AmCham Calls for Reforms to Boost Investor Confidence at Post-Budget Discussion
Business leaders and policy experts today emphasized the need for continued policy reforms, improved revenue mobilization, and effective implementation of budget measures to strengthen investor confidence and support private sector-led growth. The observations came at a post-budget panel discussion titled "National Budget FY2026-27: Building Confidence & Competitiveness for Investment-Led Growth" organised by the American Chamber of Commerce in Bangladesh (AmCham) at a city hotel, said a press release here.
Opening the session, AmCham President Syed Mohammad Kamal welcomed several budget measures, including VAT exemption on recycled cotton, zero-percent turnover tax incentives for startups and technology-driven businesses, and continued support for renewable energy through tax exemptions and rebates. While appreciating these initiatives, he said some concerns of the business community remain unresolved and stressed the need for further tax rationalization to encourage investment, business expansion, and long-term economic development.
Delivering the keynote presentation, Chairman and CEO of Policy Exchange Bangladesh Dr. M. Masrur Reaz described the proposed FY2026-27 budget as a pragmatic effort aimed at supporting economic recovery while laying the foundation for long-term transformation. He said the budget sends positive signals for private sector-led growth through measures designed to ease business costs, promote investment, and strengthen social protection programmes.
However, Dr. Reaz noted that achieving the budget's objectives would require addressing several challenges, including the ambitious 6.5 percent GDP growth target, significant revenue mobilization requirements, persistent inflationary pressures, and vulnerabilities in the banking and energy sectors. He emphasized that effective implementation would be crucial to translating policy intentions into tangible outcomes. The panel discussion, moderated by MetLife Bangladesh Vice President and Chief Executive Officer Ala Uddin Ahmad, featured Syed Mohammad Kamal, former Standard Chartered Bank Bangladesh CEO Naser Ezaz Bijoy, Centre for Policy Dialogue (CPD) Executive Director Dr. Fahmida Khatun, and PRAN-RFL Group Chairman and CEO Ahsan Khan Chowdhury.
Panelists identified weak revenue mobilization as a major challenge for the FY2026-27 budget, noting that revenue targets remain ambitious amid a subdued economic environment. They warned that increased government borrowing from the banking sector to finance fiscal deficits could crowd out private sector credit, raise interest rates, and limit businesses' access to financing. Such pressures, they said, could constrain investment, business expansion, and job creation, ultimately slowing economic growth. Responding to a question on inflation's impact on vulnerable groups, speakers acknowledged the government's efforts to expand social protection programmes but stressed the need for stronger governance and improved targeting mechanisms.
They observed that weaknesses in beneficiary selection often result in support reaching less needy individuals, while many vulnerable households remain excluded, reducing the effectiveness of social safety net programmes in addressing rising living costs. AmCham Bangladesh welcomed several positive measures in the proposed budget, particularly those promoting sustainability, entrepreneurship, digitalization, and renewable energy. The chamber, however, noted that several of its recommendations remain unaddressed and called for continued reforms to enhance competitiveness, strengthen investor confidence, and accelerate private sector-led economic growth.
The event concluded with a vote of thanks by AmCham Treasurer Reza-Ur-Rahman Mahmud. The discussion was attended by AmCham Executive Committee members, former AmCham presidents, officials of the US Embassy, senior government representatives, business leaders, media professionals, and AmCham Executive Director Chowdhury Kaiser Mohammad Riyadh.
