Bangladesh needs 2nd phase of trade policy reforms: PRI | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Tuesday
June 10, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
TUESDAY, JUNE 10, 2025
Bangladesh needs 2nd phase of trade policy reforms: PRI

Economy

TBS Report
01 March, 2022, 09:40 pm
Last modified: 01 March, 2022, 09:52 pm

Related News

  • 1% account holders enjoy 75% of bank loans — Study paints grim picture of financial access disparity
  • Budget of huge significance
  • Fiscal, monetary reforms not possible even after elections: Ahsan H Mansur 
  • Chances to meet proposed budget financing needs, IMF conditions dismal: PRI
  • Widening revenue shortfall, declining exports, remittance key concerns: PRI

Bangladesh needs 2nd phase of trade policy reforms: PRI

TBS Report
01 March, 2022, 09:40 pm
Last modified: 01 March, 2022, 09:52 pm
Bangladesh needs 2nd phase of trade policy reforms: PRI

Bangladesh needs to embark on the second phase of trade policy reforms for export diversification and go for a forward-looking trade agenda, recognising remittances as factor service exports, according to the Policy Research Institute (PRI).

"Too frequently, while talking about services exports, we refer only to non-factor services, such as ICT, shipping, insurance, banking, tourism, education, etc. It is high time to recognise the major development and poverty reduction role of remittances, which constitute export of factor services for Bangladesh ," said PRI Chairman Dr Zaidi Sattar at a webinar titled "Boosting Bangladesh's Trade Competitiveness" on Tuesday.

If the last fiscal year's remittance earnings of $24.7 billion are included as the exports of factor services, the country's total exports in FY21 would amount $69.6 billion, of which $38.8 billion are from goods and $6.1 billion from non-factor services, the senior economist pointed out, calling for modernisation of tariff regime to strengthen competitiveness in the pre- and post-LDC era.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Since exports of factor services are highly responsive to exchange rate adjustments – that is to say depreciation triggers higher remittance inflows – having the proper exchange rate is a must for both goods and services exports, he noted.

"Time is ripe for a forward-looking trade agenda that goes beyond tariffs to include factor and non-factor services exports,"  Dr Zaidi Sattar, also said, adding digital technologies, climate-related reforms as well as flexible thinking on regional cooperation, foreign direct investment and free trade agreements will help boost competitiveness. 

Doing nothing will be too costly – a loss of competitiveness in the future, he warned.

Referring to Bangladesh's tremendous export success over the decades, the PRI chairman said the success built on concentration in readymade garments adds vulnerability to the whole economy from future shocks if the exercise cannot be replicated in non-RMG sectors.

"The first phase of trade policy reforms is now over. It is a national imperative to launch the second phase of trade policy reforms because LDC graduation will take place in 2026," he said.

Maintaining a flexible exchange rate, attracting export-seeking foreign direct investment and reducing the cost of business by improving trade facilitation are among other measures needed to support export competitiveness and diversification, Dr Zaidi Sattar noted.

At the webinar, two senior economists at macroeconomics, trade and investment of the World Bank – Dr Nora Diheli and Dr Csilla Lakatos, presented a keynote.

Bangladesh managed to benefit from its low labor cost and potential access to markets in advanced economies and exports led growth, which was triggered mainly by readymade garments, according to the paper. 

Dr Nora Diheli said exports have contributed to the country's remarkable growth by creating jobs by reducing property over the past decades, but at this stage, Bangladesh's exports to GDP ratio is less than 15%, which is very low as compared to other countries at a similar level of development.

"Tariff modernisation is important for Bangladesh if it wants to continue the current export growth, so naturally what we find is product diversification is needed," he also said.

The average tariff rate is 18.8%, which is more than double of China's, while it is 7.5% in Vietnam and 7% in Thailand.

Dr Csilla Lakatos said about 300 hours are needed for documentation in Bangladesh for exports as a para tariff barrier.

Rizwan Rahman, president at Dhaka Chamber of Commerce and Industry, said, "We are talking about export diversification. But all export sectors are not getting equal benefits."

