PM hears businesses, assures tax, credit, logistics reforms to unlock investment
This was Tarique’s first formal engagement with business leaders since assuming office
Highlights:
- Business leaders highlight VAT, customs, income tax challenges
- Concerns raised over business registration, renewal complexities
- Logistics, port operations, airport capacity flagged as constraints
- High interest rates, limited access to land, utilities raised
- Govt plans to review sector regulations, reduce compliance burdens
- Benchmarking reforms against peer economies under consideration
Prime Minister Tarique Rahman has initiated a reform drive aimed at removing long standing barriers to investment and improving the ease of doing business, signalling a policy shift towards a more facilitative economic environment.
The move was announced at a high-level meeting with leading business figures at the Prime Minister's Office on Saturday (4 April), with such sessions set to be held quarterly to review progress.
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This was Tarique's first formal engagement with business leaders since assuming office six weeks ago. The discussions took place against the backdrop of global uncertainties, including the ongoing Middle East conflict, as well as persistent domestic challenges in the business environment.
Businesses said the prime minister underscored the need for measurable progress in addressing structural bottlenecks such as a complex tax regime, high lending rates, and inefficiencies in ports and logistics.
Also, the government plans to review existing regulations across sectors to identify overlaps and reduce compliance burdens, with an emphasis on simplifying procedures.
A key approach under consideration is benchmarking reforms against peer economies such as Sri Lanka and Indonesia, with the aim of adopting tested solutions rather than developing new frameworks.
The meeting was joined by the Finance Minister Amir Khasru Mahmud Chowdhury, Energy Minister Iqbal Hasan Mahmud, Commerce Minister Khandakar Abdul Muktadir, State Minister for Energy Anindya Islam Amit, PM's Adviser Mahdi Amin, and Bida Chairman Chowdhury Ashik Mahmud Bin Harun.
Business leaders raise operational challenges
Business leaders used the meeting to point out a range of operational challenges – from tax reforms and logistics to energy, exports and foreign investment – and wanted an action-oriented roadmap.
MA Jabbar, managing director of DBL Group, said issues relating to VAT, customs and income tax administration by the National Board of Revenue (NBR) were raised, alongside complexities in business registration and renewals.
Logistical and financial constraints also featured prominently, including port operations, airport capacity, interest rates, and access to land and utilities in economic zones.
Another businessman present at the meeting said discussions also touched on the post-LDC graduation scenario, particularly the potential loss of patent-related benefits for the pharmaceutical sector.
"We discussed ways to manage this transition, with a strong emphasis on fast-tracking the API Industrial Park and ensuring policy support for local API production," he told TBS, requesting anonymity.
Another participant said proposals were made to ease entry for foreign buyers and investors.
"We suggested visa-free access, especially for investors from the UK, the United States, Japan and South Korea," he said. "We also proposed a streamlined online visa system to make it easier for investors from any country to obtain Bangladeshi visas."
Involvement of business reps in policy formulation
Business leaders also proposed a more structured engagement mechanism with key regulatory bodies, including Bida, NBR and Bangladesh Bank, suggesting that industry representatives be involved earlier in the policy formulation process.
According to participants, the prime minister responded positively, indicating a willingness to strengthen public-private coordination in economic policymaking. Businesses said the prime minister directed relevant ministries to address several immediate concerns, while others would be taken up in phases.
On the financial side, discussions included expanding access to offshore borrowing for local firms and reviving the domestic bond market.
The government is also considering measures to attract foreign investment into the banking and insurance sectors to deepen financial markets and enhance stability, according to three businesses present at the meeting.
What other issues raised
Business leaders also raised a range of structural issues beyond taxation, stressing that high logistics costs, estimated at 15-20% of GDP, are eroding competitiveness and need urgent reforms in ports, transport and rail connectivity. They called for faster expansion of key facilities, including the Bay Terminal, and greater use of public-private partnerships to improve cargo movement.
Energy security was flagged as another concern, with participants urging a quicker shift to renewable energy and policy incentives, such as lower import duties on solar components, to attract private investment.
The discussion also stressed the need to move beyond reliance on low-cost labour towards a more skilled workforce, with calls for industry-oriented training and a modern workforce development framework.
Export diversification featured prominently, with businesses backing a $100 billion export target by 2030 through support for sectors such as light engineering, man-made fibre apparel and high-value manufacturing, alongside better integration of SMEs into supply chains.
They also pointed to emerging opportunities in sectors like semiconductors and advanced engineering, but stressed that consistent policy support and coordination across agencies will be critical to turning these ambitions into reality.
Private Sector Advisory Council not formed yet: Bida
Bida, in a statement after the meeting, said the session was aimed to gather their experience, insights and recommendations, and to identify priorities for advancing private sector-led growth.
"However, some misleading information has circulated on social media regarding the initiative. It is clarified that the meeting does not constitute any formal advisory council to the government or the prime minister. It was not established under any organisational or legal framework. Similar engagements are expected to continue in the future."
The discussion focused on Bangladesh's business and investment climate, with entrepreneurs offering views on priority reforms needed to strengthen the private sector, Bida said.
Bida Executive Chairman Ashik Chowdhury told TBS that the advisory council will be formed later as it needed a legal framework. "However the prime minister will sit with business leaders every three months to discuss the business environment and progress on reforms."
