Complex licensing requirements are pushing Bangladesh’s healthcare, medical equipment, and pharmaceutical sectors into uncertainty, according to entrepreneurs and experts.
Prolonged administrative procedures, approvals from numerous agencies, and regulatory delays are discouraging new investment and slowing expansion, according to discussions at a seminar in Motijheel.
The concerns surfaced at the programme titled Private Sector Participation in Healthcare Development: Prospects and Challenges, organised by the Federation of Bangladesh Chambers of Commerce and Industry.
One of the most alarming findings was that an entrepreneur must obtain approvals from 47 different government entities to establish an Active Pharmaceutical Ingredients industry in Bangladesh, speakers said.
Such multilayered approvals are abnormal for any industrial sector, said Bangladesh Association of Pharmaceutical Industries Chief Executive Officer Major General Retd Md Mostafizur Rahman.
Multiple permits from the Department of Environment, local administration, electricity and gas authorities, municipal agencies, and labour offices are increasing cost, time, and uncertainty for investors, he said.
The country’s pharmaceutical base will struggle to develop a strong foundation if a strategic sector like API manufacturing remains trapped in licensing complications, he added.
Weakness in the API base continues to be the industry’s biggest vulnerability, said Institute of Health Economics Professor Syed Abdul Hamid of the University of Dhaka.
Bangladesh may export medicines to 153 countries, but the sector’s dependence on imported raw materials burdens foreign currency reserves and raises production costs, he said.
Current licensing procedures are creating an investment environment where new entrepreneurs lose interest and existing manufacturers scale down expansion plans, he added.
World-class capacity has already been built in medical equipment manufacturing in Bangladesh, said JMI Group Managing Director Md Abdur Razzaq.
Policy gaps and slow regulatory processes, he said, are preventing local producers from competing with imported equipment as hospitals move towards rapid modernisation.
Similar challenges are holding back hospital establishment at district and upazila levels, said BRAC Health Programme Senior Director Md Akramul Islam.
Lengthy approvals for construction, fire safety, environmental clearance, and equipment registration, along with repeated inspections, are complicating the investment process, he said.
Quality control requirements often account for delays, not intentional slowdowns, said Directorate General of Drug Administration Director Md Ashraf Hossain.
Counterfeit and substandard medicines pose serious public health risks, and strict verification cannot be compromised, he said.
Plans to simplify licensing procedures are already underway, said Health Secretary Md Saidur Rahman.
A renewable three-year licensing system is being considered, and the post-LDC context demands a stronger API base, more research, and reduced import dependence, he said.
Strict oversight will continue, but the government also intends to create a more investment-friendly environment for the sector, he said.
A draft policy for the medical equipment industry has been prepared and may move forward after DGDA assessment, said Bangladesh Investment Development Authority Executive Chairman Gazi AKM Fazlul Haque.
The policy aims to balance local production with imports, he said.
Ensuring healthcare for all citizens is a state responsibility, said FBCCI Administrator Md Abdur Rahim Khan, who called for reducing policy complications to expand access.
The private sector has long played a major role in national healthcare, but budget allocation remains insufficient to meet growing needs, said FBCCI Secretary General Md Almagir.
Greater investment in hospitals, beds, and human resources is essential, he said.
Licensing complications have grown into structural barriers to sectoral growth, speakers said.
Internal capacity exists across healthcare, pharmaceuticals, and medical equipment manufacturing, but outdated policies and sluggish regulatory practices continue to hold the sectors back, they said.
Bangladesh now stands at a critical juncture where investment-friendly reforms are essential to unlock the full potential of its healthcare and pharmaceutical industries, they said.
