[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

Governance failure stalls financial sector progress: BB governor

The governor speaks at Mastercard Excellence Awards 2025

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Governance failure stalls financial sector progress: BB governor
The governor speaks at Mastercard Excellence Awards 2025

Bangladesh's financial sector has fallen short of expectations due to prolonged governance failure, weak regulatory enforcement and delayed reforms, despite commendable growth in the broader economy, Bangladesh Bank Governor Ahsan H Mansur said today.

He also described the sector's overall performance as "disappointingly behind", blaming structural weaknesses that remain largely unaddressed.

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The governor made the comments at the Mastercard Excellence Awards 2025 ceremony at the Radisson Blu Water Garden Hotel, Dhaka,

Eighteen institutions received a total of 33 awards under 19 categories in recognition of contributions to innovation, financial inclusion and digital transformation in the 2024-25 fiscal year.

The governor said that although the sector appears institutionally regulated, irregularities persist "underneath", owing to lax enforcement.

Referring to the local saying, which translates to 'hard on the outside, soft inside', he pointed to a disconnect between regulatory norms and operational practice.

"Regulations are stringent, but compliance mechanisms allow many irregularities to pass through. Without structural correction, the financial sector will continue to lag even as the economy expands," he said.

Mansur said that while Bangladesh's economy is now comparable in size to Singapore's, the financial sector remains "considerably narrow".

"The economy cannot fully reap the benefits of its size due to corruption, misallocation of assets and regulatory failures," he added.

He stressed that meaningful reform, rather than procedural adjustments, is essential to strengthen financial governance and reduce systemic inefficiencies.

The governor acknowledged recent steps by the central bank, including the removal of tax return submission and TIN requirements in card issuance, as well as the resolution of complications around purchasing international airline tickets via credit card.

"Customers can now buy tickets online as per their credit limit without it being counted in their annual foreign exchange quota. These are positive developments, but more substantive reforms are needed," he said.

Gautam Agarwal, president of Mastercard South Asia, said Bangladesh's financial transformation is underway despite the barriers.

According to him, the country has nearly 15 crore active mobile financial service accounts, internet usage stands at 70-74 percent, and annual remittance inflow totals $2.5-2.6 billion.

However, around 80 percent of transactions still rely on cash, which he termed a major obstacle to digitalisation.

"India underwent a similar journey. A little over a decade ago, only 2-5 percent of transactions there were digital; today it stands at 30-35 percent. Bangladesh is now positioned for similar transformation," he said.

Agarwal added that Mastercard has consistently invested in Bangladesh over the past 13 years, with a focus on financial inclusion alongside card services.

At today's awards ceremony, Mutual Trust Bank and Eastern Bank secured the highest number of recognitions, winning in four categories each.

City Bank, Islami Bank Bangladesh, United Commercial Bank and BRAC Bank received awards in three categories each, while Dhaka Bank won in two.

Single-category awards went to: Mercantile Bank, SSL Commerz, Al-Arafah Islami Bank, Prime Bank, AB Bank, Dutch-Bangla Bank, Southeast Bank, Pubali Bank, Pathao Pay, ACI Logistics (Shwapno) and bKash.

The seventh edition of the awards, held under the theme "Inspired by Future", also marked Mastercard's 13th year of operations in Bangladesh.

In his welcome address, Syed Mohammad Kamal, country manager for Mastercard Bangladesh, said the company has launched 30 new products in the past 12 months and is currently operated entirely by local professionals.

He noted that Mastercard operates in 222 countries and that four out of every five global fintech firms choose it as their strategic partner.

"Our security solutions prevented over $5 million in cyber threats in Bangladesh alone in recent months," he said.

The event was attended by Bangladesh Bank Deputy Governor Md Zakir Hossain Chowdhury, Mastercard Bangladesh Directors Zakia Sultana and Sohel Alim, senior officials of leading banks, fintech organisations, representatives from the diplomatic community and corporate executives.​

 

[Saif]

Govt sees early signs of economic recovery

The government has painted a relatively stable picture of the economy in a report to the United Nations, saying early signs of recovery appeared in the middle of this year.

