Extortion rose up to 50% during interim govt: DCCI
Extortion surged by up to 50 percent following the fall of the Awami League government in the 2024 mass uprising, while corruption in public offices persisted throughout the 18-month tenure of the subsequent interim government, claimed the Dhaka Chamber of Commerce and Industry (DCCI).
Businesses were being forced to pay the same level of extortion as before the fall of the Awami League government, and in many cases up to 50 percent more, said DCCI President Taskeen Ahmed.
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“If extortion is not stopped, we will have to shut down our businesses,” he told reporters at a press conference titled “Expectations from the New Government to Address the Current Economic Situation” held at the chamber’s auditorium in Motijheel today.
Ahmed urged the new government to tackle both extortion and corruption. Otherwise, he said, the government will not be able to achieve its goal of creating 1 crore new jobs.
The DCCI president said corruption at public offices had not decreased during the interim administration. “Not for a single day has corruption in public offices declined,” he said.
When asked who was responsible for extortion, Ahmed pointed to individuals linked to the ruling party, the police, and revenue authorities.
He said those demanding money often claimed to represent the party in power. “They come and say they are from the government party. Whoever is in office, they say they are from that party, and we have to pay. They demand money for events, for neighbourhood events.”
Calling extortion and corruption “embedded in our blood,” he said, “If extortion does not stop, we will have to close our businesses and leave.”
The DCCI president said payments were demanded to enter factories, offices, and even on the streets. He urged the new government to send a strong message against such practices.
Reviving the economy, he said, would require energising the private sector. He outlined four priorities.
Those are improving law and order to stop extortion, eliminating corruption to restore investor confidence, allowing non-wilful loan defaulters to return to business with support if needed, and reducing bank lending rates to a reasonable level.
He said that the BNP government has assumed office amid deep structural weaknesses and growing economic pressures.
Private sector credit growth fell to 6.49 percent in fiscal year 2024-25, the lowest in 22 years, he said.
According to the president of the chamber, private investment declined to 22.48 percent of gross domestic product, while credit growth slipped further to 6.10 percent in December 2025. Export growth slowed to roughly 0.5 percent during the same month.
“These challenges are caused by structural weaknesses, including stress in the banking sector, rising import costs, energy shortages, and an unstable law and order situation,” he said.
Turning to monetary policy, the business leader argued that holding the policy rate at 10 percent had failed to tame inflation and instead driven lending rates above 16 percent.
“As a result, bank borrowing has become costly and unviable for businesses,” he said, urging authorities to cut the policy rate or provide subsidised credit lines for productive sectors.
He said non-performing loans (NPLs) have climbed to nearly Tk 6.5 lakh crore and added that not all classified loans reflect wilful default.
“A large number of SMEs became classified due to working capital shortages caused by Covid-19, global conflicts, around 41 percent currency depreciation over two years, and high interest rates,” he said.
The trade leader called for a clear distinction between large wilful defaulters and firms affected by external shocks, and for targeted support to viable businesses.
He also suggested reducing dependence on banks by strengthening the capital market and listing large state-owned enterprises on the stock exchange.
Turning to energy and revenue issues, the DCCI president said the country faces a daily gas shortfall of around 30 percent, disrupting industrial production. Gas prices for new industries are set at Tk 40 per unit and Tk 42 for captive power plants, adding pressure on manufacturers.
Although installed generation capacity stands at 27,000 megawatts, actual output is much lower, leading to high-capacity payments. Ahmed called for a modern and integrated energy policy, noting that the last comprehensive update was in 1996.
He recommended differential pricing to encourage off-peak electricity use.
On tax policy, he welcomed the BNP government’s plan to raise the tax-to-GDP ratio to 8 percent but said full automation of the National Board of Revenue (NBR) is essential.
“The tax administration system is still partly manual, which leads to inefficiency and corruption. Automation is now necessary,” he said, adding that the turnover tax should fall from 1 percent to 0.6 percent, as businesses continue to recover from prolonged economic shocks.
Ahmed criticised a 41 percent average tariff increase by the Chittagong Port Authority, despite its surplus in fiscal year 2024.
With roughly 88 percent of trade passing through Chattogram Port, he said that the hike would raise costs and called for an immediate review. He also pressed for full implementation of the Bangladesh Single Window system to simplify trade procedures and cut time and costs.
The chamber’s president welcomed the decision to defer Bangladesh’s graduation from least developed country status by three years to allow better preparation. He also advised careful evaluation of a recent US trade agreement.
“If necessary, the agreement should be renegotiated to ensure a win-win outcome,” he said.
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