The Asian Development Bank (AfDB) has approved a grant of $ 0.5 million to support knowledge work aimed at promoting business competitiveness and intraregional trade in Bangladesh.
The aid is in addition to an earlier $ 2 million grant approved in 2018 for the creation of innovative knowledge solutions on strategic issues for Bangladesh’s economic transformation, according to a press release.
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âIn addition to export diversification and increased domestic resource mobilization, Bangladesh needs to dramatically increase foreign direct investment and intraregional trade to further propel ongoing growth and development,â Country Director Manmohan Parkash said. .
He said that Bangladesh has immense opportunities to make significant progress in the Doing Business indicators since its current ranking is only 168 out of 190 economies.
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Countries that score high in business rankings have several common characteristics, such as sound business regulation with a high degree of transparency and widespread use of digital systems, âParkash said.
“Bangladesh can gain significantly by modernizing its property registration system, as well as improving the online business incorporation procedures, income declaration system and contract enforcement system.”
Noting that the government wants to improve its Doing Business ranking, Parkash said, âThe knowledge assistance will help prepare concrete policy recommendations to improve Bangladesh’s Doing Business ranking to attract businesses, industries and investment. direct foreigners.
He mentioned that it would also help develop high quality knowledge and policy tools to identify investment and supply chain opportunities for Bangladesh to promote intraregional trade with countries under the initiative. South Asia Sub-Regional Economic Cooperation (SASEC).
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Designed through extensive consultations with government, business and other stakeholders, comprehensive policy interventions will address critical issues such as starting a business, obtaining construction permits, accessing electrical connections, registration of property, access to credit, payment of taxes and enforcement of contracts. .
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Studies on the development of the economic corridor, increasing the capacity of the investment development agency and relevant government departments as well as the business community will be prioritized for support within the framework of assistance.
Bangladesh needs to significantly improve many indicators in the Doing Business ranking in order to catch up with other countries in the region, including China and India, which have improved in their rankings in recent years.
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Indicators that require immediate attention for improvement in Bangladesh include contract enforcement (rank 189), property registration (184), electricity supply (176), cross-border trade (176), insolvency resolution (154), paying taxes (151), negotiating with building permits (135), starting a business (131) and obtaining credit (rank 119).