Newsletter

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

A pivotal consultation on the draft National Logistics Policy 2025 (NLP 2025) was convened by the Chief Adviser’s Office on 29 September 2025, bringing together key leaders from the private sector, development partners and government institutions. The session, chaired by Md Saifullah Panna, Secretary of the Chief Adviser’s Office, aimed to incorporate critical stakeholder feedback into the finalisation of the policy framework. BUILD played a prominent role in the dialogue, offering strategic recommendations to ensure the policy is both actionable and implementation-ready.

The consultation began with a presentation on the draft policy, which sets out an ambitious vision to transform Bangladesh into a regional trade and logistics hub by 2050. The presentation was followed by extensive discussions among private sector representatives and trade associations, who highlighted persistent challenges, including high port charges, lengthy clearance times, and fragmented digital processes. A strong consensus emerged on the necessity of moving beyond partial digital initiatives to achieve 100 per cent paperless and fully digitalised logistics systems, thereby significantly reducing operational time and costs.

Representing the coordinated voice of the private sector, Abul Kasem Khan, Chairperson of BUILD, delivered substantive recommendations to strengthen the policy’s implementation framework. He emphasised that the success of NLP 2025 will depend on a time-bound action plan and a comprehensive master plan to align the multiple agencies working within the logistics ecosystem. Khan further proposed that the policy should include a clear directive for establishing a dedicated and empowered logistics authority or ministry to ensure coherent, accountable governance across the sector.

Khan also recommended expanding the policy’s scope to incorporate critical infrastructure elements such as inland container terminals (ICTs), global distribution centres and logistics parks within special economic zones (SEZs). Additionally, he called for the inclusion of central chambers and associations, including Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), DCCI, and MCCI, within the National Logistics Development and Coordination Committee (NLDCC) to ensure comprehensive stakeholder representation.

Echoing these priorities, Ferdaus Ara Begum, CEO of BUILD, emphasised the importance of adopting a phased implementation strategy—with short-, medium- and long-term milestones—to steer the policy’s execution through to 2050 effectively. She reiterated the call for an integrated institutional structure, emphasising that an empowered logistics authority is crucial to implementing the complex reforms outlined in the policy.

A high-level meeting was held on 16 September 2025 between representatives of Business Initiative Leading Development (BUILD) and senior officials of the Chief Adviser’s Office (CAO), including M. Siraz Uddin Miah, Principal Secretary to the Chief Adviser; M. Saifullah Panna, Secretary of the CAO; and Dr Ahmed Ullah FCMA, Director General (1), CAO.

The BUILD delegation, led by Abul Kasem Khan, Chairperson of BUILD, included Kamran Tanvirur Rahman, President of the Metropolitan Chamber of Commerce and Industry (MCCI) and Trustee Board Member of BUILD; Ferdaus Ara Begum, CEO of BUILD; Kanis Fatama, Senior Research Associate; and Ahmed Julker Nine, Research Associate. The meeting focused on strengthening coordination for private sector development and advancing the logistics sector in Bangladesh.

Abul Kasem Khan opened the discussion by highlighting BUILD’s significant role in driving private sector reform, noting that 451 out of 1,197 reform proposals submitted by the organisation have already been implemented. He underscored the vital role of the PSDPCC in resolving multi-ministerial policy challenges and proposed the establishment of two new bodies—the National Infrastructure Development and Monitoring Authority (NIDMA) and the National Integrated Logistics Authority (NILA)—both to be overseen by the CAO.

Ferdaus Ara Begum elaborated on the organisation’s pioneering efforts in securing formal recognition for the logistics sector and its 21 sub-sectors in the National Industrial Policy 2024. She highlighted the contributions of the Logistics Infrastructure Development Working Committee (LIDWC), which organised national workshops that ultimately led to the formation of the National Logistics Development Coordination Committee (NLDCC).

The CAO Secretary emphasised the need for in-depth studies to enhance trade competitiveness through a more integrated logistics system. Dr Ahmed Ullah confirmed that the Asian Development Bank (ADB) has committed funds for a logistics sector study, while the World Bank Group has also expressed strong interest in supporting related initiatives.

In his concluding remarks, M. Siraz Uddin Miah acknowledged existing gaps in inter-ministerial coordination and reaffirmed the government’s commitment to addressing them through mechanisms such as the PSDPCC. He also announced the forthcoming launch of the “Nagorik Seba” platform, which aims to digitalise and streamline public service delivery for citizens.

