The government plans to introduce an integrated Single Window System to simplify and accelerate approvals for industrial establishments, aiming to cut bureaucratic delays, reduce investment costs and make Bangladesh a more attractive destination for domestic and foreign investors.
According to a budget document, the proposed system will bring construction, fire safety, environmental, land and building plan approvals under a single online platform, allowing entrepreneurs to apply through one channel instead of approaching multiple government agencies separately.
Under the proposed system, relevant agencies submit their reports online within stipulated deadlines after necessary inspections and approvals will then be issued through the same platform based on those reports, the document said.
The government also plans to receive and process applications for site clearance and environmental clearance for industrial establishments online, with specific timelines for application verification, inspections, consultations and the issuance of clearances.
Information exchange among the service platforms of relevant ministries and agencies will be strengthened so that entrepreneurs do not have to submit the same information repeatedly, it said.
A Risk Assessment System will also be introduced in approval and verification procedures to speed up services for low-risk cases while maintaining necessary scrutiny and supervision for high-risk applications.
This will help reduce entrepreneurs’ waiting time, costs and uncertainty without compromising verification standards, the document said.
The government further plans to develop a simplified Compliance Framework for micro, small and new entrepreneurs, particularly those operating in the informal sector.
Under the proposed framework, licensing, renewal and regular compliance requirements will be simplified through easy-to-follow guidelines, online support, fixed fees and easier renewal arrangements to encourage small businesses to enter the formal economy.
Conditions relating to licensing, renewal and regular compliance will be simplified to make formalisation easier for small entrepreneurs,the document said.
To oversee the implementation of the deregulation initiatives, the government plans to form a high-level task force and develop a dedicated website to monitor progress and address complaints.
Service recipients will be able to submit complaints directly through the website about irregularities or problems with service delivery and track the resolution of those complaints, it said.
The planned reforms are also expected to improve coordination among government agencies through information sharing, online progress tracking and service delivery within defined timelines.
The document said delays involving tax and customs compliance, external transactions, banking services, capital market financing, construction approvals, environmental clearances and local licensing would also be addressed under the broader reform programme.
These reforms will help build a new administrative culture in business- and investment-related services, making it easier to start and operate businesses, reducing the cost of doing business and strengthening investor confidence, it said.
The government considers the reform programme important as Bangladesh prepares for increased competition following its graduation from the least developed country (LDC) category.
The initiatives are intended to support export diversification, attract higher investment, create productive employment and promote sustainable economic growth.
Bangladesh’s cumbersome bureaucratic procedures remain a major obstacle to setting up industrial establishments, creating uncertainty and raising costs for domestic and foreign investors.
Entrepreneurs must navigate government agencies to secure site clearance, environmental clearance, land-use approval, building plan approval, construction permits and fire safety clearance before starting production.
These approvals often involve separate applications, repeated document submissions, visits to government offices and lengthy processes, with limited coordination among authorities.
The World Bank’s 2022 Enterprise Survey, based on interviews with 998 firms in Bangladesh, found that senior managers spent an average of 13.3 per cent of their time dealing with government regulations.
Firms took an average of 48.9 days to obtain a construction-related permit, while securing an operating licence took 28.4 days.
The World Bank’s Doing Business 2020 report ranked Bangladesh 135th among 190 economies for dealing with construction permits. Its assessment documented separate clearances involving agencies responsible for land use, fire safety, utilities and building approval.
For foreign investors unfamiliar with the administrative system, navigating these layers can complicate investment decisions.
Commerce Minister Khandakar Abdul Muktadir also said in July that the government was developing a central online one-stop window to prevent investors from having to visit multiple offices.
He noted that factory approvals could not always be completed within 15 days because of the need for safety, fire and environmental assessments.
Local entrepreneurs face additional costs as they wait for approvals while project costs accumulate. Such delays can undermine project feasibility, discourage investment and weaken industrial competitiveness when Bangladesh needs greater private investment, employment and export diversification.
Recognising these bottlenecks, the government is moving towards an integrated online approval system.
Under the proposed arrangement, applications for site and environmental clearances will be submitted and processed online, with other services brought under a coordinated mechanism and delivered within specified timelines.
The initiative could reduce dealings with government offices, improve transparency and make approvals more predictable.
Its effectiveness will depend on agency coordination, accountability, simplified documentation and enforcement of service delivery deadlines.
Without these changes, digitising applications may simply transfer delays to an online platform.