Five-year tax policy, faster approvals key to boosting investment, says Azam J Chowdhury

Leading industrialist Azam J Chowdhury has underscored the need for long-term policy certainty and streamlined investment approval processes, saying these are more important for attracting investment than marginal tariff adjustments proposed in the budget.

Reacting to the proposed FY2026-27 budget, the Managing Director of MJL Bangladesh Limited said businesses require a predictable policy environment to make long-term investment decisions.

"Policy sustainability over a longer period, such as a five-year tax policy framework, is crucial for investors," he told The Financial Express on Thursday. "At the same time, the lengthy approval process for investment proposals must be simplified by reducing red tape at different levels."

Mr Chowdhury said the private sector consistently advocated simplification of procedures across government agencies, arguing that delays in obtaining approvals often discourage investment and slow project implementation.

According to him, annual budgets alone cannot provide all the policy support needed to stimulate investment. Rather, the government must demonstrate its commitment by implementing process simplification measures across all levels of administration.

He noted that while the budget contains measures aimed at promoting investment, greater emphasis is needed on creating a predictable and efficient business environment that can support sustained private-sector growth.

The veteran businessman also observed that, beyond social safety-net programmes, the budget offers limited long-term investment incentives targeted at priority sectors.

He called for sector-specific support, particularly for renewable energy and energy infrastructure development, saying a shift towards solar and other clean energy sources is essential to reduce dependence on imported fuel and sustain economic growth.

Mr Chowdhury welcomed the budget's incentives for foreign investment through joint ventures but stressed that policy consistency and faster decision-making processes would ultimately be more important in improving Bangladesh's investment climate and generating employment.

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