BD to face new reality after LDC graduation
Commerce Minister Khandakar Abdul Muktadir on Wednesday said that transitioning to a circular economy is no longer just an environmental consideration but a critical prerequisite for ensuring Bangladesh’s industrial competitiveness, sustainable growth, and stronger positioning in the global market.
“The global market is evolving rapidly. Sustainable production has become a key determinant of competitiveness in international trade. Buyers and investors are increasingly prioritizing production systems that are efficient, responsible, and resilient over the long term,” he said.
The Minister made the remarks while addressing a seminar titled “Accelerating the Transition to a Circular Economy through SWITCH2CE Pilot Initiatives in Bangladesh” as the chief guest at a city hotel in the city said a press release.
The event was jointly organized by the Ministry of Commerce and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Highlighting the progress of the “SWITCH to Circular Economy” programme, he said pilot initiatives implemented in collaboration with global brands such as H&M Group and Bestseller has demonstrated that circularity is both practical and achievable.
These initiatives have generated valuable experience in textile waste management, recycling, and value chain integration within the RMG sector, offering a viable model for wider industrial adoption, he added.
The Minister noted that adopting a circular economy would ensure efficient use of resources, reduce waste, strengthen supply chain resilience, and promote innovation and value addition. He also stressed that successful implementation would require coordinated efforts from the government, private sector, global brands, and development partners.
Referring to Bangladesh’s upcoming LDC (Least Developed Countries) graduation, he said the country would soon face a more competitive global environment with the gradual loss of concessional financing and trade preferences.
“We must enhance our competitiveness and create a more investment-friendly environment from now,” he added. He further highlighted the need to reduce logistics costs, which currently account for about 16 percent of GDP in Bangladesh, compared to the global average of around 10 percent.
However, to improve efficiency, he said, management of a terminal at Chattogram Port has already been handed over to a Danish company, with plans to involve more experienced international operators.
On improving the ease of doing business, the Minister said the government is working to simplify licensing procedures.
Under a proposed system, he said, businesses would receive provisional approval immediately upon registration, allowing them to begin operations while being given up to 12 months to obtain full licenses.
He reiterated the government’s commitment to making the One-Stop Service fully functional and effective.
On his concluding his speech, the Minister said all Bangladeshi export products-including RMG, pharmaceuticals, leather, and jute-must adopt sustainable practices to remain competitive in the global market.
He also urged developed economies to take greater responsibility in building a sustainable future, given their historical contribution to global carbon emissions and environmental degradation.
The seminar, chaired by Commerce Ministry Secretary (Routine Charge) Md. Abdur Rahim Khan, was also addressed by EU Ambassador to Bangladesh Michael Miller and BGMEA President Mahmud Hasan Khan.
Speakers emphasized expanding circular practices in the textile sector and strengthening international cooperation.
