DCCI press conference. Photo: DCCI

DHAKA, Jan 11, 2025 (BSS) - Dhaka Chamber of Commerce and Industry (DCCI) 
President Taskeen Ahmed today said that the government would have to ensure 
comprehensive cooperation to the private sector to overcome LDC graduation 
challenges if the country graduates in 2026.

The DCCI President said this at a press conference held at the DCCI in the 
capital today.

He said that for preparation of LDC graduation, Bangladesh was actually 
moving on the right direction, but due to Covid-19 pandemic, the Russia-
Ukraine conflict, unrest in the Middle East, aftermath of local political 
unrest coupled with geo-political situation, instability in the financial 
market, low forex reserve, the LDC preparedness unexpectedly got a setback. 

Taskeen said, "How much prepared we are in the current situation will need to 
be determined on the basis of detailed discussions among the public, private 
and other stakeholders,"

He said if there is a need to defer the matter, the government may take some 
more time to be graduated considering the overall economy of the country 
based on a collective national decision. 

Noting that the tax-GDP ratio in Bangladesh is very low, Taskeen said the 
number of tax payers in the country is also not up to the expected level. 

To meet up the budget deficit and lessen the pressure on the economy, he 
suggested the government to take austerity measures in government 
expenditures. 

At the same time, he also urged the government not to take unnecessary 
projects and enhancing strong monitoring on implementation of the Annual 
Development Programme (ADP) so that the projects end on time.

The DCCI President highlighted various issues of contemporary economic 
situation of the country along with the priority of the Chamber for the whole 
year of 2025.

He said the country's private sector is already facing many challenges due to 
global geopolitical instability, its impact on the international and local 
economy, foreign exchange reserves, rising import cost, high energy cost, 
high inflation, high interest rates, high tariff rate, increasing VAT rates.

He said this year the Dhaka Chamber will focus more on reducing interest 
rates, controlling inflation and keeping the foreign exchange rate stable.

Replying to a question, Taskeen said that the flow of low-cost finance to the 
CMSME sector needs to be expedited more. 

He cited that the CMSME sector is solely the largest sector in Bangladesh 
that creates the most employment generation than any other sector.

About the reform initiatives taken by the interim government, he hoped that 
the government would complete its reform initiatives as per their set target 
soon. 

He later said that completing hundred economic zones by the year 2030 with 
all facilities is not an easy task. 

Rather, if the government is able to ensure all required infrastructure and 
other facilities in the five economic zones, then domestic and foreign 
investors would be more optimistic and there would be a possibility of 
expanding investment activities, he noted.

Regarding the continuation of the policy, Taskeen said entrepreneurs are 
encouraged to invest subject to obtaining a long-term supportive tax 
structure, in which case the sudden decision to increase tax or duties in the 
mid-way would have a negative impact on the entrepreneurs.

As a result, he said the local investment as well as foreign investment might 
be hindered, which may not bring any good for the economy.

The DCCI President also opined that Bangladesh is currently going through 
some economic challenges, mainly due to a bit low foreign exchange reserves, 
rising import cost, high energy cost, higher inflation, and high interest 
rates.

DCCI Senior Vice President Razeev H Chowdhury and Vice President Md Salem 
Sulaiman and members of the board of directors were present, among others, on 
the occasion.