Buyers divert orders over energy fears: BCI

Foreign buyers are increasingly redirecting orders away from Bangladesh over concerns about energy reliability and an uncertain business climate, said Bangladesh Chamber of Industries (BCI) President Anwar-ul Alam Chowdhury today.

"Buyers are telling us that within the next 2 to 3 months, Bangladesh may face electricity shortages. Because of that, their top management is discouraging them from placing new orders here," he said, citing recent communications from international sourcing teams.

Some orders had already been redirected to India and other competing countries, while others were being withheld amid growing uncertainty, he said, while sharing the situation of business at a discussion with the National Board of Revenue (NBR) high-ups at the NBR headquarters in Dhaka.

The NBR organised the event to hear from businesses and other stakeholders as part of its exercise to frame tax proposals for the next fiscal year 2026-27.

Chowdhury said several large buying houses had begun warning local suppliers of potential disruptions, triggering anxiety across the export-oriented manufacturing sector.

"Orders for July and August, which were expected by now, have either slowed significantly or stopped altogether. We are still in discussions, but in many cases we have not been able to secure the orders," said the BCI president.

He added that a further downturn loomed if conditions did not improve.

Beyond energy, Chowdhury flagged the burden of minimum tax on loss-making businesses. Under current rules, companies pay a minimum turnover tax of 1 percent even if they record losses.

The provision, he said, is particularly damaging for small enterprises.

He urged policymakers to introduce a slab-based system for smaller firms and called for clearer safeguards around the Income Tax Act 2023 provisions allowing taxmen to access business systems and financial records for withholding tax verification.

NBR Chairman Md Abdur Rahman Khan attended the event.