For example, garment factories get a bond licence with a three-year validity, while leather and others get the same for only a year.

Besides, non-RMG sectors face hassle and their production gets stopped because of harassment following expiration of the licence every year, he noted.

He also said it is important to sign free trade agreements and preferential trade agreements with different countries to deal with the challenges after LDC graduation.

Commerce minister Tipu Munshi said, "Our exports are on an upward trend. In the first six months of this year, we have 28% growth. We are working on a number of sectors, including pharma, leather, agro, and ICT industries, for export diversification."

Top News

Policy Research Institute (PRI)

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Chief Adviser Muhammad Yunus and BNP Acting Chairman Tarique Rahman. Photos: Collected
    Yunus-Tarique meeting in London Friday can be a major turning point: Fakhrul
  • An Israeli soldier passes a bun to Greta Thunberg onboard the Gaza-bound British-flagged yacht ‘Madleen’ after Israeli forces boarded the charity vessel as it attempted to reach the Gaza Strip in defiance of an Israeli naval blockade, in this still image released on June 9, 2025. Israel Foreign Ministry via X/Handout via REUTERS
    Greta Thunberg deported from Israel after Gaza aid boat seized
  • Home Affairs Adviser Lt Gen (retd) Md Jahangir Alam Chowdhury. File Photo: Collected
    Policemen involved in 'case business' will be sent home, warns home adviser

MOST VIEWED

  • On left, Abdullah Hil Rakib, former senior vice president (SVP) of BGMEA and additional managing director of Team Group; on right, Captain Md Saifuzzaman (Guddu), a Boeing 787 Dreamliner pilot for Biman Bangladesh Airlines. Photos: Collected
    Ex-BGMEA SVP Abdullah Hil Rakib, Biman 787 pilot Saifuzzaman drown in boating accident in Canada
  • A photo showing the former president on his return to Dhaka today (9 June). 
Source: Collected
    Former president Abdul Hamid returns to Bangladesh from Thailand
  • File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar
    Dhaka: The city we never want to return to, but always do
  • Chief Adviser Muhammad Yunus leaves for a four-day visit to the United Kingdom from the Dhaka airport on 9 June 2025. Photo: CA Press Wing
    CA Yunus leaves for UK; discussion expected on renewable energy investment, laundered money
  • Inside the aid ship stormed by Israeli forces on 9 June 2025. Photo: BBC
    Israeli forces stormed aid boat carrying Greta Thunberg bound for Gaza: Freedom Flotilla Coalition
  • Enhanced surveillance at Ctg airport amid rising global Covid-19 cases
    Enhanced surveillance at Ctg airport amid rising global Covid-19 cases

Related News

  • 1% account holders enjoy 75% of bank loans — Study paints grim picture of financial access disparity
  • Budget of huge significance
  • Fiscal, monetary reforms not possible even after elections: Ahsan H Mansur 
  • Chances to meet proposed budget financing needs, IMF conditions dismal: PRI
  • Widening revenue shortfall, declining exports, remittance key concerns: PRI

Features

File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

1d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

2d | Bangladesh
Illustration: TBS

Unbearable weight of the white coat: The mental health crisis in our medical colleges

5d | Panorama
(From left) Sadia Haque, Sylvana Quader Sinha and Tasfia Tasbin. Sketch: TBS

Meet the women driving Bangladesh’s startup revolution

6d | Panorama

More Videos from TBS

Dr. Yunus and Tarique Rahman's meeting will not solve all problems: Mirza Fakhrul

Dr. Yunus and Tarique Rahman's meeting will not solve all problems: Mirza Fakhrul

37m | TBS Today
What is BNP saying about the meeting between Dr. Yunus and Tarique Rahman?

What is BNP saying about the meeting between Dr. Yunus and Tarique Rahman?

2h | TBS Today
Khadi in a New Form Amid Various Crises in Fashion

Khadi in a New Form Amid Various Crises in Fashion

3h | TBS Stories
US and China to meet in London for trade talks

US and China to meet in London for trade talks

17h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net