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Among the different sectors of the economy, the services sector stands out as one of the least understood and least documented areas. Despite being a major contributor to the GDP, the sector has long remained a grey area where reliable information and systematic data are conspicuously absent. Unlike manufacturing or agriculture, where records and statistics are relatively better maintained, the services industry is scattered across countless economic activities with little effort to compile their scope, operations and potential. This absence of organised information has created a critical problem for the government, both in formulating policies and in addressing the bottlenecks impeding its growth.
In the context of global and regional trade, services play an increasingly important role. Yet, when our negotiators are required to make requests or offers in the services sector, they often find themselves ill-prepared due to the scarcity of comprehensive data. This undermines the country's position in trade discussions, leaving it unable to present a convincing case for preferential treatment or even defend its own service providers from potential threats.
Over the years, some attempts have been made to take stock of service providers and their operational aspects. For instance, the Ministry of Commerce, some time ago, undertook an initiative to identify local service operators with export potential. The idea was to explore how Bangladesh could benefit from the services waiver scheme of the World Trade Organisation (WTO), which grants preferential market access to service providers from developing countries. Unfortunately, this initiative failed to deliver meaningful results, largely because it was neither comprehensive nor backed up by in-depth research.
The absence of reliable data also hampers negotiations under regional trade agreements. This has been clearly evident in platforms such as the South Asian Free Trade Agreement (SAFTA) and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). While SAFTA has become practically dysfunctional, BIMSTEC continues to exist but has not achieved significant progress in the services realm. The primary obstacle remains the same: Bangladesh lacks detailed information on the number and nature of its service operators, their operational modes, their export potential and the challenges or threats they face.
Such information gaps have serious implications. Without knowing whether opening up the local market to foreign service providers could harm domestic operators, negotiators remain uncertain about which sectors to protect and which to liberalise. This communication gap exposes the country's service sector to potential risks and undermines its ability to take advantage of global opportunities. As Bangladesh increasingly looks to strengthen its participation in regional and bilateral treaties, the services sector will inevitably occupy a central place in the negotiation agenda. A weak knowledge base, therefore, is no longer acceptable.
The way forward requires a paradigm shift in how the services sector is studied and documented. Past efforts, such as sending questionnaires to chambers and trade associations, have proven grossly inadequate. Most associations do not have the capacity or willingness to gather detailed information from their members. Moreover, many service providers, particularly in small and informal enterprises, are not part of formal associations at all. Reliance on such fragmented sources only leads to incomplete or misleading conclusions.
What the country needs instead is a comprehensive, research-based approach. A team of dedicated researchers should be tasked with creating a detailed and regularly updated database of the services sector. This database must cover the full spectrum of service providers-from traditional ones such as transport, health, and education, to newer areas like information technology, financial services, creative industries and freelancing. It should include information on the number of operators, their size, areas of specialisation, modes of delivery, export activities, market challenges, and growth potential. Only with such exhaustive documentation can policymakers gain a realistic understanding of the sector's true strengths and weaknesses.
However, a lack of proper policy attention and data has left the sector underutilised. Opportunities for exporting services-whether in software development, professional consultancy, health tourism, or skilled manpower-remain largely untapped. At the same time, the risks of unregulated liberalisation loom large. Without knowing the vulnerabilities of domestic operators, opening the market to foreign competition could result in long-term harm.
Therefore, building an advanced knowledge base of the services sector is both an economic necessity and a strategic imperative. The government must take the lead in commissioning in-depth research, possibly in collaboration with universities, think tanks, and international organisations. This should be supported by modern digital platforms that allow continuous data gathering and updating, rather than one-off surveys that quickly become outdated.
The services sector is no longer a supplementary pillar of the economy; it is the leading one. Despite being largely disorganised, its contribution to the GDP surpasses that of agriculture and industry. Beyond its sheer economic weight, the sector also plays a vital role in employment generation, innovation, and human development. From banks and hospitals to logistics companies and IT startups, service providers shape the everyday lives of citizens and directly influence the country's competitiveness in the global market. If the government is serious about accelerating growth, creating jobs and enhancing its bargaining position in global trade, then bringing clarity and structure to this sector should be a top priority. A comprehensive account of its operations and potentials will not only strengthen trade negotiations but also empower policymakers at home to craft strategies that unleash the sector's full potential.