A new report by the World Bank Group, on Tuesday released at the Bangladesh Investment Summit 2025, highlights that Bangladesh could attract significant investments and create millions of jobs by implementing essential reforms across four key sectors.
The Country Private Sector Diagnostic (CPSD) report outlines how targeted policy actions can unlock private investment, generate employment, and strengthen the domestic economy as Bangladesh prepares to graduate from Least Developed Country (LDC) status.
Key findings: Unlocking job creation across sectors
The CPSD report identifies four priority sectors – green ready-made garments (RMG), housing for middle-income families, paint and dyes, and digital financial services – where reforms can remove barriers to private investment and spur job creation.
- Construction industry: By supporting the construction of new housing units, Bangladesh could create 2.37 million jobs annually in the construction sector.
- Paint and dye production: Expanding domestic production of paints and dyes could generate over 6,64,000 formal jobs.
- Digital financial services: Reforms in digital financial services could create between 96,000 to 4,60,000 new jobs, while also enhancing financial inclusion and business accessibility.
The report emphasises specific, near-term steps the government can take to attract investments, ensure competitiveness post-LDC graduation, and bolster the domestic economy.
Sector-specific recommendations
The World Bank Group has proposed actionable reforms tailored to each sector:
Green RMG
- Upgrade production processes to comply with international environmental and labour standards.
- Focus on sustainability, greening practices, and improved worker conditions to maintain Bangladesh's position as a global leader in RMG exports.
Housing for middle-income families
- Strengthen regulatory frameworks for digital mapping and property registration to improve access to mortgages.
- Ensure properties are valued at market rates rather than outdated tax-assessed values, making housing more affordable for middle-income families.
Paint and dyes
- Digitise customs classifications for imported inputs to expedite clearance and compliance with regulations.
- Support domestic industries by reducing delays and operational inefficiencies.
Digital financial services
- Establish protocols to enable mobile financial services for merchant wallets with higher transaction limits.
- Facilitate wholesale transactions and make digital payments more accessible for businesses, fostering financial inclusion.
Government commitment to growth
Speaking at the event, Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of the Bangladesh Investment Development Authority (BIDA), emphasised the interim government’s dedication to fostering private-sector-led growth.
“The World Bank Group’s findings offer valuable guidance for shaping policies and strategies that promote private sector-led growth. The interim government is committed to creating a conducive business environment and supporting emerging industries, ultimately leading to job creation,” he said.
Call for urgent reforms
Gayle Martin, World Bank Interim Country Director for Bangladesh, stressed the need for transformative policy and institutional reforms to address emerging challenges and help firms expand domestically while competing globally.
“With millions of youth entering the labour market every year, Bangladesh needs urgent reforms to help firms grow, compete globally, and create jobs,” she said. “This CPSD report recommends concrete policy actions to overcome barriers to private sector growth and job creation. The World Bank Group stands ready to collaborate with the government and stakeholders to keep Bangladesh on a strong and inclusive growth path.”
IFC’s commitment to Bangladesh
Martin Holtmann, Country Manager for the International Finance Corporation (IFC) in Bangladesh, Bhutan, and Nepal, reiterated IFC’s commitment to strengthening Bangladesh’s private sector.
“The CPSD provides a strategic roadmap, identifying sectors and key reforms needed to enhance competitiveness and attract investment. By working together, we can create opportunities to improve livelihoods and accelerate sustainable economic development in Bangladesh,” he added.
Panel discussion on key insights
Following the launch of the CPSD report, a panel discussion was held featuring prominent figures from both the public and private sectors. Participants included: Lutfey Siddiqi, Bangladesh fovernment’s envoy for International Affairs, Chowdhury Ashik Mahmud Bin Harun, Executive Chairman, BIDA, Arun Mitra, Head of Operations, Nippon Paint, Kamal Quadir, CEO, bKash, Selim RF Hussain, Managing Director, BRAC Bank, Sharif Zahir, Managing Director, Ananta Group, and Srabanti Datta, Managing Director, ABC Real Estate.
The panellists discussed the report’s findings and shared insights on how Bangladesh can leverage its potential to foster private sector growth, create jobs, and achieve sustainable development.
The CPSD report serves as a critical guide for Bangladesh as it navigates the transition from LDC status and seeks to harness the full potential of its private sector. By implementing the recommended reforms, Bangladesh can not only attract significant investments but also create millions of jobs, ensuring a brighter future for its rapidly growing workforce. With collaboration between the government, private sector, and international partners like the World Bank Group, Bangladesh is well-positioned to achieve inclusive and sustainable economic growth.