For years, local businesses have struggled with an invisible but formidable opponent: a web of outdated, inconsistent, confusing and burdensome regulations. Navigating this bureaucratic maze has often meant facing unpredictable delays, opaque procedures, and uneven enforcement. As Bangladesh aims to revitalise its economy and attract fresh investment, the push for regulatory reform is not just timely, it is essential.

Responding to mounting pressure from both domestic business leaders and international development partners, the interim government has been discussing an ambitious reform programme. Though it didn't come up loudly till date, I believe at the heart of this effort should lie the proposal to establish a "Regulatory Reform Commission (RRC)", a dedicated body tasked with overhauling archaic rules and processes that constrain economic activity. The RRC's role must be continuous and proactive: monitoring, evaluating, and streamlining the full spectrum of economic, especially business-related regulations.

This is not Bangladesh's first attempt. Back in 2007, under the caretaker government, a similar commission led by the late Dr Akbar Ali Khan was formed but ultimately dissolved without significant impact due to a lack of political continuity. Experts now argue that this opportunity must not be squandered. From my engagement with the earlier "Better Business Forum", which helped establish the original RRC, I can say with confidence that business owners repeatedly emphasised that if reforms were left solely to line ministries, little progress would occur. We need a central authority with a clear mandate and strong political backing.

The need for reform is also evident in the data. Bangladesh continues to lag behind its regional peers in business environment metrics. In early 2025, the country scored just 56.99 out of 100 in the "regulatory framework" pillar, placing it in the bottom quintile among 50 surveyed economies. Despite positive steps, such as digitalisation of trade documentation and one-stop service initiatives, entrepreneurs still face regulatory uncertainty that stifles innovation and deters investment. Foreign direct investment in FY2024 dropped by 5 percent, a worrying sign for an economy reliant on private capital to fuel growth.

Recent economic headwinds have made reform even more urgent. GDP growth declined to 1.8 percent in the July–September 2024 quarter, prompting the World Bank to revise its annual forecast to 4 percent. Meanwhile, domestic revenue grew only 3.7 percent in the first quarter of FY25, compared to 17.7 percent year-over-year. Recognising these pressures, the government has secured over $3 billion in funding from the World Bank, with a significant portion earmarked for regulatory and structural reforms.

Analysts have pointed to two key challenges in the regulatory landscape as: (1) many regulations are outdated and irrelevant, and (2) the country lacks frameworks to govern emerging technologies and business models. Regulators are consistently behind the curve. This mismatch between policy and progress reinforces the case for a permanent reform commission.

To be more than a token initiative, the RRC must be enshrined in law and operate beyond political cycles. Looking back at the earlier commission, we should now push for a three-tiered structure: broad dialogue to identify issues; expert-led design of reforms aligned with global practices; and institutional mechanisms to ensure implementation. The earlier commission made real progress when it had support from the "Better Business Forum" and from strong leadership. It must again function as part of a broader public-private ecosystem.

The task is clear. Bangladesh must shift from reactive, piecemeal regulation to a strategic, forward-looking approach. A well-functioning Regulatory Reform Commission can deliver just that -- not merely by cutting red tape, but by making the economy more adaptive, inclusive, and competitive in a fast-changing world.

Mamun Rashid is an economic analyst and chairman at Financial Excellence Ltd.