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Govt plans measures to improve business climate, diversify exports

Govt plans measures to improve business climate, diversify exports

businessnews24bd.com

The government plans to take a series of measures to improve the cost and ease of doing business, attract foreign investment, diversify exports and promote balanced industrial development across the country, according to a budget document.

Giving priority to deregulation, the government plans to streamline investment-related services, fully digitalise them and integrate them with the Bangladesh Investment Development Authority’s One-Stop Service (BIDA-OSS) platform.

It also plans to strengthen coordination among investment promotion agencies through an interactive website and map investment-related services sector by sector.

The government will further develop BanglaBiz as a single digital platform for business approval services to provide investors with faster, predictable, coordinated and transparent government services.

To attract foreign direct investment, it plans to promote 19 promising sectors identified in an investment heat map.

The government has set an export target of $63.4 billion for the 2026-27 fiscal year, aiming for 15 percent growth in both goods and services exports, Commerce Minister Khondakar Abdul Muktadir announced recently.

There are already signs of stronger investment interest. The Bangladesh Export Processing Zones Authority (BEPZA) said they secured investment proposals worth $717.71 million from 36 companies in FY2025-26, the highest annual commitment in its history.

The proposed projects are expected to create 75,744 jobs once fully operational.

BEPZA-run zones also generated $8.41 billion in exports in FY26, accounting for 17.51 percent of the country’s total merchandise exports.

BEPZA is also planning to establish new export processing zones in Patuakhali and Jashore.

The Patuakhali EPZ is expected to create employment for nearly one lakh people, while the Jashore EPZ is expected to generate around 1.5 lakh jobs.

The establishment of Rangpur EPZ in Gaibandha and Sirajganj EPZ in Sirajganj is also in the pipeline.

The government plans to expand digital services under the Bangladesh Economic Zones Authority (BEZA), where 60 of its 125 services have already been brought online. Standard Operating Procedures have been prepared for 88 services.

The Cabinet in July approved in principle three major policy measures, including the draft Invest Bangladesh Act, 2026, the National Renewable Energy Development Strategy (2026–2030) and the Import Policy Order, 2026–2029, aimed at improving the investment climate, expanding renewable energy and updating the country's import framework.

It also plans to promote environmentally sustainable industrialisation through the Green and Resilient Economic Zone guidelines, renewable energy facilities, solar power systems and Central Effluent Treatment Plants.

Economic zones are planned in Kurigram, Nilphamari, Chandpur and Kushtia to reduce Dhaka-Chattogram-centric industrialisation and support balanced regional development.

Ahead of Bangladesh’s graduation from the Least Developed Country category, the government plans to pursue Free Trade Agreements, Preferential Trade Agreements and Economic Partnership Agreements with potential trading partners to maintain the country’s competitiveness in global trade.

The government also plans to reduce dependence on ready-made garments, which currently account for nearly 82 percent of export earnings, by promoting handicrafts, home décor items, jute products, natural cosmetics, toys and baby products in international markets.

Facilities will be extended to promising export-oriented sectors, including agricultural products, light engineering, pharmaceuticals, electronics, gold and diamonds, to import goods under customs bonded facilities or against bank guarantees on a duty-free basis.

The government plans to diversify export markets by giving priority to Latin America, Africa, Central Asia, the Middle East and various European countries.

It also plans to expand online trade services, including electronic Certificates of Origin through the Business Single Window platform, and develop an Interactive Exporters Database to help exporters identify and connect with foreign buyers.

The government plans to modernise laws and policies for safer and environmentally sustainable shipbreaking, shipbuilding and ship recycling.

Policy support will also be provided for energy-efficient and environmentally friendly electric bikes and scooters.

For cottage, micro, small and medium enterprises, the government plans to develop service platforms, update SME cluster mapping, expand financial inclusion and launch programmes to create new entrepreneurs.

It also plans to provide mentorship, technical and skills training, financing, export support, design and branding assistance and access to domestic and international marketplaces for CMSMEs.

The government plans to accelerate industrialisation in unused BSCIC plots, develop existing industrial areas, expand industrial park capacity and introduce investment-friendly policies.

Under the National Green Industrial Policy, incentives will be introduced to promote energy-efficient technologies, waste-to-resource production and low-carbon industrialisation.

The government also plans to implement Bangladesh Bank’s Tk 60,000 crore Stimulus Package-2026 for agriculture, cottage and small industries, SMEs and sick and closed industrial enterprises.

Of the package, Tk 41,000 crore will come through a refinancing fund and Tk 19,000 crore from Bangladesh Bank’s own resources.

The package includes Tk 20,000 crore for reopening closed industries and supporting the service sector, Tk 10,000 crore for agriculture and rural economic activities, Tk 5,000 crore for CMSMEs, Tk 3,000 crore for export diversification and Tk 3,000 crore to develop North Bengal as an agricultural hub.

The government expects these initiatives to create more than 2.5 million direct and indirect jobs.

It also plans to provide a 6 percent interest subsidy to support expansion of production activities, reducing the effective borrowing cost for entrepreneurs to less than half the prevailing market-based interest rate.

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