Bangladesh has the potential to attract significant investments and create millions of jobs by implementing essential reforms across four key sectors, according to the Bangladesh Country Private Sector Diagnostic (CPSD) report released by the World Bank Group on Tuesday at the Bangladesh Investment Summit 2025.
The report highlights that with targeted policy actions, Bangladesh could generate 2.37 million jobs annually in the construction sector by supporting the development of new housing units. It also identifies opportunities to create over 664,000 formal jobs by expanding domestic paint and dye production and between 96,000 to 400,000 jobs by reforming digital financial services.
The CPSD identifies four priority sectors—green ready-made garments (RMG), housing for middle-income families, paint and dyes, and digital financial services—as critical areas where reforms could remove barriers to private investment. It outlines actionable steps the government can take to attract investments, generate employment, and ensure economic competitiveness post-graduation from Least Developed Country (LDC) status.
Key recommendations include:
- Upgrading the RMG sector to align with EU requirements, focusing on sustainability, greening production, and labor standards.
- Improving access to mortgages by strengthening the regulatory framework for digital mapping and property registration to reflect market-valued property assessments.
- Streamlining customs processes by digitizing classifications for imported inputs in the paint and dye industry to expedite clearance.
- Enhancing mobile financial services by establishing protocols for merchant wallets with higher transaction limits to facilitate wholesale transactions and digital payments.
“By fostering private sector-led growth and expanding institutional foundations, Bangladesh can achieve sustainable economic progress," said Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of the Bangladesh Investment Development Authority (BIDA).
Gayle Martin, the World Bank's Interim Country Director for Bangladesh, emphasized the urgency of reforms, “With new and emerging challenges, Bangladesh needs transformative policy and institutional reforms to help firms expand domestically, compete globally, and create millions of jobs for its youth entering the labor market every year.”
Martin Holtmann, Country Manager for IFC (International Finance Corporation) in Bangladesh, Bhutan, and Nepal, added, “The CPSD provides a strategic roadmap, identifying sectors and key reforms needed to enhance competitiveness and attract investment. By working together, we can create jobs and opportunities to improve livelihoods and accelerate sustainable development in Bangladesh.”
The CPSD report launch included a panel discussion featuring prominent leaders such as Lutfey Siddiqi, Bangladesh Government's Envoy for International Affairs, and Chowdhury Ashik Mahmud Bin Harun. Private sector leaders, including Arun Mitra from Nippon Paint, Kamal Quadir from bKash, Selim R. F. Hussain from BRAC Bank, Sharif Zahir from Ananta Group, and Srabanti Datta from ABC Real Estate, shared their insights on the report’s findings.
The recommendations in the CPSD report extend beyond the four highlighted sectors, demonstrating the broader potential for reforms to improve the investment climate, safeguard jobs, and sustain development achievements.
