Light Engineering Assoc makes 7 proposals to boost export, expo begins 29 May
According to the association, with effective government action and policy support, the sector has the potential to become one of the country’s leading export earners
To enhance the competitiveness of the light engineering sector in the global market and increase exports, the Bangladesh Engineering Industry Owners Association (BEIOA) has made a seven-point recommendation, including establishing a modern "Light Engineering Zone," reducing duties on raw material imports, and streamlining the import process.
According to the association, with effective government action and policy support, the sector has the potential to become one of the country's leading export earners.
BEIOA President Md Abdur Razzak presented the recommendations at a press conference held today (27 May) at the Economic Reporters Forum in the capital.
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He also announced that the Bangladesh Light Engineering Expo 2025 will be held on 29-30 May at the Shaheed Abu Sayeed International Convention Centre on Minto Road, aiming to showcase the sector's products both nationally and internationally.
The expo is being jointly organised by BEIOA and the Export Competitiveness for Jobs (EC4J) project under the Ministry of Commerce. High-level policymakers, domestic industrialists, and foreign guests are expected to attend the inaugural event.
Leading companies from the light engineering sector will display their latest technologies, machinery, and innovative products. Exhibitors will include firms from the die and mold, industrial machinery, agricultural equipment, spare parts, metal casting, and electrical appliance sectors.
What BEIOA recommends
At the press conference, BEIOA President Abdur Razzak emphasised the need to establish a modern Light Engineering Zone within an industrial park equipped with eco-friendly infrastructure, security systems, and quality control facilities, enabling compliance-based production for global markets.
He stressed the importance of research-driven innovation and technology transfer to diversify export products and produce high-value items.
He pointed out that high import duties on raw materials are driving up production costs, reducing the sector's competitiveness. Therefore, duty cuts and simplified import procedures were recommended.
Razzak highlighted the need for advanced technology, high-quality design, and skilled training to compete with countries like China, India, and Vietnam.
He also called for the introduction of a simple, affordable, and effective patent and design registration system to prevent the copying of locally developed components and designs.
Given the labour-intensive nature of the sector, he proposed engaging more women and youth through training, easy loans, and incentives.
He also urged the government to ensure cash incentives for exporters and access to low-interest bank loans.
In response to a question about land prices, Abdur Razzak said that the price per katha of land at the industrial park in Munshiganj has reached around Tk6.5 lakh. This high cost is discouraging entrepreneurs from seeking plot allocations, posing a major obstacle to the sector's growth.
At the press conference, it was also revealed that Bangladesh currently has around 50,000 light engineering enterprises, both large and small. These businesses provide direct employment to about three lakh people and indirect employment to nearly 30 lakh. The sector contributes around 3% to the country's GDP and supports over $795 million in annual export earnings.