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Govt sees early signs of economic recovery

Report to UN claims stabilisation and improving indicators, but economists highlight inflation, unemployment, weak investment and mounting debt concerns.

The government has painted a relatively stable picture of the economy in a report to the United Nations, saying early signs of recovery appeared in the middle of this year.

Some economists, however, remain critical of key macro indicators and say that the outlook is far from assured.

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"The complacent views shown in the report are not consistent with the facts," said Zahid Hussain, former lead economist of the World Bank Dhaka office.

He said that of the three major macroeconomic factors, foreign exchange, inflation and financial distress, only foreign exchange shows improvement. Inflation and financial distress continue to pose serious concerns.

Submitted early this month to the United Nations Committee for Development Policy (UN-CDP), the annual report itself acknowledged several challenges highlighted by economists.

Even so, it argued that the macroeconomic performance of Bangladesh is "unique" compared to countries where regime change occurred through violent overthrow or mass uprising.

Drawing comparisons with Sri Lanka and Indonesia, the finance ministry report claimed that several economic indicators in those countries failed to recover after government changeovers, unlike the development trajectory of Bangladesh.

It said those economies saw sharp declines in output and foreign direct investment, along with rising inflation, while Bangladesh maintained positive output and FDI growth and reported declining inflation.

"As a result, Bangladesh could avoid any significant development setbacks," said the report, continuing the narrative of the past four years ahead of the country's scheduled graduation from the least developed country club next year.

Indonesia saw its poverty rate jump from around 15 percent to 33 percent within a year after the changeover, while around 26 percent of the population in Sri Lanka lived in poverty in 2023, a year after the violent fall of the regime, according to the report.

In support of the claim of "early signs of recovery" by mid-2025, the report cited higher GDP growth, easing inflation, a stabilised exchange rate and improvements in foreign exchange reserves and the balance of payments.

The government attributed these gains to measures such as the introduction of a pegged exchange rate system, market-based interest rates, reduced subsidies and rationalised public expenditure. A temporary freeze on non-essential spending also created fiscal space for priority sectors, including health, agriculture and social protection.

The report highlighted a 12.5 percent rise in the Dhaka Stock Exchange Broad Index (DSEX) in July as evidence of growing investor confidence. It ranked third among major global market performers that month. The index gained 605 points to close at 5,443, the highest level in nine and a half months.

However, Hussain dismissed the stock market surge as short-lived.

"The rising trend of stock market indicators was temporary, and the surge in the DSEX index did not last long," said the economist. "So, it cannot be said that investor confidence is restored only with this indicator. The daily trading at the Dhaka Stock Exchange is also showing a downward trend."

Growth figures also challenge the somewhat upbeat narrative of the report.

Real GDP growth has declined since FY22, dropping from 7.1 percent to a provisional 3.97 percent in FY25.

After a strong rebound in FY21 to FY22 driven by manufacturing and exports, growth slowed due to rising inflation, foreign exchange shortages and weaker private investment, the report mentioned.

It said the sharper decline reflects continued macroeconomic pressures, subdued demand and slower external trade, indicating a period of adjustment after years of expansion.

According to the report, quarterly data showed modest gains. In the first quarter of FY25, agricultural output grew by only 0.76 percent, while industry and services expanded by 2.44 percent and 2.41 percent.

Bangladesh is still struggling to manage the high inflationary pressure following the outbreak of the Russia-Ukraine war.

Although the general rate eased from 9.05 percent in May 2025 to 8.48 percent in June this year, it hovered around 8 percent in subsequent months.

"Although the inflation is not in double digits now, it is still high in Bangladesh," said Hussain.

Meanwhile, employment also offers little comfort.

Unemployment rose to 3.66 percent in 2024 from 3.35 percent in 2023. Youth unemployment increased to 8.07 percent and the share of NEET (Not in Education, Employment, or Training) youth climbed to 20.3 percent. Educated joblessness also increased to 13.5 percent from 13.1 percent.

