Originally posted in Nikkei Asia on 15 February 2026
Bangladesh business leaders urge swift reforms, stability after election
Inflation seen as a key challenge for incoming BNP government
DHAKA – Bangladesh’s business community is urging the incoming Bangladesh Nationalist Party (BNP) government to restore stability, tame inflation, reform the banking sector and create conditions for the recovery of private investment.
“The election result, with about a 60% mandate, brings a sense of stability and renewed confidence,” said Sharif Zahir, managing director of apparel maker Ananta Group and chairman of UCB Bank. “For businesses, the immediate priority is maintaining law and order and ensuring policy continuity. Stability is the foundation of investment.”
The BNP has so far secured 209 of the parliament’s 300 seats from Thursday’s election, with voting in one constituency and the results in two others postponed due to various issues, while its allies won a handful more seats. The main opposition, Bangladesh Jamaat-e-Islami, won 68 seats, while its alliance partners — including the student-led National Citizen Party — secured nine.
BNP leader Tarique Rahman is due to be sworn in as prime minister within days. The election was the first since the 2024 uprising that ousted former Prime Minister Sheikh Hasina, whose regime is accused of looting significant sums from the banking sector, and it is hoped the vote will draw a line under a period of prolonged political uncertainty.
The opposition has made allegations of counting problems in around 30 seats. However, even if the Election Commission were to review those accusations, the overall outcome would not change.
Zahir said the incoming government, which has promised significant deregulation, must move quickly on several fronts.
Energy supply constraints, including liquefied natural gas availability and additional floating storage and regasification capacity, must be addressed to prevent disruption to industrial operations, he said. The banking sector, meanwhile, requires strengthening through fresh capital inflows and faster recovery of defaulted loans and stolen funds. He also called for firm but fair action against defaulters who could repay loans but haven’t, possibly to siphon money abroad.
Investor confidence, he suggested, would depend on structured dialogue between the government and business leaders, careful management of U.S. trade relations, preservation of favorable trade benefits and improved regional ties, especially with India. Encouraging foreign investment into economic zones and boosting industrial machinery imports would be essential for reviving employment and easing inflationary pressures.
“Business confidence ultimately depends on decisive governance, financial discipline and predictable policy execution,” he said.
Anwar-ul Alam Chowdhury, president of the Bangladesh Chamber of Industries, welcomed what he described as the first free and fair election in years. He said there “was a sense of order and discipline” during voting and counting, which pointed to greater stability.
Chowdhury said relations between the business community and the interim government, which has been in charge since the uprising, were not strong, with businesspeople feeling neglected amid limited engagement and declining economic discipline. He argued that the new government must prove that law and order will be firmly maintained.
Beyond security concerns, he urged action on inflation, high interest rates and weak liquidity in the banking system.
“Tackling rising prices should not rely solely on keeping rates high,” he said, adding that protecting jobs, sustaining industrial capacity and reducing the cost of doing business must also play a role.
Business leaders have also asked for reforms at key institutions such as the National Board of Revenue (NBR) and Chattogram Port to improve efficiency and ease business operations.
For its part, the BNP pledged in its manifesto to raise the tax-to-gross domestic product ratio to 15% by 2035, expand infrastructure and energy capacity, uncap the potential of country’s creative industries and boost the digital economy.
Economists caution that the challenges run deep.
Fahmida Khatun, executive director of the Dhaka-based Centre for Policy Dialogue, said the election was critical because investors had delayed decisions due to political uncertainty. “Investment is a long-term commitment. It requires a stable law and order situation, stable policies and an elected political government,” she said.
Inflation, she argued, is the most urgent economic issue. “We have had high inflationary pressure for almost three years. Purchasing power has fallen significantly, especially for low-income groups.”
High prices, combined with elevated lending rates under contractionary monetary policy, have raised the cost of doing business and put pressure on households.
Khatun called for coordinated monetary and fiscal policies, although she also warned that Bangladesh’s fiscal space is narrow. The tax-to-GDP ratio has declined to around 6.8%, limiting the government’s ability to finance increased salaries, social security pledges and infrastructure spending.
“The BNP has made a number of commitments in its election manifesto, including family cards, expanded social services and stronger social protection measures, as well as increased spending on health and education. However, these promises will require substantial funding,” Khatun said. “At the same time, the government already faces high debt servicing obligations, both domestic and external. This makes revenue mobilization critical.”
NBR reform, expansion of the tax base and more efficient public spending will be necessary to prevent the budget deficit from widening, she said.
Banking sector reform must continue, she added. Nonperforming loans have climbed to roughly 35% of total lending by the sector, reflecting governance weaknesses and poor loan recovery. Without restoring discipline in the financial system, investment will remain subdued and job creation — the BNP has pledged to generate 10 million jobs — will be difficult.
Still, Asif Ibrahim, former president of the Dhaka Chamber of Commerce and Industry, struck an optimistic tone.
“As members of the business community, we are ready to collaborate with the new leadership to strengthen institutions, boost economic growth and promote inclusive development,” he said. “Global and domestic challenges call for partnership over politics. The election is over, democratic governance begins. With sound policies, transparency and strong institutions, Bangladesh can continue its journey toward stability, resilience and shared prosperity.”
Masum Billah is a contributing writer.
