Commercial court law to be drafted within a month

The government will draft a law to establish a commercial court within a month to ensure the speedy resolution of commercial cases and business-related disputes, Commerce Secretary Mahbubur Rahman said yesterday.

"The process of establishing a commercial court is ongoing," he told a seminar on advancing dispute settlement and contract enforcement for businesses, organised by the Dhaka Chamber of Commerce and Industry (DCCI).

His remarks came as businesses complained that foreign investors show a lack of confidence in investing in Bangladesh due to the lengthy procedure for resolving commercial cases.

Rahman noted that Bangladesh is one of the most densely populated countries, resulting in a growing number of court cases and intolerable judicial delays.

"If trade-related disputes can be resolved outside traditional courts, it would substantially reduce pressure on the judiciary and improve the overall business climate," he said.

Michael Miller, ambassador and head of the European Union delegation in Bangladesh, said that as Bangladesh moves towards LDC graduation and pursues export diversification, the establishment of commercial courts will be crucial for attracting foreign investment. The EU has been working closely with the government to help reform the legal process.

Md Abdur Rahim Khan, additional secretary (export wing) of the Ministry of Commerce and vice-chairman of the Export Promotion Bureau, said that delays in resolving trade disputes not only hinder FDI but also negatively affect export growth.

DCCI President Taskeen Ahmed noted that disputes related to business contracts, investments, and intellectual property are rising alongside economic expansion. "Currently, around 4 million cases remain unresolved in Bangladesh's lower and higher courts," he added.

In his keynote, Barrister Md Sameer Sattar, former DCCI president, said that contract enforcement is a crucial factor for both local and foreign investors, but Bangladesh lags far behind. "Bangladesh ranked 189th out of 190 countries in contract enforcement, according to a formerWorld Bank Ease of Doing Business Report."

Sattar added that, as of March 2025, nearly 25,000 cases were pending in money-loan courts, highlighting the lengthy legal processes.