Fahmida Khatun noted that establishing a business in Bangladesh often requires more than 20 different licences and approvals from various government agencies, creating delays and increasing operational costs for investors.
Executive Director of Centre for Policy Dialogue Fahmida Khatun speaks during an event on 18 December 2025. Photo: TBS
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Executive Director of Centre for Policy Dialogue Fahmida Khatun speaks during an event on 18 December 2025. Photo: TBS
Executive Director of the Centre for Policy Dialogue (CPD) Dr Fahmida Khatun has stressed that removing bureaucratic and regulatory barriers will be crucial for Bangladesh to fully benefit from the proposed Bangladesh–Japan Economic Partnership Agreement (EPA).
Speaking as a keynote presenter at a seminar on maximising opportunities from the EPA organised by CPD at the Japan Embassy today (16 March), she said complex administrative procedures remain one of the biggest obstacles to attracting investment in Bangladesh.
Fahmida Khatun noted that establishing a business in Bangladesh often requires more than 20 different licences and approvals from various government agencies, creating delays and increasing operational costs for investors.
“These bureaucratic hurdles significantly discourage foreign investors and reduce Bangladesh’s competitiveness as an investment destination,” she said.
She added that simplifying business registration and licensing procedures should therefore be a top priority for the government to improve the investment climate and attract greater Japanese investment once the EPA comes into force.
Alongside regulatory challenges, she pointed out that infrastructure constraints—including electricity shortages, transport bottlenecks and port inefficiencies—continue to increase production costs for businesses operating in Bangladesh.
The CPD executive director also highlighted the need for Bangladesh to upgrade its regulatory and inspection systems to meet Japan’s strict quality and safety standards, which will be essential for expanding exports to the Japanese market.
She further warned that tariff reductions under the EPA could result in short-term revenue losses for the government, underscoring the importance of fiscal reforms to broaden the tax base and strengthen revenue collection.
To maximise the benefits of the agreement, Fahmida Khatun recommended a comprehensive reform agenda that includes improving trade facilitation through digitised customs systems, risk-based inspections and faster clearance procedures.
She also stressed the importance of strengthening industrial competitiveness through technology adoption, skill development and improved quality certification.
Investment in energy, transport infrastructure and logistics will also be critical to support industrial growth and ensure that Bangladeshi firms can effectively engage with regional and global supply chains, she added.
Fahmida Khatun said the Bangladesh–Japan EPA represents a major opportunity for deeper economic cooperation, particularly as Bangladesh prepares for graduation from the Least Developed Country (LDC) category.
However, she emphasised that the agreement’s success will depend largely on Bangladesh’s ability to implement reforms, reduce bureaucratic barriers and create a more efficient and investor-friendly business environment.
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