BUILD organised a dialogue titled “Policy reform requirements for non-adjustable TDS” on 17 September 2025 at the DCCI Auditorium, Dhaka. Md Abdur Rahman Khan, Chairman of the National Board of Revenue (NBR), attended as the chief guest, while Dr Mohammad Abu Yusuf, Secretary, Ministry of Social Welfare, was present as a special guest.

The event aimed to recommend practical reforms and present an actionable roadmap to simplify the TDS refund system, thereby enhancing transparency, efficiency, and fairness for taxpayers.

In his address, NBR Chairman Md Abdur Rahman Khan noted that while TDS is an effective global practice, its implementation in Bangladesh has been constrained by operational inefficiencies, resulting in delays in adjustments. He mentioned that the analytical tools within the ASYCUDA system are not being fully utilised. To address these issues, he stated that the NBR is gradually reducing TDS rates and is likely to automate the TDS refund system in the coming months. He further observed that, in some cases, advance income tax (AIT) rates stand as high as 20 per cent—nearly equivalent to the corporate tax rate. He emphasised the need for urgent research to develop benchmarks for rationalising and making TDS rates sector-specific, while ensuring tax justice without compromising the tax-to-GDP ratio.

Dr Mohammad Abu Yusuf, Secretary, Ministry of Social Welfare, highlighted policy gaps and inconsistencies, citing international examples of more efficient tax refund systems. He remarked that delays in receiving refunds block working capital and reduce the profitability of small enterprises. He suggested that integrating the informal economy into the tax system could significantly enhance Bangladesh’s tax-to-GDP ratio.

Taskeen Ahmed, President of the Dhaka Chamber of Commerce and Industry (DCCI), expressed his organisation’s interest in collaborating with BUILD to simplify the TDS process.

Abul Kasem Khan, Chairperson of BUILD, described the current refund system as “very complicated”, noting that some businesses are forced to maintain two separate accounting systems. He attributed the low tax-to-GDP ratio to a cumbersome tax structure and stressed that without mutual confidence between the public and private sectors, no substantial improvement could be achieved.

In the keynote presentation, Dr Wasel Bin Shadat, Research Director at BUILD, explained that the non-adjustable nature of tax deducted at source (TDS) under Section 163 of the Income Tax Act 2023 often acts as a de facto minimum tax. This creates significant liquidity constraints for businesses and contributes to a low share of direct tax revenue—currently around 33 per cent of total NBR revenue. He added that the existing refund process is slow and lacks a digital pathway, leading to substantial delays.

BUILD’s research, presented by Dr Shadat, revealed that policy inconsistency, minimum tax and supplementary duty (SD) have raised the total tax incidence (TTI) in the beverage sector from 42 per cent to 53.95 per cent over the past five years. SD alone doubled from 15 per cent in 2021 to 30 per cent in 2024—the highest rate in the region. The minimum income tax also rose fivefold from 0.6 per cent to 3 per cent in a single year. As a result, the sector’s revenue fell by more than 20 per cent year-on-year due to an increased tax burden.

His presentation outlined a three-phase reform roadmap:

• Immediate Action
  Introduce a board-prescribed refund form (IT-RFD-01) and issue a circular clarifying the distinction between adjustable and final withholdings.
• Medium-Term Goals
  Develop a fully automated TDS e-reporting and e-refund portal, incorporating risk-based verification to process low-risk claims within 30 working days.
• Long-Term Strategy
  Phase out the broad minimum-tax treatment under Section 163 by recalibrating TDS rates based on sector profitability and broadening the tax base to secure stable revenue collection.

Ali Zaman, President of the SME Owners Association, noted that while SMEs previously received TDS refunds by cheque, the current process has become significantly more complex.

Md Hafizur Rahman, former Director General of the WTO Cell, MoC, underscored the importance of tax justice and proposed differentiated tax structures to accommodate the diversity of taxpayers.

Shadab Ahmed Khan, Managing Director of Coca-Cola Bangladesh Beverages, emphasised that although Bangladesh remains an attractive destination for investors, complex tax policies act as a deterrent. He observed that the TTI in the beverage sector has risen from 42 per cent in 2016 to 54 per cent owing to such inconsistencies.

Snehasish Barua FCA, Partner at Snehasish Mahmud and Company, referred to the Finance Ordinance, which indicates the NBR’s intention to gradually reduce TDS rates. He stated that the refund mechanism could be improved through new rules currently awaiting approval, which would minimise non-adjustability. He further noted that growth in tax revenue depends on stronger value added tax (VAT) performance.

