Bangladesh’s readymade garment (RMG) sector could achieve up to $94 billion in annual export earnings by 2029 if the country diversifies into non-traditional markets and embraces manmade fibre (MMF) production, according to a new report from the World Bank, IFC, and MIGA.

Revealed at a high-level event in Dhaka on Tuesday, the Country Private Sector Diagnostic (CPSD) outlines that reaching this ambitious target—at an average growth rate of 15%—will require sweeping reforms across trade, industry, and finance.

The report also estimates the potential creation of over 664,000 formal jobs in the domestic paint and textile dye sector and an additional 460,000 jobs through digital financial services, including the formalisation of 360,000 informal positions.

Housing sector reforms could attract $2 billion in private investment, driving employment and economic resilience, the report added.

At the event, IFC’s Martin Holtmann and World Bank Country Director Jean Pesme highlighted four key sectors for high-impact private investment: greening the RMG sector, middle-income housing, domestic paint and dye production, and digital financial services (DFS).

Challenges to growth include electricity shortages, limited access to finance, policy inconsistency, and corruption, the report warned.

For the RMG sector, barriers such as high duties on MMF imports, outdated technologies, and environmental concerns were highlighted. The report recommended labour law reforms and alignment with EU green standards post-LDC graduation.

Recommendations also included digitising customs, reforming bonded warehouse rules, and incentivising structured finance in DFS.