Political stability crucial for economic recovery before election: DCCI

Dhaka Chamber of Commerce & Industry (DCCI) has warned that political uncertainty ahead of Bangladesh's national election could threaten economic recovery, urging timely and effective policy measures to sustain growth and bolster investor confidence in 2026.

In a media release today (3 January), the apex trade body called on the interim government, political parties and all stakeholders to ensure a peaceful, inclusive and credible election scheduled for February 12, 2026, stressing that political stability remains crucial for sustainable economic recovery and investment growth.

DCCI said a stable political environment during and after the election would help restore confidence among local entrepreneurs and foreign investors, which is vital for reviving growth amid ongoing macroeconomic challenges.

To accelerate economic recovery in 2026, the Chamber urged the government to prioritise improvement in the law and order situation, ensure uninterrupted and affordable energy supply to industries, enhance ease of doing business and reduce the overall cost of business.

The Chamber also emphasised strengthening infrastructure and policy frameworks to attract both domestic and foreign investment.

It further highlighted the need for export diversification, targeted support for potential export sectors, easier access to finance for cottage, micro, small and medium enterprises (CMSMEs), and development of a skilled workforce to support long-term growth.

DCCI expressed concern over the ongoing energy crunch and high energy prices, saying these continue to disrupt manufacturing and industrial production, eroding Bangladesh's competitiveness in global markets.

It reiterated the need for a long-term and predictable energy pricing policy, accelerated gas exploration, diversification of energy import sources and expansion of long-term energy supply agreements.

The chamber also noted that persistent foreign exchange pressure and currency depreciation have adversely affected the financial sector, particularly imports of fuel, raw materials and intermediate goods for export-oriented industries. It suggested prioritising currency swap arrangements for essential import payments and enhancing incentives for remittance inflows to stabilise foreign exchange reserves.

At the same time, DCCI underscored the importance of fiscal discipline, improved project implementation efficiency, reduced reliance on bank borrowing and stronger governance to ease liquidity pressure in the financial sector.

The chamber warned that excessive government borrowing from the banking system could crowd out private-sector credit, constraining investment and employment growth, especially in local manufacturing and CMSMEs.

It stressed the need for full automation of revenue management, modernisation of tax laws, expansion of the tax base and strict measures to prevent harassment of compliant taxpayers.

As Bangladesh advances in its transition from least developed country (LDC) status, DCCI emphasised comprehensive economic preparedness.

To sustain export growth in the post-LDC era, the Chamber urged faster efforts to sign free trade agreements (FTAs) with key trading partners and regional economic blocs to expand market access and reduce tariff-related vulnerabilities.

DCCI said export diversification, uninterrupted industrial production, stronger local industries, modern infrastructure, skilled human resources, technological upgradation, expansion of backward linkage industries and rational tax and tariff reforms will be key determinants for maintaining economic growth in 2026.