Govt plans to cut business start-up time from 355 days to 14

The government plans to reduce the time needed to start a new business and reach the stage of importing machinery or exporting products from 355 days to just 14 days as part of efforts to improve the investment climate, Commerce Minister Khandaker Abdul Muktadir said today (24 June).

"A high-level committee has already been formed to streamline the licensing and approval process for new businesses," he said while addressing a discussion titled "National Budget 2026-27: Expectations and Achievements for the SME Sector", organised jointly by the Economic Reporters' Forum (ERF) and the SME Foundation in Dhaka.

The committee has reviewed existing procedures and identified ways to reduce the time required to obtain key licences, Muktadir said.

"We will ensure that entrepreneurs can obtain the necessary licences in a structured and hassle-free manner, with most interactions taking place online," he said, adding that approvals such as Fire Service licences would also be made easier and faster.

The minister said strengthening the SME sector remains a top government priority to boost employment and economic activity. 

Muktadir also reiterated the government's commitment to ensuring uninterrupted energy supply to industries across the country, saying a concrete plan is in place to achieve this.

"Many factories are operating below capacity due to energy shortages," he said, adding that adequate power and energy supplies would significantly increase industrial production and contribute to GDP growth.

To improve competitiveness, the government also plans to cut logistics costs, which currently stand at 16% of GDP compared with the global benchmark of around 10%. Measures include streamlining container handling at Chattogram Port and introducing product traceability to strengthen supply chains, he said.

Muktadir said land owned by closed and loss-making state-run factories would be offered to local and foreign investors with assured gas connections. 

He added that the prime minister has held investment roadshows and discussions with the Chinese ambassador to attract more domestic and foreign investment.

The government is also planning to build strategic reserves of import-dependent commodities, including fuel oil and soybean oil, to reduce risks from global supply disruptions, he said, adding that the overall objective is to make Bangladesh a more attractive investment destination.

SME Foundation seeks stronger budget support

Presenting the keynote paper, SME Foundation General Manager Mohammad Jahangir Hossain said the proposed FY2026-27 budget includes around Tk7,800 crore in support for the CMSME sector through various provisions.

However, he said several incentives promised under the National Industrial Policy 2022, Draft National SME Policy 2026, National Tariff Policy 2023 and Export Policy 2024-27 have yet to be fully implemented by the National Board of Revenue.

He proposed introducing a separate preferential tax regime for MSMEs through a dedicated law or statutory regulatory order, bringing existing income tax, VAT and customs incentives under a single framework.

Hossain also called for increasing the Tk2,000 crore refinancing fund for easy-term lending through three government agencies and raising the SME Foundation's allocation to at least Tk5,000 crore.

Under the "One Village, One Product" initiative, he recommended allocating at least Tk100 crore of the proposed Tk300 crore creative economy fund to the SME Foundation.

Citing SME Foundation research, Jahangir Hossain said Bangladesh has 177 industrial clusters employing nearly 20 lakh people, and urged the government to allocate at least Tk2,000 crore annually for cluster-based SME development.