Diversify exports to face post

Bangladesh needs to diversify its export products, including light engineering and pharmaceuticals, and explore new market opportunities to face challenges after its graduation from least developed country (LDC) status, said the World Bank country director for Bangladesh and Bhutan.

Abdoulaye Seck also observed that the country's exports might experience a decline of up to 14% following its graduation. Additionally, it will lose the duty-free market access that it currently enjoys as an LDC.

The country director also mentioned that LDC graduation means more opportunities for changing the economy.

"Shipbuilding, leather, jute, and agricultural sectors have the potential to grow more in export markets," he said at a quarterly luncheon meeting of the Metropolitan Chamber of Commerce and Industry (MCCI) at its Gulshan office.

He considered LDC graduation and economic diversification to be among the top challenges Bangladesh had to face and prepare for in the near future.

Also, Bangladesh's exports as a percentage of GDP were very low, even when compared to other competing exporting nations. Navigating these would require constant dialogues among the public and private sectors, along with multilateral organisations, he said.

Abdoulaye Seck highlighted improving the business environment for the private sector, transcending financial obligations to support long-term growth, and improving the effectiveness of public institutions as WB's priorities for Bangladesh.

He reaffirmed the WB's commitment to Bangladesh's development and its openness to partnerships in the future.

Abdoulaye Seck also requested that Bangladesh start negotiations for trade agreements and join various trade blocs.

He said cheap labour is still a big asset but may not be for a long time as the country is going to shift (graduation from LDC), adding that being the second largest apparel exporter country, it is time for Bangladesh to start producing high-value and complex-design products.

Logistic improvement is needed for export, he said, adding, "We are working to support the bay terminal in Chattogram, because right now you have a very narrow canal, and boats need to wait for a long time".

The World Bank official said around 20 lakh youth are entering the job market each year, and Bangladesh should focus on human resource development through technical and AI-based education.

High education is really important; some shift is needed in technology, changing technology, and AI, he said, adding, "We have to adjust and prepare for that. It is possible in Bangladesh, and if we go forward, the country will make deference."

Abdoulaye Seck said they are very pleased about Bangladesh's achievement in gender parity in schools.

"We signed a $300 million project for young people's education who are not in education," he added.

The Economic Acceleration and Resilience for NEET (EARN) Project will help overcome barriers that prevent disadvantaged and vulnerable youth from gaining education and employment. It will provide skills training, alternative education, employment, and entrepreneurial support to 900,000 rural youth who are not in education, employment, or training (NEET).

MCCI President Md Saiful Islam praised the World Bank as a major contributor to the development of business and commerce in Bangladesh.

He believed that converging the efforts of the MCCI and the World Bank had the potential to elevate Bangladesh's business landscape to new heights.

He hoped to explore collaboration opportunities with the WB in the areas of developing the business climate index and climate change.

MCCI Vice President Habibullah N Karim also spoke at the event.

LDC graduation / investment / export