Press Release

BUILD, in collaboration with the International Trade Centre’s She Trades Initiative and the Bangladesh Public Procurement Authority, with support from the UK Foreign, Commonwealth and Development Office, convened a sustainable public procurement policy survey to identify policy implementation challenges and opportunities. The survey results were presented at a policy dialogue on 24 April at the Six Seasons Hotel in Dhaka.

This timely dialogue brought together key stakeholders from the government, women-owned enterprises, development partners, and public procurement entities to reflect on the progress, challenges, and future direction of implementing the sustainable public procurement policy. The dialogue also served as an opportunity to share findings from a recent needs assessment survey that reviewed the status of sustainable public procurement implementation and monitoring and evaluation practices, with a specific focus on gender inclusion.

Attached are the press releases in English and Bangla, along with a photo. For any further inquiries, please do not hesitate to contact us.

The Bangladesh Energy Regulatory Commission’s recent 33% gas price hike for new industrial users and captive power plants places significant pressure on the manufacturing sector. Business Initiative Leading Development (BUILD) has raised concerns about the timing of this gas hike, as businesses already face rising raw material costs, a weakening currency, export market volatility, and energy shortages.

The hike could lead to a 12.67% inflation spike, with industrial product prices expected to increase from BDT 8.23 trillion to BDT 9.28 trillion. BUILD calls for immediate relief through value-added tax (VAT), tax exemptions for the industrial and power sectors, and the use of the Energy Security Fund to stabilise gas prices.

The press release (Bangla and English) is enclosed for your information. Please contact us if you have any queries.

A leading think tank, Business Initiative Leading Development (BUILD), excels in supporting the private sector to safeguard the country’s economic interests against the recent imposition of reciprocal tariffs by the United States, which has sparked serious concerns among the private sector.

BUILD emphasises the critical need for a strategic review of the decision and swift diplomatic engagement to mitigate adverse effects on trade, investment, and employment. It also warns of prolonged trade barriers, which could deter foreign direct investment (FDI), stifling job creation and long-term economic growth.

Bangladesh has undertaken extensive policy-related reforms to overcome prolonged systemic problems, stabilise the macroeconomy, increase foreign trade, and boost the manufacturing sector by modifying monetary and fiscal policy, diversifying exports, enhancing financial sector stability, and strengthening the climate for private investment. Bangladesh is also working on trade facilitation, simplifying the NOC and registration process for investment in restricted sectors, reforms in the digital law, etc. However, at this moment, such reciprocal tariff imposition hinders the economy and jeopardises the investment environment.

Private sector entrepreneurs have already been receiving requests to postpone work orders in the RMG, leather, and other sectors, fearing significant impacts on their investment. “The US tariff matter indicates that the reforms process should be expedited and various pending reforms for trade facilitation should be accelerated,” stated Abul Kasem Khan, Chairperson of BUILD. “Immediate dialogue and remedial measures are essential to protect jobs and economic stability,” he added.

BUILD also emphasises conducting a comprehensive review of tariff implications involving the government, private sector stakeholders, and trade experts. Additionally, it proposes advocacy under the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA) to strengthen Bangladesh’s negotiating position despite the US administration’s historical reluctance to adhere to WTO norms. Given this, the government could soon form a Special Committee comprising members and experts from the public and private sectors.

The press release (Bangla and English) and a photo are enclosed for your information. Please get in touch with us if you have any queries.

Business Initiative Leading Development (BUILD) organised its 12th Financial Sector Development Working Committee (FSDWC) on 24 February 2025 at its conference room, chaired by Nurun Nahar, deputy governor 1 of Bangladesh Bank (BB).

