The former governor of Bangladesh Bank, Dr. Atiur Rahman, has urged the government to continue its support for export-oriented sectors with cash incentives for a few more years. This support is crucial as Bangladesh is scheduled to graduate from the Least Developed Country status in November 2026, which will result in the loss of trade preferences and possibly a reduction in exports.
Dr. Rahman highlighted the need for support for sectors like the Ready-Made Garments (RMG) industry, which are likely to be the most affected by the graduation. He emphasized the importance of both local and international support to help these sectors thrive.
With stringent Rules of Origin criteria and trade-related intellectual property rights obligations looming upon graduation, Dr. Rahman stressed the need for continued support to strengthen the base of export sectors.
During a luncheon meeting of the American Chamber of Commerce in Bangladesh, Dr. Rahman presented a keynote paper on the opportunities, challenges, and the way forward post-LDC graduation. He emphasized the importance of not withdrawing subsidies despite international recommendations.
The event also featured a presentation by Dr. Mamun Habib on the development of labor conditions in Bangladesh for sustainable growth. Dr. Rahman identified challenges such as labor law enforcement, low-technology-based manufacturing dominance, and inadequate trade logistics and infrastructure hindering foreign direct investment.
He recommended stabilizing the exchange rate, promoting export diversification, strengthening financial sector governance, and prioritizing human capital development. Panel discussions highlighted the need for improving labor conditions, amending labor laws to international standards, and addressing wage issues in garment factories.
AmCham president, Syed Ershad Ahmed, emphasized the challenges faced by the Bangladesh economy, including rising inflation and balance of payment deficits. He called for effective measures to control inflation and mitigate its impact.
In conclusion, it is essential for the government, policymakers, and central bank to work together to support export sectors, improve labor conditions, and address economic challenges to ensure sustainable growth post-LDC graduation.