A ‘business manifesto’ for Bangladesh

A national election is approaching, but for Bangladesh, the real contest lies beyond the ballot: whether the next government can deliver jobs at scale in a far more competitive and constrained economic environment. With LDC graduation approaching, preferential market access is gradually declining, global competition is intensifying, and investment capital is becoming more selective—making private-sector-led growth an economic necessity, not a policy choice. 

Job creation will accelerate only if the government delivers visible, credible, and time-bound reforms addressing the constraints that most affect competitiveness, including banking discipline and access to finance, underdeveloped capital markets, energy costs and reliability, export diversification beyond RMG, and faster trade clearance and logistics. These are the benchmarks strategic investors use before committing capital, especially in the post-LDC phase.

This is why political parties should place a business manifesto at the heart of their national manifestos, grounded not in aspirations but in specific, measurable, and time-bound commitments, articulated in consistent language. 

A sample time-bound commitment could be: "By 2028, reduce average port clearance time to 48 hours." Such commitments signal predictability, accountability, and deliverability—key confidence drivers for FDI and long-term private capital.

Equally important is ensuring that commitments do not fade after elections. A Promise Tracker can link commitments to transparent monitoring, showing what was promised, what has been delivered, and what is delayed, thereby reducing policy uncertainty and strengthening Bangladesh's credibility with investors and global partners at a critical development moment.

Finance, banking and fiscal measures

A resilient financial system is the backbone of sustainable growth. Bangladesh's ability to attract investment, support entrepreneurship, and create quality jobs depends on restoring confidence in banking, improving access to finance, and ensuring a fair, growth-oriented fiscal regime. The following commitments focus on stronger financial discipline, more productive credit, and lower tax friction for micro, small, and medium enterprises.

National NPL reduction strategy: By 2029, implement a National NPL Reduction Strategy and bring NPLs below 10 %. This requires stricter classification and provisioning, faster resolution of large defaults, stronger recovery mechanisms, better governance, improved credit appraisal, and accountable boards and management, supported by asset management and resolution mechanisms where needed.

Time-Bound digital loan approvals: By 2027, introduce a 10-day digital loan approval system for priority industries and SMEs. A fully digital approval workflow integrated with credit data, tax records, and national databases can reduce discretion, cut transaction costs, and expand finance for manufacturing, agro-processing, and export-oriented firms.

Credit allocation to productive sectors: By 2029, progressively increase bank lending to manufacturing, agriculture, export-oriented sectors, and SMEs to at least 40 % of private-sector credit. This should be backed by credit guarantees, risk-sharing instruments, and regulatory incentives so banks can meet targets responsibly.

Rationalise turnover tax for Cottage, Micro, Small, and Medium Enterprises (CMSMEs): By 2026, rationalise the turnover tax regime for CMSMEs by reducing effective turnover tax rates and adjusting thresholds to ease compliance costs and support business growth.

Revise the industrial taxable turnover threshold: By 2026, revise the VAT registration threshold for industrial enterprises. This should reflect inflation and rising input costs, reduce premature exposure to higher tax brackets, and support scaling, reinvestment, and formal growth for smaller manufacturers.
 

Capital market reform

A deep, transparent, and well-regulated capital market is essential for mobilising long-term finance, reducing over-reliance on bank credit, and attracting domestic and foreign portfolio investment. In the post-LDC economy, Bangladesh cannot finance large-scale industrialisation, infrastructure, and innovation solely through banks; capital market reform is therefore critical for investment, expansion, and financial resilience.

Restore market confidence through governance and enforcement: By 2027, strengthen surveillance, enforcement, and corporate governance to restore investor confidence. This includes stronger regulatory capacity and independence, strict action against manipulation and insider trading, and higher disclosure and compliance standards for listed firms.

Expand quality listings and reduce speculative dependence: By 2028, increase the number of fundamentally strong and compliant listings, especially in manufacturing, energy, and export sectors. Incentives can encourage well-governed private companies and selected SOEs to list, supported by simpler but robust IPO processes to deepen the market and improve price discovery.

Develop corporate bond and sukuk markets: By 2029, operationalise an active corporate bond and Sukuk market. Clear issuance rules, credit-rating standards, and tax neutrality can unlock long-term financing for infrastructure, energy, and industry while easing pressure on banks and attracting institutional investors.

