Businesses urge Yunus to end politically influenced business culture

Major issues raised by the business community

• Urgent restoration of law and order
• Ensuring uninterrupted energy supply
• Engaging businesses in the reform process
• Stabilise the financial sector

The business community aims to start a new era of responsible business practices in the country and seeks to end the culture of politically favoured business operations.

"We want an overhaul of the politically-blessed business culture in Bangladesh," said Mir Nasir Hossain, director of the International Chamber of Commerce Bangladesh, during a meeting with Chief Adviser Muhammad Yunus at the Hotel InterContinental today (12 September).

Mir Nasir, a former president of the FBCCI, said, "I would like to say to our youth, that we, the business community, want to move forward by working together in cooperation. We believe that their intellect, philosophy and wisdom will give Bangladesh a new dimension to international platforms."

He claimed that there is a well-orchestrated vested quarter, who are desperate to discredit the interim government by creating chaos and unrest within the society and the economy. "We must resist this unholy alliance and counter it with full force."

Nasir said the export sector in Bangladesh not only earns foreign exchange for the country but also employs a large number of people, keeping the wheels of the country's economy rolling.

"However, the economy is under threat today due to dishonest practices and financial irregularities of some unscrupulous businessmen. On behalf of the business community, I strongly appeal to you [chief adviser] to take strict legal action against these unscrupulous businesses and their associates," he said.

"Business as a whole has full trust and confidence in the interim government headed by Professor Yunus, which came into being as a consequence of student-led mass movement to create a 'new Bangladesh'," the ICC Bangladesh director added.

The business community commended the interim government for significant improvements within a month, including increased remittance flow, a revived stock market, enhanced Bangladesh Bank reserves, reduced fuel prices, easier loan terms for export industry salaries, and the formation of a banking commission.

To create a business-friendly environment, Mir Nasir outlined eight critical issues on behalf of the business community and requested the chief adviser's immediate action to address them.

Restoration of law and order

Mir Nasir said since the student-led mass uprising, a crisis within the law enforcement agencies has surfaced, leading to a worsening of the country's law and order situation.

Taking advantage of the situation, some miscreants are trying to create anarchy, which has plagued all industries including exports, he said.

Nasir said industrial areas are experiencing constant unrest at the instigation of outsiders who are not related to the industry. Even the labour unions have given statements that they are not associated with such activities. These offenders are carrying out robbery, vandalism, arson and looting in industrial factories.

To date, more than 100 factories have been vandalised and 200 more have been subjected to forced closure due to such attacks. It is estimated that more than Tk5,000 crore worth of damage has been caused already, he said.

"Insufficient presence of industrial police and limited activity of general police have left the situation far from under control. This has significantly harmed our economic capacity, which will directly impact employment. We urgently call for a continuous, strengthened presence of joint forces in all industrial zones," Nasir added.

An improvement in the overall situation has been observed in areas where the joint forces have been deployed and businesses believe that if such strides are emulated to the entire industrial zones, the situation will be brought under control soon.

Development of the ICT sector

The business community has highlighted the relatively modest contribution of Bangladesh's Information and Communications Technology (ICT) sector to the national economy, despite its vast potential.

Currently, the sector employs over 300,000 skilled young professionals, with export revenues amounting to approximately $1.5 billion.
However, industry leaders argue that the sector's full potential remains untapped, citing the absence of key policy initiatives as a primary barrier to greater success.

They stressed that in addition to upgrading the country's technological infrastructure, focused efforts are needed to equip the youth with globally competitive skills.

IT stakeholders have expressed a strong willingness to collaborate with the government to achieve these objectives.

Development of the insurance sector

Business leaders informed the chief adviser that the Road Transport Act 2018 replaced the Motor Vehicles Ordinance 1983. 

However, the complexities of the new law have resulted in commercial and other vehicles operating without insurance, posing a serious risk to public safety — an issue unprecedented globally. 

They underscored the urgent need for a solution to this situation and called for immediate reforms in the insurance industry.

Stabilise the financial sector

The interim government has already taken significant steps to address irregularities and restore stability in the financial sector, for which the business community expresses its gratitude. 

However, it remains crucial to recover funds laundered abroad in recent years. 

Businesses are hopeful that, under the chief adviser's leadership, the government will undertake the necessary structural reforms, including granting autonomy to the Bangladesh Bank, to ensure lasting stability in the sector. 

Increasing liquidity in banks is vital, particularly for the SME sector. Also, improving the balance of payments by relaxing import restrictions and boosting access to foreign currency loans is necessary. 

Restoring confidence among the public will depend on swift measures to control inflation and other policies, including the tightening of fiscal expenditure. 

Businesses are optimistic that some of the recent actions by the Bangladesh Bank will soon yield positive results.

Ensuring uninterrupted energy supply

Businesses say there is no alternative to ensuring uninterrupted power and gas supply to keep production and services running in all industries. 

The economy of the country will remain active, if necessary, fuel imports are ensured.

On behalf of the business community, Mir Nasir has made an appeal to the interim government to give preference to renewable energy and solar power generation over coal, gas and fuel oil-based power plants. 

He also requested adopting appropriate measures to extract local gas and coal resources.

Engaging businesses in the reform process

The business community said that they are learning about reforms at various phases. This process should be universal. 
Depending on the sector, businessmen are also keen to get involved in this process of reformation and provide the necessary support.

Enhancing the image of the country

The recent uprising severely disrupted economic activities for several days, during which foreign media – particularly from rival nations – circulated vicious rumours. 

This has led to a crisis of confidence among foreign investors and buyers, as well as concerns among existing investors in Bangladesh, eroding the country's reputation as a reliable sourcing destination. Immediate action is needed to address this.

Several key nations, including the USA, UK, Canada, Germany, and India, have issued travel advisories for Bangladesh, causing hesitation among investors and buyers about visiting the country. 

The business community urged the government to take diplomatic efforts to lift these travel advisories.

The current law-and-order situation has also triggered negative reactions from international brands and buyers toward Bangladesh's export industry. 

With trust wavering, there are concerns about securing future work orders. A swift, strategic response is needed to rebuild relationships with major export markets and importers. 

"In this regard, I suggest forming a task force under your [Yunus] leadership, with participation from relevant ministries and the private sector," said Mir Nasir.

"Recently, we have seen the release of 57 expatriate Bangladeshis in the UAE, thanks to your personal intervention. We believe your standing on the global stage will continue to elevate Bangladesh's image," he added.

Reconsidering LDC graduation deadline

The business community also highlighted concerns regarding Bangladesh's scheduled graduation from Least Developed Country (LDC) status in 2026. 

As Bangladesh transitions to a middle-income country, the trade benefits currently enjoyed as an LDC will gradually be withdrawn, exposing our industrial production and exports to increased competition. 

Given the country's broader economic situation, they urge Yunus to reconsider the deadline for this graduation and explore possible extensions.