Bida chief calls for ending protectionism, fixing execution gaps to sustain investment growth
The Bida chief said consumers ultimately bear the burden of inefficiencies embedded throughout the supply chain, not only tariffs.
Bangladesh Investment Development Authority (Bida) Executive Chairman Chowdhury Ashik Mahmud Bin Harun today (11 May) said Bangladesh must gradually move away from long-standing protectionist policies and focus on execution, institutional coordination and energy security to sustain investment and employment growth.
Speaking at a roundtable discussion on "Trade Policy, Industrial Protection, Investment Impacts, and Consumer Welfare" organised by the Policy Research Institute (PRI) of Bangladesh in Dhaka, Ashik said there is now a broad understanding that industrial protection cannot sustain forever as Bangladesh prepares for post-LDC graduation challenges.
The Bida chief said consumers ultimately bear the burden of inefficiencies embedded throughout the supply chain, not only tariffs.
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"By the time products reach consumers, many issues get added in the middle," he said, citing logistics bottlenecks, port inefficiencies and rent-seeking behaviour across different stages of business operations.
He said, Bangladesh's biggest challenge is not necessarily policy formulation but execution.
"At the principle level, there are policies regarding these problems but no execution," he said, referring to the difficulties investors face in importing raw materials, clearing ports and transporting goods.
The Bida executive chairman said the government's current priority is shifting from simple economic growth to sustained or sustainable growth centred on employment generation.
He also defended Bida against criticism that the agency prioritises foreign investors over domestic businesses.
"Bida's responsibility is to advocate from within the government on behalf of all local and foreign investors," he said, adding that the majority of Bangladesh's investment continues to come from local investors.
While foreign investment brings technology transfer and efficiency gains, he said domestic investment will remain the backbone of the economy.
Ashik also revealed that investment promotion agencies have submitted 46 recommendations to the revenue authorities, including 19 proposals related to deregulation.
The recommendations include introducing a structured VAT slab system to provide clearer incentives for local value addition and reduce policy uncertainty for investors, he said.
The Bida chief also identified the energy crisis as a major barrier to attracting both local and foreign investment.
"Until we solve the energy problem, we can talk about investment but it's going to be very difficult for local and foreign investors to believe in the Bangladesh story," he said.
The discussion was held at PRI's Banani office and chaired by PRI Chairman Zaidi Sattar. Panelists included Consumer Association of Bangladesh President AHM Shafiquzzaman, former NBR member Md Farid Uddin, Dhaka Chamber of Commerce and Industry President Taskeen Ahmed and M Masrur Reaz.
