The manufacturing sector has long been the backbone of Bangladesh’s economy, fueled by affordable gas and low-cost labor. These factors enabled rapid industrial growth despite the country’s significant investment challenges, including high infrastructure costs and elevated bank interest rates. However, recent government decisions suggest a troubling shift in policy that could jeopardize this vital sector.
With gas prices already soaring—and further increases under consideration—it seems policymakers are deprioritizing country's manufacturing. Such actions risk pushing the country toward a service-sector-driven economy while leaving the future of manufacturing in peril. Higher gas prices inflate production costs, eroding the competitiveness of Bangladeshi industries and making them unprofitable in global markets.
For a densely populated nation like Bangladesh, sidelining manufacturing would have disastrous implications for both economic growth and employment. The sector is essential for creating jobs and sustaining long-term development. Unfortunately, the current government’s policies echo earlier decisions by the Awami League, revealing a lack of commitment to industrial progress.
The decision to restrict industrialization to designated economic zones sends another discouraging signal. Investors interpret this as a lack of intent to expand the manufacturing sector, further dampening prospects for industrial growth.
Abandoning manufacturing would lead to dire consequences. Without a robust industrial base, Bangladesh’s economy cannot thrive, and its large workforce cannot be absorbed by the service sector alone. To ensure sustainable growth and economic stability, the government must adopt policies that strengthen manufacturing instead of undermining it.
The path forward is clear; prioritize manufacturing as a cornerstone of Bangladesh’s economic strategy. Anything less would be a costly mistake.
Author: President, Bangladesh Chamber of Industries (BCI)
Translated by: Jisan Al Jubair
Bd-pratidin English
