Infrastructural dev crucial for economic growth: Experts

Staff Reporter :

Creating new entrepreneurs and developing infrastructure are vital pillars for sustainable economic growth, employment generation, and improved living standards. Experts emphasize that entrepreneurs drive innovation and job creation, while infrastructure provides the foundation for all economic activity. Together, these two factors determine the pace and inclusiveness of national development.

In Bangladesh, despite steady GDP growth, the pace of entrepreneurship and investment remains slower than expected. Experts say this is mainly due to inadequate infrastructure, limited access to finance, policy inconsistencies, and a lack of confidence among businesspeople. They stressed that restoring trust and ensuring a business-friendly environment are now essential to revitalizing the economy.

PRAN-RFL Group Chairman Ahsan Khan Chowdhury said that entrepreneurship is the key to strengthening industries, creating jobs, and driving innovation. He noted that although many entrepreneurs are producing various goods-from construction materials to consumer products-they still face obstacles due to slow and inconsistent government policies. “Policies must be swift and action-oriented,” he said. “New entrepreneurs need infrastructural support and access to finance to enter and sustain themselves in the business world.” He emphasized that an enabling environment for industrialization depends on efficient policy implementation and faster delivery of necessary inputs.

Centre for Policy Dialogue (CPD) Executive Director Dr. Fahmida Khatun described the private sector as the “main engine of the economy,” contributing 95% of employment. She underscored that without restoring business confidence, it will be impossible to revive industries and employment. “The biggest obstacle is the crisis of confidence,” she said. “Uncertainty in policy, unpredictable tax measures, and weak rule of law discourage investment.”

She urged for a transparent and speedy dispute-resolution system, predictable fiscal policies, and uninterrupted energy supply. Without these, she warned, the investment-to-GDP ratio will stagnate, growth will slow, and unemployment will rise-deepening people’s suffering amid high inflation.

Labaid Cancer Hospital Managing Director and Progressive Business Panel Vice-President candidate Sakif Shamim highlighted that entrepreneurship is indispensable for revitalizing the economy. He said that Bangladesh’s small and medium enterprises (SMEs) contribute significantly to GDP, yet the ecosystem for new entrepreneurs remains weak due to poor infrastructure, high business costs, and bureaucratic hurdles.

He cited World Bank findings that weak infrastructure makes doing business in Bangladesh costlier than in neighboring countries. “About 88% of our economic activities rely on road transport, but road conditions and traffic mismanagement delay goods movement, raise costs, and reduce competitiveness,” he said. He also pointed to frequent power and gas shortages that raise production costs and delay industrial operations, while outdated port and rail systems create costly supply-chain bottlenecks.

Sakif Shamim further identified access to finance and bureaucratic complexity as key barriers. Many honest entrepreneurs, he said, are denied loans due to rigid banking practices. “Before adopting international standards, our system should have been prepared accordingly,” he noted. Changing social attitudes toward entrepreneurship is also crucial, as many still prefer secure jobs over business risks.

To unlock growth, he proposed a threefold strategy: invest in infrastructure-particularly in power, gas, and transport; simplify business-startup procedures through an effective one-stop service; and introduce entrepreneur-friendly financing policies, such as collateral-free loans and venture capital for SMEs.

“Entrepreneurs are the real drivers of the economy,” he concluded. “If we remove infrastructural bottlenecks, ease access to finance, and ensure a supportive administrative framework, we can achieve sustainable economic growth and create broad-based prosperity.”