Simpler rules key to smooth transition from LDC
Leading entrepreneurs
yesterday urged the government to create an environment more conducive to doing
business as Bangladesh prepares to graduate from the UN's least developed
country (LDC) category next year.
At a roundtable titled "Policy and
Regulatory Challenges in the Private Sector", they warned that
bureaucratic inefficiencies, regulatory red tape, and inconsistent policymaking
could undermine competitiveness after graduation. The event was the third in a
series of discussions organised by The Daily Star to examine private sector
challenges and chart a roadmap for the economy.
Speakers stressed the need for
streamlined procedures, deregulation of excessive compliance requirements, and
policy overhaul to align with international standards. Policy consistency, they
said, is critical to fostering investor confidence, both local and foreign, and
to attracting much-needed capital inflows.
Star Roundtable 1 - Businesses for deferment of LDC
graduation by 6yrs
Star Roundtable-2 - Logistics not yet ready for post-LDC
graduation needs
They
emphasised that political stability, predictable energy supplies, and an
improved law-and-order situation are prerequisites for sustained growth.
Consultation with the private sector, they said, must be genuine, not
tokenistic.
Participants
also highlighted the vulnerabilities of small and medium enterprises (SMEs),
which provide the bulk of employment and underpin larger corporations. Without
targeted support, SMEs risk being disproportionately exposed to post-graduation
pressures.
Zaved
Akhtar, president of the Foreign Investors' Chamber of Commerce & Industry
(FICCI), said Bangladesh must simplify business processes, improve NBR
operations, and ensure a regulatory environment that supports both exports and
domestic production. "If SMEs don't survive, corporates will not
survive," he warned.
Ahsan
Khan Chowdhury, chairman and CEO of PRAN-RFL Group, lamented the
"difficult" business climate. Because of this, Bangladesh's annual
export is one-tenth of Vietnam's target of $450 billion, he said.
"Every
application hovers from table to table and gets stuck for small reasons,"
he said.
Till
we make business simple, Bangladesh will not be a competitive place to
manufacture or attract foreign investment, Chowdhury said.
He
also said government people don't want to listen to the private sector.
"When the private sector talks, they always believe that it is for a
vested interest.
"We create more jobs than the
government sector. So, Sir, start listening,"
Chowdhury
blamed poor port, customs, and transport systems for the country's low
competitiveness.
Syed
S Kaiser Kabir, managing director of Renata PLC, called LDC graduation "a
highly risky decision" given the Covid-19 fallout, last year's July
uprising, economic mismanagement, high inflation, and currency depreciation.
"Bangladesh is not yet ready. Preparations could be made later when the
situation stabilises. Many countries have deferred the process; we could
too," he said.
Showkat
Aziz Russell, president of the Bangladesh Textile Mills Association, said he
doesn't think there is a good business environment in place for surviving after
the LDC graduation
He
also cited discriminatory port charges. "Demurrage for cotton is 400
percent, whereas it is zero for yarn. Are we patronising imports?" he
asked.
"If
our policy is such that the government wants to help import, then there is no
point establishing factories in the country that contribute to job
creation," he added.
DataSoft
Systems President M Manjur Mahmud urged the government to respect local firms,
allocate them a fair share of IT contracts, and stop excessive interference.
He
said the Bangladesh Investment Development Authority is trying to bring
investors from "everywhere else". "What about me? I'm an
investor," he said.
Mahmud
criticised delays in land registration and excessive compliance. "It takes
two years to register land in a company's name. Once you start your business,
suddenly the environment department comes, suddenly NBR asks for five files.
You get bombarded with systems and processes," he said.
Yasir
Azman, CEO of Grameenphone, warned that taxes are higher for the telecom
industry compared to other countries, but unpredictable tax policies undermine
confidence. "We will bring investment but we need policy
sustainability," he said. "If the government takes this opportunity
to fix things, it will help businesses."
Khondaker
Golam Moazzem, research director of the Centre for Policy Dialogue, noted that
while the government has recently begun some fiscal adjustments, such as
subsidy reforms and tariff adjustments, collective preparation from the private
sector is lacking.
He
advised shifting fiscal incentives from export stage to production phase,
citing India's example of support for establishments, machinery, and energy
instead of direct export incentives.
"Entrepreneurs
should clearly communicate their needs, and the government must respond to
ensure the competitiveness of the private sector after graduation," he
said.
He
also said a centralised digital platform should be created where all government
agencies can access the required documents directly, without forcing businesses
to submit them repeatedly.
Abrar
Hossain Sayem, president of the Bangladesh Apparel Youth Leaders Alliance, said
most new businesses fail within five years. The major obstacles they face
include financing, contract enforcement, and complex taxation. He called for
simplified regulations, digital one-stop services, and targeted investment in
skills and high-potential sectors.
Riad
Mahmud, managing director of Shoeniverse Footwear, warned that without timely
policy support, many firms will collapse, leading to job losses and capital
erosion.
He
also flagged security concerns that restrict women's participation in sales and
revenue collection. "The security issue must be addressed immediately if
we want women to play a bigger role," he said.