Hussain said poverty is growing due to stagnant employment and declining welfare conditions.

The report said that the International Monetary Fund (IMF) in 2023 categorised Bangladesh as a "low risk" country in terms of debt distress, but a recent staff mission indicated the risk may be elevated to "medium" due to evolving domestic conditions.

Moreover, the report said energy shortages continue to hamper the industry. The government is also struggling to revive the banking sector, weighed down by a massive volume of non-performing loans (NPLs).

Hussain said the central bank has not published updated NPL data since March this year, and the level remains high. Private sector credit growth is weakening due to monetary tightening.

Selim Raihan, an economics professor at Dhaka University, said inflation has fallen sharply in many countries but remains elevated in Bangladesh.

He also said investor confidence has not improved, pointing to one of the lowest private sector credit growth rates in the region.

"There are many uncertainties in the economy, such as politics, employment and economics. The government could have become more critical in portraying the country's economy in the annual report to show the real picture. But it opted for a rosy picture," he commented.

M Masrur Reaz, chairman of Policy Exchange Bangladesh, said it is true that the economy was in a crisis situation and that some indicators, such as foreign exchange reserves, are now improving.

"However, it is still a far cry to say the economy is doing well, even if some bounce back has taken place. Employment has decreased, the poverty rate is rising, private sector credit growth is falling, debt obligations are increasing, and energy imports are growing to meet demand."

"We are not in a comfort zone now," said Reaz.​

 

[Saif]

Economy trapped in vicious cycle of high interest rates, weak growth: Dr Zaidi Sattar

Bangladesh’s economy has slipped into a vicious circle of high interest rates, persistent inflation, weak investment and slowing GDP growth, making it increasingly difficult to break out of the cycle, said Dr Zaidi Sattar, Chairman of the Policy Research Institute of Bangladesh (PRI). Speaki

thefinancialexpress.com.bd

Economy trapped in vicious cycle of high interest rates, weak growth: Dr Zaidi Sattar

FE ONLINE REPORT
Published :
Nov 27, 2025 17:35
Updated :
Nov 27, 2025 17:35

Bangladesh’s economy has slipped into a vicious circle of high interest rates, persistent inflation, weak investment and slowing GDP growth, making it increasingly difficult to break out of the cycle, said Dr Zaidi Sattar, Chairman of the Policy Research Institute of Bangladesh (PRI).

Speaking on Thursday, he said Bangladesh should examine how other countries responded to the 1997 Asian financial crisis and the 2008–09 global financial crisis to identify practical policy options for addressing the current macroeconomic stress.

The eminent economist made the remarks while speaking at an event at the PRI office in Dhaka to launch the October issue of Monthly Macroeconomic Insights (MMI), published under the Centre for Macroeconomic Analysis (CMEA) of PRI.

Anwar-ul-Alam Chowdhury, President of the Bangladesh Chamber of Industries (BCI), attended the programme as chief guest, while Dr Ashikur Rahman, Principal Economist at PRI, presented the keynote.

Dr Ashikur Rahman said the economy continues to face elevated inflation alongside deep-seated problems in the banking sector. The policy response—raising the policy rate and aggressively tightening liquidity—has helped bring inflation down to a 39-month low, he noted.

Even so, he warned that inflation could pick up again in the coming months as public expenditure rises, consumer spending strengthens and possible supply-chain disruptions emerge.

He said that deposit growth has returned to an upward trajectory, with deposits rising over the past two months and averaging around 10 per cent, and added that depositors confidence rebuild following incremental reforms in the banking sector by the interim government.

However, private-sector credit growth has slipped to a multi-year low as political uncertainty, financial-sector vulnerabilities and global instability have kept investors on the sidelines, he said.

“This restraint is visible in capital-machinery imports,” he said, pointing out that imports fell by 10.92 per cent in the July–September period of the current fiscal year, after dropping 20 per cent in the previous year.

