Bangladesh must urgently reform its export-import policies to bolster resilience and competitiveness ahead of its graduation from Least Developed Country (LDC) status, experts and business leaders stressed at a Dhaka Chamber of Commerce & Industry (DCCI) seminar on Saturday.

Titled “Export-Import Policies in Bangladesh: Requirements and Challenges upon LDC Graduation,” the event at the DCCI auditorium highlighted the nation’s over-reliance on ready-made garments (RMG) and vulnerabilities in its import structure.

Lutfey Siddiqi, Special Envoy to the Chief Adviser on International Affairs, emphasised faster structural reforms and institutional readiness, noting the absence of clear roadmaps across sectors. “Ports are the heart of the economy—logistics must run smoothly,” he said, urging the private sector to assertively present demands as the economy’s driving force.

DCCI President Taskeen Ahmed noted that RMG accounts for over 84% of export earnings, while sectors like pharmaceuticals, leather, jute, agro-processed goods, automobiles, and ICT lag behind. “Our export base is narrow, heavily dependent on a few markets,” he said, citing vulnerabilities to external shocks like US tariffs, India’s export bans, and inflation pressures impacting foreign exchange reserves. Ahmed called for policy support for non-RMG sectors, a balanced tariff policy, and a unified trade framework to align export-import strategies with regional peers.

Dr Selim Raihan, Professor of Economics at Dhaka University and Executive Director of SANEM, criticized Bangladesh’s high customs duties and reliance on import taxes due to weak direct taxation. He highlighted the RMG-centric export policy’s dependence on cash incentives and duty drawbacks, coupled with high tariffs and complex para-tariffs on imports.

Raihan proposed a unified trade policy, dynamic tariff adjustments, streamlined customs, and enhanced trade facilitation, urging focus on product and market diversification beyond RMG and Western markets. “Successful execution of the National Tariff Policy 2023 is crucial,” he added.

D. Anisuzzaman Chowdhury, Special Assistant at the Economic Relations Division, Ministry of Finance, stressed producing high-value RMG, pharmaceuticals, and light engineering goods to meet post-LDC challenges. He announced an upcoming national dialogue with stakeholders to chart the post-LDC course, emphasising policy coherence and trust-building.

Kazi Mostafizur Rahman from the National Board of Revenue (NBR) highlighted automation efforts like ASYCUDA and plans for a central bonded warehouse by July 2026. He advocated for private sector involvement in trade negotiations to offset RMG dependence. Md. Anwar Hossain of the Export Promotion Bureau (EPB) prioritized policy support over cash incentives, urging diversification into non-traditional products and man-made fibre use in RMG to hit a $100 billion export target in 2-3 years.

Industry leaders echoed the call for diversification. Md Fazlul Haque, former BKMEA President, urged planning alternatives to cash incentives post-LDC, while Fakir Kamruzzaman Nahid of Fakir Fashion warned that losing GSP facilities could raise RMG prices by 9.5%, undermining competitiveness.

Dr Md Zakir Hossain of Delta Pharma sought WTO negotiations to extend TRIPS waivers for patented medicines, and Syed Almas Kabir, former BASIS President, proposed marketing offices in key countries and FTAs to boost new product exports.

The seminar, attended by DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salim Sulaiman, former directors, and public-private stakeholders, underscored the urgency of cohesive reforms to navigate the post-LDC era.