Jobs, investment and energy security at heart of economic reset: Titumir

Bangladesh’s economic recovery will depend on its ability to create jobs, revive stalled investment and ease mounting pressure on households, as high inflation, unemployment and an energy crisis threaten growth, Prime Minister’s Adviser on Finance and Planning Dr Rashed Al Mahmud Titumir said on Monday.

The government is pursuing reforms to rebuild a fragile economy through productive investment, poverty reduction and stronger social protection, while seeking to restore investor confidence and expand opportunities for the country’s young workforce, he said.

Titumir made the remarks at the inauguration of the Bangladesh Garment Manufacturers and Exporters Association’s (BGMEA) Environmental, Social and Governance (ESG) Platform in the capital, where the focus shifted from domestic economic pressures to the need for Bangladeshi industries to meet increasingly demanding global standards.

For the export-dependent garment sector, he said, competitiveness cannot rest on market access and production costs alone. Stronger environmental performance, social responsibility and corporate governance are increasingly important to transparency, efficiency and acceptance in international markets.

Bangladesh had overcome major economic crises in the past by creating new sources of income and employment, Titumir said. Referring to the post-1975 period, he said Shaheed President Ziaur Rahman had pursued employment-generating initiatives amid the devastation of war, famine, high inflation and an energy crisis.

During former prime minister Begum Khaleda Zia’s tenure, greater participation by women in the formal labour market had also helped advance poverty reduction, he added.

Creating jobs for the country’s large young and educated population remains a pressing challenge. Titumir said the significant number of women outside employment, education and training underscored the need to expand economic opportunities for both women and young people.

Since taking office, the government has introduced initiatives to waive agricultural loans, roll out Family Cards and increase spending on education and healthcare, he said. The measures are intended to ease living-cost pressures on low-income households and strengthen social protection.

Citing assessments by independent research institutions, the adviser said implementing the Family Card programme over five years could significantly reduce poverty. He also pointed to rising poverty under the previous government, which he attributed to inadequate effective measures.

On growth prospects, Titumir said international institutions had issued differing forecasts for Bangladesh, with the International Monetary Fund generally more cautious than the Asian Development Bank and the World Bank’s projections falling between them. The pace and effectiveness of economic reforms would be crucial to determining the country’s growth trajectory, he added.

Regarding Bangladesh’s planned graduation from the least developed country (LDC) category, he said discussions were progressing at relevant international forums on a proposal to extend the country’s preparation period. 

“The government was prioritising the readiness of domestic industries, acknowledging shortcomings in earlier preparations”, he said and thanked Denmark, the European Union and other development partners for supporting Bangladesh’s position.

Titumir identified five priorities for attracting investment: policy continuity, a better business environment, easier access to finance, energy security and uninterrupted transport connectivity.

The government had taken steps to ensure five-year continuity in tax policy and announced a Tk60,000 crore support package to reopen closed industrial units. Under the package, loans would be offered at interest rates below the inflation rate, he said.

To address the energy crisis, initiatives are under way to expand renewable power generation, explore new gas fields, increase supplies of liquefied natural gas (LNG) and liquefied petroleum gas (LPG), and install floating storage and regasification units (FSRUs).

The government is also working to accelerate freight movement, improve railway services and strengthen transport links between Chattogram and Dhaka, with completion targeted for 2029, he added.

Titumir said investment in productive sectors would generate employment and broaden domestic resource mobilisation without increasing tax rates, creating greater scope for spending on education and healthcare and developing a healthier, more skilled workforce.

Returning to the significance of the BGMEA’s ESG initiative, he said stronger environmental, social and governance standards could help manufacturers improve transparency, operational efficiency and competitiveness, while strengthening the international market acceptance of Bangladeshi products.

BGMEA President Mahmud Hasan Khan chaired the event. Policy Exchange Bangladesh Chairman and Chief Executive Officer Dr M Masrur Reaz and Danish Ambassador to Bangladesh Christian Brix Møller attended as special guests.