Industrial slowdown and banking troubles worry investors
♦ Collapse in industrial production and employment ♦ No interest in new investment ♦ Challenge in private sector due to bank problems
Daily Sun Report, Dhaka
Published: 01 Oct 2025
The worries of businessmen-entrepreneurs about business investment in the country are not decreasing. Business and trade are going through various adversities. Industrial production is being hampered by gas crisis. Bank interest rate has increased to 16 percent. While opening LCs for capital machinery, they have to face various complications, along with dollar crisis. As activities decrease, industries are closing and thousands of workers are becoming unemployed.
Besides, there is concern among businessmen regarding labor law reforms. They are not getting courage for new investment, even old investments are under threat. Business-investment is revolving in the circle of political uncertainty along with various internal crises. In this, the competitiveness of the country’s private sector is literally facing challenge.
Recently, the U.S. Department of State’s 2025 Global Investment Climate Report has identified five reasons for obstacles in investment in Bangladesh. These are inadequate infrastructure, limited financing, bureaucratic delays, unfair tax burden on foreign organizations, and corruption. In the Bangladesh section of the report, it has been mentioned that in the past decade Bangladesh has gradually achieved progress in reducing investment barriers.
For example, there is effort to ensure electricity service better. However, foreign investment is still being obstructed. The report mentioned that the interim government, by giving Nobel laureate Dr. Muhammad Yunus the responsibility of Chief Adviser, started the work of administrative reform, but most of the daily regulatory landscape remains unchanged.
Entrepreneurs of industries have said, due to various problems there is no interest for new investment in the country. Bank interest rates have increased, there is no uninterrupted gas supply, law and order problems remain. Besides, businessmen have to face various harassments in customs.
In this regard, Mohammad Hatem, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said: “At this moment, the most problems we are facing in business-trade is regarding banking. Bank is creating the most problems. Our import-export trade is being delayed. Next problem is regarding customs. Then gas-electricity, law and order. Broadly these four problems we are facing. Besides, Bangladesh Bank’s policy has to be investment-supportive. There is still lack of investment-supportive environment. What is happening regarding labor law amendments, with that foreign investment will not come, that is certain. For businessmen of our country, options are few. Abroad there are many options for investment. Whatever investment was to be done, we have done, no new thinking for further investment.”
And Md. Shahriar, president of Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), said: “Old investors are now in various problems. For importing capital machinery, LC is not available. For new investment, loan support is not available. Problem with ‘jhut’ has now again taken a bigger shape. There is great lack of stability in business-trade. Businessmen are now suffering in orphanhood and insecurity. If any problem arises, to whom will they go, to whom will they appeal for justice?”