A new report from International Finance Corporation, a member of the World Bank (WB) Group, said that the entrepreneurs in South Asian (SA) countries, including Bangladesh, have faced a regulatory environment that is on average less business-friendly than those in the Organization for Economic Co-operation and Development (OECD) high-income economies.
This means costlier and more bureaucratic procedures to start a business, deal with construction permits, register property, trade across borders, and pay taxes, said the Washington-based lender in a statement issued Thursday.
The report, styled "Doing Business 2012: Doing Business in a More Transparent World", assesses regulations affecting domestic firms in 183 economies and ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency and trading across borders.
According to the report, Sri Lanka, which became 89th in the global ranking, implemented the most reforms of any of the eight economies in South Asia and, helping to create a better environment for entrepreneurs.
Bangladesh ranks fifth out of the eight South Asian countries and ranks 122 on the overall ease of doing business, ahead of India's overall ranking of 132, the report said, adding that a key constraint for Bangladesh is the difficulty in getting new electricity connections due to prevailing electricity shortage.
Bangladesh continues to do well in starting a business, with an expedited registration approval process as well as automation of name clearance which now takes only one day compared to seven days in previous years.
"In achieving the 'Digital Bangladesh' vision, the government has introduced online tax filing and electronic bidding in four key government agencies," said Tahseen Sayed, World Bank Acting Country Head.
"When technology is used effectively, it not only increases efficiency but also ensures more transparency."
In five of South Asia's economies, according to the report, traders have access to relevant documentation requirements online or through public notices. Meanwhile, it said fee schedules for electricity connections are easily accessible in three economies.
"Simpler regulations, increased access to information and critical infrastructure are key to an improved operating environment for businesses," said Kyle F Kelhofer, country manager, IFC, adding "Bangladesh's commitment to reform and the efforts to implement regulatory best practices are visible and appreciated by the government, private sector and civil society."
Over the past six years, all eight economies in South Asia have made their regulatory environment more business-friendly, the report said.
This year, the ease of doing business ranking has expanded to include indicators on getting electricity, the report said, adding that getting an electrical connection is most efficient in Iceland.
Singapore led on the overall ease of doing business, followed by China's Hong Kong; New Zealand; the United States; and Denmark this year, it said, adding that the Republic of Korea was a new entrant to the top 10./.