Anwar-ul-Alam Chowdhury said the economy is “bleeding,” adding that the current government “basically does not care about the business community,” a situation he described as “very unfortunate.”

He said industries, particularly in the manufacturing sector, are under severe strain due to high inflation, rising interest rates and an energy crisis, with power generation dropping by 42–45 per cent.

“We must address the employment challenge, make industry more competitive and diversify our industrial base if we are to create sustainable jobs,” he said.​

 

[Saif]

Why Bangladesh fails to diversify its exports

It is never wise to put all eggs in one basket where a single misstep can cause them all to break. A nation's "basket" is its export profile and over-reliance on a single sector makes it vulnerable to volatile global demand. Yet despite decades of discussion and repeated calls for diversification,

thefinancialexpress.com.bd

Why Bangladesh fails to diversify its exports

SYED MUHAMMED SHOWAIB
Published :
Nov 28, 2025 23:23
Updated :
Nov 28, 2025 23:23

It is never wise to put all eggs in one basket where a single misstep can cause them all to break. A nation's "basket" is its export profile and over-reliance on a single sector makes it vulnerable to volatile global demand. Yet despite decades of discussion and repeated calls for diversification, Bangladesh's export structure has shifted very little since it first entered global markets. The decline of jute and jute goods from their once-dominant position did not trigger any meaningful broadening of the export base either. Instead, export concentration simply shifted to a narrow set of new products. Today, a handful of goods make up most of the export basket and a limited number of markets continue to absorb the bulk of what Bangladesh sends abroad.

Over the past few decades, readymade garments came to define Bangladesh's export identity and it still influences where Bangladeshi products can reach. While some nations have moved away from apparel manufacturing and now import from Bangladesh, many others still produce their own garments and have limited demand for our supplies. But because the garment sector already guarantees a dependable global market, they draw most of the focus, leaving other exportable products without the push they need to grow. Until new products establish themselves, the expansion of destinations will continue to be limited. It is in this context that the recent gains in a few non-traditional sectors should be judged. Rather than signalling a sudden transformation, these trends highlight how long Bangladesh has waited for industries beyond apparel to gain a solid foothold. The toy industry and the wider plastics sector provide examples of what might have emerged much earlier and on a much bigger scale had there been sustained investment and consistent policy commitment.

Recent figures show that toy exports could grow more than eightfold within the next five years, a pace that would have seemed unthinkable not long ago. In 2022-2023, toys from Bangladesh reached 88 countries and earned more than US$75 million. Projections now suggest that by 2030 this amount could climb to nearly $470 million. If Bangladesh stays on this path, it could even break into the ranks of the world's top 30 toy exporters soon. At home, plastics now serve a massive domestic market worth Tk 400 billion. The industry contributes about Tk 35 billion in annual revenue and supports nearly 5,000 factories, most of which are small and medium enterprises that form the backbone of our local economy. This goes to show that there are industries in Bangladesh with genuine potential, ready to grow if given the right support.

That said, the success of toys and plastic, impressive as it is, doesn't change the fact that they remain isolated examples within an export basket still heavily dominated by one sector. The clearest evidence of this is that readymade garments continue to account for more than 82 per cent of export earnings. Policymakers and business leaders have acknowledged the need for a broader product base and more diverse destinations but this shift has not taken place. Businesses have simply responded to the incentives and market conditions in front of them, and those conditions have kept garments at the centre of the export earnings.

This overconcentration doesn't stop with products but it extends to markets as well. Nearly two thirds still go to Europe and the United States for reasons understandable. According to the Export Promotion Bureau, 44 per cent of all exports go to the European Union alone because tariff-free and quota-free access is still available for least developed countries. Even as Bangladesh achieved a record $48 billion in exports last year, the share going to these two markets declined only slightly from 65 per cent to 62 per cent over three years. Taken together, these trends show how firmly set our reliance has become. A few emerging sectors, promising as they are, cannot change this underlying vulnerability. Without real diversification, Bangladesh will continue to depend on a small and fragile group of markets which keeps the economy exposed in ways that have persisted for years.

