To attract increasing number of investors, experts highly recommend introducing ‘one stop service’ centre where interested businesses would enjoy trouble free facilities of different regulatory bodies.
Experts said that complex regulations and bureaucratic hurdles increase the transaction costs of doing business which apparently discourage many potential businessmen from seeking business.
“For ease of doing business it is necessary to have such one stop service centre to encourage and invite businessmen to feel comfortable and confident to invest in bisinesses,” said Md Sirajul Islam, Executive Chairman of Bangladesh Investment Development Authority (BIDA).
Experts said that business in many extent is now going through a stagnant period heavily affecting investment in new business. Many pointed out that due to complex system of application to obtain approval for doing businesses.
To overcome this stagnant situation, BIDA has already framed such one stop service facility for the investors to provide all facilities from single office.
Islam made the observations while meeting Board of Directors of Dhaka Chamber of Commerce and Industry (DCCI) at BIDA head office in the city on Tuesday. He also stressed on maintaining compliance and sustainability in the industries for the sake of environmental issues. He said diversification of goods is important for our export competitiveness. He further said that we have to reform and modernize existing Company Act in line with the modern technology.
DCCI President Osama Taseer said that the private investment needs to be scaled up to 32 -35 percent to come out of the stagnant situation caused by poor ranking in different indexes.
“At present the private investment is 23.4 percent. Despite, the FDI to Bangladesh increased to $3.6 billion in 2018 from $2.58 billion,” he mentioned. In order to boost private investment and drive the economic growth, Bangladesh needs to improve its position in competitive indices, he added.
He again stressed on the policy reforms and said that complex regulations and bureaucratic hurdles increase the transaction costs of doing business in Bangladesh. He also requested the BIDA Chairman to establish a window of One Stop Service (OSS) facility to DCCI.
Moreover, the national FDI strategy needs to be aligned with the industrial policy, export policy, foreign exchange regulations, import policy and other government strategies, he said. In order to develop SEZs, coordination among BEZA, PPP and BIDA needs to be developed, he said.
Senior Vice President of DCCI Waqar Ahmad Choudhury said that, “In order to sustain 8 percent plus GDP growth we have to develop our infrastructure and the capital market. And for infrastructure development we need to create a strong bond market for long term financing.”
Many DCCI members urged for ensuring utility connections to Economic Zones, single digit interest rate for SMEs, reforms of Company Act and lower interest rate on private sector lending. They also urged to expedite quicker winding-up procedures. DCCI Directors Andaleeb Hasan, Ashraf Ahmed, Enamul Haque Patwary, Hossain A Sikder, Md Rashedul Karim Munna, Nuher L Khan, Shams Mahmud, SM Zillur Rahman, Executive Member, BIDA Navash Chandra Mandal were also present during the meeting.