The Asian Development Bank (ADB) has released a policy brief outlining recommendations to bolster Bangladesh’s export diversification even as it emphasised the urgency of trade policy improvements and enhancing export competitiveness as vital components of the nation’s reform agenda.

With Bangladesh set to graduate from LDC status in 2026 and facing current economic challenges, there is a growing recognition that implementing policy reforms to boost export competitiveness is garnering increased domestic support.

Although earlier national plans have proposed relevant reforms, their implementation has lacked prioritisation, the ADB brief noted.

Authored by Mohammad Abdur Razzaque, Rabiul Islam Rabi, and Barun Kumar Dey from the ADB’s South Asia Department, the policy brief underscores the necessity of expanding and diversifying exports, especially considering the country’s heavy reliance on garment exports and its forthcoming LDC graduation.

While Bangladesh has seen success in garments exports, its overall export volume still is limited and excessively concentrated.

Unfavourable macroeconomic conditions and the impending LDC graduation highlight the urgency of diversification efforts even as policy-induced disincentives, such as high tariff protection for import-competing sectors and weak product standards, posed challenges for non-garment exports.

Fibre2Fashion News Desk (DR)

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