Nurun Nahar, deputy governor -1 of Bangladesh Bank (BB), lauded the study and expressed optimism about reducing inflation to 7–8% by June 2025. Bangladesh Bank will look into the issue of raising the reserve requirements ratio of banks. In order to formalise the economy, BB is collaborating with the National Board of Revenue (NBR) to take policy measures. She also mentioned that BB conducts various awareness programmes to increase financial inclusion. She informed attendees about BB’s efforts to reduce the dominance of aggregators in the foreign exchange market. She hoped to enter a market-based exchange rate system by December 2025. She underscored the importance of regularly holding Fiscal-Monetary Coordination Council meetings involving government agencies and the private sector, as recommended by BUILD, to establish a balance between macroeconomic policies. BB will consider addressing the issue of reducing the high spread rate of banks. She also highlighted the upcoming master circular, which will address issues concerning cottage, micro, small, and medium enterprises (CMSMEs).

Representatives from the Ministry of Finance, Bangladesh Bureau of Statistics (BBS), Competition Commission, SME Foundation, Dhaka Chamber of Commerce and Industry (DCCI), Metropolitan Chamber of Commerce and Industry (MCCI), Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), Bangladesh Agro-Processors’ Association (BAPA), and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) were present at the meeting.

The press release (Bangla and English) and a photo are enclosed for your information. Please get in touch with us if you have any queries.

Bangladesh Bank (BB) has rolled out an extensive strategy to address the nation’s economic and financial challenges. Key reforms include forming three task forces to conduct a thorough asset quality review of banks, enhance BB’s regulatory capabilities, and recover stolen assets. These initiatives are part of a broader plan to stabilise the economy and reform the banking sector; however, a specific timeline could signal hope for discipline in the banking and financial sector.

BB’s Half-Yearly Monetary Policy Statement (MPS) sets the monetary policy direction for the second half of FY25, with the primary objectives of reducing inflation, stabilising the foreign exchange market, rebuilding BB’s foreign exchange reserves, and tackling the rise in non-performing loans (NPLs) in financial institutions. These primarily reflect governance issues aimed at stabilising the money market, which is positive; however, expectations were focused on important policy tools to address inflation, attract investment, and create employment.

As mentioned in the announced MPS, the forecast for global economic growth is 3.2% in 2024 and 2025, which could support Bangladesh’s exports and remittances. However, the MPS for H2FY25 has not clarified any new policy stance to derive benefits from this.

Despite stringent fiscal and monetary measures, inflation remains above 10%, though it showed signs of easing in December 2024 and January 2025, mainly due to a decline in food inflation. BB is targeting an inflation range of 7–8% in the near term. According to a study conducted by Business Initiative Leading Development (BUILD), the supply side remains undisciplined, with extortionists dominating operations at the field level. In the existing supply chain, only 8–9 entities control the import supply of consumption goods, creating an oligopoly market structure. High interest rates increase production costs, while 42% of the economy remains informal (Economic Survey, 2024). Recent amendments to VAT and SD policy further complicate the scenario. Coordination among the National Board of Revenue (NBR), law enforcement agencies, and BB must be strengthened. The role of the Competition Commission is not visible in addressing market anomalies.

To control inflation, BB has decided to keep the policy rate at 10%, with corresponding adjustments to the Standing Lending Facility (SLF) at 11.5% and the Standing Deposit Facility (SDF) at 8.5%, establishing a policy rate corridor of ±150 basis points. The spread rate by BB translates into a higher spread rate for commercial banks and other financial institutions, which currently stands at approximately 6%. Compared with other developing countries, the spread rate could be reduced gradually.

BB manages the foreign exchange market through a crawling peg exchange rate mechanism. It has ceased intervening in the inter-bank market to stabilise the exchange rate, aiming to boost remittance inflows and exports. However, trading in the spot market under the crawling peg mechanism is not viable for banks due to the fixed rate, which is lower than other rates as they trade through cross-country currencies. Bangladesh now uses six different types of currencies for bilateral trade and other inflows and outflows of foreign currencies. A specific, currency-wise targeted trade volume could help BB understand the demand-supply mechanism and better control exchange rates for different currencies.

