Trade Bodies to Operate Democratically, Says Bashir

Commerce Adviser Sheikh Bashir Uddin has stated that the government aims to ensure that trade organisations operate under a fully democratic system. To achieve this, new regulations are being formulated under the Trade Organisations Act 2023, according to a report by BSS on Saturday.

“The government wants to make the election process of trade body representatives as democratic as possible,” Bashir Uddin remarked.

Speaking with the national news agency at the Bangladesh Secretariat, he emphasised the importance of eliminating political influence in trade bodies, ensuring a fair and transparent election process.

New Regulations and Structural Reforms

The interim government has begun drafting rules under the Trade Organisations Act 2023, paving the way for the election of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) board.

According to officials from the FBCCI and the Ministry of Commerce, the proposed regulations aim to streamline the structure of trade bodies, including reducing the total number of directors from the current 80 to below 50. The number of nominated directors is also expected to drop from 34 to just 12.

Current vs Proposed FBCCI Board Structure

Currently, 34 out of the 80 FBCCI board members are nominated, with 17 representatives each from the chamber and association groups. Under the new framework, direct elections will determine the leadership, including the presidents and vice presidents, while a small number of nominated members will still be included.

“We are introducing direct elections for key positions, but to enhance expertise, some nominated members will be included in organisations such as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and Metropolitan Chamber of Commerce and Industry (MCCI),” Bashir Uddin explained.

Nominations will be based on three key criteria:

Investment contributions

Revenue sector contributions

Employment generation

Eliminating Political Influence and Unregulated Trade Bodies

A major reform under the new regulations is the removal of government representatives from the apex chamber body. The Ministry of Commerce will no longer have a seat in trade organisations, further reinforcing autonomy.

Additionally, concerns have been raised over the existence of numerous inactive or ‘letterhead-based’ associations that lack physical offices, TIN certificates, and trade licences. The government has now made these requirements mandatory for associations seeking official recognition.

“Many of these organisations exist only on paper and have no real contributions. We will cluster them to eliminate unnecessary fragmentation,” Bashir Uddin said.

For instance, there are currently five different associations related to the footwear industry and another five for jute, which the adviser criticised as redundant.

Reform Movements and Recent Developments

Since August 2023, demands for reform within the FBCCI have been growing. Former FBCCI president Mahbubul Alam resigned from his post, prompting the Ministry of Commerce to dissolve the board of directors on 11 September. A new administrator was appointed to oversee operations until fresh elections could be held under the revised rules.

“Everyone has called for reform, and we are ensuring that the process is completed in accordance with the law,” Bashir Uddin stated.

Officials have confirmed that the new regulations are in their final stages and will soon be implemented to create a more transparent, democratic, and efficient trade body governance system.