Bangladesh’s private sector continues to navigate an extended period of economic uncertainty, marked by missed opportunities to improve the business climate. The interim government now has a critical opportunity to break this impasse by prioritising key ease-of-doing-business reforms. Simplifying bureaucratic procedures—such as the notoriously cumbersome process for obtaining a trade licence—would be a strong start after years of unfulfilled promises to streamline business registration.
Entrenched overregulation remains a major barrier, often reflecting a deep-seated trust deficit between public regulators and private enterprises. Opening a new business still requires navigating a maze of redundant licences and certificates. For example, while a prospective restaurateur faces nineteen separate approvals (when one robust fire safety clearance might suffice), the high-risk transport sector operates with minimal oversight. A high-level coordinating body—such as the PSDPCC) under the CAO—should be empowered to review and rationalise the regulatory regime to strike the right balance, he added.
Bangladesh’s sluggish pace of reform is thrown into sharp relief by regional peers such as Vietnam. The private sector remains largely unprepared for this transition to a developing country, having been battered by recent global disruptions—from the COVID-19 pandemic to the Ukraine–Russia conflict and domestic political upheavals. Policymakers tout post-LDC prospects such as higher foreign direct investment (FDI), but without clear strategies or target sectors, LDC graduation could become merely a symbolic label change rather than a springboard for real economic transformation.
Addressing the nation’s foremost challenge—unemployment—requires a shift in approach. Embracing idea-based financing (in place of traditional collateral requirements) and introducing targeted support—such as a tax holiday for business founders under the age of 30—would give aspiring innovators a much-needed head start.
Platforms such as BUILD have already proposed several “quick-win” regulatory reforms that could be implemented immediately for tangible impact. Ultimately, restoring mutual trust, simplifying regulations, and unleashing the full potential of the private sector will pave the way for Bangladesh’s economic resilience and growth.
Abul Kasem Khan
Chairperson, BUILD