Written by The Banking Post
Bangladesh must break free from its long-standing Dhaka-centric investment focus and harness the untapped economic potential of municipalities, said Chowdhury Ashiq Mahmud Bin Harun, Executive Chairman of the Bangladesh Investment Development Authority (BIDA) and the Bangladesh Economic Zones Authority (BEZA).
Speaking as chief guest at the launch of the Municipal Competitiveness Index (MCI) 2024 in Dhaka on Thursday, Harun described the initiative as “timely and transformative” in driving investment to subnational areas.
“Historically, investment facilitation has been concentrated in Dhaka. This index helps highlight municipalities as viable destinations for business and growth,” he said. “Strengthening local capacities and improving inter-agency coordination at the grassroots will make these areas far more attractive to investors.”
He reaffirmed BIDA’s openness to recommendations and commitment to supporting reforms that remove regulatory bottlenecks outside the capital.
The workshop, organised by BIDA in collaboration with Swisscontact’s PRABRIDDHI project, was titled The Role of the Municipal Competitiveness Index in Strengthening the Investment Climate. It brought together policymakers, development partners, and private sector leaders.
Developed under the Bangladesh Investment Climate Improvement (BICI) programme and implemented by Policy Exchange Bangladesh (PEB), the MCI offers data-driven insights from seven pilot municipalities. It identifies regulatory gaps and guides local governments in creating more business-friendly environments.
Shah Mohammad Mahboob, Executive Member (Additional Secretary) of BIDA and session chair, stressed the importance of embedding the index in BIDA’s long-term reform agenda. “Institutionalising such a tool will provide sustained insights into municipal-level challenges and enable evidence-based policymaking,” he said.
Special guests included Md Mokhlesur Rahman, Executive Member (Investment Ecosystem) of BIDA, and Markus Ehmann, Team Leader of PRABRIDDHI.
Presenting the findings, Dr M Masrur Reaz, Chairman of PEB, said the index broadens the investment lens beyond Dhaka and Chattogram. “While the World Bank’s Doing Business Index focused on just two cities, MCI delivers a more granular assessment of local investment readiness,” he noted.
BIDA Director General Jibon Krishna Saha Roy highlighted that earlier divisional-level pilot reforms, supported by Swisscontact and the Local Government Division (LGD), laid the foundation for deeper municipal engagement. “This reflects the urgent need to strengthen institutional capacity at the local government level,” he added.
Moderated by Abu Mohammad Nurul Hayat Totul, Deputy Director of BIDA, the event featured panel discussions on business entry, infrastructure, taxation, dispute resolution, and access to finance.
Participants underscored the importance of coordinated reforms to unlock investment potential at the municipal level. The workshop concluded with a joint pledge to use MCI insights for designing targeted investment policies and enhancing cooperation between national and local actors.
