Jobs, social protection at heart of govt’s economic reforms: Titumir

The government’s economic reform programme focuses on job creation, poverty alleviation, stronger social protection and increased investment in productive sectors to strengthen the country’s economy, Prime Minister’s Adviser on Finance and Planning  Rashed Al Mahmud Titumir said on Monday.

He said the government was working to steer Bangladesh forward amid a fragile inherited economy, high inflation, unemployment and an energy crisis triggered by the conflict in the Middle East.

Titumir made the remarks as the chief guest at the inauguration of the ESG Platform of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in the capital.

BGMEA President Mahmud Hasan Khan chaired the programme, attended by Policy Exchange Bangladesh Chairman and Chief Executive Officer  M Masrur Reaz and Danish Ambassador to Bangladesh Christian Brix Møller as special guests.

Titumir said Bangladesh had overcome major economic crises at different points in its history by creating new sources of income and employment.

Referring to the period after 1975, he said Shaheed President Ziaur Rahman had taken initiatives to create new income sources and jobs amid a war-ravaged economy, famine, high inflation and an energy crisis.

“Later, during the tenure of former prime minister Begum Khaleda Zia, greater participation of women in the formal labour market helped advance poverty alleviation,” he added.

The adviser said creating employment opportunities for the country’s young and educated population remained a major challenge.

He said women accounted for a significant share of people outside employment, education and training, underscoring the need to create jobs and expand the participation of women and young people in economic activities.

Titumir said the government had taken initiatives to waive agricultural loans, introduce Family Cards and increase spending on education and healthcare since assuming office.

“These programmes would help ease cost-of-living pressures on low-income people and strengthen social protection,” he added.

Citing assessments by independent research institutions, Titumir said implementing the Family Card programme for five years could significantly reduce poverty. He also pointed to the large number of people who had fallen below the poverty line because of inadequate measures under the previous government.

On economic growth, he said international organisations had issued varying forecasts for Bangladesh. The International Monetary Fund’s projections were generally lower than those of the Asian Development Bank, while the World Bank’s forecasts tended to fall between the two.

However, he said the implementation of reforms would play a crucial role in determining the country’s growth trajectory.

Regarding Bangladesh’s graduation from the Least Developed Country (LDC) category, Titumir said discussions were progressing at relevant international forums on a proposal to extend the country’s preparation period.

He said the government was prioritising preparations for domestic industries and the wider economy, taking into account inadequate preparations in the past. He thanked Denmark, the European Union and other development partners for supporting the issue.

The adviser said the government was focusing on five areas to create an investment-friendly environment: policy continuity, an improved business climate, greater access to finance, energy security and uninterrupted transportation of goods.

He said the government had taken steps to ensure five-year continuity in tax policy. It had also announced a Tk60,000 crore support package to reopen closed industrial units, offering loans at interest rates below the inflation rate, he added.

To strengthen energy security, the government had undertaken initiatives to expand renewable power generation, explore new gas fields, increase supplies of liquefied natural gas (LNG) and liquefied petroleum gas (LPG), and install floating storage and regasification units (FSRUs), Titumir said.

On connectivity, he said the government was working to accelerate freight transportation, improve railway services and develop transport infrastructure between Chattogram and Dhaka. It expected to complete these initiatives by 2029, he added.

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Titumir said greater investment in productive sectors would create jobs and boost domestic resource mobilisation without increasing tax rates. This would also enable higher spending on education and healthcare, help develop a skilled workforce and contribute to a healthier population, he said.

Praising the BGMEA initiative, the adviser said adherence to environmental, social and governance (ESG) standards would improve transparency, efficiency and competitiveness in the industrial sector.

Such initiatives could also strengthen the global market acceptance and competitiveness of Bangladesh’s manufacturing sector, he added.