Experts urge ethical practices, policy reforms to boost business climate

Analysts and business leaders today emphasized the urgent need for policy reforms, institutional capacity building, and the practice of fairness and ethics in both public and private sectors to ensure a competitive business environment ahead of Bangladesh’s LDC graduation. The observations were made on Thursday during a discussion 

titled “Business Climate in Bangladesh: Issues and Challenges of Ethical Practice,” held at the FBCCI office in the city, said a press release, reports BSS.

The event was jointly organized by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the International Business Forum of Bangladesh (IBFB). Presenting the keynote paper, Dr Khondaker Golam Moazzem, Research Director of the Centre for Policy Dialogue (CPD), stressed the importance of business process re-engineering to reduce operational costs and enhance the efficiency of government agencies. 

He highlighted the various complexities entrepreneurs face regarding licensing, renewals, registration, and customs, and urged the establishment of ethical standards among government officials to improve service delivery.

Speaking as a guest of honour, Mohammad Khaled Rahim, Secretary of the Anti-Corruption Commission (ACC), acknowledged existing procedural complexities but noted that there are opportunities for simplification. 

He encouraged businessmen to lodge specific complaints against any official involved in harassment during the service delivery process.

Foreign Secretary Dr Md Nazrul Islam informed the gathering that while institutional reform is a complex process, the interim government has already initiated several reform measures. He further emphasized that behavioural reform among all stakeholders is now a critical necessity. Md Abdur Rahim Khan, Administrator of FBCCI, who presided over the meeting, called upon entrepreneurs to maintain responsible business behaviour, pursue fair profits, and contribute positively to society while standing against corruption. He assured that the suggestions raised by the private sector to ease the business climate would be formally presented to the government. Lutfunnisa Saudia Khan, President of IBFB, stated in her welcome address that ethical business practices are essential for inclusive growth, sustainable development, and strengthening Bangladesh's position on the global stage. She noted that legal measures alone cannot solve all challenges; rather, collective efforts, open dialogue, and shared accountability are required. During the open discussion, business leaders underscored the importance of digitalization, automation, and the implementation of a Single Window system to ensure transparency and accountability. IBFB Director M S Siddiqui pointed out that some government laws currently contradict the policy of easing business, which discourages investment. Nazrul Islam, secretary at the Ministry of Foreign Affairs, said institutional reform and behavioural change are critical as Bangladesh navigates a sensitive transition marked by an upcoming national election and LDC graduation.

Islam said the country stands at a “critical juncture” in its history, where reforms must deliver tangible outcomes rather than remain policy exercises on paper.“Reform for the sake of reform is not enough,” he said. “People must see real benefits. Otherwise, it cannot be called reform.” He added that Bangladesh’s youth and citizens had paid a high price in past movements for a more just society, rule of law, and inclusive development, and those aspirations must now be reflected in governance and business facilitation.

Mohammad Khaled Rahim, secretary of the Anti-Corruption Commission, said corruption often happens because of weaknesses in the system, not only because of bad intentions of individuals.

Rahim said the ACC’s preventive efforts have lacked adequate emphasis. He urged businesses to submit concrete complaints with verifiable details, assuring anonymity would be protected if requested.“Without specific allegations, it becomes difficult for us to proceed legally,” he said. Rahim added that loan default cases often implicate bank officials acting under pressure. “Systemic coercion is a reality,” he said.

MS Siddiqui, former vice president of IBFB, criticised Bangladesh’s regulatory system for burdening businesses through corruption, excessive discretionary powers, and ineffective reforms. He highlighted flaws in customs automation, arbitrary penalties on HS code errors, and exploitative tax laws. Siddiqui called for abolishing outdated practices such as trade licences and bonded warehouse abuse, and urged differentiation between willful and non-willful loan defaulters.

The meeting was attended by former FBCCI directors, members of the general body, FBCCI Secretary General Md. Alamgir, and other high-ranking officials and leaders from various chambers and associations.