Thus far, the range of exportable goods remains critically narrow, which is why non-apparel products have struggled to gain significant traction in new markets. When the list of products is small, the list of markets naturally stays small too, no matter how often diversification is discussed. This basic issue also explains why cash incentives for non-traditional exports have yielded only modest results. Today, these incentives cover more than 40 products, with garment exporters receiving an additional two per cent for shipments beyond the main markets of Europe, North America and the UK. Yet analysts are far from unanimous on how effective these measures really are. Because garments dominate the export structure so heavily, most of the incentives inevitably end up in that single sector. Many experts argue that support should instead target specific products and specific destinations where progress can be clearly tracked, rather than being shaped by pressure from powerful industry groups.

Outside the garment sector, most industries face a different set of challenges. Many struggle to meet international quality and certification standards while weak domestic testing and accreditation systems slow down market entry and drive up costs. High logistics expenses, chronic congestion and inefficient transport networks further weaken competitiveness. On top of that, the absence of free trade agreements blocks access to lower tariff rates in potential new markets. These barriers must be removed.

The journey towards a more diverse export economy is challenging but it cannot be avoided. If Bangladesh wants lasting economic stability, the vision of diversification must move beyond rhetoric and translate into decisive action. The rise of the toy industry is a proof that steady effort can pay off. Applying the same commitment to other promising sectors is the surest way to build a balanced and resilient export future.​

 

[Saif]

Next frontier of Bangladesh's export diversification

There are always points in the economic development of countries where the roadmap for the future becomes distinctly visible once the driving engine, which for so long propelled success to dizzying heights, is no longer commensurate with ambitions born out of success. Bangladesh has finally reached

thefinancialexpress.com.bd

Beyond readymade garments industry
Next frontier of Bangladesh's export diversification

Serajul I Bhuiyan
Published :
Nov 27, 2025 23:53
Updated :
Nov 27, 2025 23:57

There are always points in the economic development of countries where the roadmap for the future becomes distinctly visible once the driving engine, which for so long propelled success to dizzying heights, is no longer commensurate with ambitions born out of success. Bangladesh has finally reached that juncture in its economic development. For over four decades, its success story has remained its readymade garments (RMG) industry, which has emerged as a success saga for so long that it has made Bangladesh into the second-largest supplier to the global fashion stores. However, no country that has ambitions to reach trillion dollars can bank on its second-largest contributor to its export revenue to contribute above 80 per cent to its revenue streams.

A NATION AT AN EXPORT CROSSROADS:

The success in Bangladesh's exports has long had its roots in its RMG industry. Units multiplied exponentially, global buyers poured in, and for countless numbers of countrywomen, doors to empowerment swung wide in welcome. However, it has also created a new kind of vulnerability for Bangladesh vulnerability to overdependence on its RMG industry. The problem with any industry that contributes so greatly to country exports is that any adverse shock whether global recession, supply-chain disruptions, or geopolitical tensions can impact the entire country.

Economists are warning that Bangladesh has now reached the point where single-sector approach growth is no longer possible. The future of the garments industry is undergoing tremendous change due to automation, nearshoring, government regulations on climate change, and sharp competition from other countries such as Vietnam, Turkey, and Ethiopia. It is no longer possible for Bangladesh to fashion its way to middle-class global status.

The opportunity exists. Today, Bangladesh has youth, technology, entrepreneurship, and geographic linkages between South Asia, Southeast Asia, and the Bay of Bengal on its side. Now, the challenge lies in ensuring that these factors are leveraged for Diversified Export on behalf of Bangladesh.

PHARMACEUTICAL SECTOR - THE BEHIND-THE-SCENES GIANT: This industry has remained largely overshadowed by the dominance of garments in public rhetoric but is perhaps second to none in terms of its promise for Bangladesh as a high-value industry since their independence. Currently, local pharmaceutical companies are meeting the entire country's demand, in addition to supplying more than 150 countries in Asia, Africa, and Latin America.

