Govt forms high-level committee to ease industrial licensing

The government has formed a high-level committee to simplify and expedite the issuance of licences, permits and other regulatory approvals required to set up new industries and factories, as part of efforts to improve the ease of doing business and attract fresh investment.

The seven-member inter-ministerial committee will recommend measures to streamline approval procedures and remove regulatory bottlenecks that businesses have long identified as barriers to investment, according to a gazette notification issued by the Prime Minister's Office on June 9.

The committee will be chaired by the minister overseeing the ministries of commerce, industries, and textiles and jute.

The members of the committee include the adviser to the ministries of finance and planning, the executive chairman of the Bangladesh Investment Development Authority (Bida), the cabinet secretary, the principal secretary to the prime minister, the finance secretary, and the secretary of the Ministry of Environment, Forest and Climate Change.

According to the notification, the committee will suggest ways to facilitate the issuance of licences, permits, no-objection certificates and other clearances required for establishing industrial units.

It will also propose a framework for granting provisional approvals at the initial stage of investment projects, allowing entrepreneurs to begin certain activities before obtaining all final clearances.

In addition, the committee has been tasked with reviewing existing approval requirements and recommending a classification system based on their significance, with a view to eliminating less critical permits and reducing compliance burdens.

The government may co-opt additional members, if necessary, while the Ministry of Textiles and Jute will provide secretarial support to the committee.

The order took immediate effect.

The government has also formed another high-level committee to facilitate bank financing for industries operating on state-owned mills, factories and government land, addressing a longstanding challenge faced by investors seeking credit.

The committee, constituted through a separate gazette notification issued by the Prime Minister's Office on June 9, will recommend measures to help businesses secure loans against leasehold interests and other rights linked to government-owned properties.

Chaired by the minister overseeing the ministries of commerce, industries, and textiles and jute, the committee includes representatives from the Finance and Planning Ministry, Bangladesh Bank, the Finance Division and the Public-Private Partnership Authority.

It will also advise state-owned financial institutions, including Infrastructure Development Company Limited (IDCOL) and Bangladesh Infrastructure Finance Fund Limited (BIFFL), on financing projects established on government land.

The moves come amid growing calls from businesses to reduce procedural delays, improve regulatory efficiency and ease access to financing.

Entrepreneurs have long complained that obtaining approvals from multiple agencies increases both the time and cost of setting up businesses, while firms operating on government land often struggle to secure bank financing despite holding long-term leases.

The latest budget includes measures to improve the investment climate, including issuing business licences through a digital single-window platform within seven days, expanding digital tax and VAT services, and offering incentives for technology and environmentally friendly industries.

Business leaders welcomed the formation of the committees, saying faster approvals and improved access to financing could help strengthen the country's competitiveness as an investment destination.

Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry, said the initiative reflects the government's stated commitment to promoting a private sector-led economy.

"The proposal to issue licences and clearances within seven days could significantly improve the ease of doing business," he said.

Ahmed said the government appeared to recognise the importance of investment promotion in accelerating economic growth. However, he noted that the success of the initiative would depend on effective implementation.

"It is now a matter of seeing how successfully these measures are carried out," he said.

Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry, also welcomed the move.

"We view such initiatives positively," he said. "The government has announced a number of promising measures. If these are implemented effectively, they will certainly benefit businesses."

Rahman said businesses have long faced a high cost of doing business, partly because securing permits and approvals often takes considerable time.

"If these processes are digitalised, approvals can be obtained much faster and businesses will begin to see the benefits sooner," he said.

He added that online services would reduce the need for entrepreneurs to visit government offices repeatedly, saving both time and costs.

Mohammed Amirul Haque, president of the Chittagong Chamber of Commerce and Industry, said both initiatives are encouraging for investment promotion.

"This type of cooperative mindset towards investors will have a positive impact on the economy," he said.

However, he added that initiatives alone are not enough and that implementation will be the key factor in translating the government's plans into reality.