Investment climate will improve after polls: ABB chairman

The country's investment environment is likely to improve after the upcoming national election, said Mashrur Arefin, chairman of the Association of Bankers, Bangladesh (ABB). 

"Credit growth is generally slow now because businesses are waiting. They want to understand the direction the country is heading. The investment climate will improve after the elections," he said while speaking at the Fourth Bangladesh Economic Summit 2025 held at a hotel in the capital today (29 November).

He further said, "Earlier, inflation was a major concern. From 12%, it has now come down to 8.17%, and the central bank is still working to bring it down to 5%."

Arefin said there is currently no intervention in the dollar market, which he described as "a long-held dream." 

The ABB chairman stated that Bangladesh earns about $50 billion annually from exports and $30 billion from remittances, while imports stand at roughly $5 billion per month, or $70 billion annually.

"We are earning $80 billion and spending $70 billion – this is quite good and shows growing discipline in the external sector," he said.

He noted that around 50 million transactions take place daily in the bank-to-bank interbank market. 

Arefin also said the current account deficit, which once stood at $19 billion, has now narrowed to $400 million, while the financial account is showing a $2 billion surplus.

"Reserve money has declined and now stands at around Tk3 lakh crore," he added. 

He went on to say, "The previous government used to devolve treasury bills and bonds onto itself, but that is no longer happening. Deposit growth is slightly lower but still close to 10%."

Although overall credit growth in the banking sector remains subdued, Arefin said loan growth at The City Bank is strong, and top-tier banks are seeing the expected improvement in lending activities.