This experience in making generics, taking advantage of the World Trade Organization (WTO) Trade-Related Aspects of Intellectual Property Rights (TRIPS) exemption for Least Developed Countries (LDCs), has provided Bangladesh with a fantastic foundation. With Bangladesh poised to graduate and move out of its LDC status, pharmaceuticals' ability to develop advanced formulation, biologics, vaccine development research, or API manufacturing will provide assistance in upgrading pharmaceuticals to a multi-billion-dollar industry via its global markets.

As observed by industry analysts, with rising demand for cheaper drugs in the global arena, especially within the developing countries, Bangladesh has emerging opportunities for its competitive advantage, which is its ability to provide quality generic drugs at cheaper rates. However, to effectively exploit this opportunity, modifications in regulatory matters and emphasis on global acceptance for quality certification are essential.

The export councils are also of the view that "if a holistic approach can be adopted whereby tax incentives for API production, streamlined approval schedules for drugs, and brand-building campaigns for 'Made in Bangladesh Pharma' are provided, then this industry can emerge as one of its biggest earners of foreign exchange by 2035. This is a new frontier that Bangladesh cannot miss."

LEATHER & LIGHT ENGINEERING -- EXTENDING MANUFACTURING OUTSIDE THE CONVENTION: The leathers industry remains one of the most underrated sectors for exports for Bangladesh. For many years, it has struggled with issues of compliance, environment, and delays in relocation. However, the opportunity in this sector is enormous. One thing that international buyers always mention is that products such as leathers and footwear from Bangladesh are on par with international standards, but environmental certification creates hurdles for entry into higher markets.

Effective and full implementation of the Savar Tannery Industrial Estate could change the face of the industry overnight. With efficient treatment facilities for effluent, common certification, and environmental observance, it will not be difficult for the Bangladesh leather goods industry to rake in additional revenue to the tune of US$5 to $7 billion every year. It is important to ensure that they are confident about the entire observance structure.

Light engineering is also a bright spot. This industry does not get the attention that it deserves, but it has great prospects to emerge as the backbone of a diversified manufacturing economy. The Bangladeshi companies are already making parts for bicycles, automobiles, agricultural machinery, and home appliances. With proper policy assistance in terms of lower import duties on basic materials, special zones for precision engineering, and technical education in precision machining, this country can emerge as a Tier-2 supplier to global companies.

Vietnam, Thailand, and Malaysia exploit this approach to the fullest. Bangladesh has every opportunity to pursue this approach too by creating avenues for SMEs to innovate, grow, and gain access to international buyers.

INFORMATION TECHNOLOGY SERVICES -- THE DIGITAL FRONTIER THAT AWAITS TAKEOFF: One of the most underutilised national resources for Bangladesh is its ICT talent. With over 650,000 freelance ICT professionals, coupled with thousands of new ICT graduates annually, Bangladesh has emerged as one of the top providers of online talents in the global marketplace. This is only a fraction of its full potential.

Information technology services relating to software development, security, cloud services, AI services, and BPO services have emerged as new areas for global exports. Nations such as Vietnam and the Philippines are banking on their youth to generate billions in revenue in terms of information technology exports. Bangladesh has this opportunity too, but for that, right investments are required.

Three are always emphasised. First, the country needs to develop its national approach to skills acceleration to teach children the skills that are most needed by the global environment, including cloud technology, AI, mobile development, and data analytics.

Second, Bangladesh must develop top-class global technology infrastructure to include always-on broadband and qualified data centers that give global clients assurance and confidence in terms of security and reliability.

Third, Bangladesh must develop its global brand to enable it to emerge as a secure outsourcing location, which entails both publicity and improvement in standards.If this happens, IT services can emerge as one of the country's biggest earners of foreign exchange within a decade, making not only its economy but also its workforce diverse.

