Business leaders stress stable environment for economic growth
Reza Mahmud :
A business-friendly environment is vital for any country’s economic growth.
A good Ease of Doing Business index clearly reflects a country’s investment climate, industry, and trade situation. In Bangladesh’s context, experts say such an environment can attract both local and foreign investors, create new jobs, and increase GDP.
In a discussion on investment, employment, economic impact, and the upcoming FBCCI elections, three leading businessmen – former FBCCI president and BNP Vice-Chairman Abdul Awal Mintoo, DCCI President Taskin Ahmed, and FBCCI Vice-President candidate and LabAid Cancer Hospital Managing Director Sakif Shamim – said that Bangladesh’s overall business climate remains underdeveloped.
While there has been progress in digitizing company registration and reducing approval times, major challenges remain in infrastructure, taxation, and contract enforcement. Compared to many developing countries, Bangladesh still lags behind. Key obstacles include financing difficulties, bureaucratic delays, weak infrastructure, tax harassment, and legal complexities.
Sakif Shamim said entrepreneurs face hurdles from the start – company registration, trade license, TIN, and VAT registration require visits to multiple offices, increasing time, cost, and effort. Improving the business index requires reforms such as:
Faster licensing and approvals through streamlined or online systems. Improving law and order, electricity and gas supply.
Simplifying taxation, building permits, and property registration.
Protecting minority investors and easing contract enforcement.
High and complex taxes burden businesses, so rates should be rationalized. Infrastructure upgrades – roads, ports, integrated online platforms, faster connectivity, streamlined environmental clearances, quicker customs clearance, specialized commercial courts, bankruptcy law reform – all help reduce costs and improve trade efficiency.
While the government has introduced a one-stop service and digital processes, Sakif said more must be done to improve service quality and reduce bureaucracy.
As elected VP of FBCCI, he plans to create a central database of all chambers and associations to quickly identify and address sector-specific needs. He suggested allocating annual budgets to strengthen FBCCI and local chambers, with special government funding from the national budget.
Sakif advocated for: Promoting Public-Private Partnership (PPP) projects. Reducing bank interest rates to single digits.
Lowering default loans and extending repayment periods from 3 months to 6-12 months.
Giving more time for DVC audit reports and ensuring compliance. Reducing VAT from 7.5per cent to 5per cent.
He said that bank loans are becoming harder to obtain, while tax and VAT harassment persists.
