Bangladesh has set an ambitious task of climbing in to the World Bank’s top 100 ranking of economies in ease of doing business in the next five years. In the last Doing Business report released in October last year, Bangladesh ranked 176th out of 189 economies across the world. Only Afghanistan (ranking 183) among the eight South Asian countries came in lower than Bangladesh, while Bhutan topped the list with the 73rd position. So, Bangladesh has to jump at least 15 positions each year to reach its target. Bangladesh Investment Development Authority or BIDA announced this plan at a press meet at Sonargaon Hotel yesterday. “We have prepared an action plan after consulting with over two dozen ministries, relevant agencies and private sector stakeholders,” said Kazi M Aminul Islam, executive chairman of BIDA. The objective of this reform is to attract private investment, both domestic and foreign, which is vital to take the country to a middle income status by 2021 and high income by 2041, said Islam. “If we can carry out the reforms, we are confident that Bangladesh will become one of the best places for investment,” he said. The reforms will be done in line with international best practices, added Islam, also a former top bureaucrat. The ease of doing business report is based on 10 parameters, such as, starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Presently, all processes of starting a business in Bangladesh require 19.5 days, which will come down to only seven days.Rajuk (Capital Development Authority) takes 278 days to allow construction permits; this will drop to only 60 days after the reforms. Electricity will be given within 28 days, instead of 404 days at present.Registering property, which is a cumbersome task in Bangladesh, will be made easy and simple for investors. According to the BIDA plan, the certified copy of a registered deed will be made available right at the time of registration and a copy will also be sent to the AC Land office for mutation immediately after the registration. The central bank’s Credit Information Bureau will provide detailed information of the client, including collateral debt. The interests of the minority investors will be protected by amending the Companies Act 1994. Enforcing contracts, which is a key area of concern for Bangladesh, will be addressed with top priority. An additional bench in the High Court and a dedicated court at the district level will address investment and trade issues. Finally, existing legislation will be reviewed to resolve the investors’ insolvency issue. When asked, the BIDA executive chairman said the proposed reforms will be implemented from today. In response to another query on how over two dozen secretaries will be available for meetings and consultation despite their busy day-to-day schedules, Islam said they are bound to abide by the decision, as their annual performance assessment has been linked to these reforms.Abul Kashem Khan, president of Dhaka Chamber of Commerce and Industry, said: “If we can remove the bottlenecks, Bangladesh will become an attractive destination for investments. Also, we need infrastructure to create an enabling environment.”Abdul Matlub Ahmad, president of the Federation of Chambers of Commerce and Industry, urged BIDA to take steps to ensure consistency in government policies. “You should not change policies by issuing SROs frequently. Even, an SRO must last five years.”
