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Amir Khasru Mahmud Chowdhury, who is set to take charge as the finance and planning minister of the BNP-led new government, has set boosting investment and employment as his top priority, saying the government will focus on simplifying the business climate and lowering the cost of doing business to stimulate economic activity.

In a short interview with The Business Standard shortly after taking oath in the government led by Tarique Rahman, Khasru said effective measures would be taken to curb corruption and extortion, which he identified as barriers to growth.

He said deregulation would be introduced to ease bureaucratic complexity and reduce business costs.

High bank lending rates and elevated gas and electricity charges are discouraging private-sector investment and limiting job creation, he added.

“Lowering lending rates to a tolerable level, removing bureaucratic hurdles and improving ease of doing business will be central policy priorities,” the minister said.

Amir Khasru described the broader economic landscape as challenging, citing Bangladesh’s declining tax-to-GDP ratio, weaknesses in the banking and financial sectors, and a struggling capital market.

“Although inflation has eased slightly, it remains high, while private-sector credit growth has slowed sharply, investment and job creation remain weak, capital machinery imports have fallen, and poverty is rising.

“To overcome this situation, we will have to take major and difficult decisions,” he said, adding that stricter reforms will be needed compared with previous administrations.

Reducing the cost of doing business to encourage investment and employment will be pursued at any cost, alongside efforts to raise the tax-to-GDP ratio through economic expansion, he said.

The minister added that as the finance minister, he will undertake a comprehensive review of the economy to determine its current condition, after which the government will outline a roadmap defining its economic direction.

Import letters of credit (LCs) opened in January climbed to $6.61 billion – the highest in 11 months – as businesses stepped up purchases ahead of the national election and the fasting month of Ramadan.

A senior official of the Bangladesh Bank confirmed the figures, adding that LC openings in January last year stood at $6.85 billion. LC settlements in January this year amounted to $6.16 billion.

Bankers and central bank officials, while talking to TBS, attributed the surge to increased imports of essential commodities ahead of Ramadan and a renewed sense of business confidence surrounding the February elections. Traders also brought in some capital machinery in anticipation of improved economic conditions.

Mohammad Ali, managing director and CEO of Pubali Bank, said LC openings typically rise before Ramadan due to higher imports of consumer goods.

“Rice, pulses, edible oil, and dates are imported in larger quantities ahead of the fasting month. LC openings generally increase during this period compared to other months,” he said.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said imports of essential commodities have increased in preparation for Ramadan, while the February elections created some optimism among businesses, prompting limited imports of capital machinery.

“If the overall business environment improves, new investments will follow, which will further boost imports of capital equipment,” he said, adding that banks currently have adequate dollar liquidity. 

Mahbubur further said, “There is no shortage of dollars, and businesses can access foreign currency to open LCs as needed.”

However, a treasury head at a private bank noted that private sector credit growth has slowed since August 2024, reflecting subdued new investment and trade activity. 

“Without new business expansion, demand for capital machinery remains limited, which in turn affects LC openings,” he said.

Essential food items in high demand during Ramadan include rice, wheat, edible oil, sugar, lentils, onions, garlic, chickpeas and dates. 

According to the Ministry of Commerce, demand during Ramadan alone is estimated at 3,00,000 tonnes for soybean oil, 3,00,000 tonnes for sugar, 5,00,000 tonnes for onions, 1,50,000-200,000 tonnes for chickpeas, and 60,000-80,000 tonnes for dates.

Data from the National Board of Revenue show that over the past four months, imports included 2,25,000 tonnes of onions, 3,70,000 tonnes of sugar, 47,000 tonnes of dates, 2,05,000 tonnes of lentils, nearly 4,00,000 tonnes of crude soybean oil and 1,40,000 tonnes of wheat.

The January spike in LC openings suggests a seasonal boost in trade activity, though sustained momentum will depend on broader improvements in investment and business confidence.

Private credit growth below 7%

Bangladesh Bank data shows that private sector credit growth stood at 6.10% at the end of December, remaining below 7% for seven consecutive months. This indicates that businesses are borrowing less for trade and investment.

According to bankers, major conglomerates – including Meghna Group, City Group, Square Group, Edible Oil Limited, Bashundhara Group and TK Group – have already imported most of the goods required for Ramadan.

Data also shows that imports of six essential items that are widely consumed during Ramadan rose sharply in September and October compared with the same period last year. 

Soybean oil imports increased by 36%, sugar by 11%, lentils by 87%, chickpeas by 27%, split peas by 294% and dates by 231%.

https://www.tbsnews.net/economy/import-lcs-opening-highest-11-months-january-1363486

The Transparency International Bangladesh (TIB) has said that despite some irregularities, the 13th parliamentary election was fair, acceptable and inclusive overall.

TIB Executive Director Dr Iftekharuzzaman, addressing a press conference on Monday, highlighted the dominance of the businesses in the country’s electoral process.

Commenting on TIB’s observation report on the 13th national parliamentary election, he said entering politics with the intention of capitalising on profit raises serious moral questions.

“People from any profession can enter politics — there is no problem with that. But when politics is used to expand opportunities for money-making, it becomes problematic,” he said, stressing that the issue deserves consideration from a democratic perspective.

He also questioned how far politics benefits from such practices and whether they are appropriate in a democratic system.

At the press meet, TIB released its report titled ‘The 13th National Parliament Election Process and Affidavit-Based Observation’.

According to the report, nearly 60 per cent of the newly elected members of parliament (MPs) are businessmen by profession. Although the share of businessmen has slightly declined compared to the 12th parliament, they have remained dominant in the legislature since 2008.

Drawing on past experiences, Iftekharuzzaman said the overlap of political and business roles often turns politics into a profit-making tool.

“No one can deny that political identity is used as a means of profiting,” he said, adding that political interference and lobbying influence business policies, structures and public procurement processes.

TIB Senior Research Fellow Mahfuzul Haque and Director (Outreach and Communication) Touhidul Islam presented key observations from the report.

TIB analysed the election process in 70 constituencies.

However, it found that 99 per cent of candidates breached the electoral code of conduct.

Irregularities observed on polling day included casting of fake votes, voter intimidation, favouritism by election officials and obstruction of polling agents from entering polling centres.

Among the winners, businessmen constituted the largest group at 59.9 per cent.

A total of 209 MPs were elected for the first time, with the average age of the new MPs being 59 years. More than 84 per cent hold graduate or higher degrees.

Based on declared assets, 236 elected MPs are millionaires, while 13 are billionaires.

The report also noted that half of the new MPs have liabilities or debts, with total liabilities amounting to Tk 113.56 billion — the highest compared with the previous four parliaments.

By party, 62 per cent of MPs from Bangladesh Nationalist Party (BNP) and 16 per cent from Jamaat-e-Islami have reported liabilities.

The report further said campaign spending limits were widely violated both online and offline, individually and jointly. Violations were highest among candidates from the two major parties.

Offline or individual campaign spending exceeded prescribed limits by between 19 per cent and 328 per cent.

Spending overruns were highest among BNP candidates (327.5 per cent), followed by independents (315.2 per cent), Jamaat candidates (159.1 per cent), Jatiya Party candidates (128.6 per cent) and NCP candidates (19 per cent). TIB also highlighted a sharp decline in women’s representation in the new parliament.

Women account for only 2.36 per cent of the 13th parliament — half the level seen in the 2008 ninth parliament and the lowest on record.

https://today.thefinancialexpress.com.bd/first-page/polls-were-largely-fair-acceptable-tib-1771265764