Recognise education as a knowledge industry

Bangladesh’s higher education system stands at a crossroads. At a time when countries are competing through innovation, artificial intelligence, research and skilled human resources, universities can no longer be viewed merely as charitable institutions. If the country is serious about producing globally competitive graduates and building a knowledge-based economy, it must formally recognise higher education as a ‘Knowledge Industry’ and reform the policies that continue to hold it back.

In today’s industrialised and globalised economy, knowledge is no longer an abstract ideal. It has become one of the world’s most valuable economic assets. Students do not enter universities simply to acquire theoretical knowledge; rather they expect higher education to equip them with practical skills, improve their employability and prepare them for a rapidly changing labour market. Yet Bangladesh’s higher education policies still largely treat universities, particularly private ones, as non-profit social service institutions rather than engines of economic growth.

The recent budget measures, announced by finance and planning minister Amir Khosru Mahmud Chowdhury, offer an encouraging signal. By reducing the income tax on private universities from 10 per cent to 5 per cent and indicating the possibility of abolishing it altogether in the future, the government has acknowledged the contribution of private universities to national development. Such policy direction reflects the realities of a modern market economy and could help strengthen Bangladesh’s position in global higher education.

However, tax relief alone will not solve the deeper structural problems facing private universities.

For more than three decades, private universities have been established with private investment, yet they continue to operate under a legal framework that limits their growth. During a recent budget discussion organised by the Association of Private Universities of Bangladesh, its chairman Md Sabur Khan pointed to a fundamental obstacle: universities invest heavily in land, permanent campuses and academic infrastructure but remain unable to secure bank financing.

The root of this problem lies in the Private University Act 2010 and the trust-based structure under which these institutions operate. Because they are legally classified as non-profit entities, banks are generally reluctant to provide loans. This creates a serious contradiction. Entrepreneurs invest hundreds of crores of taka to establish universities, but the legal framework prevents them from accessing the financial instruments necessary for expansion and long-term sustainability.

As a result, most private universities depend almost entirely on tuition fees. This narrow revenue base makes it difficult to recruit internationally competitive faculty, establish advanced laboratories, develop modern libraries or finance high-quality research. Without sustained investment in research, infrastructure and talent, it is unrealistic to expect universities to compete with leading institutions around the world.

Bangladesh should therefore reconsider whether the existing trust-based model remains suitable for higher education in the twenty-first century. Universities should be allowed to access broader sources of finance, including capital markets, under appropriate regulatory safeguards. Recognising higher education as a ‘Knowledge Industry’ would encourage both domestic and foreign investment, expand research capacity and create stronger incentives for innovation.

There is little reason to discourage responsible international investment in higher education. If foreign investors are willing to establish world-class universities in Bangladesh, invest billions of taka and attract international students, such opportunities should be viewed as national assets rather than threats. Competition, when supported by effective regulation and quality assurance, can improve educational standards, stimulate research and strengthen Bangladesh’s global reputation.

At the same time, financial inequality is not the only challenge. Significant academic disparities also exist between public and private universities.

Although University Grants Commission of Bangladesh chairman Professor Dr Mamun Ahmed at an event in Dhaka recently claims that the organisation does not discriminate between the two sectors, the reality suggests otherwise. Several leading private universities employ Fulbright scholars, internationally trained academics and highly qualified PhD faculty members. Despite these strengths, many are still not permitted to award doctoral degrees. Meanwhile, newly established public universities with limited research capacity and relatively few PhD-qualified teachers often enjoy that authority simply because they are publicly owned.

Such a system places institutional identity above academic merit. The authority to offer PhD programmes should be determined by measurable standards such as faculty qualifications, research output, laboratory facilities, academic governance and international collaboration rather than ownership alone.

Bangladesh does not need to grant this authority indiscriminately. A more practical approach would be to establish clear national benchmarks and allow only those private universities that meet rigorous standards to award PhD degrees independently. In reality, apart from the University of Dhaka, the University of Rajshahi, the University of Chittagong, the University of Khulna, and leading institutions such as BUET, CUET, and KUET, most public universities in Bangladesh struggle to match the academic standards of the country’s top-tier private universities.

Initially, the country’s leading 20 to 25 private universities could be evaluated under transparent criteria. Such a merit-based system would encourage other institutions to improve their research capacity and create healthy competition across the sector.

The proposal by APUB to introduce more skill-based education and joint PhD programmes deserves serious consideration. Stronger collaboration among universities, industry and international partners can help produce graduates who are better prepared for the demands of the modern economy while strengthening Bangladesh’s research ecosystem.

Ultimately, Bangladesh must move beyond the contradictory policy of treating private universities as non-profit institutions while simultaneously imposing taxes and other financial burdens on them. If higher education is expected to contribute to economic transformation, it must be supported by policies that encourage investment, innovation and competition.

The government’s recent tax measures represent a positive beginning, but they should be followed by broader structural reforms. Official recognition of higher education as a ‘Knowledge Industry’, coupled with modern financing opportunities and merit-based academic regulation, would position universities to compete globally. Institutions that fail to maintain quality will naturally lose public confidence, while those that excel will help build a vibrant knowledge economy driven by research, artificial intelligence, data science and skilled human capital.

Bangladesh’s future competitiveness will depend not only on factories and infrastructure but also on the strength of its universities. Recognising education as a ‘Knowledge Industry’ is no longer merely a policy option. It is an economic necessity.