TDS Desk:

Business leaders have raised serious concerns to the Bangladesh Bank Governor over the proposed hike in gas prices, along with a host of other economic challenges that are increasingly hindering operations.

“The high interest rates on bank loans, energy shortages, escalating fuel prices, the withdrawal of export incentives, increased taxes, and mounting pressure to raise workers’ wages have created an unfavourable environment for doing business. Such an atmosphere leaves no room for sustainable operations,” said Anwar-ul Alam Chowdhury (Parvez), President of the Bangladesh Chamber of Industries (BCI), after the meeting with the Governor.

The industry representatives voiced their grievances and called for the introduction of an exit policy that would allow businesses to close with dignity if the situation does not improve.

One of the primary issues highlighted was the rising cost of borrowing. Business owners argue that high interest rates are stifling growth and limiting their ability to expand or reinvest.

They said this financial strain is exacerbated by the ongoing energy crisis and the soaring prices of gas, which significantly increase production costs and undermine the competitiveness of Bangladeshi products in global markets.

According to them, the withdrawal of export incentives has dealt a severe blow to exporters, who are already grappling with fluctuating international demand and rising input costs. Increased taxation and the pressure to enhance wages and benefits for workers have further intensified the financial burdens on businesses.

In light of these challenges, the business leaders have demanded the introduction of an exit policy that would enable struggling businesses to close without reputational damage.

“If we cannot operate profitably and with dignity, we must be allowed to exit gracefully. The government must consider this seriously,” Chowdhury emphasised.

The business community has urged the government and Bangladesh Bank to take immediate action to address these issues.

They proposed several reforms, including lowering interest rates, ensuring a stable and affordable energy supply, reinstating export incentives, and adopting more business-friendly tax policies.

Failure to act on these concerns, business leaders warned, could lead to a significant slowdown in industrial activity, resulting in widespread job losses and detrimental impacts on the national economy.