Reviving pvt sector crucial for recovery: MCCI
Reviving private sector-led growth is essential for getting Bangladesh’s economy back on track and supporting long-term development, says a new policy report released Monday by the Metropolitan Chamber of Commerce and Industry (MCCI)
M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, presented the report titled “Reviving Private Sector-led Economic Growth: Critical Issues and Priorities Facing the New Government in Bangladesh” at a programme organised by Metropolitan Chamber of Commerce and Industry (MCCI).
The report offers a data-driven analysis of Bangladesh’s current economic challenges and highlights reform priorities to restore macroeconomic stability, improve the investment climate, and promote sustainable growth led by the private sector.
Speaking at the launch, Reaz said Bangladesh is at a “critical juncture” as the economy shifts from crisis management toward recovery amid ongoing structural issues and global uncertainties.
He noted that while the country enjoyed decades of strong growth averaging 6–7 percent, momentum has slowed sharply since 2022 due to global shocks, domestic policy gaps, and institutional weaknesses.
The report shows that Bangladesh’s GDP growth fell below 4 percent in FY2025, with rising inflation, reduced private investment, and tighter credit conditions continuing to dampen business confidence and economic activity.
It points to structural weaknesses in public finances, the banking sector, export competitiveness, and the overall investment climate as key obstacles to growth.
The study warns that without comprehensive reforms, these challenges could lead the economy into prolonged stagnation.
The report outlines seven key areas for policy reform to revive private sector-led growth.
These are: macroeconomic stabilization, fiscal management and debt sustainability, banking sector reforms, export diversification, private investment mobilization, energy security, and skills development.
The report emphasizes that restoring macroeconomic stability is the top priority, recommending coordinated monetary and fiscal policies, stronger revenue collection, and a flexible exchange rate to curb inflation and rebuild foreign reserves.
In the financial sector, the study highlights the urgent need to tackle rising non-performing loans and governance weaknesses in banks, which are limiting credit availability and discouraging private investment.
The report highlights export diversification, urging development of new high-potential sectors and better integration into global value chains as Bangladesh reduces reliance on ready-made garments and prepares for its post-LDC transition.
To encourage investment, it recommends improving regulatory predictability, modernizing business laws, and strengthening the investment promotion framework to attract both domestic and foreign investors.
The report also emphasizes reforms in the energy sector to ensure reliable and affordable power for businesses and expanding skill development programs to build a workforce capable of supporting productivity and job growth.
According to MCCI leaders, the report provides policymakers with a clear roadmap to restore economic confidence and guide Bangladesh toward a more resilient, competitive, and private sector-driven growth model.
