Further ease of doing business needed to attract investment: experts

A favourable position on the World Bank's Ease of Doing Business Index is crucial for attracting new investments and maintaining old ones while constant policy changes will help generate more foreign direct investment, according to experts.

"To achieve the targets set by Prime Minister Sheikh Hasina, we must focus on investment," said Salman F Rahman, the premier's private industry and investment adviser.

Rahman made these comments while addressing a virtual meeting of the National Committee for Monitoring Implementation of Doing Business Reforms (NCMID), held yesterday.

At the meeting, chaired by Cabinet Secretary Khandker Anwarul Islam, faster digitalisation of the country took centre stage among discussions with key government bodies trading views on previously implemented and planned reforms aimed at improving Bangladesh's ranking in the World Bank index.

The 15-member NCMID is comprised of top representatives of various ministries, departments and agencies responsible for the implementation of policy reforms that could benefit the country's ease of doing business.

During the meeting, a presentation was delivered on behalf of Bangladesh Investment Development Authority (Bida).

The presentation highlighted some of the successful policy changes brought about by the organisation, their plans for future reforms and integration status of Bida's One Stop Service (OSS).

Rahman then urged the NCMID members to set individual targets for their respective agencies in a bid to ensure the speedy implementation of reforms outlined in Bida's Doing Business Action Plan.

To calculate a country's ease of doing business, the World Bank takes 10 factors into consideration. However, "contracting with the government" was recently added as another clause, said NCMID Chairman Cabinet Secretary Khandker Anwarul Islam.

"We discussed the Doing Business Action Plan at cabinet meetings. For all of us, it is a fundamental job and so, by using effective coordination we must ensure the progress of policy reforms," he added.

The prime minister set a target to reach a double-digit ranking in the World Bank's Ease of Doing Business Index by 2021, said Bida Executive Chairman Md Sirazul Islam.

To do that though, the country would need to maintain and achieve changes to rules and regulations.

Besides, the speed at which G2B services are being integrated with Bida's One Stop Service must be accelerated as digital services are a driving force behind the development of a country's business climate.

"Reforms carried out within the specific parameters of the Doing Business Action Plan will stimulate broader reforms for Bangladesh's business environment," he added.

Bangladesh has reportedly seen a number of improvements in several ease of doing business indicators ahead of the World Bank's upcoming index for 2021.

Cabinet Secretary Khandker Anwarul Islam, who moderated the session, sought updates on planned reforms from committee members and provided instructions on how to take things forward.

Islam also discussed the government's ongoing initiatives to streamline the process for profit repatriation and closing down businesses.

Emphasising on digitalisation, the cabinet secretary proposed innovated measures for treasury payments and e-khatiyan while also urging for consumer-friendly measures to be taken for the distribution of natural gas.

Islam also asked the NCMID members to drive home such reforms by providing clear instructions to their respective agencies within the month and assured that they would have full support from the Cabinet Division in this regard.

Suggesting that the NCMID should meet every two months, the cabinet secretary scheduled the next meeting for the end of August.

The government formed the NCMID in September 2017.

The committee was tasked with monitoring the implementation progress of short, medium and long-term reform recommendations.

Among other responsibilities, the NCMID also provides guidance to various agencies on how to address challenges faced in the implementation process.

In line with the ease of doing business ranking criteria, Bangladesh is trying to enact The Secured Transaction (Movable Assets) Act for the overall improvement of the country's business climate, said Ashadul Islam, senior secretary to the financial institutions division.

If implemented, the act will improve Bangladesh's score for movable collateral registration with access to credit, he noted.

The government is also trying to amend the Bankruptcy Act by addressing measures under the Resolving Insolvency category.

"All line agencies have agreed to work together to amend relevant laws to establish an insolvency regime in the country," Islam said.

The automation requirement to secure e-trade licenses will be carried out by the Dhaka and Chattogram city corporations in their respective municipalities, said Helal Uddin Ahmed, senior secretary to Local Government Division.

Such reforms will act as a positive indicator for people looking to start a business, he added.

Fast-tracking the issuance of permits for low-risk green category facilities, such as warehouses, have also been discussed with the Department of Environment as it is a prerequisite for construction permits.

Meanwhile, efforts are being made to ensure the effective generation and distribution of power, according to Dr Sultan Ahmed, secretary to the Power Division.

The System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI) targets will be recorded after the Supervisory Control and Data Acquisition (SCADA) is implemented to monitor power outages and restoration, he said.

Besides, to introduce faster and less costly measures for company to company land transfers, the Ministry of Land has taken initiatives to reduce stamp duties and registration fees, informed Md Muksodur Rahman Patwary, secretary to the Ministry of Land.

"We are exploring options on how to further reduce costs as well," he added.

Mohammed Mezbah Uddin Chowdhury, secretary to the Ministry of Shipping, discussed his plans for the automation of export-import processes in line with standard global practices with an aim to positively impact the country's score under the trading across borders indicator.

National Board of Revenue Chairman Abu Hena Md Rahmatul Muneem participated in the meeting and discussed possible measures to be made under the Paying Taxes indicator.