'Govt is accountable to investors, not the other way around'

For the first time in Bangladesh, a representative from the private sector, Chowdhury Ashik Mahmud Bin Harun, has been appointed executive chairman of both the Bangladesh Investment Development Authority (Bida) and the Bangladesh Economic Zones Authority (Beza). 

Before taking on this role, he served as an investment banker for HSBC in Singapore. A graduate of the London School of Economics, Ashik Chowdhury has extensive experience working in sustainable finance.

In a recent interview with The Business Standard (TBS), he shared his plans to boost investment in the country and improve the business environment. The interview was conducted by TBS Chief Reporter Abbas Uddin Noyon and Staff Correspondent Jahir Rayhan on 5 November at Biniyog Bhaban in the capital's Agargaon.

Are there any reform plans for Bida and Beza? 

I believe that effective digitisation will significantly enhance service delivery.

Traditionally, we view investors as being accountable to us. However, the reality is quite the opposite. Investors drive GDP growth, strengthen the economy, and create jobs. In that sense, the government is accountable to them, not the other way around.

To address this, we've planned training programmes for our officials to improve their understanding and interactions with clients. These programmes will focus on how to communicate effectively and understand the services investors expect more clearly.

Our plan is to satisfy local investors so they can bring in foreign investments. They will act as ambassadors for us. Instead of holding roadshows abroad, we aim to attract foreign investments through personal connections and leveraging our local investors. For instance, we want to bring in a few major players like Samsung, whose investments can open new doors for us.

To attract global companies, we need tailored solutions. We'll present clear and specific offers, highlighting the unique benefits we can provide. Engaging with anchor investors directly is key, supported by bilateral discussions at the governmental level. This approach will commence from January, marking a key aspect of our reforms.

Our ultimate goal is to create a level playing field - a system free of bribes and corruption, built on an open-door policy. This will define our reform journey.

Have you held meetings with local entrepreneurs? 

The very first thing I did after taking on this role was to sit down with investors and entrepreneurs to hear their perspectives. In just a few days, I have personally met with at least 200 CEOs to understand their concerns and suggestions.

We must pay attention to the challenges faced by investors and businesses. Listening comes first, and solving the issues comes next. To facilitate this, we are creating a common dialogue platform.

In the past, everything was handled through a single individual, leaving those who didn't have access excluded. We have changed this approach. Now, we listen to everyone.

What challenges have businesses cited? 

The most common concern raised by businesses is corruption in trade and commerce. They also emphasised the importance of policy continuity. When we promise certain facilities to businesses, it is crucial to deliver them on time.

For instance, if Beza allocates land to an investor and commits to providing electricity by 2026, but fails to deliver even by 2028, it becomes nearly impossible for the investor to execute their business plan.

Besides, many expressed concerns about various aspects of the ease of doing business.

What are your plans on addressing concerns on ease of doing business?  

One major issue is the high number of licences and certifications required to establish a factory in Bangladesh. We are evaluating whether all these licences are truly necessary. For this, we are learning from the experiences of countries that have been successful in simplifying these processes.

We plan to compare Bangladesh with similar countries, analysing how many certifications are needed to set up similar industries in places like Vietnam and Malaysia. If their requirements are fewer than ours, we'll identify why the process in Bangladesh is so complex and address those bottlenecks accordingly.

To streamline the licensing process, we have formed a dedicated team focusing on this issue. Licences vary across industries, so we will initially prioritise two key sectors. Gradually, we'll address the challenges sector by sector.

The team's primary task is to identify problems related to licensing and work towards practical solutions.

What is the current status of the One Stop Service?  

Currently, businesses still need to visit multiple ministries to obtain licences and permits, often facing delays at different stages. To address this, we will fully operationalise the One Stop Service.

We've had a coordination meeting at the Chief Adviser's Office, where it was decided that Bida will run this project. We are committed to launching a true One Stop Service, as it should be.

When an investor comes to discuss his or her investment, everything will be resolved in one place with one person. The focal person will coordinate with all relevant ministries and provide the necessary services to the investor.

We are introducing a reception room concept where an investor will enter the room, sit down and the team will take care of all the necessary communication and processes on their behalf. There will be no need to visit multiple places.

For this, we will form a dedicated team. We are setting up a relationship management team under Bida, which will consist mainly of private sector personnel, along with some government officers. Their primary role will be to resolve issues efficiently.

Your thoughts on concerns about ports, supply chains, and delays in transportation? 

If we can implement solutions at the ground level, I believe we will see significant improvements. For example, we've had discussions with the National Board of Revenue (NBR) chairman regarding the National Single Window, which aims to simplify import-export procedures. They have committed to launching it by the end of February. Once this is in place, bill clearance will be digital, addressing many of the existing challenges.

Additionally, the Authorized Economic Operator (AEO) initiative will be implemented in January. This will improve port performance by streamlining customs processes for trusted traders.

We are also working on a state-of-the-art modern container terminal at Laldia Char in Chattogram to facilitate smoother import-export operations. Denmark's largest shipping company has shown interest in collaborating on this project.

Similarly, Singapore has expressed interest in the Bay Terminal project. Once these projects are operational, they will significantly enhance port performance.

What are your thoughts on the previous government's plan for 100 economic zones, and how many are feasible? 

We divide the economic zones into three categories. The first category is private Economic Zones Which are not developed by us. We provide utility services at the doorstep and construct access roads, but the private sector is responsible for the development.

The second category is government to government (G2G) Economic Zones, which are developed by the partner country. We provide utility support and road connections, but the development is carried out by the partner country according to its own plans.

The third category is government-owned Economic Zones, which are developed directly by the government. We have created a roadmap for the next five years to develop these zones.

For example, in Mirsharai, Chattogram, there are about 30 sub-zones. We plan to focus on 4-5 of these sub-zones, ensuring full connectivity and providing all necessary support, including gas, water, electricity, and roads.

In addition to Mirsharai, we will work on a few other zones outside Chattogram over the next five years. The goal of creating 100 economic zones remains part of our long-term plan, with a target to achieve this by 2040.

What initiatives are being taken to resolve the problem of the shortage of gas? 

Beza is coordinating with all parties to ensure that factories that have already been set up can quickly get gas connections. According to our national demand, there is currently a 25% shortfall in the supply of gas. The pipeline that supplies gas is very old, and overall, meeting the country's gas demand overnight is not possible. It will take some time, but we are working on it. In the future, we will develop economic zones based on the availability of gas.

What are your plans to attract foreign investment?   

From the start, I have been opposed to the idea of conducting roadshows. To attract foreign investment, our ambassadors and economic counselors in various countries can be major sources.

Since I took office, several ambassadors from different countries have met me, along with their business representatives. The ambassador of South Korea, for example, has met me four times in the last month. We want our missions and ambassadors to follow this lead.

What would you say to investors?   

I believe now is the best time to invest in the country. The current government is not here to engage in business for personal gains. No one will deceive business owners for private interests.

Just six months ago, to start a business, one would have to consider which minister or member of parliament was involved in that sector, and who to please. That mentality no longer exists.

So, come, invest.