FROM PAGE B1

Businesses have cut investment because of inflation, uncertainty and energy shortages. At the same time, banks are increasingly investing in government securities instead of private lending due to rising risks and weak loan demand.

Rahman also criticised Bangladesh Bank for easing single-borrower exposure limits, warning that it could increase loan concentration among large business groups and weaken the banking sector further.

He also expressed concern over proposed amendments to banking laws that may allow wilful defaulters to return to the banking sector.

Meanwhile, Zaidi Sattar, chairman of PRI, said Bangladesh can no longer rely only on traditional growth drivers.

Future competitiveness will depend on productivity, innovation, policy predictability and openness to investment and technology, he said.

After Bangladesh graduates from the least developed country (LDC) status, the transition period would require export diversification, deeper integration into global value chains and a modern industrial policy framework, Sattar said.

Fahmida Khatun, executive director of Centre for Policy Dialogue, said reforms should go beyond slogans and be properly implemented.

She noted that previous non-political governments had also launched reform initiatives, but many failed to produce meaningful results because of weak execution.

Khatun said one of the government’s biggest challenges is preventing key sectors such as banking, energy and infrastructure from falling under the control of vested interest groups.

She also expressed concern over the slow implementation of development projects and the sharp rise in operating expenses, warning that both are undermining fiscal discipline.

Controlling inflation should not depend only on contractionary monetary policy, she said. It also requires creating a more competitive market environment.