In the face of the obstacles in business, price of Bangladeshi products rises by 10 to 12 percent compared to that of some neighboring countries, they added.

They were speaking at a seminar on 'Cost of Doing Business in Bangladesh'. The Dhaka Chamber of Commerce and Industry (DCCI) organised the seminar in cooperation with the Center for International Private Enterprise (CIPE), an affiliate of the US Chamber of Commerce, Washington, DC.

Bangladesh is one of the costliest countries in Asia when it comes to starting a business, the speakers noted.

Economist and management consultant Prof Feroz I Faruqui presented a keynote paper in the seminar while business representatives from different sectors were present.

Faruqui said problems in infrastructure are seriously hampering the business growth in Bangladesh.

Electricity and gas problems stymie firms in Bangladesh, he said.

Faruqui said, "Since 1973 Bangladeshi taka has undergone devaluation 48 times, which is also a reason for increased cost of doing business in Bangladesh."

DCCI Acting President Manzur-Ur-Rahman said, "About 70 percent of the DCCI members are from the SME sector. The various categories of SMEs account for 80-85 percent of total industrial employment. But the SMEs are facing problems due to high cost of doing business."

Citing a DCCI survey conducted in August- November 2003, he said cumbersome investment rules and regulations, registration and licensing procedure, and low productivity are some of the reasons for high cost of doing business in Bangladesh.

"It is not possible to eliminate business obstacles overnight but we have to take a move to minimise it."

The seminar also recommended mandatory registration for political parties to reduce corruption.

Among others, M H Rahman, former president of DCCI, spoke at the seminar.