Dr Muhammad Abdul Mazid, former Chairman of the NBR, urged both the NBR and taxpayers to act sincerely to raise the tax-to-GDP ratio. He suggested that large business associations allocate at least 2 per cent of their revenue to research.

A. K. M. Badiul Alam, Member (Income Tax Policy) at the NBR, commended the refund workflow proposed by the keynote speaker.

In her closing remarks, Ferdaus Ara Begum, CEO of BUILD, highlighted a key trend: the share of TDS in total income-tax revenue has increased from 84.6 per cent to 87.4 per cent, while TDS refunds have fallen from 0.35 per cent to 0.24 per cent of total TDS collected. She observed that this decline persists despite clear policy provisions for refunding adjustable TDS with 10 per cent interest and direct bank transfers of excess tax payments to beneficiaries.

Other participants in the open discussion included Md Abdul Matin FCMA, Managing Director, Security 360 Limited; Dr A. K. M. Atiqul Haque, Joint Secretary, Ministry of Finance (MoF); Alimul Ahsan Chowdhury, President, Agricultural Machinery Manufacturers’ Association Bangladesh; Shankar Kumar Roy, Executive Director, Bangladesh Cement Manufacturers Association; and M. S. Siddiqui, CEO, Bangla Chemical.

The 15th meeting of the Private Sector Development Policy Coordination Committee (PSDPCC) was held on 28 October 2025 at the Chief Adviser’s Office (CAO), chaired by M. Siraz Uddin Miah, Principal Secretary to the Chief Adviser. The meeting emphasised the need to revisit several trade and investment policies to reduce the cost, time, and procedural barriers to doing business, in order to address post-graduation challenges.

Following introductory remarks by Dr Ahmed Ullah FCMA, Director General, CAO, Ferdaus Ara Begum, CEO of BUILD, made a presentation highlighting that out of the 37 recommendations made during the 14th PSDPCC meeting, 15 have already been implemented. These include the issuance of a Statutory Regulatory Order (SRO) allowing duty-free import of raw materials for partial exporters, the reduction of duties on chemicals used in the tannery sector, and the utilisation of tannery solid waste in producing value-added products such as gelatin and capsule covers.

Other notable initiatives include the introduction of an escrow policy by the Bangladesh Bank, the use of digital business identification (DBID) for e-commerce and informal entrepreneurs, and progress towards formulating a corporate social responsibility (CSR) policy and amending the Companies Act. She noted that while these represent encouraging steps forward, much remains to be achieved, particularly in advancing leather sector development, solar power generation and other priority areas.

A policy paper on simplifying trade licence issuance and renewal processes was also presented, emphasising the need for a unified policy across all local authorities, implementing a five-year trade licence validity, and reducing undocumented costs.

In his remarks, the Principal Secretary took careful note of the proposals that remain unimplemented and informed the meeting that the government has introduced Nagorik Sheba—a single-window platform for citizen services—through which individuals will be able to access 12 essential services, including the issuance of trade licences.

He advised the Ministry of Commerce (MoC) to form a committee to propose necessary amendments to the Import Policy Order (IPO) in order to ensure UD/UP declarations against back-to-back letters of credit (L/Cs) for partial exporters across all industrial sectors. He also requested the MoC to take steps to implement the export roadmap for the leather sector, developed by BUILD with support from the EC4J project.

In addition, he urged the ministry to take the lead in convening an inter-ministerial meeting to revise the Companies Act 1994 by 15 November 2025. He further emphasised the need for deadline-based implementation, advising the formation of dedicated committees to streamline UD/UP simplification and trade licence-related policies to make the processes more efficient and hassle-free.

Mahbubur Rahman, Secretary, MoC, informed the meeting that the new IPO had already been sent to the Cabinet Division for comments two weeks earlier and would be implemented shortly. He added that the e-commerce policy would be implemented in alignment with the Consumers Protection Act 2025. Responding to issues related to renewable energy, he clarified that unless specifically included in the restricted list, all items are permitted for import under the new policy.

Dr Farhina Ahmed, Secretary, Ministry of Environment, Forest and Climate Change (MoEFCC), urged the Ministry of Industries (MoI) to play an active role in the national waste management process. She also called upon the National Board of Revenue (NBR) to address tax-related challenges affecting waste management initiatives.

