FBCCI without leadership for 20 months amid mounting business challenges

The country’s apex trade body, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), which is expected to steer the business community during times of economic uncertainty, is now facing a deep crisis of its own. The organization has remained without an elected leadership for the past 20 months.

Although routine administrative activities continue under a government-appointed administrator assigned by the Ministry of Commerce, business leaders say there is effectively no one to advocate for the private sector at the policy level. As a result, businesses—large and small—have been left without their primary platform for negotiating with the government.

The leadership vacuum comes at a difficult time for Bangladesh’s economy. Inflation remains above 9 percent, bank lending rates have surged to 14–15 percent, gas and electricity shortages continue to disrupt production, and businesses face mounting challenges in opening letters of credit (LCs) for importing raw materials. On top of that, annual tax and VAT burdens continue to rise. With global markets also facing uncertainty due to tensions in the Middle East, entrepreneurs say the absence of a representative body has become increasingly problematic.

Business leaders note that the current deadlock stems mainly from uncertainty surrounding amendments to trade organization regulations. Following the fall of the former government after the student-led uprising on August 5, 2024, then-FBCCI President Mahbubul Alam resigned. On September 11, the Ministry of Commerce dissolved the board and appointed an administrator.

Subsequent reforms, demanded by the “FBCCI Anti-Discrimination Reform Council,” reduced the board size from 80 members to 46 and cut the number of nominated directors. However, a newly introduced rule barred members from serving more than two consecutive terms on the board, with the condition applied retrospectively as well. The rule disqualified several influential former leaders from contesting elections, leading to legal challenges and halting the election process.

Although the outgoing interim administration initiated steps to revise the regulations, the process remained unfinished. After the formation of the BNP-led government in February, businesses hoped for progress, but momentum has remained slow. Additional Secretary Md. Abdur Rahim Khan, appointed as administrator in two phases, has already remained in the role beyond the scheduled tenure.

Senior business figures, including former FBCCI President Mir Nasir Hossain and Bangladesh Restaurant Owners Association Secretary General Imran Hasan, say small and medium enterprises are suffering the most from the absence of the federation’s leadership.

The situation has also created a chain reaction across the business community. Elections of 401 sector-based organizations and 83 district chambers, including the Dhaka Chamber of Commerce and Industry and Metropolitan Chamber, have also been delayed.

Business leaders are now urging the government to resolve legal and administrative complexities and hold elections quickly so that FBCCI can regain a representative leadership capable of working alongside the government to navigate the country’s fragile economic situation.