Today, a seminar titled "Advancing Dispute Settlement and  Contract Enforcement for Businesses" held at the DCCI in the capital. Photo: DCCI

DHAKA, Sept 2, 2025 (BSS) - Experts at a seminar here today laid emphasis on 
resolving trade-related disputes outside traditional courts for reducing 
overwhelming pressure on the judiciary substantially and improving the 
overall business climate. 

They observed that as Bangladesh is one of the most densely populated 
countries, the number of cases in courts is increasing every day, making 
judicial delays intolerable and this situation is hampering both domestic and 
foreign investment as well as commercial activities.

They made the observation at the seminar on "Advancing Dispute Settlement and 
Contract Enforcement for Businesses" held at the Dhaka Chamber of Commerce 
and Industry (DCCI) in the capital city.

Mahbubur Rahman, secretary of Ministry of Commerce, graced the seminar as the 
chief guest while Michael Miller, ambassador and head of delegation of the 
European Union (EU) in Bangladesh, and Md Abdur Rahim Khan, additional 
secretary (Export Wing) of Ministry of Commerce and Vice-Chairman of Export 
Promotion Bureau (EPB) (Additional Charge) attended as special guests.
 
Mahbubur Rahman pointed out that despite the introduction of the Arbitration 
Act in 2001, a business-friendly environment has not been fully ensured. 

He underscored the importance of raising awareness and promoting countrywide 
arbitration. 

He also informed that the process of establishing a Commercial Court is 
ongoing, and he hoped that the draft will be finalized within a month.
 
Michael Miller said that in order to reform the legal process, the EU has 
been working closely with the government. 

He expressed that the reform of the legal system will significantly improve 
the public's quality of life. 

"As Bangladesh moves toward LDC graduation and pursues export 
diversification, the formation of Commercial Courts will be crucial to 
attract foreign investment. Such courts will facilitate both domestic and 
foreign investment expansion," the envoy noted. 

He hoped that the government would prioritize this issue for the greater 
interest of the economy. 

Michael Miller further stated that strengthening arbitration mechanisms will 
help reduce the current investment stagnation. 

He also added that European companies are keen to invest in Bangladesh's 
logistics and shipping sectors.

Md. Abdur Rahim Khan said that delays in resolving trade disputes not only 
hinder FDI attraction but also negatively impact export expansion. 

"Besides, due to this, Bangladesh is gradually losing its place in global 
trade," he added. 

To overcome this, he proposed forming "legal institutions" outside 
traditional courts to resolve disputes through negotiations in a 
comparatively shorter time.

In his welcome remarks, DCCI President Taskeen Ahmed stated that as economic 
activities in the country are growing significantly, disputes related to 
business contracts, investments, and intellectual property are also 
increasing. 

Currently, around four million cases remain unresolved in lower and higher 
courts of Bangladesh, he added. 

He mentioned that prolonged judicial processes are hampering both local as 
well as foreign investment. 

Although, the Arbitration Act was in 2001, it has not been implemented 
effectively, he added. 

Taskeen Ahmed stressed the need for establishing a separate Commercial Court 
with the appointment of experienced judges and reforming the existing legal 
framework which will accelerate the pace of trade and investment.
 
Barrister Md. Sameer Sattar, former President of DCCI, presented the keynote 
paper. In his presentation, he said contract enforcement is a crucial 
determinant for both local and foreign investors, but Bangladesh is lagging 
far behind in this regard. 

He mentioned that Bangladesh ranked 189th out of 190 countries in contract 
enforcement as per the earlier World Bank's Doing Business Report. 

The DCCI former head highlighted that as of March 2025, nearly 25,000 cases 
are pending in financial loan courts, clearly reflecting the lengthy legal 
processes. 

He strongly urged prioritizing the necessary amendment of the Arbitration Act 
2001.
 
Md. Ariful Haque, director general of Bangladesh Investment Development 
Authority (BIDA), stressed that enacting laws alone is not sufficient to 
change the existing system rather institutional reforms are also crucial.
 
KAM Majedur Rahman, chief executive officer (CEO) of Bangladesh International 
Arbitration Centre (BIAC) said that delays in trade dispute resolution have 
become a matter of serious concern.
 
Vikna Rajah, Co-Head of South Asia Desk, Rajah and Tann, Singapore 
highlighted that due to strong legal structures, skilled human resources, 
strict law enforcement, and robust commercial dispute settlement mechanisms, 
Singapore continues to attract high levels of foreign investment. 

He stressed the need for comprehensive legal reforms, establishment of 
specialized commercial courts, and revision of the Arbitration Act in 
Bangladesh to attract more foreign investment.
 
Judge Tareque Muajjem Hussain, special officer (Additional District Judge), 
to the Chief Justice (CJ) of Bangladesh, stressed the need for appointing 
experienced judges specialized in commercial disputes along with proper 
training which will ensure smooth and faster dispute resolution.
 
In the open floor discussion, Rizwan Rahman, former President, DCCI said that 
lack of inter-ministerial coordination is one of the major barriers resolving 
trade disputes. 

He expressed concern that if this situation does not change both domestic and 
foreign investment will remain stagnant.

He also urged for reliance on arbitration centers rather than traditional 
courts to resolve commercial disputes.
 
DCCI Vice-President Md. Salem Sulaiman, members of the Board of Directors, 
and stakeholders from relevant sectors were also present at the event.