Dr Nazneen Kawshar Chowdhury, Executive Chairman, National Skills Development Authority (NSDA), recommended that the Business Identification Number (BIN) could serve as a unique identification number and as an alternative for trade licence and business registration from a single platform. She also offered support from NSDA where required.

Mohammad Abdur Rouf, Secretary, Bridges Division, also contributed and recommended that business support services be kept as simple as possible.

Mohammad Shahjahan Miah, Secretary (in charge), Local Government Division (LGD), informed the meeting that a project is being implemented for trade licence services in collaboration with the United Nations Development Programme (UNDP), allowing people to obtain their licences from home. He also mentioned that the LGD has written to the NBR regarding tax-related issues to reduce the burden on those whose incomes fall below the taxable threshold.

Additional Secretary of the Power Division, K. M. Ali Reza, emphasised rooftop solar power and proposed facilitating the easy import of solar products not produced locally to support the sector.

Additional Secretary, MoI, Kazi Shawkat Hossain, discussed the potential for investment in tannery solid waste management and related sectors. Referring to mandatory standards, he supported the Bangladesh Standards and Testing Institution’s (BSTI) proposal for the inclusion of certain products in the import policy.

Mohammad Mahbubur Rahman Patwary, Joint Secretary, Internal Resources Division (IRD), informed the meeting that the NBR is in the process of resolving the long-standing issue of the central/common bonded warehouse. A draft SRO has already been prepared and is expected to be approved soon.

Abul Kasem Khan, Chairperson of BUILD, emphasised that the costs and time delays associated with obtaining trade licences remain major barriers to entrepreneurship development in Bangladesh. He proposed that the government consider recognising bank accounts as an alternative to trade licences—a move that would not affect revenue generation but would significantly reduce procedural complexity.

The costs and time delays associated with obtaining trade licences remain significant barriers to entrepreneurship in Bangladesh. Recognising bank accounts as an alternative would not affect revenue generation, but it would significantly reduce procedural complexity.

—BUILD Chairperson

Taskeen Ahmed, President, Dhaka Chamber of Commerce and Industry (DCCI), stressed the importance of export diversification, noting that exports from sectors beyond ready-made garments (RMG) are often under-recognised.

Kamran T. Rahman, President, Metropolitan Chamber of Commerce and Industry (MCCI), called for stronger initiatives to increase the share of solar energy to help achieve the government’s green energy targets.

Syed Nasim Manzur, President of the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), urged the government to implement the new IPO without delay, noting that postponements were hindering business operations. He also requested that greater attention be given to sectors with high export potential and suggested that industry associations with proven capacity be allowed to issue UD/UP declarations.

Md Shaheen Ahmed, President, Bangladesh Tanners Association (BTA), called upon the government to ensure the procurement of tannery solid waste through DTIEWTECL to improve environmental management in the sector.

High officials from the Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA), Public–Private Partnership Authority (PPPA), Finance Division, Information and Communication Technology (ICT) Division, Local Government Engineering Department (LGED), Power Division, MoI, Bridges Division, Planning Division, NSDA, Department of Environment (DoE), Export Promotion Bureau (EPB), Bangladesh Bank, Small and Medium Enterprise (SME) Foundation and BSTI participated in the discussions. Representatives from leading private sector organisations were also present at the meeting.

Geographical indications (GIs) have emerged as important policy tools for linking traditional heritage with modern economic growth, particularly in developing countries. In Bangladesh, the GI of Goods (Registration and Protection) Act 2013 marked a significant step towards recognising products whose value and reputation are intrinsically tied to their geographic origin. Since 2016, Bangladesh has registered 60 products under its sui generis framework, including jamdani, muslin, hilsa, Khirsapat mango and Rajshahi silk. These registrations demonstrate progress in cultural preservation and intellectual property protection. However, the broader economic and developmental objectives of the GI framework remain largely unrealised. The country’s GI regime continues to face challenges in commercialisation, producer participation, institutional coordination and international protection, which together hinder its transformation from a legal instrument into a sustainable economic driver.

The case of jamdani illustrates the gap between heritage recognition and market realisation. As the first GI-registered product and a UNESCO-recognised Intangible Cultural Heritage, jamdani symbolises national pride and craftsmanship. Yet the weavers behind this heritage receive little economic benefit. Weak post-registration strategies, the absence of coordinated commercialisation plans and inadequate enforcement have left many producers trapped in poverty. Most weavers earn between BDT 5,000 and 7,000 per month, while cheap, machine-made Indian versions of jamdani flood local markets due to insufficient quality control and border monitoring. This situation has created what experts call a “paper GI”—a legal recognition without tangible economic gain.

