Commerce Adviser Sk Bashir Uddin questioned why foreign investors would be interested in investing in Bangladesh if even local entrepreneurs do not find the country's business environment conducive.

He stated that attracting local or foreign investment requires relevant policy support, adding that policy consistency is critical.

However, he opined that there is no alternative to increasing the private sector's capacity to meet the challenges of trade and investment in the future.

The commerce adviser made these comments during a meeting with Dhaka Chamber of Commerce & Industry (DCCI) President Taskeen Ahmed at the former's office at the secretariat yesterday.

Uddin noted that the student-led mass uprising in July, its subsequent impacts on the overall law and order situation, and floods across the country had caused supply chain interruptions and disrupted local business activities last year.

However, he added that the overall situation is already improving and that the government is working relentlessly to enhance the environment further.

He also expressed hope that prices of essential commodities would stabilise during the holy month of Ramadan, set to begin at the end of February.

He said the recent rise in rice prices had come to the government's attention and assured that efforts are being made to keep prices tolerable.

He emphasised that containing inflation and ensuring the continuation of overall economic development requires expanding tax collection and widening the tax net.

Mentioning that the private sector will face numerous challenges after Bangladesh graduates from the list of least developed countries (LDCs), the commerce adviser stressed that reforms in trade- and investment-related policies, along with collective efforts from all stakeholders, would be indispensable for the economy's betterment.

DCCI President Ahmed stated that radical reforms and modernisation of existing frameworks related to trade and investment -- including import-export policy, revenue structure, financial management, logistics policy, national budget, and monetary policy -- are essential to addressing the challenges of LDC graduation.

He noted that Bangladesh could not adequately prepare for the challenges of the post-LDC era due to the Covid-19 pandemic, the Russia-Ukraine war, unrest in the Middle East, and political instability in the country in 2024.

Ahmed suggested that the government consider deferring the process to allow sufficient time for preparation since the country will lose significant preferential trade benefits on the international market upon graduation.

He also criticised recent initiatives by the National Board of Revenue (NBR) to increase VAT, supplementary duty, excise duty, and taxes on over a hundred products, saying these measures have already caused concern among the general public and businesses.

Ahmed cautioned that if these measures are implemented in the current economic context, the impacts would include increasing inflation, raising the cost of doing business, and potentially hindering both local and foreign investment.

Although the government announced it would reconsider the proposed tariff hikes for several sectors, the DCCI president remarked that the timing of such moves, especially with Ramadan on the horizon, is unacceptable.

He also called for strengthening market monitoring activities to address existing irregularities in supply chain management and to control inflation effectively.