Economy being deregulated for open participation

Bonded-warehouse facilities will be extended to all exporters and all export-product raw-material imports to be duty-free under sweeping economic reforms being introduced in the new budget.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury Wednesday divulged the decisions, saying that the government is preparing a broad package of economic reforms centred on deregulation, digitisation and wider participation in economic activities.
The minister says the reforms are aimed at reducing the cost of doing business, removing unnecessary regulatory barriers, expanding export opportunities and creating a more inclusive economy where the benefits of growth are shared more widely.
Speaking at a pre-budget discussion in the capital, Khosru said Bangladesh had gradually become an "overregulated" and "patronised" economy in which excessive rules often burdened ordinary entrepreneurs while influential groups remained beyond effective oversight.
"The country's economic activities have long been dominated by a limited group while excessive regulatory mechanisms increased the cost of doing business," he notes, adding that the government has initiated deregulation measures to create a more level playing field.
A major reform initiative under consideration is the introduction of a coordinated one-stop approval system that would allow entrepreneurs to submit applications through a single platform while relevant agencies complete approval procedures simultaneously. The minister says the government aims to complete company registration, licensing and related approvals within a specified timeframe through digital platforms.
"From company registration to everything else, the process should be completed quickly through an online, real-time system."
As part of efforts to improve trade facilitation, the government is also reforming customs administration and reviewing port-related procedures to reduce costs for businesses.
Khosru says customs operations would be separated into policymaking and implementation wings, while greater self-regulation by business organisations is being explored in certain areas, including product testing and certification.
He reiterates government's commitment to reducing corruption through digitisation, particularly in taxation.
"The highest level of corruption occurs in taxation, which is why we are placing the greatest emphasis on digitising the tax system," he said.
"We can no longer allow businesses to bear huge costs from the time goods arrive at ports until they are released. Reducing the cost of doing business is one of our key priorities."
The finance and planning minister also announces a significant expansion of bonded-warehouse facilities to support export diversification.
Under the proposed reforms, all exporters will be allowed to import raw materials duty-free for the production of export goods--extending a facility that has traditionally been available mainly to the readymade- garment sector.
"We will no longer tolerate any form of harassment over bonded warehouses. Anyone exporting any product from Bangladesh will be allowed bonded-warehouse facilities," he affirms new government's stance.
The move is expected to benefit emerging export sectors, including jewellery manufacturing and diamond processing.
Khosru also says businesses would no longer be required to renew bond licences annually. Audit requirements would be relaxed, with inspections conducted once every three to five years instead of every year.
Alongside deregulation measures, the government is preparing to promote what the minister describes as "creative economy" by supporting arts, culture, sports and traditional crafts as engines of growth and employment.
He says rural artisans, including blacksmiths, potters, weavers and handicraft producers, had contributed to the economy for generations but had received limited policy support and market access.
To address this, the government plans to establish a Creative District on around 160 acres near Dhaka, providing dedicated facilities for cultural and creative enterprises.
The initiative will include easier access to credits, raw materials, design development, branding support, marketing assistance and international market access.
Local producers would be encouraged to sell products through global e-commerce platforms and that Bangladesh could adapt successful international models such as "One Village, One Product" to strengthen rural economies.
Sports will also be incorporated into the creative-economy strategy through investments designed to make professional sports a viable career option for young people across the country.
The new custodian of exchequer says future public investment projects would be subject to stricter scrutiny to ensure better use of public funds.
According to the minister, proposed projects will be evaluated on four key criteria: returns on investment, employment generation, population impact and export potential.
He criticises what he describes as past practices of undertaking projects with limited economic value, saying that future investments must contribute directly to national-development goals.
Business leaders attending the discussion meet broadly welcome the government's reform agenda.
Simeen Rahman, Group Chief Executive Officer of Transcom, says deregulation and lower business costs are essential for sustaining economic growth and attracting foreign direct investment.
She stresses the need for reforms in taxation, transparency and administrative procedures to improve the investment climate.
Prime Minister's Special Assistant on Investment and Capital Market Affairs TanvirGani told the meet that deregulation would be one of the most significant features of the upcoming budget.
"The biggest initiative being taken in this budget is deregulation," he says, adding that many entrepreneurs get frustrated by bureaucratic complexities before even starting their businesses.
Meanwhile, Sharif Zahir, Managing Director of Ananta Group, calls for special incentives for man-made fibre (MMF) products to strengthen the garment sector and attract new investment.
He also urges the government to simplify and make the bonded- warehouse-licensing process free from corruption, while proposing temporary support measures to encourage investment in synthetic fibres and related industries.
The finance minister indicates that further details of the deregulation and business-reform agenda would be unveiled in the national budget, striking a note of optimism that the measures would create a more competitive, inclusive and export-oriented economy.
Prime Minister's Special Assistant on Investment and Capital Market Affairs TanvirGani and Bangladesh Cricket Board ad-hoc committee member and BNP Foreign Affairs Committee member IsrafilKhosru attended the event as special guests.

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