Extortion, gridlock hurting trade, investment

Business leaders and government officials at an event yesterday stressed the urgent need to improve the law-and-order situation and strengthen market management, warning that business confidence and sustainable economic growth will remain elusive unless immediate and effective measures are taken.

Speakers at the view-exchange meeting organised by the Dhaka Chamber of Commerce & Industry (DCCI), titled “Necessity of Maintaining an Improved Law & Order Situation to Facilitate the Ease of Doing Business,” said a stable security environment is vital for trade and investment.

They cited extortion, traffic congestion and weak market oversight as key challenges that are raising the cost of conducting business.

“There is no alternative to properly coordinating supply and demand in market management,” said A HM Ahsan, chairman of the Bangladesh Competition Commission.

He emphasised the importance of accurate data on the use and distribution of essential goods, adding that a business-friendly environment reduces institutional costs for entrepreneurs and positively impacts product prices. He also called for closer cooperation with law enforcement agencies to maintain order.

Md Abdur Rahim Khan, administrator of FBCCI, said improving law and order and ensuring proper market management are essential for smooth business operations.

He said that stronger economic growth would help improve the political environment and reduce activities outside the legal framework, but stressed the need for prompt reforms to restore public confidence.

“Instability in law and order creates a crisis of confidence among businesses and discourages both local and foreign investment,” said Shibir Bicitra Barua, additional secretary at the Ministry of Commerce.

He added that the ministry has undertaken initiatives to facilitate trade and investment, referring to the IPO Policy 2025-28 as an example.

“Development and business cannot progress without stable law and order,” said Harun Or Rashid, deputy commissioner of Dhaka Metropolitan Police’s Motijheel Division. He said authorities are focusing more on traffic congestion and extortion.

Referring to the rising number of vehicles, especially battery-powered auto-rickshaws, he said policy decisions are needed regarding how many such vehicles Dhaka can accommodate, along with proper charging and garage facilities.

Enforcement drives alone are not enough, and long-term solutions require technology-driven monitoring, Abdul Jalil, director of programme and research at the Directorate of National Consumers’ Right Protection (DNCRP), stressed. Citing recent price volatility in essential items, he said artificial price hikes often stem from unethical practices by a small group of traders.

He added that DNCRP has taken up a project under the commerce ministry to develop a digital monitoring system that will integrate complaint data and e-commerce transactions.

“The private sector has faced setbacks in recent years due to contractionary monetary policy, deteriorating law and order, illegal extortion, corruption and bureaucratic complexities,” said Taskeen Ahmed, president of DCCI. He urged the new government to prioritise trade and investment facilitation.

Abul Hashem, president of the Bangladesh Sugar Traders Association; Md Golam Mowla, president of the Bangladesh Edible Oil Traders Association; and Mohammad Ali Bhutto, president of the Moulvibazar Traders Association, among others, also spoke at the event.