Competitiveness, skill development and technological advancements are key for Bangladesh to overcome challenges on graduating from the United Nations group of least developed countries (LDC) in 2026, speakers told a webinar yesterday.
Besides, policy reforms and equal treatment for potential export-oriented sectors are also crucial for the country’s advancement, they added.
The dialogue on “Challenges and Way Forward on Export Diversification of Bangladesh Upon LDC Graduation-A regulatory reform perspective” was organised by the Dhaka Chamber of Commerce and Industry (DCCI) and Export Promotion Bureau (EPB).
In his opening remarks, AHM Ahsan, vice chairman and chief executive officer of the EPB, said productivity in non-garment sectors has increased despite the ongoing Covid-19 pandemic. However, this growth is disproportionate to that of the garments industry, he said.
So policy reforms and support will expedite the development of these other potential industries, he added.
Md Tofazzel Hossain Miah, secretary to the Prime Minister’s Office, said it was inevitable for Bangladesh to lose a lot of trade and tax waivers after its LDC graduation.
Stressing on the need for human resource development, research, value chain and backward linkage, Miah said it was the right time to foster other potential export industries.
While presenting the keynote paper, DCCI President Rizwan Rahman said light engineering, jute goods, IT and ITES, pharmaceuticals, agro, and leather goods were some of the promising sectors that should be developed before the country takes on middle-income status.
He went on to say that limited access to finance, shortage of skilled human resources, high duty on raw material imports, non-tariff barriers, lengthy customs and testing processes, and lack of certification are major challenges for these sectors in the international market.
To promote these potential sectors ahead of graduation, especially during this transition period, Rahman suggested providing bonded warehouse facilities, arranging low-cost funds and rationalising land prices for the light engineering sector.
For the jute and jute goods sector, he proposed simplifying tax, VAT and port rules, investing in traceable research, replacing old technologies and removing VAT at all stages of manufacturing and retail.
Shaikh Yusuf Harun, executive chairman (senior secretary) of Bangladesh Economic Zones Authority (BEZA), said Bangladesh needs to be engaged with different regional trade groups to diversify its product base and market.
Selim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM), said Bangladesh needs to develop its negotiation skills as well as identify any possible adverse impacts of its graduation.
There are two types of challenges — one is policy-induced while the other is supply-based — and these two are interlinked, he added.
“We have to be more focused on product diversification rather than focus on market diversification,” said Md Abdur Rahim Khan, joint secretary to the commerce ministry.
Andalib Elias, director general of economic affairs at the foreign ministry, suggested increasing Bangladesh’s commercial wings in all 78 foreign missions.
