The Centre for Policy Dialogue (CPD) has called for the establishment of a regulatory reform commission to address bottlenecks in the business sector and create a more conducive environment for business in Bangladesh.
Additionally, the think tank suggested forming a ‘better business forum’ to facilitate dialogue on business challenges and solutions.
These recommendations were shared during a dialogue titled “Business Environment Reform in Bangladesh: Agenda for the Interim Government,” held at the BRAC Centre Inn in Dhaka on Sunday.
Distinguished officials and business leaders attended the event to discuss critical reforms necessary to enhance the country’s business environment.
Professor Lutfey Siddiqi, Special Envoy on International Affairs to the Chief Adviser of the Interim Government, highlighted the need for a private sector reform commission during his address as the chief guest.
He emphasised that such a commission could be established if trade bodies propose its formation.
Currently, no dedicated reform commission exists for the private sector, Professor Lutfey Siddiqi noted, adding, “If trade bodies come forward with a proposal, we are ready to discuss and work with the chief adviser to create one.”
Mentioning that there is bureaucratic red tape in various government departments, the special envoy to the chief adviser also said the interim government is working to reduce these.“We are working with experiences of countries doing well in improving the business environment as a reference. Our doors are always open for businesses to share their challenges with us. We can also have discussions via Zoom call,” he said.
“We need to change our system. The bureaucratic complexities of starting a business must be eliminated,” he added.
Chowdhury Ashik Mahmud Bin Harun, Executive Chairman (Senior Secretary) of the Bangladesh Investment Development Authority (BIDA), was present as the special guest at the programme.
During the event, the CPD also revealed a survey conducted during Sheikh Hasina’s regime from January to June this year.
According to the survey, nearly 17 percent of businesses identified corruption as their primary challenge in 2024.
Volatility in the exchange rate was termed as the second biggest challenge followed by inefficient government bureaucracy, inflation and limited access to finance.
The survey also highlighted several other problematic factors: inadequate infrastructure, poor public health, crime and theft and low work ethics in the labour force.
Dr Khondaker Golam Moazzem, Research Director of CPD, delivered the keynote presentation while Dr Fahmida Khatun, Executive Director, CPD, was in the chair.
In his presentation, Golam Moazzem said during the tenure of the previous regime, Bangladesh’s business environment saw limited progress as business activities remained concentrated within a few dominant groups.
The absence of substantial reforms in policies, laws, institutions, and operations hinders the development of a participatory and competitive business environment, he added.
“A decade’s worth of data from the services, agriculture, manufacturing, and non-manufacturing sectors has been analysed to prepare this report. It indicates that Bangladesh lags behind Sri Lanka and India in terms of business competitiveness. Compared to its economic growth, Bangladesh is far behind in business competition,” Dr Golam Moazzem said.
Moazzem called for developing a clear development vision for the country that would contribute to economic growth and improve the investment environment.
“Investing in digitisation and the development of the IT sector brings long-term benefits,” he added.
The paper further said that businesses faced prolonged uncertainty during the movement by students against discrimination, with its impacts persisting even after the country transitioned into a new phase.
Abdul Awal Mintoo, former President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI); Zaved Akhtar, President of the Foreign Investors’ Chamber Of Commerce and Industry (FICCI); Fazlee Shamim Ehsan, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA); Mirza Nurul Ghani Shovon, President of National Association of Small and Cottage Industries of Bangladesh (NASCIB); Ashraf Ahmed, President of Dhaka Chamber of Commerce and Industry (DCCI), and Showkat Aziz Russell, President of the Bangladesh Textile Mills Association (BTMA), were present as guests of honour.
A K M Fahim Mashroor, Executive Officer, Bdjobs.com Limited and Amrita Islam, Deputy Managing Director of Picard Bangladesh Ltd, were distinguished discussants.
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