DCCI flags fiscal risks, sees scope for stronger investment, jobs

Bangladesh's economy is facing mounting pressure from high debt-servicing costs, weak private-sector credit, and persistent inflation, said the Dhaka Chamber of Commerce and Industry (DCCI) today.

However, recent business-facilitation reforms from the government could boost investment and job creation, the trade body said during the release of its report, "Biannual Economic State in FY2026: Fiscal & Monetary Perspective and Private Sector Expectations," at its office in Dhaka.

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According to the DCCI, the government’s domestic debt servicing has reached Tk 1.05 lakh crore and foreign interest payments stand at Tk 22,500 crore. 

The trade body pointed out that the government's revenue target of 10.2 percent of GDP for FY27 is "ambitious" given the low tax-to-GDP ratio, citing weak inter-agency coordination as a key risk. 

To address these vulnerabilities, DCCI recommended limiting domestic bank borrowing, accelerating National Board of Revenue digitalisation, and tightening borrowing discipline. 

On the macroeconomic front, DCCI noted that inflation, at 8.32 percent in July, remains the highest in South Asia, while private-sector credit growth has fallen to 4.47 percent, near a two-decade low. 

DCCI blamed the 4 percent interest-rate spread cap and heavy government bank borrowing for constraining lending to small and medium enterprises, urging that the Tk 60,000 crore stimulus package be ring-fenced for productive use. 

Regarding budget initiatives for FY27, DCCI highlighted measures allowing fully digital company registration within 48 hours, profit repatriation of up to Tk 100 crore without prior Bangladesh Bank approval, and new duty-free bond facilities across 10 sectors. 

The report further detailed that investment facilitation covers 125 services across 28 categories, with 60 available online, while a five-year investor visa is expected to be processed within seven days. 

DCCI stated that new export processing zones in Patuakhali and Jashore are expected to create 1.5 lakh jobs, adding that broader deregulation, faster approvals, and capital-market reforms could generate over 25 lakh new jobs. 

The trade body also warned that LDC graduation could cost $17.5 billion in exports, urging the government to seek an extension of the transition period to November 24, 2029.