Skills gap persistent challenge
Bridging the skills gap is a persistent challenge that needs to be addressed through public-private partnerships, said Sanjeev Krishan, chairperson of PricewaterhouseCoopers (PwC) for India, Bangladesh, Nepal and Bhutan.
Sustainability is also an urgent concern and there is a need to devote resources to implement ideas, he told The Daily Star in an interview during his visit to the country last week.
The PwC offers business advisory services such as auditing, accounting, taxation, strategy management and human resource consulting services.
Launching its Bangladesh operations in 2015, the firm has been working to transform public and private enterprises and make them globally competitive.
The government's focus on digitalisation is expected to drive the growth in the next few decades, said Krishan.
Internet usage has grown at a compound annual growth rate (CAGR) of 3 per cent over the past five years, according to a report of Groupe Speciale Mobile Association (GSMA), which represents mobile operators worldwide.
Close to 95 per cent of the population is covered by 4G mobile broadband networks, it said.
The rise in digitalisation will not only enable growth of a greater consumer market but is also expected to increase productivity and boost economic growth, said Krishan.
The startup ecosystem in Bangladesh has also grown rapidly with over 200 startups being launched each year, he said.
The funding is led by international players, with 96 per cent of funds in the startup space coming from abroad, he added.
Increased focus on bilateral and multilateral trade agreements are expected to enhance foreign direct investment (FDI), which is still low compared to the economies of the peer countries, said Krishan.
Krishan was asked about the FDI inflow being low despite the establishment of special economic zones and One Stop Service platform of Bangladesh Investment Development Authority.
When investors look at the overall business environment of any country or region, they consider multiple parameters and not just one parameter, he responded.
Bangladesh is the second largest exporter of readymade garments in the world and the country has a large foreign currency income through inward remittances, he said.
So, there are quite a few positive sides to look at beyond the immediate challenges that almost every country is facing owing to the geopolitical situation, said Krishan.
"We believe that continued facilitation of economic activities is a journey, and it yields the benefits over a long period of time," he said.
Focus on activities such as setting up clusters and zones, improving the ease of doing business, and other such initiatives that the government is already working on will certainly help boost the long-term business confidence in this country, he said.
It has already been witnessed that many big foreign technology companies responded to the government's amendment of VAT regulations by registering themselves quickly within Bangladesh, paying taxes and turning compliant easily, said Krishan.
Private investment makes up over 70 per cent of the total investment in the country and is expected to grow steadily, he said.
The emphasis on export-led economic growth has resulted in exports reaching a peak of $52 billion in FY22 with the US as the top destination for exports, he said.
The world is looking at Bangladesh as it clocks impressive economic growth year on year, testament to the inherent strength and confidence in its fundamentals, said Krishan.
Even on the year the pandemic emerged and lockdowns were imposed, the Bangladesh economy grew while most major economies shrunk, he said.
"So, we are very positive of its ability to grow sustainably over the years ahead," he said.
Consumer demand in Bangladesh has continued to grow with a burgeoning middle class and the growth in investment led by the public sector, said Krishan.
The growing demand has made it easier for Bangladesh to cope with the impact of the rising global inflation and the slowing growth rates, he said.
Private consumption has also risen consistently over the last 10 years as disposable income grew, he said.
Recently completed infrastructure projects such as the Padma Bridge and the soon to be completed Karnaphuli tunnel are expected to boost economic growth by providing easy access to the southwest of the country from the key markets in Dhaka and Chattogram, said Krishan.
Other megaprojects, as a part of the 8th Five Year Plan, are also expected to boost development, he added.
Comments