The negative growth of BB’s net foreign assets (NFA), which have dropped by 15.7%, is primarily due to debt service payments. Borrowing may reach up to BDT 1.5 trillion, compared to the revised BDT 990 billion, due to a shortfall in revenue amounting to BDT 580 billion in H1FY25, according to NBR data. Local-source deficit financing will be critical, as the deposit scenario in the banking sector shows negative signs. The MPS has not provided any direction in this regard. BB could announce a unique scheme for a specific duration with attractive incentives to attract idle deposits.

Moreover, private sector credit growth (7.3%) is below the projected growth (9.8%), leading to lower productivity rates, as reported by the Bangladesh Bureau of Statistics (BBS). Industrial growth, which was 8.22% in the first quarter of 2023–24, reduced to 2.13% in the first quarter of 2024–25 (July–October). The trend in capital machinery imports shows a decline of 25.1%, amounting to USD 1.03 billion as of November 2024 compared to the previous fiscal year, indicating that the investment scenario is not gaining the expected momentum. The employment situation requires a robust strategy.

The private sector expected a lower interest rate for obtaining loans from banks for existing and new investments. Keeping the policy rate at 10% could result in higher production costs, increasing the cost of raw material imports, wages, and machinery, inducing policy-driven inflation. This contradicts the strategy to reduce inflation. A high policy rate alone cannot contain inflation; other factors, such as supply-side constraints and eroded depositor confidence, must be addressed. BB should consider these factors to ensure perfect economic competition and good governance through coordinated efforts.

The press release (Bangla and English) is included for your use. Please get in touch with us if you have any queries.

The 36th Trustee Board Meeting of Business Initiative Leading Development (BUILD), held on 23 January 2025, appointed Abul Kasem Khan, trustee board member of BUILD, as the chairperson of BUILD for the tenure of 2025.

Abul Kasem Khan assumed the responsibility of chairmanship following the decision of the trustee board by the relevant articles of the Deed of Trust of BUILD. Khan, a trustee board member nominated by the Dhaka Chamber of Commerce and Industry (DCCI), is the vice chairman of A.K. Khan & Company Ltd. and the managing director of A.K. Khan Telecom Limited.

The trustee board meeting also welcomed Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI); Kamran T. Rahman, newly re-elected president of MCCI; Muhammad Anwar Pasha, administrator of the Chittagong Chamber of Commerce and Industry (CCCI); and acting secretary general Dr AKM Asaduzzaman Patwary as the new BUILD trustee board members.

BUILD is a public-private dialogue platform supported by DCCI, MCCI, and CCCI. It has officially provided secretarial support to the Private Sector Development Policy Coordination Committee since 2011. It focuses on seven thematic public-private dialogue areas with specific importance given to trade and investment.

The press release (English) and a photo are included. Please get in touch with us if you have any queries.

Business Initiative Leading Development (BUILD) signed a memorandum of understanding (MoU) with Southeast University (SEU) on Wednesday, 27 November 2024, at the office of their Career and Professional Development Service (CPDS).

The MoU aims to foster a professional network to develop and promote academic and educational relationships through research, internships, professional exchanges, and policy advocacy between the two organisations. It will facilitate research and public-private dialogue (PPD) to create a transparent and conducive business environment in Bangladesh. On behalf of BUILD, Ferdaus Ara Begum, CEO of BUILD, and on behalf of SEU, Mohammad Nazmuddoza, director of CPDS, signed the MoU.

This joint initiative is focused on conducting research activities and exchanging information, including academic and policy research that will facilitate trade simplification and business improvement. The collaboration also includes organising joint seminars and research programmes to bolster industry-academia cooperation in Bangladesh. Dr Abul Hasanat Alamgir, professor and director of IRD at SEU, along with Pallab Bhattacharja, additional research director of BUILD, Kanis Fatama, senior research associate of BUILD, and Rawshon Shahriar, senior research associate of BUILD, were present at the event. The signing concluded with a tour of various departments, the library, and other infrastructural support areas of the esteemed university.

