BIDA working to crawl up WB Business Index

Bangladesh Investment Development Authority (BIDA) is working on 49 issues and 11 indicators of World Bank “Ease of Doing Business Index” including revision of an Insolvency Act in order to improve local business climate thereby attracting more foreign investors. 

Those issues were discussed at the sixth meeting of the National Committee for Monitoring and Implementation of Doing Business Reforms (NCMID) presided over by the Cabinet Secretary and NCMID Chairman Khandker Anwarul Islam. The next meeting of NCMID will be held on the second week of November. 

Executive Chairman of BIDA Md Sirazul Islam said Bangladesh must improve the environment for doing business in order to become a middle income-country by 2021.

He added that the country should bring the World Bank's Ease of Doing Business Index ranking down to double digits from the existing ranking of 168.

The index ranks economies from 1 to 190, with the top ranked country having the best environment for doing business. A higher rank, indicated by a lower numerical value means that the regulatory environment in that country is favourable for doing business.

The latest cabinet meeting minutes revealed the setting up of new targets for BIDA and other government entities. Accordingly, BIDA and Bangladesh Bank will pursue for open bank accounts for foreign investors under BIDA facilities of the One Stop Services (OSS). BIDA will reduce steps of the OSS for foreign and local investors to attract more investment in the country. Besides, the investors will get a range of facilities from the Power Division under OSS. The facilities include reduction of connection fees for electricity and introduction of supervisory control and data acquisition system.

Moreover, time consumption in transferring export items will be reduced from 168 to 36 days and time required for documentation will be reduced to 2 days from 147 days. These will be implemented by the Ministry of Shipping and the Ministry of Internal Resources including development of Dhaka and Chattogram corridor.

Morever, in the Chittagong port exporter expenses on regulation and documents will be reduced to $200 and $100 from existing $408 and $225 respectively. The importers expenses on regulation and documents will be reduced to $180 to $190 from existing $900 and also to $ 50 from $370 respectively.

Besides, the Ministry of Land will ease bureaucratic complexities thereby accomplishing purchase and registration of lands within seven days. The ministry will also ease the process of receiving land documents by private companies under the fast track programme.

Other facilities to be provided include encouraging the exporter and importers to transfer goods through railway containers by the Ministry of Rail. In addition, the investors will be paid VAT for three months instead of a year. Meanwhile, public work’s ministry will introduce 10 years insurance for new buildings to be used for commercial purposes, according to the cabinet meeting minutes.

Bangladesh Bank (BB) and Financial Institutions Division (FID) will introduce corporate loan restructure mechanism. Ministry of Law and Parliamentary Affairs is now revising the Small Causes Court Act and will also improve the standard of quantitative indices  including reducing the  court fee and payment of the same through electronic transfer. The FID will formulate a Secured Transaction Act which is also incorporate moveable credit registration. The Bangladesh Bank will introduce credit score system for borrowers. The government will has to allow the financial institutions to enter into the Credit Information Bureau of BB.

Executive Chairman of BIDA also said, "Foreign investors are serious about how much time they have to provide. So, if we manage to reduce the time consumed in the port, Bangladesh will become more attractive to them as different foreign firms are leaving China due to outbreak of coronavirus pandemic. That situation in turn will help the country to improve its Ease of Doing Business ranking."

The BIDA Chief said, "We are trying to provide a good environment for increasing FDI. Investors always seek monetary security while investing.

"But many of them lose interest because of various irregularities such as extortion. We are making an effort to resolve such issues."

Former IMF adviser Dr Reza Kibria told the Business Post that a survey should be conducted among businessmen across the country where it will be look into how they are getting benefits from the WB index.

He also said it is alleged that a businessman is not benefitted from BIDA’s ease of doing business policy. 

ask/wi