Dhaka, Bangladesh, April 08, 2025 Bangladesh could attract significant investments and create millions of jobs by implementing essential reforms across four sectors, according to a World Bank Group report released today at the Bangladesh Investment Summit 2025.
The new Bangladesh Country Private Sector Diagnostic (CPSD) report highlights that with targeted policy actions. Bangladesh could create 2.37 million jobs annually in the construction industry by supporting the construction of new housing units, generate over 664,000 formal jobs by expanding domestic paint and dye production and create between 96,000 το 400,000 new jobs through digital financial services reforms.
The report identifies four sectors-green ready-made garments (RMG), housing for middle-income families, paint and dyes, and digital financial services where policy actions can help remove barriers to private investment. The report outlines specific, near term stepe the government can take to attract investment in these sectors, generate jobs, remain competitive after graduating from Least Developed Country (LDC) status, and strengthen the domestic economy.
Some of the specific actions include
Upgrading production in the ready made garments sector to comply with El requirements, focusing on greening. sustainability and labor standards
Strengthening the regulatory framework for digital mapping and property registration to improve access to mortgages by ensuring properties are valued at market rates rather than outdated tax-assessed values Digitizing customs classifications on imported inputs for paint and dyes to expedite clearance, enabling businesses to more easily comply with custom regulations.
Establishing protocols to enable mobile financial services for merchant wallets with higher transaction limits, facilitating wholesale transactions and making digital payments more accessible for businesses.
The World Bank Group’s Bindings offer valuable guidance for shaping policies and strategies that promote private sector led growth and exfatinish the ashtutional foundations essential for sustainable economic progress in Bangladesh. The interen government is dedicated to fostering growth by creating a more conducive business environment and supporting me euiansion of emerging industries, ultimately leading to job creation,” said Chowdhury Ashik Mahmud Bin Harun, Executive Chairman, Bangladesh Investment Development Authority.
With new and emerging challenges, Bangladesh needs urgent and transformative policy and institutional reforms to help firms expand domestically and compete globally and create millions of jobs for its youth entering the labor market every year said Gayle Martin, World Bank Interim Country Director for Bangladesh. This Country Private Sector Diagnostic recommends concrete policy actions to overcome barriers to private sector growth and job creation in the country. The World Bank Group stands ready to collaborate with the government and all stakeholders to help Bangladesh stay on strong and inclusive growth path “As part of the World Bank Group, IFC is committed to supporting Bangladesh to strengthen its private sector and drive economic growth,” said Martin Holtmann, Country Manager IFC, Bangladesh, Bhutan, Nepal. “The CPSD provides a strategic roadmap, identifying sectors and the key reforms needed to enhance their competitiveness and attract investment By working together, we can create jotis and opportunities to improve the livelihoods of the people of Bangladesh, to accelerate sustainable economic development.
The Bangladesh CPSD launch was followed by a panel discussion on t on the report’s findings by Lutfey Siddiqi, Bangladesh Government’s Envoy for International Affairs, and Chowdhury Ash Ashik Mahmud Bin Harun, Executive Chairman, Bangladesh Investment Development Authority, as well as private sector leaders, including Mr. Arun Mitra, Head of Operations Nippon Paint Mr. Kamal Quadir, CED, bKash, Mr. Selim R.F. Hussain, Managing Director, BRAC Bank, Mr. Sharif Zahir, Managing Director, Ananta Group and Ms. Srabanti Datta, Managing Director, ABC Real Estate.
Bangladesh is an emerging economy with a rising population, making it essential to remove baners to private investment, and create new opportunities for growth. The suggested policy actions have relevance beyond the selected sectors and demonstrate the potential for policy reform in other parts of the economy to enhance the investment climate, safeguard jobs, and build on ongoing development achievements.
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About the Country Private Sector Diagnostic
The Country Private Sector Diagnostic (CPSD) seeks to unlock private sector-led growth and investment. Prepared jointly by the institutions of the World Bank Group, each report discusses the overall business environment within a country and provides an analysis of specific sectors in which private sector investment could accelerate growth, if appropriate policy and regulatory issues are addressed
Designed from the perspective of an investor or entrepreneur, this new generation of CPSDs seeks to identify untapped private investment opportunities and the barriers that stand in the way of private investment (earlier reports can be found here) The sector opportunities are chosen based on their potential to spur private investment, create jobs, generate domestic revenue, and foster sustainable, inclusive growth, in response to targeted policy action. The report aims to help country policymakers prioritize the most impactful actions that can boost private sector growth, while delivering on broader development goals.
The Country Private Sector Diagnostic is one of the World Bank Group’s core country diagnostics produced to guide the design and implementation of public and private investment projects, budget support operations, advisory services, and other analytical work.
