The current state of the country’s economy is deeply concerning. In particular, the level to which private investment and credit flow have declined is unprecedented in the past two decades. According to data from Bangladesh Bank, private sector credit growth has fallen to its lowest level in 22 years—standing at just 6.1 percent at the end of December 2025. For a developing economy, this statistic is not merely a number; it is a warning signal of stagnation in industrialization.
Abnormally high interest rates and the excessive cost of borrowing have made new investments and industrial expansion virtually impossible. The direct impact is being felt in employment. It must be remembered that without renewed momentum in the private sector, sustainable job creation is simply not possible.
At the same time, inconsistencies in monetary policy are raising serious concerns.
On one hand, there is talk of a tight monetary policy; on the other, broad money supply in the market increased from 7 percent in June 2025 to 9.6 percent in December. This contradiction suggests significant flaws in the strategy to control inflation and achieve growth. Its negative effects are already evident in the export sector. Over the past six months, exports have declined continuously, reaching negative 14.25 percent in December 2025.
Such a weakening of our competitiveness in the global market signals danger for economic stability.
At this critical juncture, expectations from the new government are high. To restore confidence in the private sector, the government’s first priority should be to take swift and firm action to visibly improve law and order and ensure business security. Entrepreneurs no longer seek verbal assurances; they want tangible guarantees of investment protection.
At the same time, comprehensive reforms in ease of doing business, supply chain improvements, and ensuring uninterrupted energy supply are essential.
Without necessary reforms in the banking sector to revive credit flow, neither small nor large entrepreneurs will have the confidence to make long-term investments.
We hope the new government will formulate an integrated and sustainable economic roadmap, where discipline and transparency form the foundation. There is no alternative to moving forward with the private sector as a partner if the economy is to be revived.
Author: President, Dhaka Chamber of Commerce and Industry (DCCI)
