Bangladesh investment authority hitting the ground running with action plan in January

The Bangladesh Investment Development Authority (BIDA) plans to hit the ground running in January by finalising an action plan to improve the country’s ‘business environment’ aimed at enhancing economic growth.

BIDA, the state entity designed to draw foreign investment to the country, envisages placing Bangladesh among the top 100 countries in the World Bank’s 'ease of doing business' rankings within 2021 in order to make it an attractive destination for global businesses.

To attain the target, senior BIDA officials sat with related ministries and businessmen on Saturday to devise plans to meet the lofty ambitions of being seen as business-friendly.

The joint meeting titled, ‘National Consultation on Ease of Doing Business for Double Digit National Growth’, was held at Sonargaon Hotel in Dhaka.

"We have already jumped up two steps. We want to make more progress and show the world that Bangladesh is a great place for investment," BIDA Executive Chairman Kazi M Aminul Islam said at the meeting.

The World Bank has placed Bangladesh in the 176th position among 190 countries in its Doing Business 2017 report. Bangladesh was ranked 178 last year.

Besides the target of improving by at least 76 positions, Kazi Amin said, BIDA would also work to push the annual GDP growth rate to a double-digit number, meaning 10 percent or more.

The joint meeting was organised to hear stakeholders' opinions on how to achieve the targets. 

Prime Minister's Principle Secretary Abul Kalam Azad said at the meeting: "It's our demand, the prime minister's demand, to see Bangladesh among the countries with a double-digit position (10-99) in the 'ease of doing business index'."

"It's an aggressive target, but achievable," he said.

Kazi Amin said an action plan to achieve the targets had been drafted and would be sent to the relevant ministry on Sunday.

"It will be finalised within December and executed in January," he added.

The BIDA executive chairman mentioned Rwanda and several other nations as examples of countries that had made impressive progress in the 'ease of doing business' rankings.

"They did it. We'll also be able to do it," he said in a confident voice.

BIDA was formed through the merger of the Privatisation Commission and the Board of Investment in September.

At the first meeting of its board chaired by Prime Minister Sheikh Hasina on Nov 9, the prime minister approved a proposal to take Bangladesh forward in the 'ease of doing business' index.

Following up on the decisions taken at the meeting, a taskforce headed by Finance Minister AMA Muhith was formed. It had already started working, BIDA Director Tauhidur Rahman Khan told bdnews24.com.

Saturday's meeting was also held in line with the decisions taken at the meeting with the PM.

Karim Belayachi, Senior Private Sector Specialist of the World Bank, presented the keynote paper at Saturday's meeting.

According to him, some of the common features of successful reforms to achieve the targets Bangladesh has set for itself are a long-term comprehensive vision and clear objectives. Leadership at the highest political level, clear accountability mechanisms and inclusive reforms with an appropriate institutional mechanism are also important, he added.

Detailed implementation plans with measurable goals which are monitored and private sector involvement, and effective communication would also be needed, he said.

The World Bank's 'ease of doing business' study analyses the effectiveness of government regulations in promoting a positive business environment.

It ranks the business environment of a country on the basis of 11 indicators, which include: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labour market regulations.

Bangladesh has made improvements in two indicators but plummeted in four.

Despite gaining two spots, Bangladesh lags behind most other SAARC countries, managing only to overtake war-torn Afghanistan.

Several discussants at Saturday's meeting expressed dissatisfaction over the current business environment in Bangladesh.

Ahsan H Mansur, Executive Director, Policy Research Institute, said, "It takes 404 days to get an electricity connection. Why should this much time be needed?"

He said the related government agencies should find ways of creating an environment friendly condition for businesses.

Rupali Chowdhury, President, Foreign Investors' Chamber of Commerce and Industry, said ‘laws need to be simplified’.

Abu Saleh Sheikh Mohammad Zahirul Haque, Secretary, Ministry of Law, said a law was being enacted to provide 'one-stop service' for investment.

It was also pointed out at the meeting that procrastination in trials of business related cases was hindering investment.

Supreme Court Registrar General Syed Amirul Islam proposed forming a taskforce and a special bench for hearing such cases.

FBCCI President Abdul Matlub Ahmad emphasised the involvement of the private sector in overcoming the power supply problem.

He also proposed forming a committee of FBCCI representatives to implement big projects with foreign investments.