Enable institutional investor and pension participation: By 2028, expand prudent participation by pension, provident, and insurance funds. This requires professional management, clear risk frameworks, and strong governance standards to increase market stability and depth.

Digitalisation, transparency, and investor protection: By 2027, fully digitalise disclosures, oversight, and grievance redress mechanisms. End-to-end digital systems reduce information gaps, speed compliance monitoring, and strengthen investor protection through faster dispute resolution and credible compensation mechanisms.
 

Energy and utilities

Affordable, reliable, and sustainable energy is a critical enabler of competitiveness, export growth, and investment. Reforms must balance cost efficiency, sustainability, and transparency while ensuring uninterrupted supply to productive sectors.

Expand renewable energy in the grid: By 2029, increase the share of renewable and sustainable energy from 4% to 8%. This should be achieved through clearer procurement processes, greater private participation, expansion of net metering, and concessional financing for solar, wind, waste-to-energy, and rooftop solar in industrial zones, strengthening energy security and improving export carbon competitiveness.

Differentiated peak and off-peak tariffs: By 2028, introduce time-of-use electricity tariffs. This will encourage load shifting, improve grid stability, reduce reliance on expensive peak generation, and lower industrial costs, enabled by smart meters and clear tariff communication.

Zero VAT on energy for industry and exports: By 2028, introduce zero VAT on electricity and gas for industrial and export-oriented sectors. This will directly lower production costs and support competitiveness and diversification.

EVC meters for industry: By 2030, install Electronic Gas Volume Corrector (EVC) meters in all industrial enterprises. Accurate, automated measurement reduces disputes and leakage, improves trust, and enables data-driven energy planning.

Trade facilitation and process simplification

Efficient trade facilitation reduces the cost of doing business, boosts export competitiveness, and integrates Bangladesh into global value chains. Despite progress in automation, traders still face delays, multiple approvals, and excessive inspections.

Zero physical interaction: By 2027, ensure zero physical interaction for all trade-related services. End-to-end digital delivery of licensing, permits, certificates, inspections, payments, and approvals—using e-documents, e-payments, e-signatures, and automated decisions—will reduce discretion and transaction costs.

48-hour port clearance: By 2028, reduce average port clearance time to 48 hours. This requires advance cargo information, pre-arrival processing, 24/7 operations, risk-based inspections, and coordinated upgrades across customs, ports, shipping lines, and regulators.

100% digital customs: By 2027, implement fully digital customs processes, including electronic declarations, automated risk management, paperless documentation, electronic release orders, and real-time data exchange with ports, banks, and relevant agencies.

Electronic Trade Facilitation Act: By 2028, enact an Electronic Trade Facilitation Act. Legal recognition of e-documents, digital signatures, and automated decisions—along with clear data-sharing rules and dispute-resolution mechanisms—will protect reform continuity and strengthen investor confidence.

Full operationalisation of BSW: By 2027, fully operationalise the Bangladesh Single Window (BSW) by integrating all trade services. Traders should submit information once and receive approvals through a single platform, reducing duplication and processing time.

Risk-based clearance across all agencies: By 2026, introduce risk-based clearance across all border agencies, replacing 100 % inspection and testing. Data-driven risk profiling will speed low-risk shipments while focusing enforcement on high-risk cargo, reducing congestion and trade costs.

Export Diversification

Export diversification is central to resilience in the post-LDC transition. Reducing overdependence on a single sector while building competitiveness in new industries requires targeted policy, institutions, and measurable commitments.

Double Non-RMG exports: By 2030, double exports from non-RMG sectors—including agro-processing, leather, plastics, ICT, and light engineering—through a targeted action plan aligning incentives, trade facilitation, skills, infrastructure, and investment promotion with clear milestones.

Agro export development authority: By 2028, establish an authority to deliver agro-trade services under one roof. Centralised certification, quality assurance, market access support, logistics facilitation, and exporter services will reduce fragmentation and compliance costs.

Dedicated Halal authority: By 2027, establish a Halal Authority. Standardised certification with international recognition can unlock higher-growth markets, particularly in the Middle East and South-East Asia.

