Bangladesh's business leaders and policy economists on Wednesday issued a blunt warning to the new government: without an investment-friendly national budget that sharply reduces the cost of doing business and restores investor confidence, the country risks losing growth momentum, export competitiveness and much-needed quality investment.
The caution came at a high-level business dialogue titled "Improving the Investment Climate: Why It's Critical for New Government Priorities and the Upcoming National Budget," jointly organised by Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh with support from the Australian High Commission.
Speakers at the event said Bangladesh now stands at a decisive economic crossroads where sustaining growth, protecting exports and attracting fresh domestic and foreign investment will depend largely on whether the upcoming budget can deliver credible reforms instead of routine fiscal paperwork.
With the new government preparing its first full budget after the recent election, business leaders urged policymakers to treat the fiscal statement as a reform blueprint to ease regulatory bottlenecks, lower transaction costs, improve tax certainty, ensure uninterrupted energy supply and create a predictable environment for investors.
Opening the discussion, Farooq Ahmed, Secretary General and CEO of the chamber, said Bangladesh could no longer afford fragmented policy responses when investors were increasingly comparing destinations on the basis of speed, transparency and regulatory ease.
Delivering the keynote presentation, Dr M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said private sector growth was being held back by policy inertia, high compliance costs and a weak reform delivery mechanism, arguing that immediate structural corrections were needed to revive competitiveness and unlock new investment.
He noted that Bangladesh's graduation challenges, external payment pressures and slowing industrial appetite made this year's budget particularly critical for signalling whether the government was serious about rebuilding investor trust.
A panel discussion, moderated by Dr Reaz, brought together senior corporate and legal voices who painted a sobering picture of the current business climate.
Zinnia Huq, Chief Financial Officer of Unilever Bangladesh Limited, said investors no longer look only at market size; they now demand speed of approvals, transparency in enforcement, predictability in taxation and effective coordination among state agencies.
She stressed that Bangladesh must move away from person-dependent administrative decisions and build institution-based policy consistency if it wants to retain long-term investor confidence.
Nuria Lopez, Chairperson of the European Union Chamber of Commerce in Bangladesh, said foreign investors remain cautious because of the absence of clear progress on free trade agreements, uncertainty over future export market access, customs inefficiencies and recurring concerns over energy reliability.
She added that unless policy commitments are backed by implementation accountability, investor hesitation would continue despite Bangladesh's large consumer market.
Margub Kabir, Head of Chambers at Margub Kabir and Associates, argued that many of the country's commercial and procedural laws remain outdated and cumbersome, often delaying business dispute resolution and adding hidden costs to investment decisions.
He called for streamlined legal reforms that would make contract enforcement and commercial settlements faster, simpler and more investor-friendly.
Guest of Honour Bangladesh Garment Manufacturers and Exporters Association President Mahmud Hasan Khan said Bangladesh's ambition to move into higher value-added manufacturing would remain constrained unless industries are guaranteed consistent and quality energy supply.
"Without reliable gas, electricity and utility services, productivity suffers, costs rise and investors simply look elsewhere," he observed.
Throughout the dialogue, one message rang clear: Bangladesh's next budget must go beyond revenue collection targets and become an aggressive instrument for reducing business costs, simplifying regulation and sending a strong signal that the country is open for efficient, rules-based investment.
Speakers concluded that unless the government translates reform promises into immediate budgetary actions, Bangladesh may find itself struggling to hold on to both growth and investor confidence at a time when regional competitors are moving faster to capture global capital.