AGRO-PROCESSING -- WHERE RURAL PROSPERITY AND WORLD DEMAND MEET: Agricultural products are key to Bangladesh, but its agricultural export growth has remained well below its actual potential. Agro-processing acts as a 'connecting link' between local farmers and global supply chains. Various products including shrimp, ice-cubed fish, processed fruits, spices, juice, 'ready to eat' products, and 'halal products' also find substantial markets abroad.

However, inconsistencies in supply chains restrict its ability to participate effectively in niche markets. Cold storage facilities are insufficient, certification for food safety is distributed over various government agencies, and its inability to provide integrated logistics increases its reliance on costly exports. This makes Bangladesh sell their products raw or processed to only tap into a very limited portion of international value addition.

Agricultural economists recommend that for Bangladesh, it is essential to develop countrywide cold chains between farmers, processors, and exporters. This will itself decrease post-harvest losses to a substantial extent and enhance overall exports. Moreover, contract farming arrangements where input supplies and training are also provided to farmers can ensure quality.

The demand for halal, organic, and sustainably produced food products is escalating exponentially. Bangladesh, with its original fit in this domain, ought to be at the forefront in the global halal food market. It has tremendous potential to emerge as a multi-billion-dollar industry for agro-processing, concurrently lifting up agricultural livelihoods and countrywide food industries.

THE POLICY IMPERATIVE: No industry can grow in an environment where policies are not favorable. Economists repeatedly stress that Bangladesh needs to introduce a new type of incentive structure one that favors added-value, R&D, and adherence rather than added numbers.

The incentives for cash support need to focus on research, development skills, green manufacturing, and sophistication in exports. An enterprise into biologics (a broad category of medicines derived from living organisms that are used to treat a variety of diseases, including cancer, autoimmune disorders, and diabetes) or AI or engaged with global environmental standards in its leather manufacturing practices needs to be treated separately in terms of incentives rather than on par with other traders in low-value goods.

Infrastructural deficiencies are also important areas where Bangladesh needs to fill its gaps. The World Bank estimates that Bangladesh is losing between 7-8 per cent of its probable export value in terms of delays in ports, customs, and expensive logistics. It has become essential to opt for modernization. Automated customs and inland container depots, roads, and port management technology are essential areas where Bangladesh needs to focus on making these priorities for the country.

Finally, it is essential for Bangladesh to integrate into regional trade thoroughly. The BBIN Initiative, BIMSTEC, and BCIM corridors are massive opportunities for reducing costs and getting new markets. In addition to this, countries like South Korea, Singapore, and Indonesia are also interested in investments in sectors including energy and agriculture.

Picture this: Bangladeshi drugs are quickly distributed to Nepal, agro-processed products are delivered to India within hours, not days, and IT firms are able to work in perfect synergy with Bhutan and Sri Lanka. This is no fanciful notion but rather the reality that will soon greet our wake-up calls.

THE NEXT DECADE WILL DEFINE BANGLADESH'S ECONOMIC DESTINY: The era of single-engine growth is coming to an end. RMG will always remain a pivot for the country's exporting economy, but it must not continue to remain its only pivot. The global economy is undergoing transition, and so must Bangladesh. It is a moment in history for the country where its demography, technology, entrepreneurship, and cooperation in the region are aligning in favor of our growth trajectory.

If Bangladesh is to take advantage of this opportunity, it needs to act with boldness, with certainty, and with relentless efforts on reform. Export diversification is not just a policy or an approach it is a and a catalyst for sustained.

As Bangladesh seizes this opportunity, it has every chance to develop its own export environment, which is broader, smarter, greener, and more innovative than anything that has ever existed in this country or anywhere else in its history. The next installment in the Bangladesh growth saga must be written not by one industry but by many that are on the rise.

The day to emerge out from RMG is not in the far-off distance.It is now.

Dr Serajul I Bhuiyan is a professor of journalism and mass communications at Savannah State University, Savannah, Georgia, USA.​