Bangladesh needs transparent, consistent and well-coordinated policies aligned with international sustainable trends to enhance its competitiveness, business leaders and experts said at a dialogue on Sunday.
At the dialogue: “Policy Alignment to Enhance the Trade and Investment Climate,” they said policy misalignments often create barriers to investment, particularly for foreign enterprises.
According to them, the alignment is required in areas of fiscal, trade, and regulatory policies to ensure that Bangladesh remains competitive in the global market.
“Bangladesh needs to improve its business environment, infrastructure, and policies to enhance trade and investment competitiveness and align with global sustainability trends,” said Eric M Walker, AmCham vice-president and president of Chevron Bangladesh, at the dialogue, organised by the American Chamber of Commerce in Bangladesh (AmCham) at a Dhaka hotel.
The business leaders present at the event agreed that while Bangladesh has made significant strides in improving its trade and investment climate, there is still room for further reforms.
In her keynote paper, Dr Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD) also emphasised revising policies, simplifying taxes, ensuring exchange rate stability, and improving infrastructure to boost trade and prepare for the LDC graduation.
Addressing as the chief guest, Finance Adviser Salehuddin Ahmed, said the “Interim government is committed to creating an exclusive environment which will be conducive to investment, particularly foreign direct investment (FDI).”
He outlined how aligning policies across sectors can simplify processes and create a more predictable business environment that attracts international investors.
National Board of Revenue Chairman Abdur Rahman Khan stressed the NBR’s efforts in streamlining tax policies and improving the ease of doing business in Bangladesh, emphasising ongoing reforms to attract foreign investment and foster an entrepreneurial ecosystem for economic growth.
Additionally, he recommended shifting the focus from customs revenue as the primary income source to more sustainable taxation systems, such as income taxes and VAT.
At the panel discussion, Ala Uddin Ahmad, Director of FICCI and CEO MetLife Bangladesh, highlighted that as global trade relationships realign after new US administration taking office, Bangladesh should look for new opportunities that could never be imagined before.
He also called for treating existing foreign investors equitably so that they do the investment promotion for Bangladesh.
Sabbir Ahmed, country manager for Bangladesh, Nepal & Bhutan at VISA Worldwide Singapore Pte, highlighted the need for policy changes to promote digital transactions suggesting that the NBR should align proof of tax return submission requirement with consumer loan and credit card limits above Tk300,000.
At the roundtable, Muhammad Imrul Kabir, corporate affairs director at Chevron Bangladesh, highlighted Chevron’s 60 percent contribution to the country’s low-cost natural gas and 80 percent of condensate, addressing a significant amount payment shortfall and seeking support for Petrobangla payment and their onshore development proposal.
They discussants stressed the need for enhanced coordination between the private and public sectors to address challenges and capitalise on emerging opportunities, especially in sectors like technology, manufacturing, and infrastructure.
Key discussion points included payment issues or compliance between the government and stakeholders, improvements in investment policy, return on investment, turnover tax, tax redemption at the source, the needs of the recycling industry, and creating a more favorable tax environment compared to virgin material imports.
Syed Mohammad Kamal, former vice president of AmCham Bangladesh, moderated the discussion, while executive member M Rashel gave vote of thanks at the event also addressed by Forrest E Cookson, economist and former AmCham president.
