Can the new taskforce finally cut red tape?

For years, businesses and investors have flagged the time and cost of doing business in Bangladesh as a major concern, citing bureaucratic red tape, overlapping approvals and licensing delays. The government has now formed a 21-member high-level taskforce, led by Minister Amir Khosru Mahmud Chowdhury, to address it.

Officials at the Bangladesh Investment Development Authority (Bida) have raised the same issue in past discussions on the investment climate, as have business chambers at budget talks, and ministers have acknowledged the problem publicly.

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A recent study by the Business Initiative Leading Development (BUILD) found that plastic waste management firms alone need up to 31 licences and more than 235 documents, taking about 650 days to secure approvals.

Khosru, finance and planning minister, told a budget discussion organised by the Centre for Policy Dialogue in June that project preparation in Bangladesh takes more than a year and a half on average, with implementation taking considerably longer and driving up costs borne by ordinary people.

In the World Bank’s Business Ready report, which replaced the discontinued Ease of Doing Business index, Bangladesh placed 29th among 50 countries assessed in the 2024 edition, behind Nepal and Indonesia.

The country scored comparatively well on operational efficiency but lagged on regulatory framework and public services, the pillars most directly tied to licensing and compliance delays.

The taskforce will approve sector-specific reform roadmaps, review progress and identify unnecessary steps in obtaining licences, permits and clearances

THE TASKFORCE

The new taskforce brings together cabinet members, senior officials and heads of regulatory agencies, according to a Cabinet Division circular issued on August 9.

It will approve sector-specific reform roadmaps, review progress and identify unnecessary steps in obtaining licences, permits and clearances for removal.

The panel will also oversee trade-facilitation measures, including the National Single Window and online approval tracking, address inter-ministerial bottlenecks and recommend legal changes. A separate Bida website is meant to provide online tracking and grievance-redress services.

The initiative follows the deregulation package announced in the fiscal year 2026-27 budget, part of a wider push to cut compliance costs and improve competitiveness ahead of Bangladesh’s graduation from least developed country status.

In May, Bida submitted 20 deregulation proposals to the finance ministry, including reducing reliance on letters of credit, promoting digital trade, modernising customs and introducing 24/7 port operations.

The broader reform package also targets company registration, taxation, customs, banking, capital markets and construction permits, including online company registration within 48 hours and integrated digital clearance systems.

TIMELY MOVE, BUT SUCCESS HINGES ON EXECUTION: EXPERTS

Abul Kasem Khan, chairman of BUILD, described the formation of the taskforce as an “excellent initiative,” noting it could be the first high-level committee focused specifically on business and industry regulations.

“I am hopeful that the taskforce will work effectively,” he said, adding that chamber representatives on the committee would be able to raise business problems directly.

Abul Kasem said customs-related problems faced by exporters and importers need particular attention, since they raise business costs and weaken Bangladesh’s competitiveness.

He said some reforms could produce results within days or weeks, pointing to trade licensing as an example of a process that could be moved entirely online.

He also suggested Bangladesh consider a one-licence model similar to Vietnam’s, allowing businesses to operate through a single universal licence and identification number.

Over the longer term, he called for sector-wise mapping of licences and the removal of unnecessary regulations, many of them dating back to the 1960s through the 1990s, and urged the government to eliminate separate licences for each outlet of a single business.

Asif Ibrahim, former president of the Dhaka Chamber of Commerce and Industry (DCCI), said the taskforce was timely but that the scale of the problem requires more than incremental changes.

“The taskforce must move beyond identifying problems and focus on measurable results,” he said.

Redundant licences, overlapping approvals, excessive clearances and jurisdictional conflicts among agencies should be eliminated rather than merely streamlined, he added.

The ex-DCCI chief said every regulatory requirement should be tested against one question – whether it serves a genuine public purpose or simply adds to the cost, delay and uncertainty of doing business.

He said the National Single Window and digital tracking systems need to become fully functional, time-bound and accountable, with the private sector playing a role in identifying bottlenecks, proposing solutions and monitoring implementation.

Ibrahim noted that deregulation is essential for improving competitiveness. “Bangladesh cannot attract and retain investment if businesses continue to face fragmented institutions, multiple approvals and uncertain timelines.”

“If the taskforce delivers structural reforms with clear deadlines, accountability and sustained political commitment, it could reduce the cost of doing business, boost investor confidence and unlock new investment,” he said.

Success, he said, should be measured by how much time, cost and uncertainty are removed, not by how many meetings are held or reports produced.

M Masrur Reaz, chairman and CEO of Policy Exchange of Bangladesh, said Bangladesh’s investment climate is already under pressure from high energy and financing costs, inflation and weak demand.

Regulatory bottlenecks, complex rules and weak enforcement have compounded the problem by creating red tape, harassment and uncertainty for businesses.

Deregulation, he said, can help, but it requires coordinated action across ministries and agencies.

Masrur called the committee a good first step toward such coordination, given the presence of ministers, agency heads and private-sector representatives on board.

He said private-sector participation should go beyond the two RMG bodies currently represented and include other high-potential export and domestic sectors.

The committee, he said, should focus on coordination and monitoring, while implementation requires clearly defined deregulation targets, a reform list and a detailed implementation plan.

He recommended a small, full-time reform team of competent civil servants, backed by experts where needed, to deliver reforms within fixed deadlines, with the high-level committee monitoring progress and holding the team accountable for timely implementation.