Bangladesh is already on the track to become a trillion-dollar economy with a massive prospect of economic boost. Meanwhile, Nikkei Asia in a report said, rebounding exports and remittances have raised hopes that Bangladesh can avoid a more severe economic crisis, marking a rare positive turn in a South Asia region that has struggled badly this year.
It said, export earnings in November came to a record US$5.092 billion, up 26% on the year and well above October’s US$4.356 billion, according to statistics released by the Export Promotion Bureau. The figure topped the previous all-time high — US$4.9 billion in December 2021 — despite concern about the impact of a global economic slowdown.
Meanwhile, remittance inflows, another key source of foreign currency for Bangladesh, rose in November to US$1.59 billion, up from US$1.55 billion in the same month a year earlier and beating the previous two monthly figures.
Both developments are encouraging for a country that saw its foreign exchange reserves fall to US$33.78 billion as of the end of November, down from US$48 billion in August 2021. Under the International Monetary Fund’s stricter calculation method, reserves were even lower, at US$25.78 billion.
To replenish its coffers, Bangladesh is waiting for the first installment of US$4.5 billion in budget support loans from the IMF, expected in February.
The economic pressure on Bangladesh has been intense since Russia invaded Ukraine in late February. Rising prices for fuel oil prices and other essential commodities in the global market led to nearly double-digit inflation and ate away at forex reserves in the import-dependent country.
Vernacular daily Prothom Alo in a report said, with an average growth of 6.4 per cent over the past six years, Bangladesh has already become an emerging economy outpacing Vietnam, Indonesia, India and Thailand. Now, the country is poised to become a trillion-dollar economy by 2040 even though its growth drops to 5 per cent during this time and if a 10 per cent growth continues, the country may reach this milestone by 2030.
It said, global management consulting firm Boston Consulting Group (BCG) said this in a report titled “Trillion-Dollar Prize Local Champions Leading the Way”. The US–based firm released the report highlighting the state of Bangladesh economy at an event in Dhaka on 25 November.
According to the BCG, Bangladesh is reaping economic benefits one after another from its large consumer class, young population, high-level economic stability, resilience of people, progress in digital methods, and fast expansion of private sector. Private sector will be the main driving force of the country’s future journey. Emerging champions are rising from this sector and they are spreading across the globe, and having an impact on society.
BCG global chair emeritus Hans-Paul Bürkner at the event said, “Bangladesh is now a role model for other developing economies. The country has achieved much, especially due to the contribution of the local champions. Corporate transformation and notable contributions from the country’s private sector have been driving this growth”.
The BCG has dubbed Bangladesh as emerging powerhouse with eight fundamental drivers. These are solid optimism, rise in consumption, young, growing workforce, high economic resilience, momentum in digital economy, government investment, fast growing private sector and thriving gig economy.
Meanwhile, Bangladesh Prime Minister Sheikh Hasina, seeking large foreign and local investment for mutual benefit has called Bangladesh as the most ideal place for investment in the world.
She said, “Bangladesh is the most ideal place for investment in the world as we offered maximum investment opportunities. So, I hope overseas investment will come here and local people will also invest in their own country”.
While inaugurating the formal operation of the Japanese Economic Zone in the Bangladesh Special Economic Zone (BSEZ) at Araihazar in Narayanganj district on the outskirts of the capital Dhaka, Sheikh Hasina mentioned that Bangladesh could be a market of 3 billion people with 170 million of its own, 500 million in east, 1.5 billion in north and 500 million in west due to its geographical location.
The different countries of the world can invest in Bangladesh largely to reap benefits of the vast market, she added.
She also said that her government has attached topmost priority to planned industrialization alongside agriculture by protecting the country’s environment and arable lands.
Sheikh Hasina said her government is setting up 100 economic zones across the country aimed at eliminating indiscriminate industrialization and protecting arable lands.
The Japanese Economic Zone is being built on 1000 acres of land at Araihazar Upazila in Narayanganj district of Bangladesh in line with an agreement signed between the two countries during her Japan visit in 2014, she said.
The prime minister said, “Foreign investment is coming to the economic zones. Discussion is going on with India, China and Saudi Arabia (on setting up economic zones in Bangladesh). Some other countries also expressed interest to this end”.
She assured the interested countries, which wanted to build economic zones in Bangladesh, of providing their desired places and said they can develop it as per their need.
Bangladesh is offering special opportunities for the investors, she said, adding that foreign investors can use Chattogram, Mongla and Payra seaports and Matharbari deep seaport for transportation of their produced goods.
The prime minister said geographical location of Bangladesh is the most important for investors as they can reach the markets with their products across the globe while her country can make a bridge between East and West.
She described various measures including enactment of investment friendly laws and rules and special stimulus packages and loans for the investors.
Bangladeshi youths can come forward to invest in the economic zones instead of running after the jobs and generate huge employment for others, she said.
She added that women also can invest in the economic zones as special arrangement has been made to give them industrial plots.
The prime minister said her government has upgraded the road, rail, water and airways with building new streets and railways alongside developing the waterways through dredging to ensure easy and quick transportation of the goods produced in the economic zones.
Describing Japan as a true friend and development partner of Bangladesh, she said Japan is currently helping the country in building metro rail, third terminal of Shahjalal international airport, Dhaka and Matharbari deep seaport.
She also recalled the Japanese cooperation in building the Rupsha Bridge and conducting feasibility study of the Padma Bridge and Bangabandhu Bridge over the Jamuna River.
“I am extending my sincere thanks to Japan for staying beside Bangladesh always”, she added.
The prime minister also recalled with due respect the contribution of late Japanese Prime Minister Shinzo Abe to the overall development of Bangladesh describing him a “true friend” and greeted the present Japanese Prime Minister also for supporting her country.
She said Father of the Nation Bangabandhu Sheikh Mujibur Rahman wanted to transform Bangladesh into an industrialized country from an agriculture-based nation following the footprints of Japan, she said.
The premier said Bangabandhu had established Tejgaon industrial area and BSCIC (Bangladesh Small and Cottage Industries Corporation) when he was the minister during the Pakistan period.
After coming to power in 1996, she said they have first set up economic processing zone in Syedpur as there was no industry in the northern part of Bangladesh and later built the economic zones at different parts of the country.
She said she later thought to establish special economic zones across the country aimed at stopping indiscriminate industrialization and protecting the arable lands.
“We have to save agriculture as Bangladesh is an agriculture-based country.
We have to ensure food security for people, but we have to go for industrialization alongside the agriculture. So, I started to establish special economic zones across the country in a planned way”, she said.
