Economy
Commerce Secy Calls for Int. Assistance in Boosting FDI for Bangladesh
Senior Commerce Secretary Tapan Kanti Ghosh urged international partners, including the World Bank, to assist Bangladesh in achieving its target for foreign direct investment (FDI).
Speaking at the closing ceremony of the Export Readiness Fund, Ghosh highlighted the vital role FDI plays in achieving export diversification. However, he expressed concern that the current rate of FDI inflow falls short of the country’s requirements. The Export Readiness Fund, part of the Export Competitiveness for Jobs Project, demonstrated how Bangladesh can broaden its exports beyond the dominant ready-made garment sector.
The dilemma of diversifying exports beyond RMG persists, despite the country’s duty-free market access in developed nations, excluding the United States. Ghosh emphasized the need to break this deadlock for the nation’s economic growth. Launched in January 2020, the $17.5 million Export Readiness Fund, a World Bank financial grant initiative, aimed to enhance factory compliance and competitiveness in four targeted export sectors: leather and leather goods, footwear, plastics, and light engineering products. A total of 570 enterprises in these sectors received financial and technical support.
The commerce secretary acknowledged domestic success in various manufacturing sectors but highlighted challenges in gaining a foothold in the global market. Despite duty-free market access, compliance with global environmental, social, and governance standards is essential for export diversification. During the event, industry leaders stressed the impact of the recent global economic slowdown, emphasizing the need for support for small and medium enterprises (SMEs) to recover.
Souleymane Coulibaly, the lead country economist of the World Bank, affirmed the bank’s commitment to enhancing Bangladesh’s SME sectors’ competitiveness for further economic growth. Project leaders and World Bank Group representatives, including Md Monsurul Alam, Dave Runganaikaloo, and Hosna Ferdous Sumi, reiterated their dedication to supporting Bangladesh’s export competitiveness.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
