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Dhaka Tribune

DCCI: Logistics policy will bring down the cost of doing business

It will also encourage substantial infrastructure investment in the country

Update : 28 May 2024, 07:33 PM

The Dhaka Chamber of Commerce and Industry (DCCI) is calling for the implementation of a comprehensive logistics policy, arguing it would significantly reduce the cost of doing business in Bangladesh.  The DCCI issued a statement on Monday emphasizing that financing is also crucial for the policy's effectiveness.

If this logistics policy is implemented, it will significantly reduce the cost of doing business in Bangladesh and also encourage substantial infrastructure investment in the country, said DCCI in the statement.

The DCCI said that Bangladesh has achieved what many call a development miracle, evolving into a burgeoning economy while consistently recording over 6 per cent growth per annum over the past decade.

"Despite this progress, the country has traditionally been ranked low in terms of the cost of doing business. As Bangladesh transitions from Least Developed Country (LDC) status, it aims to diversify and strengthen its trade and economic connectivity by 2026, becoming more multidimensional and aiming to be a developed economy by 2041," it said.

The trade body said that international think-tank's estimated the need of $608 billion infrastructure investment by 2041 in Bangladesh.

It said that infrastructure and logistics challenges remain a significant concern. An integrated, seamless, and reliable logistics system can address these issues, attract foreign investment, and foster greater global interest in Bangladesh, it added.

"The logistics policy recently endorsed by the government of Bangladesh is a key step forward and has been widely praised by the private sector," it continued.

"The policy is distinctly oriented towards the private sector, being among the few in Bangladesh primarily steered by private sector interests, efforts and research insights throughout its development process," it mentioned.

The DCCI further said that investing in the logistics infrastructure sector is believed to yield significant returns, with each Dollar invested potentially generating significant multiples.

"Thus, in order to achieve the significant infrastructure investments needed for Bangladesh to become a developed country by 2041, this policy stands as a crucial and timely initiative," it said.

"This policy would enable the private sector and investors to understand how infrastructure investments will contribute to the overall health of the economy," it said.

The DCCI underscored the importance of incorporating a clear roadmap for investment and infrastructure development financing within the policy framework.

DCCI said that the PPP budget process needs to be in line with the annual objective of logistics policy.

"The process should include annual targets for priority logistics projects, to be created through the involvement of concerned line ministries and the private sector," it said.

"Historically, Bangladesh's infrastructure and logistics financing have relied heavily on external sources. Considering the current economic challenges, incorporating clear and sustainable infrastructure financing mechanisms in the new policy will significantly benefit all stakeholders, especially the private sector and provide a substantial boost to the overall economy," it added.

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