Budget satisfactory, but barriers to new investment must be removed: Business leaders

Industrialists and business leaders have described the proposed fiscal 2026-27 budget as broadly satisfactory, but called for more effective measures to attract new investment.

They said controlling inflation, ensuring uninterrupted energy supply, providing low-interest loans, improving law and order, enhancing logistical support, and maintaining political stability would be essential to advancing the manufacturing sector. They also urged the government to adopt a long-term strategy for industrial diversification through international partnerships in promising sectors.

The observations were made today (17 June) at a roundtable discussion titled "Review of Proposed National Budget 2026-27 Focusing on Manufacturing Industry Sectors," organised at the office of the Bangladesh Chamber of Industries (BCI) in the capital. The session was chaired by BCI President Anwar-ul Alam Chowdhury.

He said that despite some positive initiatives and business-friendly dialogue undertaken by the interim government, the expected momentum in private-sector investment had yet to materialise. While the budget had correctly identified key challenges and priorities, more effective measures were needed to improve the business environment.

The BCI president added that the budget contained many positive aspects. However, achieving 6.5% economic growth would not be possible while relying on sluggish investment and a weak private sector. 

Kamran T Rahman, president of the Metropolitan Chamber of Commerce & Industry, said without new tax reforms, the pressure to collect additional revenue would fall on existing taxpayers, creating concerns for business and investment.

He noted that without sufficient export earnings and foreign currency reserves, debt servicing could become challenging.

RAPID Chairman Mohammad Abdur Razzaque said Bangladesh's economy is currently facing three major challenges: supply-side constraints, weak demand, and import compression. Four consecutive years of high inflation have significantly reduced consumers' real purchasing power, weakening domestic demand.

M Masrur Reaz, chairman and founder of Policy Exchange Bangladesh, noted that the current budget had not significantly increased the tax burden on ordinary citizens or businesses. Raising the tax-free income threshold and increasing allocations for social protection programmes were positive measures, he said.

"However, the budget lacked a clear roadmap for the government's economic strategy and reform agenda."

The roundtable was also attended by former FBCCI resident Mir Nasir Hossain; Bangladesh Terry Towel and Linen Manufacturers and Exporters Association President Shahadat Hossain; Transcom Group Chief Executive Officer Simin Rahman; Lal Teer Seed Limited Managing Director Mahbub Anam; Bangladesh Employers' Federation (BEF) President Fazle Shamim Ehsan; and other business representatives.