BIDA policy to make Bangladesh a top investment destination

The Bangladesh Investment Development Authority (BIDA), a state entity designed to draw foreign investment, has shaped a comprehensive policy to place Bangladesh among the top 100 countries in the World Bank’s ‘ease of doing business’ rankings.

 

This ranking is conducted annually and is considered as a chief parameter for a country to make it an attractive destination for global businesses.  During a press conference yesterday at a city hotel, Kazi M Aminul Islam, the chairman BIDA, said that in that policy- which it formulated by consulting the secretaries of total 18 ministries concerned- they have set a five-year plan to improve the environment of doing business and make it easier for investors.

“The benefit of this initiative will be evident from February this year. We will officially announce about our policy on January 31,” he said.

The BIDA chairman said that they particularly have a target of uplifting the global ranking of Bangladesh in the ‘Ease of Doing Business Index’ within 99th position or below by 2021 from the current 176th position through improvement of regulatory environment and solving other complexities in doing business.

“If we can do this, it will be a revolution for us in the 'ease of doing business' index,” said the Chairman.

It is to be noted that 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.

The study ranks the business environment of a country based on 11 indicator sets: 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 jumped one place in the registering property indicator and two places in the resolving insolvency indicator.

But it has plummeted seven places in starting a business, five in getting credit, one in protecting minority investors and three in paying taxes. The other indicator rankings have remained unchanged.  

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

Speaking on the occasion, Abul Kalam Azad, Chief Coordinator, SDG Affairs said that the BIDA has prepared a set of reform initiatives for national level and plan of action for ministries and other government agencies including ministries of finance, commerce, land, home, power and energy, environment and shipping, the National Board of Revenue, Bangladesh Bank, Local Government Division, and Law and Justice Division involved with the doing business process.

“The aim of the initiatives is very simple. It is taken to substantially improve business climate for advent of a new generation of enterprises and investors and expansion of existing businesses domestically and attraction of foreign direct investment in areas of the country’s interest.” 

About the draft action plan, Azad said that the ministries and agencies have chalked out the areas on which they have to make improvements. These includes  regulatory affairs, taxation, starting a business, getting credit, getting electricity, enforcing contracts, number of procedures in starting business, protecting minority investors and trading across borders.

Nazibur Rahman, Chairman of NBR and Eunusur Rahman, Secretary of Banking and Finance Division were also present at the press conference.