Extortion increased 20% to 50% in some areas after uprising: DCCI
The chamber has lauded the government’s recent formal request to the UN to defer Bangladesh's LDC graduation by at least three years.
Dhaka Chamber of Commerce and Industry (DCCI) has called on the newly elected government to implement a zero-tolerance policy against widespread extortion and public sector corruption to revive the country's "ailing economy".
Presenting the chamber's annual action plan today (23 February), titled "Road to Revival", DCCI President Taskeen Ahmed revealed that extortion at factory levels and within supply chains has increased by 20% to 50% in some areas following the ouster of the Awami League government through 2024 July Uprising.
Addressing a press conference at the DCCI auditorium, he warned that economic progress would remain a "dream" unless these criminal activities are suppressed "overnight with a heavy hand".
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He also took aim at a trade deal regarding the reciprocal tariffs signed by the interim government with the United States under a Non-Disclosure Agreement (NDA).
Terming the deal a threat to economic sovereignty, the DCCI chief claimed it binds Bangladesh to purchase $15 billion worth of LNG from the US over 15 years and restricts its ability to offer subsidies.
"Our RMG sector contributes 13% to the GDP, and trade with the US is less than 2% of our GDP. To secure a 1% tariff reduction, we cannot compromise our broader economic interests or our relationships with other major trading partners," he stated, urging the incumbent government to strategically renegotiate the agreement.
On the logistics and energy fronts, the DCCI demanded an immediate reversal of the 41% hike in Chattogram Port service tariffs and called for offshore gas exploration to bridge a daily gas supply gap of 925 MMSCFD.
While the chamber welcomed the government's target to raise the tax-to-GDP ratio to 8%, it insisted on 100% automation of the National Board of Revenue (NBR) to prevent harassment.
The DCCI also lauded the government's recent formal request to the United Nations to defer Bangladesh's LDC graduation by at least three years, citing the economic setbacks from the pandemic and recent political transitions.
Expressing deep concern over the financial sector, Taskeen noted that private sector credit growth plummeted to a 22-year low of 6.49% in FY2024-25.
He also criticised the central bank for shortening the loan classification grace period from nine months to three months. He argued that the move artificially inflated non-performing loans (NPLs) to Tk6.44 trillion, representing 36% of total loans.
With lending rates soaring to 16-17%, the DCCI chief called for a reduction in the policy rate and the introduction of subsidised credit lines for genuine businesses.
He argued that the move is penalising genuine businesses that are suffering from working capital shortages due to massive currency devaluation and high borrowing costs.
"While wilful defaulters must face strict punishment, genuine SMEs and businesses need breathing room. We urge the government to reconsider the loan classification rules, reduce the policy rate, and introduce subsidised credit lines to lower borrowing costs," Taskeen said.
