities to other promising export sectors which would expand Bangladesh's export basket. 

He also suggested strong anti-corruption measures side by side and noted weak progress in digitalization which has kept the tax-to-GDP ratio low.
 
The CPD Distinguished Fellow called for mobilizing domestic savings and increasing tax revenue, emphasizing that heavy reliance on loans to finance the ADP is unsustainable. 

He also recommended seeking an LDC graduation deferral if needed while simultaneously enhancing the business environment and skills development, particularly for SMEs.

Dr. AK Enamul Haque, director general (DG) of Bangladesh Institute of Development Studies (BIDS), said the economy is performing relatively well considering the strong headwinds but it is not ideal for long-term sustainability. 

He stressed the urgent need to fight corruption, noting that punishment through transfers alone is not enough to discourage corruption. Rather he emphasized on behavioral change. 

Enamul observed that import growth is outpacing exports and money laundering opportunities in Western countries are diverting trade. 

He said agriculture growth is weak and must be aligned more closely with industrial growth. He also highlighted the need to expand the tax base beyond the current 2.3 million taxpayers.

Mahmud Salahuddin Naser, director (Research) of the Monetary Policy Department in Bangladesh Bank (BB), said although businesses claim monetary policy is too tight but the central bank is working to ensure a conducive environment for the private sector. 

He emphasized that lending rates may be reduced once inflation comes down further. He also pointed to energy shortages as additional factors holding back investment, not just high interest rates.

Nawshad Mustafa, director of BB's SME and Special Programmes Department, said the investment climate of last year was not favorable due to reduced capital machinery imports, the July movement and floods. 

To create a conducive investment climate, the central bank, along with commercial banks and development partners, are working together, he added. 

Nawshad stressed the importance of digital loan disbursement to reduce costs, cluster-based SME development and a change in perspective towards SME financing.

Md. Rabiul Islam, economics officer of South Asia Department, Bangladesh Resident Mission in Asian Development Bank (ADB), stressed on enhancing trade connectivity, reducing transport costs, and giving SMEs access to global export markets.
 
He also called for greater use of man-made fibers in RMG, adherence to standards in leather and developing other promising sectors.

DCCI President Taskeen Ahmed in his key-note presentation expressed that Bangladesh requires some additional time to adequately prepare for its LDC graduation. 

He shed light on the global economic situation, monetary policy, inflation, private and foreign investment, agriculture, industry and service sectors, CMSMEs, ICT, energy and power, logistics infrastructure, skills development and the financial sector covering the January-June period of fiscal year (FY) 2024-25. 

The DCCI President noted that due to a significant rise in tariffs and trade barriers, global economic growth has slowed down, with forecasts projecting global GDP growth at only 2.3 percent in 2025. Consequently, most economies are expected to experience further slowdown compared to last year.

Considering the multidimensional challenges of LDC graduation, he opined that Bangladesh should defer graduation to enhance competitiveness, implement a strong transition strategy, and update relevant policies.
 
He also stressed that corporate tax, especially for the non listed companies, should be more competitive to encourage more investment.

Taskeen Ahmed further stated that to restore investors' confidence, ensuring stability in the banking sector, political stability, and removing bureaucratic bottlenecks, would improve the ease of doing business.

To accelerate exports, he called for value addition, diversification, exploring new markets, strengthening supply chain connectivity, and enhancing multilateral trade diplomacy. 

Although the US has reduced tariffs on Bangladeshi products from 35 percent to 20 percent, the DCCI President said the government should strive for more tariff cuts which would increase the export competitiveness in global trade. 

To increase the export capability, he also suggested a stronger focus on producing high-quality products, long-term strategic planning, uninterrupted energy supply, building a robust buyer network and ensuring ESG compliance.
 
Taskeen Ahmed also proposed lowering lending rates as it has risen to 12.11 percent in May 2025 from 11.52 percent in June 2024.

Members of the DCCI Board of Directors and relevant stakeholders were also present at the seminar.