Photo: AmCham

DHAKA, June 15, 2026 (BSS) - Business leaders and policy experts today 
emphasized the need for continued policy reforms, improved revenue 
mobilization, and effective implementation of budget measures to strengthen 
investor confidence and support private sector-led growth.

The observations came at a post-budget panel discussion titled "National 
Budget FY2026-27: Building Confidence & Competitiveness for Investment-Led 
Growth" organised by the American Chamber of Commerce in Bangladesh (AmCham) 
at a city hotel, said a press release here.

Opening the session, AmCham President Syed Mohammad Kamal welcomed several 
budget measures, including VAT exemption on recycled cotton, zero-percent 
turnover tax incentives for startups and technology-driven businesses, and 
continued support for renewable energy through tax exemptions and rebates.

While appreciating these initiatives, he said some concerns of the business 
community remain unresolved and stressed the need for further tax 
rationalization to encourage investment, business expansion, and long-term 
economic development.

Delivering the keynote presentation, Chairman and CEO of Policy Exchange 
Bangladesh Dr. M. Masrur Reaz described the proposed FY2026-27 budget as a 
pragmatic effort aimed at supporting economic recovery while laying the 
foundation for long-term transformation.

He said the budget sends positive signals for private sector-led growth 
through measures designed to ease business costs, promote investment, and 
strengthen social protection programmes.

However, Dr. Reaz noted that achieving the budget's objectives would require 
addressing several challenges, including the ambitious 6.5 percent GDP growth 
target, significant revenue mobilization requirements, persistent 
inflationary pressures, and vulnerabilities in the banking and energy 
sectors.

He emphasized that effective implementation would be crucial to translating 
policy intentions into tangible outcomes.

The panel discussion, moderated by MetLife Bangladesh Vice President and 
Chief Executive Officer Ala Uddin Ahmad, featured Syed Mohammad Kamal, former 
Standard Chartered Bank Bangladesh CEO Naser Ezaz Bijoy, Centre for Policy 
Dialogue (CPD) Executive Director Dr. Fahmida Khatun, and PRAN-RFL Group 
Chairman and CEO Ahsan Khan Chowdhury.

Panelists identified weak revenue mobilization as a major challenge for the 
FY2026-27 budget, noting that revenue targets remain ambitious amid a subdued 
economic environment.

They warned that increased government borrowing from the banking sector to 
finance fiscal deficits could crowd out private sector credit, raise interest 
rates, and limit businesses' access to financing.

Such pressures, they said, could constrain investment, business expansion, 
and job creation, ultimately slowing economic growth.

Responding to a question on inflation's impact on vulnerable groups, speakers 
acknowledged the government's efforts to expand social protection programmes 
but stressed the need for stronger governance and improved targeting 
mechanisms.

They observed that weaknesses in beneficiary selection often result in 
support reaching less needy individuals, while many vulnerable households 
remain excluded, reducing the effectiveness of social safety net programmes 
in addressing rising living costs.

AmCham Bangladesh welcomed several positive measures in the proposed budget, 
particularly those promoting sustainability, entrepreneurship, 
digitalization, and renewable energy.

The chamber, however, noted that several of its recommendations remain 
unaddressed and called for continued reforms to enhance competitiveness, 
strengthen investor confidence, and accelerate private sector-led economic 
growth.

The event concluded with a vote of thanks by AmCham Treasurer Reza-Ur-Rahman 
Mahmud.

The discussion was attended by AmCham Executive Committee members, former 
AmCham presidents, officials of the US Embassy, senior government 
representatives, business leaders, media professionals, and AmCham Executive 
Director Chowdhury Kaiser Mohammad Riyadh.