The press release (Bangla and English) and a photo are included for your use. Please get in touch with us if you have any queries.

The 9th SME Development Working Committee (SMEDWC) meeting, organised jointly by the Ministry of Industries (MoI) and BUILD, was held on 23 October 2024 in the MoI conference room. The meeting was chaired by Zakia Sultana, senior secretary of the MoI, and included the presentation of two critical policy papers: “Tannery Solid Waste Management: By-Products Development and Opportunities for SMEs” and “Revisiting the Potentials of Logistics Sub-Sectors in the IP 2022”. The objective was to gather feedback from public and private sector stakeholders.

The press release (Bangla and English) is included for your use. Please get in touch with us if you have any queries.

The 11th Trade and Investment Working Committee of BUILD, co-chaired by Md Selim Uddin, secretary, Ministry of Commerce, and Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry (MCCI), was held on 20 October at the conference room of MoC to discuss business-starting registration and licensing requirements—alternatives to cash incentives to remain competitive in the post-graduation regime.

Referring to the proposal for signing an FTA, the committee secretary, MoC, and co-chair emphasised the initiative to finalise the free trade agreement (FTA) with China, reinforcing the government’s commitment to enhancing trade relations. He emphasised the need to streamline RJSC services by reducing discretionary powers to create a more investment-friendly environment. Additionally, he urged the prompt implementation of a five-year trade licence issuance and renewal process by all relevant authorities, particularly the Union Parishad, to facilitate smoother business operations and support local enterprises. In response to the implementation report of the 10th T&I meeting presented by Ferdaus Ara Begum, CEO of BUILD, the MoC secretary requested reform suggestions to make RJSC more supportive of businesses.

While presenting the policy paper on “Local Government Act 2009 – Rationale of Trade Licence Issuance by the Authorities”, Kanis Fatama, senior research associate of BUILD, underscored the hurdles faced by entrepreneurs in Bangladesh while obtaining trade licences, including lengthy and stringent procedures with additional costs. The study reveals that local government agencies can collect taxes from all businesses under the Local Government Act 2009 (City Corporation, Municipality, and Union Parishad) rather than issue trade licences for starting a business.

Furthermore, industrial entities must obtain multiple initial registrations, licences, and approvals beyond sector-specific licences, complicating the business environment and affecting investment readiness. To streamline the process, BUILD recommends the introduction of an online primary business registration for all types of businesses, which can be issued by a single authority, following the example of Singapore.

Anwar Pasha, joint secretary and administrator of the Chittagong Chamber of Commerce & Industry, proposed the establishment of a working group that includes all relevant stakeholders chaired by the Ministry of Commerce (MoC) secretary. This working group would review the proposals from the BUILD study aimed at simplifying the trade licence process and introducing a unified system for issuing trade licences through a single authority. Endorsing this proposal, Md Shamsul Hoque, joint secretary of the Local Government Division, emphasised the importance of facilitating initial business registration from a single point and establishing a revenue-sharing mechanism among the respective agencies.

BUILD CEO Ferdaus Ara Begum shared insights from a study on “Export Growth Targets & Supportive Policies for Sustenance at the Post-LDC Regime”, where the prospects regarding alternatives to cash incentives were raised. After LDC graduation, Bangladesh’s trade policy needs to be WTO compliant; thus, giving direct cash incentives to exporters will no longer be possible. Bangladesh Bank has already reduced the cash subsidy twice, once in February and again in June 2024, negatively impacting several export items. The presentation highlighted the nature of prohibited subsidies, actionable subsidies, and other subsidies per WTO guidelines. Examples of countervailing measures in different countries were provided, as well as allowable supports such as loans and land at cheaper rates, tax benefits, support for items in the green box as per WTO guidelines, insurance, research and development, environmental protection, and the creation of new markets and products. Giving examples of other countries providing production-linked incentives, the study suggested simplification of the duty drawback system, specially bonded warehouses, interest rate subsidies, EDF, back-to-back L/C for all exports, exporters’ retention quota, infrastructural and compliance-related supports as alternatives to cash incentives.

