Reforms in key sectors could create millions of jobs in Bangladesh: WB

Bangladesh could attract significant investments and create millions of jobs by implementing essential reforms in four sectors, according to a World Bank Group report released on Tuesday during the Bangladesh Investment Summit 2025.

The new Bangladesh Country Private Sector Diagnostic (CPSD) report showed 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 to 460,000 new jobs through digital financial services reforms.

The report identifies four green sectors, Readymade Garment (RMG), housing for middle-income families, paints and dyes and digital financial services, where policy actions can help remove barriers to private investment.

The report outlined specific, near-term steps 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 readymade garments sector to comply with EU 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and property registration to improve access to mortgages by ensuring properties are valued at market rates rather than outdated tax-assessed values

Digitising 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 findings offer valuable guidance for shaping policies and strategies that promote private sector-led growth and establish the institutional foundations essential for sustainable economic progress in Bangladesh,” said Chowdhury Ashik Mahmud Bin Harun, Executive Chairman, Bangladesh Investment Development Authority (BIDA).

“The Interim government is dedicated to fostering growth by creating a more conducive business environment and supporting the expansion of emerging industries, ultimately leading to job creation,” he added.

"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.

The World Bank Group stands ready to collaborate with the government and all stakeholders to help Bangladesh stay on a strong and inclusive growth path, he said.

"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 and Nepal.

The Bangladesh CPSD launch was followed by a panel discussion on the report's findings by Lutfey Siddiqi, Bangladesh Government's Envoy for International Affairs, and Chowdhury Ashik Mahmud Bin Harun, Executive Chairman, (BIDA), as well as private sector leaders, including Arun Mitra, Head of Operations, Nippon Paint, Kamal Quadir, CEO, bKash, Selim R.F. Hussain, Managing Director, BRAC Bank, Sharif Zahir, Managing Director, Ananta Group and Srabanti Datta, Managing Director, ABC Real Estate.