Government targets job creation, poverty reduction and investment through economic reforms.
The government’s economic reform programme aims to strengthen the country’s economy through job creation, poverty alleviation, stronger social protection and increased investment in productive sectors, said Prime Minister’s Adviser on Finance and Planning Dr Rashed Al Mahmud Titumir today.
He said the government was working to steer Bangladesh forward amid a fragile inherited economy, high inflation, unemployment and an energy crisis triggered by the conflict in the Middle East.
Titumir made the remarks as the chief guest at the inauguration of the ESG Platform of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in the capital.
BGMEA President Mahmud Hasan Khan chaired the programme, attended by Policy Exchange Bangladesh Chairman and Chief Executive Officer Dr M Masrur Reaz and Danish Ambassador to Bangladesh Christian Brix Møller as special guests.
Titumir said Bangladesh had overcome major economic crises at different points in its history by creating new sources of income and employment.
Referring to the post-1975 period, he said Shaheed President Ziaur Rahman had taken initiatives to generate new income sources and employment amid a war-ravaged economy, famine, high inflation and an energy crisis.
“Later, during the tenure of former prime minister Begum Khaleda Zia, greater participation of women in the formal labour market helped advance poverty alleviation,” he added.
The adviser said ensuring employment for the country’s young and educated population remained a major challenge.
Women account for a significant share of people who are outside employment, education and training, making it essential to create jobs and expand the participation of women and young people in economic activities.
He said the government had taken initiatives to waive agricultural loans, introduce Family Cards and increase spending on education and healthcare since assuming office. “These programmes would help ease the cost-of-living pressure on low-income people and strengthen social protection,” he added.
Citing assessments by independent research institutions, Titumir said implementing the Family Card programme for five years could significantly reduce poverty. He also referred to the large number of people who had fallen below the poverty line due to a lack of effective measures under the previous government.
On economic growth, he said international organisations had issued differing forecasts for Bangladesh. The International Monetary Fund’s projections generally remained lower than those of the Asian Development Bank, while the World Bank’s forecasts tended to fall between the two. “However, the implementation of reforms would play a crucial role in determining the country’s growth trajectory,” he said.
Regarding Bangladesh’s graduation from the Least Developed Country (LDC) category, Titumir said discussions were progressing at relevant international forums on a proposal to extend the country’s preparation period.
He said the government was giving priority to preparing domestic industries and the wider economy, taking into account the lack of adequate preparation in the past. He thanked Denmark, the European Union and other development partners for their support on the issue.
The adviser said the government was focusing on five areas to create an investment-friendly environment: policy continuity, an improved business climate, greater access to finance, energy security and uninterrupted connectivity for goods transportation.
He said the government had taken steps to ensure five-year continuity in tax policy. It had also announced a Tk 60,000 crore support package to reopen closed industrial units, under which loans would be offered at interest rates below the inflation rate, he added.
To ensure energy security, the government had undertaken initiatives to expand renewable power generation, explore new gas fields, increase supplies of liquefied natural gas (LNG) and liquefied petroleum gas (LPG), and install floating storage and regasification units (FSRUs), Titumir said.
On connectivity, he said the government was working to accelerate freight transportation, improve railway services and develop transport infrastructure between Chattogram and Dhaka. The government expected to complete these initiatives by 2029, he added.
Titumir said increased investment in productive sectors would create jobs and help boost domestic resource mobilisation without raising tax rates. This would also facilitate higher spending on education and healthcare, the development of a skilled workforce and the creation of a healthier population, he said.
Praising the BGMEA initiative, the adviser said adherence to environmental, social and governance (ESG) standards would improve transparency, efficiency and competitiveness in the industrial sector.
“Such initiatives could also strengthen the global market acceptance and competitiveness of Bangladesh’s manufacturing sector,” he added.
