Market Update: Rebuilding business confidence cannot wait – Full Analysis

Although the BNP swept to a landslide victory in the February 12 national election, business leaders say the new government will inherit an economy that allows little time for celebration.

According to them, the first 100 days will decide whether the private sector regains its footing or sinks deeper into paralysis after months of political and economic drift.

Inflation has been stubborn for years and is showing signs of rising again. Investment has slowed since the 2024 uprising that toppled the Awami League government. Tight monetary policy under the interim government has left small factories gasping for credit. Import-dependent industries are struggling under a weaker taka. And bank balance sheets are still fragile.

Against this backdrop, executives point to three urgent priorities. Those are restoring law and order, shoring up the banking system and ensuring an uninterrupted energy supply for industries.

“The incoming government must prioritise restoring business confidence within its first 100 days,” said Anwar-Ul-Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries.

He said prolonged uncertainty has seriously dampened investment.

Without swift and decisive steps to ensure stability and policy clarity, private sector expansion will remain stalled, he said.

The business leader placed law and order at the top of the agenda. “The government must bring an end to the extortion and muscle culture,” he added.

Parvez said confidence had fallen to rock bottom, with investors choosing to sit on the sidelines. A free, fair and credible election would now reassure both domestic and foreign investors.

He argued that monetary policy alone cannot tame price pressures and called for stronger supply-side management to steady markets. Energy security, he added, is equally vital.

He also pressed for implementation of reform pledges, including changes at the National Board of Revenue (NBR), greater transparency in trade agreements and preparation for LDC graduation.

Similarly, Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry (MCCI), called for early action.

“Reform must begin at once, even if results take time, starting with efforts to curb inflation and steady the currency through prudent fiscal and monetary management,” said the business leader.

Rahman urged the government to tackle weaknesses in the banking sector, reinforce financial discipline and strengthen oversight. He called for employment-led growth, with greater support for SMEs, skills development and productivity gains rather than a narrow focus on GDP figures.

Cutting red tape and ensuring policy continuity would also help rebuild trust, he said.

Asif Ibrahim, former president of the Dhaka Chamber of Commerce and Industry (DCCI), described the election outcome as an opportunity to reset the economic agenda.

“This decisive mandate reflects the voice of the people and opens a new chapter for economic stability,” he said in a statement.

“For the past few years, investment appetite has been subdued due to uncertainty. A stable and policy-driven administration can unlock fresh capital flows and revive private sector expansion,” he said.

He said the business community stands ready to engage and urged the incoming government to reduce the cost of doing business, secure energy supply, maintain macroeconomic stability and strengthen institutions.

“Global headwinds and domestic challenges require partnership over politics,” he added.

Taskeen Ahmed, president of the DCCI, also called for a focused reform drive in the first 100 days.

He said the economy faces structural challenges, including weaknesses in the banking system, energy shortages and fragile law and order.

“In the first 100 days, restoring law and order must be the top priority to rebuild business confidence,” he said, adding that investment will remain stagnant without a predictable environment.

Manwar Hossain, chairman of Anwar Group of Industries, said the new government should first reassure existing investors before seeking new ones. Many import-dependent firms face working capital strain after taka depreciation.

He proposed temporary regulatory flexibility, including relaxed single-borrower and CIB limits for two years, to prevent otherwise viable firms from collapsing. Reform of 15 troubled banks and non-bank financial institutions, led by credible asset restructuring firms and experienced bankers, is essential, he said.

Hossain also called for swift local government polls, revival of stalled projects, faster construction activity, dependable energy supply and shorter approval times to sustain positive international sentiment.

Ahsan Khan Chowdhury, chairman and chief executive officer of Pran-RFL Group, urged the next government to restore stability, strengthen law enforcement and bring discipline back to the banking system within its first 100 days.

He said rebuilding investor trust is critical to driving economic growth.

Chowdhury also stressed the importance of smooth operations at Chittagong Port to support exports and imports, and called for stronger trade ties with neighbouring countries, particularly India, to expand business opportunities.