B Mirror Report: Finance Minister Amir Khosru Mahmud Chowdhury has sought recommendations from business leaders on the reasons behind the rising cost of doing business, the bureaucratic hurdles they face and the steps needed to improve the business environment.
He raised the issues during a meeting with a delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by its President Mahmud Hasan Khan Babu, at the Secretariat on Tuesday.
According to garment sector leaders present at the meeting, the finance minister requested the association to submit detailed proposals outlining key challenges and possible solutions to ease business operations.
After the meeting, BGMEA Director Faisal Samad said they informed the minister that policy support is more important than incentives to simplify procedures and lower business costs.
“We told the finance minister that instead of incentives, we need policy reforms to make business processes easier and reduce expenses. He asked us to identify the problems and suggest solutions,” he said, adding that BGMEA would submit a policy paper within a week.
Another BGMEA director, speaking on condition of anonymity, said customs-related costs have increased significantly. He alleged that port charges have gone up and illegal payments at customs have also risen compared to previous years.
Business leaders have long complained about harassment and unofficial payment demands by some customs officials, particularly in matters related to bond licences, raw material clearances, utility connections and audits.
During the meeting, the finance minister also asked how much more support the garment sector requires, noting that other industries often believe the sector already receives substantial government benefits.
BGMEA leaders informed the minister that incentive payments worth around Tk8,000 crore remain pending and requested the government to release the funds quickly.
They also said factories would remain operational for only about 35 days over the next two months due to elections and Eid-ul-Fitr holidays, which could create working capital shortages.
To address the situation, the association requested a loan facility of about Tk7,000 crore to pay workers’ wages for one month, with repayment over 15 months.
According to business leaders, the finance minister responded positively to the proposal and assured them of considering the matter.
