Deregulation and reduction of cost of business

The statement by the newly appointed finance and planning minister that his immediate priorities are deregulation and lowering the cost of doing business is both timely and pragmatic. Speaking to the media shortly after being sworn in, he underscored that restoring momentum to the country's fragile economy would require decisive and targeted reforms. At the top of his agenda, he said, are measures to dismantle persistent barriers to business activity that continue to discourage investment, fuel inflation and undermine overall economic efficiency. He identified high operating costs stemming from inefficiencies, protracted procedures and corruption as major contributors to inflationary pressures. 

Given his emphasis on these dual priorities, it is reasonable to expect a focused drive to reduce bureaucratic red tape, curb rent-seeking practices, and rationalise regulatory authority. The overarching objective, as articulated by the minister, is to bring down the cost of doing business, which remains higher than in many peer economies. Achieving this would not only encourage domestic and foreign investment but also stimulate employment generation and help contain inflation. Lower compliance costs and faster approvals could inject renewed dynamism into industrial and commercial activities. The minister also drew attention to several structural weaknesses confronting the economy, including a persistently low tax-to-GDP ratio, a struggling capital market and sluggish private-sector credit growth. He expressed the hope that lending rates could be reduced and the existing regulatory framework overhauled to create a more investment-friendly climate. Streamlining regulations, improving transparency and ensuring policy predictability would go a long way towards restoring investor confidence and unlocking new sources of growth. Particularly noteworthy is his argument that deregulation can serve as an effective tool for taming inflation. According to the minister, inflationary pressures-currently hovering above 8.0 per cent-have been exacerbated by supply-side bottlenecks, high transaction costs and administrative inefficiencies. These burdens ultimately translate into higher prices for consumers, disproportionately affecting low- and fixed-income groups. By simplifying procedures, reducing unnecessary costs and eliminating distortions in the market, deregulation could ease supply constraints and improve productivity, thereby helping moderate price increases over time.

The minister's remarks align closely with the expectations of the business community, which has expressed cautious optimism about the newly formed cabinet. Entrepreneurs and industry leaders are hopeful that the government will take bold and practical steps to revive economic growth, restore investor confidence and address longstanding challenges across the country's industrial and commercial sectors.

Notably, the finance and planning minister's previous tenure as commerce minister earned him a reputation for pragmatic deregulation initiatives. One significant measure was the delegation of authority to issue Utilisation Declarations (UD) for apparel exports from the Export Promotion Bureau (EPB) to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), which substantially streamlined export procedures and facilitated trade. Such an example demonstrates how targeted regulatory reform can yield tangible benefits. There remain many other areas where similar initiatives could enhance efficiency, reduce costs and delays, and strengthen the country's overall economic resilience.