Performance- and rules-based export support system: By 2027, establish a WTO-compliant, performance-based export support framework focused on tax rebates, standards compliance, value addition, and market diversification. This will reduce discretion and align public spending with strategic priorities.

Agro-processing zones: By 2029, establish agro-processing zones in major agro-producing areas. Integrated cold storage, testing, and logistics services delivered through single facilities will reduce post-harvest losses, increase value addition, and attract private investment.

Export policy as an online, real-time operational plan: By 2027, restructure the export policy into a target-oriented, online-based, real-time operational plan. Clearly defined sectoral targets, timelines, responsible agencies, and real-time monitoring indicators will translate policy ambition into effective execution, strengthen accountability, and enable timely course correction.

Transport and Logistics

Efficient logistics reduce trade costs, improve competitiveness, and attract investment. Despite infrastructure gains, Bangladesh continues to face high logistics costs due to fragmented governance, manual processes, and limited multimodal integration.

Digital truck permit system: By 2028, establish a digital transport permit system for major industrial corridors. Digitised route allocation, time windows, compliance, and payments can reduce delays, congestion, and informal costs while enabling data-driven planning.

National Logistics Development Authority: By 2027, establish a National Logistics Development Authority to coordinate policy, corridor development, multimodal integration, service benchmarks, and PPPs.

Multimodal Logistics Hubs (MMLHs): By 2028, operationalise Multimodal Logistics Hubs along key trade and industrial corridors. These hubs will integrate road, rail, inland waterways, ports, and logistics services in a single location, improving freight consolidation, reducing handling costs, and enabling faster, more reliable domestic and cross-border trade.

Post-harvest loss reduction: By 2029, reduce post-harvest losses in perishable goods to 20 %. Integrated cold-chain infrastructure, improved storage and handling facilities, modern logistics connectivity, and coordinated market-access systems will reduce waste and strengthen agro-export competitiveness.

Integrated port community system (PCS): By 2028, implement an integrated PCS linking customs, shipping lines, ports, and transport operators. Real-time data sharing and e-documentation will reduce duplication and improve port performance, strengthening end-to-end visibility.

SME Development

SMEs are the backbone of Bangladesh's economy but face persistent constraints in finance, markets, infrastructure, and compliance. These commitments aim to enable SME growth, formalisation, and integration into value chains.

SME industrial clusters: By 2029, establish at least 10 dedicated SME clusters. Shared utilities, laboratories, training facilities, and logistics services will reduce costs and raise productivity, supporting balanced regional growth.

Mandatory government procurement: By 2027, enforce procurement of at least 20 % of eligible items from SMEs. Clear eligibility criteria, transparent tenders, and digital procurement systems will expand stable demand and improve standards.

Integrated SME registration portal: By 2028, establish a single SME portal integrating licensing and regulatory requirements. A one-stop platform for trade licences, tax, VAT, permits, and incentives will reduce compliance costs and encourage formalisation.

National matching grant scheme: By 2028, establish a matching grant programme for SME upgrading. Co-financing can support machinery acquisition, diversification, certification, digitalisation, and energy efficiency, with clear monitoring and accountability.

Industrial SME clusters with full facilities: By 2028, develop 25 industrial SME clusters equipped with roads, power, water, waste management, storage, and logistics services. Improved infrastructure will boost competitiveness and encourage scale-up.

SME Export facilitation cell: By 2027, establish an SME Export Facilitation Cell. Advisory support, market intelligence, export readiness services, and linkages with trade agencies can help SMEs enter export value chains.

Expected outcome

Taken together, these reforms constitute a coherent, time-bound roadmap for delivering large-scale job creation through private-sector-led growth in the post-LDC era. If implemented as committed and tracked transparently through a Promise Tracker, the Business Manifesto will strengthen banking discipline, deepen capital markets, lower the cost of energy and trade, reduce logistics inefficiencies, and expand access to long-term finance for SMEs and productive sectors. 

Export diversification, improved corridor performance, and stronger SME ecosystems will raise competitiveness, attract FDI and portfolio investment, and integrate Bangladesh more deeply into global and regional value chains—shifting election commitments from intent to measurable delivery and providing a credible pathway to sustainable jobs, investment, and long-term economic resilience.

Fuad M Khalid Hossen is a Trade Facilitation and Policy Reform Specialist and the CEO of TRACE Consulting

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard