Bangladeshi apparel exporters are required to pay up to six times more than the official fees for acquiring essential permits and renewing licenses, according to a recent study conducted by the Center for Policy Dialogue (CPD).

This surge in fees not only escalates their business costs but also poses a substantial challenge to their competitiveness, it said.

The study reveals alarming statistics: apparel exporters are shelling out up to 644 per cent more than the official rates for boiler licenses. Similarly, for bond licenses, they are paying 261 per cent more than the official rate, while fire licenses are costing them 114 per cent more.

Khondaker Golam Moazzem, the research director at CPD, highlighted these findings during a seminar held on Tuesday.

He pointed out that in some instances, the disparity is slightly less pronounced, with payments being 36 per cent higher than official rates for factory establishment licenses, 16 per cent higher for trade licenses, and 12 per cent higher for export and import registration certificates.

The event titled ‘Business related barriers and possible way out’ was jointly organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), CPD, and GIZ Bangladesh.

FBCCI President Mahbubul Alam said that despite these opportunities, businessmen encountered a slew of domestic and international trade obstacles, ranging from regulatory hurdles to cumbersome procedures, tax complexities, and financial uncertainties.

Mahbubul urged the government to promptly address these issues to facilitate smoother business operations and attract further investment.

He stressed the importance of the government streamlining processes and fostering a business-friendly environment to capitalize on this momentum.

State minister for commerce Ahasanul Islam Titu said that the government has been dedicatedly striving to streamline business operations for Micro, Small, and Medium Enterprises (MSMEs), with the goal of empowering small and medium entrepreneurs to engage in business and trade seamlessly, without encountering unnecessary hurdles.

He underscored the importance of business process re-engineering to effectively address future challenges, notably those associated with LDC graduation and the Fourth Industrial Revolution (4IR).

Jan Janowski, the Deputy Head of Mission of the German Embassy in Dhaka, expressed his optimism regarding potential German investment in Bangladesh, emphasizing the myriad advantages and opportunities available for investment in the country.