Actionable solutions like export diversification and promotion of the domestic market are essential to overcome the country’s long-standing economic challenges, Economist Prof Rehman Sobhan, chairman of the Centre for Policy Dialogue (CPD), has said.
At the "Conference on Recommendations by the Taskforce on Restrategising the Economy," organised by CPD on Monday, Sobhan emphasised the need for a fresh perspective in light of shifting global trade dynamics and challenges surrounding foreign direct investment (FDI).

He urged Bangladesh to adapt to new realities in international trade, particularly the increasing politicisation of tariffs and the rise of economic nationalism.
Sobhan also urged policymakers to prioritise practical, specific recommendations and focus on crucial areas such as export promotion, industrial diversification, and legal adjustments.
He called for concrete steps in the coming months to implement these strategies, thereby accelerating the country’s economic growth and development.
Caution urged in import liberalisation
Economists have warned that after Bangladesh graduates from the Least Developed Country (LDC) status, it will face significant challenges in its export-driven development.
The country cannot progress to the next level without easing its high import tariff structure, but import liberalisation should not proceed without strengthening the country’s institutional capacity first, they said.

CPD's Distinguished Fellow Dr Mustafizur Rahman highlighted two contrasting examples of import liberalisation – Singapore and Haiti.
"Singapore has strong export and institutional capacity, which makes liberal imports beneficial to its economy, but Haiti presents the opposite scenario," he said. He warned that Bangladesh faces significant institutional capacity gaps in areas such as revenue collection, policy formulation, and implementation. "Without addressing these weaknesses, import liberalisation could be risky."
Dr Rahman also noted that the average import tariff in the US and the European countries is below 4%, but they impose 11-18% tariffs on apparel imports. Since Bangladesh is not exporting high-value products with lower tariffs to these markets, the country must focus on strengthening its own export strategy.
Dr Selim Raihan, Executive Director of the South Asian Network on Economic Modelling (Sanem), said that Bangladesh lacks a coordinated and effective strategy for industrialisation and attracting investment. He said disjointed policies and efforts are a key reason for the country’s failure to capitalise on its potential. Former Commerce Minister Amir Khosru Mahmud Chowdhury emphasised the need for a major recalibration of the economy. He pointed out that the government had pursued many wrong policies for a long time, focusing primarily on revenue. He stressed that revenue should come from large-scale businesses in a developed private sector, not from VAT and other regulatory duties. He also warned that without import liberalisation, export incentives would not push exports beyond a certain limit.
Commerce Adviser Sheikh Bashiruddin referred to widespread corruption and money laundering in the banking sector and infrastructure development during the previous government's tenure, which had put significant pressure on the macroeconomy. He added that the main challenges now are ensuring a continuous energy supply at fair prices, improving labour productivity, and enhancing logistics efficiency.
Economist Dr Abdur Razzaq, chairman of the Research and Policy Integration for Development (RAPID), said the ready-made garment (RMG) sector in Bangladesh has benefited from duty-free access to global markets, but this will no longer be available after LDC graduation. He emphasised the urgent need to negotiate with the European Union to maintain this benefit even after December 2027.
Dr Razzaq also pointed out the country’s failure to establish bilateral free trade agreements and called for swift action to sign an FTA with Japan. To reduce pressure on the macroeconomy, he stressed the need to rethink export strategies and remittances. He noted that among countries with a dominant population of 18-20-year-olds, only Ethiopia and Pakistan have lower exports than Bangladesh.