World Bank group report unveils pathways for Bangladesh's economic expansion

Bangladesh could attract significant investments and create millions of jobs by implementing essential reforms across four sectors, according to a World Bank Group report released Tuesday at the Bangladesh Investment Summit 2025.

The new Bangladesh Country Private Sector Diagnostic (CPSD) report highlights that with targeted policy actions, Bangladesh could create 2.37 million jobs annually in the construction industry by supporting the construction of new housing units, generate over 664,000 formal jobs by expanding domestic paint and dye production, and create between 96,000 to 460,000 new jobs through digital financial services reforms.

The report identifies four sectors—green ready-made garments (RMG), housing for middle-income families, paint and dyes, and digital financial services—where policy actions can help remove barriers to private investment. The report outlines specific, near-term steps the government can take to attract investment in these sectors, generate jobs, remain competitive after graduating from Least Developed Country (LDC) status, and strengthen the domestic economy.

"The World Bank Group's findings offer valuable guidance for shaping policies and strategies that promote private sector-led growth and establish the institutional foundations essential for sustainable economic progress in Bangladesh. The interim government is dedicated to fostering growth by creating a more conducive business environment and supporting the expansion of emerging industries, ultimately leading to job creation," said Chowdhury Ashik Mahmud Bin Harun, Executive Chairman, Bangladesh Investment Development Authority.

“With new and emerging challenges, Bangladesh needs urgent and transformative policy and institutional reforms to help firms expand domestically and compete globally and create millions of jobs for its youth entering the labor market every year,” said Gayle Martin, World Bank interim country director for Bangladesh.

“This Country Private Sector Diagnostic recommends concrete policy actions to overcome barriers to private sector growth and job creation in the country. The World Bank Group stands ready to collaborate with the government and all stakeholders to help Bangladesh stay on strong and inclusive growth path," he added.

"The World Bank Group's findings offer valuable guidance for shaping policies and strategies that promote private sector-led growth and establish the institutional foundations essential for sustainable economic progress in Bangladesh. The interim government is dedicated to fostering growth by creating a more conducive business environment and supporting the expansion of emerging industries, ultimately leading to job creation," said Chowdhury Ashik Mahmud Bin Harun, Executive Chairman, Bangladesh Investment Development Authority.

“With new and emerging challenges, Bangladesh needs urgent and transformative policy and institutional reforms to help firms expand domestically and compete globally and create millions of jobs for its youth entering the labor market every year,” said Gayle Martin, World Bank interim country director for Bangladesh.

“This Country Private Sector Diagnostic recommends concrete policy actions to overcome barriers to private sector growth and job creation in the country. The World Bank Group stands ready to collaborate with the government and all stakeholders to help Bangladesh stay on strong and inclusive growth path," he added.

“As part of the World Bank Group, IFC is committed to supporting Bangladesh to strengthen its private sector and drive economic growth,” said Martin Holtmann, Country Manager IFC, Bangladesh, Bhutan, Nepal.

“The CPSD provides a strategic roadmap, identifying sectors and the key reforms needed to enhance their competitiveness and attract investment. By working together, we can create jobs and opportunities to improve the livelihoods of the people of Bangladesh, to accelerate sustainable economic development.”

The Bangladesh CPSD launch was followed by a panel discussion on the report’s findings by Lutfey Siddiqi, Bangladesh government’s envoy for international affairs, and Chowdhury Ashik Mahmud Bin Harun, executive chairman, Bangladesh Investment Development Authority, as well as private sector leaders.

Bangladesh is an emerging economy with a rising population, making it essential to remove barriers to private investment, and create new opportunities for growth. The suggested policy actions have relevance beyond the selected sectors and demonstrate the potential for policy reform in other parts of the economy to enhance the investment climate, safeguard jobs, and build on ongoing development achievements.