Trade Bodies to Operate Democratically: Adviser Bashir

Commerce Adviser Sk. Bashir Uddin has announced that the government is committed to ensuring that trade organizations operate under a fully democratic system. To this end, new regulations are being developed under the Trade Organizations Act to facilitate a fair and transparent election process for representatives of these bodies.

"The government is determined to ensure that the election process for trade body representatives is as democratic as possible," Sk. Bashir stated in a recent conversation with the national news agency at his office in Bangladesh Secretariat.

The adviser emphasized the government's efforts to free trade organizations from political influence, underscoring that the move aims to create a more impartial and democratic election system. "We want to eliminate political interference in the election process," he added.

As part of these reforms, the interim government has started drafting new rules under the 'Trade Organizations Act 2023'. Once these rules are finalized, the election process for the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) will proceed.

Officials from both the FBCCI and the Ministry of Commerce revealed that the new rules could reduce the total number of directors on the FBCCI board from the current 80 to below 50. Additionally, the number of nominated directors may decrease from 34 to just 12.

Currently, 34 out of the 80 directors on the FBCCI board are nominated—17 from the chamber group, 17 from the association group, with the remaining directors elected directly. Under the new structure, the election process for the president, vice president, and other positions will be made more direct, enhancing the democratic nature of the elections. However, to bolster the capacity of these bodies, some nominated members will still be included in the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and the Metropolitan Chamber of Commerce and Industry (MCCI), based on their contributions to investment, revenue generation, and job creation.

Bashir also revealed that, under the revised rules, the practice of appointing representatives from the Ministry of Commerce to the apex body of chambers will be discontinued. "We want to eliminate the presence of Ministry of Commerce representatives in the trade body leadership," he said.

Reflecting on the state of trade organizations, Bashir pointed out that many associations across the country were merely "letterhead-based," lacking proper registrations or trade licenses. Many of these organizations were created solely to secure voting rights, without any real operational infrastructure. "These signboard-oriented organizations often do not even have TIN certificates or trade licenses," he noted.

To address this, the government has made it mandatory for trade associations to possess TIN certificates, offices, and trade licenses before they can be officially recognized. "We want to bring order and clarity to the system. It's unnecessary for industries, like the shoe industry, to have five separate associations representing the same product," he remarked. "Similarly, there are multiple associations for jute—it's bewildering."

Bashir urged these fragmented organizations to unite for greater collective strength and to leverage their combined efforts to become more successful. "I have repeatedly told them that I don't want to lead such fragmented associations. I urge them to come together and strengthen themselves," he added.

The push for reforms within the FBCCI began on August 5 last year, when calls for restructuring similar to reforms in other sectors started gaining traction. In response to these demands, the then-FBCCI president, Mahbubul Alam, resigned. On September 11, the Ministry of Commerce dissolved the FBCCI board of directors and appointed an administrator.

As the final stages of rule formulation near completion, officials at the Ministry of Commerce have stated that the new regulations will pave the way for comprehensive reform within trade organizations in the country.