National Logistics Policy 2025 a timely move to strengthen export competitiveness

In today's interconnected global economy, logistics forms the backbone of international trade. Supply chains now stretch across continents, where disruptions at any point swiftly reverberate throughout the system. 

Countries that have successfully attracted investment and enhanced trade competitiveness share a common feature: an integrated, efficient and future-ready logistics ecosystem. Bangladesh lags behind in this regard, however, the recently announced National Logistics Policy (NLP) 2025 offers renewed hope for strengthening export competitiveness — provided it is implemented effectively.

Recognising the importance of logistics development, many economies have established robust logistics frameworks tailored to their national priorities. Singapore launched its Integrated Logistics Hub in 2022 under the Future Economy Council (FEC), designed to strengthen national competitiveness and address emerging global challenges. 

South Korea's Ministry of Land, Infrastructure and Transport implemented an ambitious master plan aimed at transforming the country into a global logistics powerhouse while promoting green growth. Malaysia issued its logistics industry development plan in March 2025 to elevate the global standing of its logistics sector, while Thailand launched its Logistics Development Plan, to be implemented by 2027, to enhance connectivity across ASEAN.

China's 14th Five-Year Plan for Modern Logistics — announced on 17 May 2022 — emphasises digital transformation, increased operational efficiency, and strengthened business competitiveness across the logistics sector.

The Fourth Industrial Revolution (4IR) has fundamentally reshaped logistics operations. Countries are increasingly adopting advanced digital systems, real-time documentation platforms, optimised transport models, and data-driven supply chain management. 

South Korea's strategy focuses on innovative productivity technologies, digital integration, fusion technologies, and personalised logistics solutions. Malaysia's master plan similarly prioritises digital adoption, online documentation, and streamlined movement of goods.

In this global context, Bangladesh has introduced its logistics policy to enhance connectivity, improve supply chain efficiency, and reduce the cost of doing business. The timing is critical: as Bangladesh graduates from LDC status, it will face preference erosion, which could increase export prices. Enhancing logistics capabilities is therefore essential to maintaining and strengthening export competitiveness.

According to the World Bank's Logistics Performance Index (LPI) 2023, Bangladesh ranked 88th, while Singapore topped the global rankings. India stood at 38th, while Indonesia, Vietnam, and the Philippines ranked 61st, 34th, and 34th, respectively. Against this backdrop, NLP 2025 sets a long-term vision of transforming Bangladesh into a regional commerce and logistics hub by 2050.

Announced on 19 November 2025 — replacing the earlier policy issued on 2 May 2024 — the new policy focuses on strengthening Bangladesh's trade capacity at every stage of the supply chain. 

Its objectives are to increase service efficiency, reduce logistics-related costs, and ensure competitiveness in the post-LDC era. The policy adopts a KPI-based framework, emphasising measurable progress across 21 logistics-related sub-sectors identified in the Industrial Policy 2022.

The policy underscores the importance of end-to-end supply chain management — from sourcing raw materials and procurement to storage, transport, marketing, and distribution. Efficient and well-coordinated supply chain operations are essential to ensuring the timely delivery of quality products at competitive costs.

NLP 2025 incorporates multiple logistics sub-sectors, including river logistics, temperature-controlled logistics, air freight stations, and urban logistics. It emphasises a coordinated institutional structure to ensure predictability, efficiency, and continuity of logistics services. 

The policy also calls for the development of multimodal logistics infrastructure, global-standard tracking and tracing systems, and widespread digitalisation. Building a climate-resilient, secure, and skilled logistics ecosystem is another central objective.

Infrastructure and multimodal connectivity are the most critical prerequisites for effective logistics development. Recognising infrastructure as the backbone of logistics, the policy prioritises a Multimodal Coordinated Infrastructure Development Strategy. 

Key areas include seamless integration among road, rail, air, and water-based transport networks, alignment with regional and international economic corridors, technology-enabled traffic and transport management, and policy incentives to attract private-sector infrastructure investment. 

These approaches reflect a shift from isolated, project-specific initiatives towards a coordinated, multimodal development framework that can ease business operations and reduce transport time for goods and services.

To stimulate investment, the government is implementing a Multisectoral Logistics Master Plan. Priority projects will be selected from this master plan to accelerate investment in critical areas. 

An accompanying investment guideline will support the attraction of both domestic and foreign investors. The investment strategy is built on three pillars: public investment, focused on large-scale infrastructure, port expansion, and digital backbone development; private investment, encouraged in warehousing facilities, inland container depots (ICDs), cold-chain logistics, and e-commerce distribution systems; and public–private partnership (PPP) investment, targeted at large-scale projects such as ports, logistics parks, multimodal hubs, and transport terminals.

Reducing the cost of doing business requires simplified processes and harmonised regulations. NLP 2025 prioritises automation, digital certification, and integrated trade facilitation reforms. 

A coordinated digital logistics platform will serve as the national data interface, aligned with National Data Governance Infrastructure (NDGI) standards. Internationally recognised cybersecurity protocols will ensure data security and build user confidence.

Recognising that infrastructure alone is insufficient, the policy highlights the need for a highly skilled logistics workforce trained in modern technologies and operational standards. Safety, security, and regulatory compliance are positioned as integral pillars of sustainable logistics operations.

To ensure effective implementation, a three-tier institutional framework has been proposed. The National Council for Logistics Development (NLD), chaired by the Chief Adviser/Prime Minister, will provide political oversight and strategic direction. The National Logistics Development Coordination Committee (NLDCC), chaired by the Principal Secretary, will coordinate efforts across ministries and private-sector stakeholders. 

A Logistics Monitoring Unit under the Prime Minister's Office (PMO) will be responsible for performance tracking through the digital logistics platform and the one-stop service system. Time-bound action plans for each ministry and agency have also been incorporated, aligning reforms with existing national policies.

The National Logistics Policy 2025 represents a significant milestone in Bangladesh's efforts to build a modern, efficient, and competitive logistics ecosystem. Its success will depend on effective implementation through timely master plans, clear investment guidelines, strong institutional coordination, and meaningful stakeholder engagement. 

If operationalised as intended, NLP 2025 could significantly enhance Bangladesh's export competitiveness and support the country's transition to a dynamic, resilient post-LDC economy.

Political stability is crucial to realising the benefits of the policy. The logistics sector requires substantial public and private investment, and a safe and secure investment environment is a prerequisite for success. While the policy outlines an ambitious set of objectives, its implementation will ultimately depend on an enabling political and business environment.

Sketch: TBS

Ferdaus Ara Begum is CEO of BUILD, a public private dialogue platform that works for private sector development.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.