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Entrepreneurs in Bangladesh need as many as 39 approvals from various government agencies before their goods are released from Chattogram port, a sad circumstance that hurts businesses, a new report said.
“Very often, the Chattogram port faces severe congestion for the delay in releasing the goods, eventually raising the cost of doing business for the users,” said the Bangladesh Business Climate Index (BBX) report, which was launched virtually yesterday.
The Policy Exchange, Bangladesh (PEB), and the Metropolitan Chamber of Commerce and Industry (MCCI) jointly prepared and introduced the country’s first such index to measure business climate.
The report said small businesses, particularly those involved in trading goods, suffered the most as they needed certificates from government agencies, but they did not have much knowledge and financial capability.
Regulatory complexities, scarcity of land, poor infrastructure, and poor road connectivity are major trade barriers, although Bangladesh has progressed a lot and economic development is laudable.
Syed Nasim Manzur, managing director of Apex Footwear Ltd, called for making rules easier for everybody.
“Running businesses outside of Dhaka is really difficult,” he said, adding that businesses also needed to move beyond the capital city.
A former president of the MCCI, Manzur termed the need to obtain 39 approvals from government agencies as challenging.
Businesses also faced higher costs during importing and exporting goods through the Hazrat Shahjalal International Airport (HSIA), he said.
“We want better business and investment climate. We have to think in a new way and do things differently. Now is the time,” said Rupali Chowdhury, president of the Foreign Investors Chamber of Commerce and Industry.
Speaking at the launch, Ito Naoki, Japanese envoy to Bangladesh, described the country’s economic development as wonderful that grew even during the Covid-19 pandemic.
He said a lot of Japanese companies were expanding their operations in Bangladesh.
Japanese investors are following the China Plus One Policy, focusing their investment in other countries rather than only in China.
“Bangladesh is a preferred destination for Japanese investors,” Naoki said.
In the next five years, the state of infrastructure will change for the better Tokyo is implementing some mega infrastructure projects such as the third terminal at the HSIA and the metro rail in Dhaka and the power stations at Matarbari of Cox’s Bazar.
The Japanese Economic Zone will go into operation next year, in a significant development, as it would help attract investors from the East Asian country.
Rizwan Rahman, president of the Dhaka Chamber of Commerce and Industry, applauded the index, saying it would be helpful for businesses.
He suggested quick dispute resolutions and regulatory reforms to support businesses.
Abul Kasem Khan, chairperson of the Business Initiative Leading Development, wanted to know what measures had been taken to make the One-Stop Service Centre functional.
About 1,000 firms in all eight divisional cities were reached to prepare the index, according to Masrur Reaz, chairman of the PEB.
“We hope the economic development of Bangladesh will continue,” said Nihad Kabir, president of the MCCI, while moderating the discussion.
“The picture is different when we move from Dhaka to Chattogram,” she said, indicating the business concentration in the capital.
Salman F Rahman, the adviser to the prime minister on private industry and investment, praised the index.
The World Bank has lost its Ease of Doing Business Index, whereas Bangladesh launched its own index, which is remarkable, he said.
Last month, the World Bank Group decided not to publish the Doing Business report anymore amid the allegations of data irregularities.
The adviser said the government would also facilitate the launch of the logistic index in the country to show Bangladesh’s growing infrastructural strengths.
He urged trade bodies to carry out research instead of lobbying the government to realise trade benefits only.
Md Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industry, suggested easing procedures to create jobs for the unemployed youth.
Mohammad Sirazul Islam, executive chairman of the Bangladesh Investment Development Authority, said the government agency would hold a summit next month to draw foreign and local investment.
(TDS)
