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.