Ibnul Wara, a member of LFMEAB, and Mostofa Monwar Bhuiyan, director of BKMEA, urged the government to continue cash incentive benefits until LDC graduation as they focus on building capacity for compliance and related challenges. Kamran T. Rahman, president of MCCI, endorsed the recommendations and called for a study to suggest policies for increasing the use of green and renewable energy (RE) by the industries, particularly exporters, to ensure that Bangladesh achieves 40% electricity consumption from RE by 2030 and reaches net zero by 2050. He proposed that a corporate purchase framework could be a viable option to provide factories with RE through the national grid. Dr Mostafa Abid Khan, CM-1, SSGP, ERD, emphasised the issue of fees and tax and enquired how tax is imposed on licence fees. At the same time, he recommended that registration should not be renewed yearly. Md Anwar Hossain, vice chairman of the Export Promotion Bureau (EPB), informed that the export policy for 2024–27 has already been gazetted, allowing businesses to take advantage of its benefits. Additionally, Nurul Islam, CEO of BTA, highlighted the importance of adopting technology to enhance compliance, suggesting that the Green Transformation Fund could be utilised for this purpose. The secretary general of DCCI, Afsarul Arifeen, emphasised the coordination among all concerned government agencies and stakeholders. Ariful Haque, joint secretary and director general of BIDA, informed that BIDA is working to provide all support services for investors through an effective OSS. Mohammad Navid Safiullah, additional secretary of the export wing of the Ministry of Commerce, concluded the session by thanking BUILD for presenting two important policy papers. He suggested introducing a suitable app-based system to provide all services through a single authority to facilitate the private sector while advocating measures to reduce business costs to remain competitive in the post-LDC graduation stage. Anwar Hossain Chowdhury, MD of SMEF; Al Mamun Mridha, secretary general of BCCCI; and other representatives from MoC, RJSC, CBC, NBR, BTTC, BFTI, BGMEA, BSBA, LFMEAB, BAPA, BTMA, among others, spoke in the meeting.

The press release (Bangla and English) is included for your use. Please get in touch with us if you have any queries.

On 10 June 2024, Business Leading Initiative Development (BUILD) organised a stakeholder consultation on European Union circular textiles policies on trading partner countries at its conference room to identify practical measures to support Bangladesh’s textile industry in adapting to the EU’s sustainable and circular textiles strategy. In association with Chatham House and Circle Economy, supported by GIZ, Laudes Foundation, and the European Environment Bureau (EEB), BUILD has commissioned the study in this respect.

For Bangladesh, the textile industry, especially readymade garments (RMG), plays a key role in the national economy and labour market. The export of readymade garments increased by 3.67% in 2023 to USD 47.39 billion, up from USD 45.71 billion in 2022, according to Export Promotion Bureau (EPB) data. The EU has undertaken a strategy to promote a sustainable, circular textiles and fashion industry. Dr Patrick Schroeder, a senior research fellow in the environment and society programme at the Royal Institute of International Affairs, Chatham House, presented the summary of key findings and analysis of the study. The discussions focused on potential opportunities and challenges, changes to upstream trade patterns, future textile exports to the EU, and recommendations for policy development.

While delivering the keynote, Dr Patrick Schroeder said we must assess the sector’s landscape before providing feedback on potential impacts and necessary adaptations for Bangladesh’s textile industry. We must devise strategies for enhancing collaboration between EU and Bangladesh stakeholders to promote a sustainable and circular global textile sector.

The press release in English is included for your use. Please get in touch with us if you have any queries.