Dhaka: Bangladesh's Commerce, Industries and Textiles and Jute Minister Khandakar Abdul Muktadir has emphasized the necessity of developing a competitive economy to attract increased global investment. He highlighted the importance of ensuring policy stability, reducing supply-chain costs, automating customs procedures, and simplifying business startup processes to improve the investment climate.
According to Bangladesh Sangbad Sangstha, Muktadir addressed a seminar titled "Prospects for Expanding Trade and Investment in Bangladesh," organized by the Bangladesh Consulate General in Hong Kong. He noted that technological advancements have made it easier for investors to assess the business and investment environment worldwide, which necessitates Bangladesh to align its policies and business capabilities with global standards.
Muktadir further stated that Bangladesh is actively negotiating trade agreements to maintain trade advantages post its graduation from the Least Developed Country (LDC) category in 2029. Successful economic partnership agreements have been concluded with Japan and South Korea, granting nearly 97 percent of Bangladeshi products duty-free access to the South Korean market. Negotiations are also underway with approximately 13 more countries, including the European Union.
The minister identified high supply-chain costs as a significant hurdle, noting that these costs account for about 16 percent of Bangladesh's GDP compared to the global average of 10 percent. He proposed infrastructure improvements, such as enhancing the capacity of Chattogram Port and developing the Matarbari Deep Sea Port, to mitigate these costs.
On easing business startup processes, Muktadir revealed that digitization efforts are underway to reduce the time required to reach the letter of credit (LC) stage from several hundred days to a maximum of 14 days. Other digitization initiatives include trade licensing and share transfers, which aim to minimize the need for entrepreneurs to physically visit government offices.
In terms of customs reforms, Muktadir announced plans for automation to streamline import clearance processes, alongside a shift towards risk-based customs management to reduce unnecessary inspections for reliable businesses. He assured that within the next six months to a year, several customs restrictions would be relaxed.
The minister also stressed the importance of policy continuity to bolster investor confidence, advising that any necessary policy changes should ideally apply to new investments to ensure clarity for investors. He highlighted ship recycling as a promising sector for future investment, citing the significant role of Bangladesh and India in global ship recycling.
Muktadir concluded by affirming the government's commitment to making Bangladesh more competitive by addressing business environment weaknesses through continuous reforms in infrastructure, policies, customs, and business processes.