Business leaders echoed these concerns, noting that the interim government’s 18-month tenure saw no respite. Extortion rose across sectors, with informal payments required for everything from trade licenses to VAT compliance.
In a stark warning to Bangladesh’s newly elected government, the Dhaka Chamber of Commerce and Industry (DCCI) has alleged a dramatic rise in extortion demands on businesses, claiming they increased by up to 50 per cent following the 2024 mass uprising that toppled the Awami League regime. DCCI President Taskeen Ahmed, speaking at a press conference yesterday, painted a grim picture of an economy crippled by rampant illegal tolls and persistent corruption, urging immediate action to prevent widespread factory closures and a potential exodus of entrepreneurs.
The revelations come amid Bangladesh’s fragile recovery from political turmoil, with private sector credit growth hitting a 22-year low and export momentum stalling. Ahmed emphasized that without a zero-tolerance approach to these issues, the government’s ambitious goal of creating one crore new jobs would remain unattainable. The press conference, titled “Expectations from the New Government to Address the Current Economic Situation,” outlined a roadmap for revival, highlighting four priority areas to restore investor confidence.
Extortion Spikes Post-Uprising
According to Ahmed, extortion not only persisted but escalated after the July 2024 uprising, with businesses facing demands 20 per cent to 50 per cent higher than under the previous Awami League administration. Trucks entering or leaving factories are routinely hit with illegal tolls, while even small boats on rivers are stopped mid-route for payments. These demands often come from individuals claiming ties to the ruling party, police, or revenue officials, who solicit funds for purported events or neighbourhood activities.
The surge has permeated the entire supply chain, from factory gates to transportation networks, driving up operational costs and fuelling inflation. Ahmed described extortion as “embedded in our blood,” warning that it is pushing companies to the brink. “If extortion is not stopped, we will have to shut down our businesses,” he stated bluntly, adding that some entrepreneurs may be forced to leave the country altogether. This comes at a time when private investment has dipped to 22.48 per cent of GDP, and export growth slowed to a mere 0.5 per cent in December 2025.
Business leaders echoed these concerns, noting that the interim government’s 18-month tenure saw no respite. Extortion rose across sectors, with informal payments required for everything from trade licenses to VAT compliance. The DCCI’s “Road to Revival” action plan calls for suppressing these activities “overnight with a heavy hand,” arguing that economic progress will otherwise remain a “dream.”
Persistent Corruption in Public Offices
Corruption in government offices showed no signs of abating during the interim period, with bribes demanded at rates matching or exceeding those under the Awami League. Ahmed alleged that “not for a single day has corruption in public offices declined,” with payments increasing by up to 50 per cent in some cases. This has eroded trust, deterring both domestic and foreign investment.
The chamber urged the new BNP-led government to make public administration transparent and corruption-free as a top priority. Full automation of the National Board of Revenue (NBR) within eight months was proposed to reduce harassment and expand the tax net, potentially raising the tax-to-GDP ratio to 8 per cent. Without these reforms, Ahmed warned, the private sector – the engine of growth – cannot function effectively.
High non-performing loans (NPLs), now at nearly Tk 6.5 lakh crore or 36 per cent of total loans, further compound the issue. The central bank’s decision to shorten the loan classification grace period from nine to three months has artificially inflated these figures, destabilizing banks and industries. The DCCI demands support for non-wilful defaulters, such as SMEs hit by COVID-19, global conflicts, and a 41 per cent currency devaluation, including subsidized credit lines.
Economic Recovery at Risk
Broader structural challenges threaten Bangladesh’s trajectory, including an energy crisis with a daily gas shortfall of 925 MMSCFD and inadequate electricity generation. Gas prices for new industries stand at Tk 40 per unit, disrupting production. The chamber called for a modern energy policy – the last update was in 1996 – and offshore gas exploration to bridge the gap.
Logistics woes add to the burden, with a 41 per cent hike in Chattogram Port tariffs despite the authority’s surplus, affecting 88 per cent of trade. The DCCI demanded an immediate reversal and implementation of the Bangladesh Single Window system for streamlined procedures. Over two million educated youth remain unemployed, posing social risks.
The impending LDC graduation could slash exports by 5.5-7 per cent (USD 2.7 billion), per UNCTAD estimates. While praising the government’s request for a three-year deferral, the DCCI stressed preparation amid global uncertainties.
Scrutiny of Opaque US Trade Deal
A major red flag is the reciprocal tariff agreement signed with the US under a non-disclosure arrangement by the interim government. Ahmed criticized its lack of transparency and stakeholder input, warning it could undermine sovereignty. Provisions reportedly mandate USD 15 billion in LNG imports over 15 years from distant US suppliers, increasing costs and lead times compared to regional options like Qatar. Restrictions on subsidies might affect agriculture, while clauses could complicate other trade pacts due to US sanctions.
The deal offers unclear benefits for Bangladesh’s RMG sector, which accounts for 13 per cent of GDP, while US trade is under 2 per cent. Ahmed urged renegotiation for a “win-win” outcome, with parliamentary scrutiny.
Failure to act, Ahmed cautioned, could derail Bangladesh’s economic aspirations, leaving businesses vulnerable and the nation grappling with stagnation.
