Originally posted in The Daily Star on 6 February 2026
Ethical business practice has become increasingly difficult
Experts warn, citing manual processes and unofficial payments as major threats
A recent surge in unofficial payments across licensing, compliance, and utility services is undermining the country’s push for ethical business practices, said Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD).
He made this remark while presenting a keynote paper at a roundtable titled “Business Climate in Bangladesh: Issues and Challenges of Ethical Practice”, jointly organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the International Business Forum of Bangladesh (IBFB) at the chamber’s auditorium in Dhaka yesterday.
“If an official can still say ‘come to the office’, the system remains manual — and that creates space for unofficial payments,” Moazzem said, adding that partial digitalisation has failed to curb discretion and repeated physical interaction with offices.
He proposed business process reengineering to reduce delays, duplication, and informal costs, arguing that end-to-end digitalisation of documentation, verification, and payments is essential to lowering the cost of doing business.
Moazzem said the business community is facing two major transitions at once: a political transition, with new leadership expected to take charge, and graduation from the least developed country (LDC) category, expected in November this year.
“The business community will have to engage with the new political leadership in a new way,” he said, urging businesses to raise long-standing problems more firmly.
He cautioned that ethical business practice is becoming increasingly difficult as delays and discretion have intensified unofficial payments in recent months, worsening the business climate compared to earlier periods.
Nazrul Islam, secretary at the Ministry of Foreign Affairs, said institutional reform and behavioural change are critical as Bangladesh navigates a sensitive transition marked by an upcoming national election and LDC graduation.
Islam said the country stands at a “critical juncture” in its history, where reforms must deliver tangible outcomes rather than remain policy exercises on paper.
“Reform for the sake of reform is not enough,” he said. “People must see real benefits. Otherwise, it cannot be called reform.”
He added that Bangladesh’s youth and citizens had paid a high price in past movements for a more just society, rule of law, and inclusive development, and those aspirations must now be reflected in governance and business facilitation.
He stressed that widespread manual processes within public offices remain a major barrier and a key source of corruption.
“If services were fully online and no one needed to visit offices physically, many of these problems would disappear,” he said.
Highlighting the link between domestic business conditions and foreign investment, Islam said issues such as profit repatriation, regulatory predictability, and service delivery are closely interconnected.
He added that the foreign ministry stands ready to work with the commerce ministry, business bodies, and other stakeholders to address post-LDC challenges, including trade agreements and investment promotion.
Mohammad Khaled Rahim, secretary of the Anti-Corruption Commission (ACC), said corruption often happens because of weaknesses in the system, not only because of the bad intentions of individuals.
Rahim said the ACC’s preventive efforts have lacked adequate emphasis. He urged businesses to submit concrete complaints with verifiable details, assuring anonymity would be protected if requested.
“Without specific allegations, it becomes difficult for us to proceed legally,” he said.
Rahim added that loan default cases often implicate bank officials acting under pressure. “Systemic coercion is a reality,” he said.
MS Siddiqui, former vice president of IBFB, criticised Bangladesh’s regulatory system for burdening businesses through corruption, excessive discretionary powers, and ineffective reforms. He highlighted flaws in customs automation, arbitrary penalties on HS code errors, and exploitative tax laws.
Siddiqui called for abolishing outdated practices such as trade licences and bonded warehouse abuse, and urged differentiation between wilful and non-wilful loan defaulters.
He emphasised the importance of ethical governance and urged the government to see businesses as partners in development, not enemies, and to make doing business easier through real reforms.
“Ethics lie at the heart of sustainable business,” said Lutfunnisa Saudia Khan, president of the IBFB, stressing that responsible corporate conduct is essential for long-term growth and public trust.
“The challenges we face today cannot be addressed by law alone,” she said, underscoring the need for collective efforts, open dialogue, and shared responsibility among stakeholders.
Moderated by Md Abdur Rahim Khan, administrator of the FBCCI, the event also featured Muhammad Abdul Mazid, chairman of the National Board of Revenue, among others.
