The Dhaka Chamber of Commerce and Industry (DCCI) announced on Monday that implementing the new logistics policy will significantly reduce the cost of doing business in Bangladesh, highlighting the importance of financing for its effectiveness.

In a statement issued on the same day, the DCCI underscored the logistics policy’s transformative potential.

“If this logistics policy is implemented, it will significantly reduce the cost of doing business in Bangladesh and encourage substantial infrastructure investment in the country,” the statement read.

Bangladesh’s economic progress has been lauded globally. Over the past decade, the country has experienced over 6% annual growth, a feat often described as a development miracle.

However, the DCCI noted that the country has traditionally faced high business costs despite these achievements.

As Bangladesh prepares to transition from its Least Developed Country (LDC) status by 2026, it aims to diversify and strengthen its trade and economic connectivity.

The nation has set ambitious goals to become a developed economy by 2041. To support this transition, the DCCI cited estimates from international think tanks indicating that Bangladesh needs approximately $608 billion in infrastructure investment by 2041.

The DCCI pointed out that infrastructure and logistics remain significant challenges. An integrated, seamless, and reliable logistics system can address these issues, attract foreign investment, and foster greater global interest in Bangladesh. The recently endorsed logistics policy by the government is a critical step forward, receiving widespread praise from the private sector.

“The policy is distinctly oriented towards the private sector, being among the few in Bangladesh primarily steered by private sector interests, efforts, and research insights throughout its development process,” the DCCI noted.

Investing in logistics infrastructure is believed to yield significant returns, with each dollar invested potentially generating substantial multiples. Thus, achieving the necessary infrastructure investments for Bangladesh to become a developed country by 2041 hinges on the successful implementation of this policy.

The DCCI emphasized the need for a clear investment and infrastructure development financing roadmap within the policy framework. It also highlighted the importance of aligning the Public-Private Partnership (PPP) budget process with the logistics policy’s annual objectives.

“The process should include annual targets for priority logistics projects, to be originated through the involvement of concerned line ministries and the private sector,” the DCCI stated.

Bangladesh’s infrastructure and logistics financing have historically relied heavily on external sources. Given the current economic challenges, incorporating clear and sustainable infrastructure financing mechanisms into the new policy will significantly benefit all stakeholders, particularly the private sector, and substantially boost the overall economy.

The DCCI also emphasized the necessity of focusing on local and diversified financing to enhance the resilience of the infrastructure sector and establish a robust foundation for future economic development.

“The logistics policy recently endorsed by the government of Bangladesh is a key step forward and has been widely praised by the private sector,” the DCCI reiterated.