By contrast, the experience of hilsa demonstrates that coordinated, multidimensional policy interventions can yield real outcomes.

The hilsa sector now generates over USD 3 billion annually, accounting for 1.15 per cent of Bangladesh’s GDP and supporting nearly three million livelihoods. Its success was built not merely on GI recognition but on earlier government-led conservation efforts, breeding bans and livelihood diversification.

The contrast between jamdani and hilsa highlights a key lesson: GIs generate economic impact only when embedded in an ecosystem of regulation, sustainability and producer capacity.

Institutional gaps have further constrained Bangladesh’s GI potential. Nearly 90 per cent of all GI registrations have been initiated by government organisations, such as the deputy commissioners’ offices, the Bangladesh Handloom Board and the Bangladesh Small and Cottage Industries Corporation (BSCIC), while only 10 per cent come from private associations or producers. This top-down model undermines community ownership and weakens local incentives for quality control and branding.

The Department of Patents, Designs and Trademarks (DPDT), which oversees the GI system, operates without a dedicated GI unit or formal advisory council. Limited staffing, poor inter-ministerial coordination and the absence of laboratory and testing facilities further weaken implementation. Moreover, Bangladesh’s exclusion from international protection systems such as the Lisbon Agreement and its Geneva Act leaves it exposed to transboundary disputes. The recent conflict over India’s registration of the “Tangail saree of Bengal” exemplifies this risk. Without stronger legal preparedness and diplomatic engagement, Bangladesh risks losing both economic and cultural ground in shared heritage domains.

The post-least developed country (LDC) transition introduces another structural challenge. With Bangladesh graduating from the LDC category, direct export cash incentives—long used to support sectors such as agriculture, handicrafts and processed food—will no longer be permitted under World Trade Organization (WTO) rules. This shift particularly affects agro-based GI sectors, which account for roughly 60 to 70 per cent of all GI registrations. Between financial year (FY) 2023 and 2025, incentive rates on key GI products such as agar-attar and handicrafts have been reduced by up to 60 per cent.

To maintain competitiveness and rural livelihoods, Bangladesh must adopt indirect incentive mechanisms compatible with WTO disciplines, including low-cost financing, production-linked incentives, laboratory support for quality testing and expanded research and development (R&D) funding. These measures can help ensure that GI producers remain viable in global markets even as direct subsidies are phased out.

International experience shows that GIs offer far more than heritage protection. Countries such as India, Vietnam, China, and Italy have established robust institutional systems that connect producers to global value chains. India has over 600 registered GIs and promotes them through embassies and export councils. Vietnam has nearly 1,900 GIs, contributing around 12 per cent to its gross domestic product (GDP), while China’s hybrid system—combining sui generis and trademark protection—covers more than 9,000 products and generates over USD 130 billion in value. By contrast, Bangladesh’s 60 registered GIs yield around USD 1 billion in export earnings.

The way forward lies in building a comprehensive GI ecosystem that combines legal, institutional and market dimensions. A national GI policy supported by an inter-ministerial advisory council is needed to coordinate action among key ministries and agencies. The Trademark Act should be amended to include provisions for collective and certification marks, ensuring stronger quality assurance and market credibility.

A national commercialisation and marketing strategy is essential to position GI products in high-value markets through branding, traceability and producer-led fairs. Bangladesh should pursue international negotiations to accede to the Lisbon Agreement and establish bilateral GI recognition with neighbouring countries to prevent transboundary conflicts. Strengthening producer associations and extending Bangladesh Bank’s cottage, micro, small and medium enterprise (CMSME) refinancing schemes to GI-based enterprises—especially women-led groups—can enhance local ownership and sustainability.

A national GI policy to coordinate actions among key ministries and agencies, along with a national commercialisation and marketing strategy, is essential to position GI products in high-value markets through branding, traceability systems and producer-led fairs.

Ultimately, GIs are more than tools of intellectual property—they represent pathways to inclusive growth and cultural diplomacy. If supported by coherent policies, institutional collaboration and producer empowerment, GIs can become vital instruments for export diversification and rural transformation. Moving beyond mere registration to full commercialisation will allow Bangladesh to turn its heritage assets into global brands, doubling export earnings and improving millions of rural livelihoods. In doing so, the country can redefine “Made in Bangladesh” not just as a mark of origin, but as a symbol of authenticity, quality and shared prosperity.

Ferdaus Ara Begum​
CEO, BUILD