‘Export sector may face snags sans green industrialisation’
Staff Reporter :
Bangladesh’s export sector could suffer major setbacks if industries fail to embrace eco-friendly production methods and secure Green Certification, warned Bangladesh Bank Governor Ahsan H Mansur.
He delivered the caution on Wednesday at a two-day conference and workshop organised by the Bangladesh Small and Cottage Industries Corporation (BSCIC) in Dhaka.
Mansur stressed that Green Certification is no longer optional for globally competitive industries.
“Proper waste management, increased use of solar energy and efficient water management are essential. Without these, achieving Green Certification will not be possible,” he said.
He highlighted flaws in the country’s existing VAT structure as a long-standing barrier to the growth of small and cottage industries.
“A small entrepreneur may pay 7percent or 10 percent VAT, yet they do not receive that tax credit. This lack of credit disrupts integration and limits productivity,” he added.
Turning to financing challenges, Mansur pointed out weaknesses in the loan disbursement system.
He warned that inefficient distribution risks wasting the allocated Tk 2,000 crore for small entrepreneurs. Loan recovery, he said, must be prioritised.
“Repayments are essential to maintaining a revolving fund—otherwise, the entire channel will close,” he cautioned.
Mansur also underscored the necessity of creating market demand for products, saying supply-side efforts alone will not deliver results.
“There is no benefit in increasing production if demand is not strengthened. Every entrepreneur needs an online profile, a shopping card and access to real-time information on digital platforms,” he said.
He argued that embracing online marketplaces and global payment systems such as PayPal has become crucial for reaching international buyers.
Drawing an example from global e-commerce, he said, “If a customer in the US can buy Chinese goods online, why shouldn’t they be able to buy Bangladesh’s Jamdani from anywhere in the world?”
Mansur reiterated that Bangladesh’s small industries have vast potential, and with the right policies and digital readiness, they can carve out a strong position in the global market.
He urged entrepreneurs and policymakers to prioritise green industrialisation, efficient financing and digital integration to ensure sustainable growth in the export sector.
According to him, failing to take these steps could leave Bangladesh at a competitive disadvantage at a time when global buyers are increasingly prioritising sustainability, traceability and green standards in their sourcing decisions.