Bangladesh must prepare strategically, say experts

As Bangladesh is scheduled to graduate from the least-developed country (LDC) status in 2026, businesses and trade experts on Thursday stressed the urgent need for strategic preparation to overcome the post-graduation challenges.

With the impending loss of duty-free market access, GSP benefits, and other trade incentives, they emphasised that Bangladesh must improve the quality of products, diversify exports, adopt modern technologies, and explore new markets to remain competitive in the global market.

They made their remarks at a validation workshop on "Factory Audit on Hazard Identification, Risk Assessment & Control" and a seminar on "LDC Graduation Strategies and Private Sector Preparedness" at a city hotel.

The Bangladesh Plastic Goods Manufacturers & Exporters Association (BPGMEA) in collaboration with the Business Promotion Council (BPC) of the Ministry of Commerce organised the event. Commerce Secretary Mahbubur Rahman attended as the chief guest.

Mrs. Nahid Afroze, joint secretary at the MoC and CEO of the BPC, and Md. Abdur Rahim Khan, additional secretary at the MoC and Project Director of EC4J, were present as the special guests.

The keynote paper for the validation workshop was presented by S. M. Saiful Islam, Lead Assessor at the Imarat Designers & Consultants, while the keynote for the LDC seminar was delivered by Dr Ferdaus Ara Begum, CEO of the Business Initiative Leading Development (BUILD).

In his welcome address, BPGMEA President Samin Ahmed expressed concern over Bangladesh's upcoming graduation.

"We are uncertain about what lies ahead of us after the LDC graduation. Therefore, we must be well-prepared to tackle the potential challenges," he said.

While delivering her presentation, Dr. Ferdaus Ara stressed the need for extending back-to-back L/C (letter of credit) facilities to all exporters, not just the 100 per cent export-oriented ones.

She pointed out that limited access to bonded warehouse facilities is a major barrier for non-RMG sectors.

She also noted that exporters prefer the Export Development Fund (EDF) to the new Facilitation Pre-Finance Fund (EFPF), as the EDF is disbursed in foreign currency.

To make EFPF more effective, she recommended raising its ceiling, lowering interest rates, and digitising the process.

Commerce Secretary Mahbubur Rahman said, "We should address the challenges associated with graduation from the LDC status. Having graduated in 2021, we are currently in the grace period, which offers a window of opportunity to prepare for a smooth transition."

To boost export growth, the government plans to engage in sector-wise discussions with the stakeholders from each industry, he said.

Regarding Free Trade Agreements (FTAs), Bangladesh must move forward with careful consideration and strategic thinking to ensure that Bangladesh gains mutual benefits, Mr Rahman suggested.

The global plastics market is even larger than the global apparel market. Therefore, the plastic sector must prioritise diversification to realise its full export potential, he added.

Speakers also emphasised that workplace hazards and accidents not only endanger workers and their families but also affect productivity and overall societal well-being.

The primary aim of safety audits in the plastic manufacturing and exporting industry is to raise awareness among employers, employees, and management to foster a culture of safety.

These include: identifying hazards, preventing accidents and injuries, managing risks, ensuring compliance, and promoting continuous safety improvements.

The MoC, through the BPC, is financing initiatives to strengthen the plastic industry's resilience, with BPGMEA playing a key partnership role in the process.

Senior representatives and officials from BPGMEA, BPC, EC4J, and various member organisations participated in the event.

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