AmCham welcomes investment push, flags unresolved issues

The American Chamber of Commerce in Bangladesh (AmCham) on Monday acknowledged the government’s efforts to promote investment and economic stability but noted that several key recommendations remain unaddressed.

AmCham emphasized the importance of continued policy reforms to enhance competitiveness, strengthen investor confidence, and accelerate private sector-led growth.

AmCham hosted a post-budget panel discussion titled “National Budget FY2026-27: Building Confidence & Competitiveness for Investment-Led Growth” at a city hotel and shared its observations.

AmCham President Syed Mohammad Kamal presented the chamber’s observations on the FY2026-27 national budget.

He welcomed measures such as the VAT exemption on recycled cotton, 0 percent turnover tax incentives for startups and technology-driven businesses, and continued support for renewable energy through tax exemptions and rebates.

While acknowledging these positive steps, he noted that some concerns of the business community remain and emphasized the importance of further tax rationalization to support investment, business growth, and long-term economic development.

Chairman and CEO of Policy Exchange Bangladesh Dr M Masrur Reaz, in his presentation, provided a comprehensive overview of the proposed national budget for FY2026-27.

Dr Reaz described the proposed FY2026-27 national budget as a pragmatic effort to support economic recovery while laying the groundwork for long-term transformation.

He noted that the budget sends positive signals for private sector-led growth through measures aimed at easing the burden on businesses, encouraging investment, and strengthening social protection.

At the same time, he observed that achieving the budget’s objectives will require overcoming significant challenges, including an ambitious 6.5 per cent GDP growth target, a substantial increase in revenue mobilization, persistent inflationary pressures, and vulnerabilities in the banking and energy sectors.
He highlighted that effective implementation will be critical to translating the budget’s policy intent into tangible outcomes.

The event also featured a panel discussion on the proposed FY2026-27 national budget, bringing together leading voices from the business and policy communities.

The session was moderated by Ala Uddin Ahmad, Chief Executive Officer of MetLife Bangladesh, and featured Syed Mohammad Kamal, President of AmCham and Vice President of Mastercard; Naser Ezaz Bijoy, former CEO of Standard Chartered Bank Bangladesh; Dr Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD); and Ahsan Khan Chowdhury, Chairman and Chief Executive Officer of PRAN-RFL Group, who shared their perspectives on the budget’s opportunities, challenges, and implications for the country’s economic outlook.

During the panel discussion, speakers highlighted weak revenue mobilization as a key challenge for the FY2026-27 budget, noting that revenue targets remain ambitious amid a subdued economic environment.

They cautioned that increased government borrowing from the banking system to finance fiscal deficits could crowd out private sector credit, placing upward pressure on interest rates and limiting access to financing for businesses.

Panelists underscored that such pressures could constrain investment, business expansion, and job creation, ultimately affecting the pace of economic growth.

In response to a question on the impact of inflation on vulnerable groups, panelists acknowledged the government’s efforts to expand social protection measures but pointed out the need for stronger governance and targeting mechanisms.

They noted that weaknesses in beneficiary selection often result in support reaching individuals who are less in need, while many vulnerable households remain excluded, limiting the effectiveness of these programs in addressing rising cost-of-living pressures.

AmCham Bangladesh welcomed several positive measures in the FY2026-27 national budget, particularly those supporting sustainability, entrepreneurship, digitalization, and renewable energy.

AmCham Bangladesh Treasurer Reza-Ur-Rahman Mahmud also spoke at the event.

The event brought together AmCham Executive Committee members, former AmCham presidents, officials from the U.S. Embassy, senior government representatives, AmCham members, prominent business leaders, media personnel, and Chowdhury Kaiser Mohammad Riyadh, Executive Director of AmCham.