Chairman of Bangladesh Institute of Peace and Security Studies (BIPSS), Major General (retd) ANM Muniruzzaman, expressed optimism over Bangladesh’s ability to achieve sustainable development and to establish itself as a key player in the regional economy with the right reforms.

He urged stakeholders from all sectors to contribute to a common vision of “Bangladesh 2.0” that could meet the aspirations of its citizens and the demands of a global economy.

The expert made these remarks at a ‘Policy Café’ titled ‘Bangladesh 2.0: Reimagining our Economic Future’, organized recently in Dhaka by BIPSS.

The event brought together eminent personalities, economic experts, representatives of different organizations, journalists and business pioneers who examined the opportunities and challenges facing Bangladesh as it moves towards a new vision economic.

The discussion moderated by Muniruzzaman featured insights from keynote speakers Dr. Fahmida Khatun, Executive Director of the Center for Policy Dialogue (CPD), and Fahim Mashroor, Founder and CEO of Bdjobs.com.

In his opening remarks, Shafqat Munir, Senior Researcher and Director of BCTR at BIPSS, described that Bangladesh has become an important player in the global economy, demonstrating remarkable resilience and growth.

Its thriving ready-to-wear industry has propelled exports and created many jobs. However, challenges persist. Reliance on this single sector exposes the economy to fluctuations in the global market, he said.

“Resolving infrastructure bottlenecks, improving education and promoting sustainable development are essential to ensuring long-term economic prosperity. Although Bangladesh faces obstacles, its potential is immense. By capitalizing on its young workforce, strategic investments and a favorable business environment, it can ensure a brighter economic future,” Munir said.

BIPSS President Muniruzzaman highlighted that Bangladesh is at an economic crossroads, facing complex challenges ranging from inflation and trade imbalances to the sustainability of foreign exchange reserves and fund flows.

He highlighted the importance of a strategic policy direction to safeguard and develop Bangladesh’s economic future, particularly given the need to address the growing income gap, a fragile banking sector and looming problems in energy and food security.

Dr Fahmida Khatun gave an in-depth overview of macroeconomic indicators, addressing issues such as the tax-to-GDP ratio, inefficiencies in the banking sector and inadequate governance in key sectors.

She called for an economic shift beyond reliance on GDP growth statistics to more substantively address measures of employment, investment and productivity.

“To achieve transformative change towards ‘Bangladesh 2.0’, we must not only reform our domestic economic policies, but also better align with global economic trends,” she said.

Dr Fahmida highlighted the need to improve foreign direct investment (FDI) flows and prepare human capital to align with global economic demands, particularly in the areas of technology and services.

She also highlighted the importance of STEM education and digital upskilling, which are essential for Bangladesh to remain competitive as it transitions from LDC status to developing economy in 2026.

She stressed that reliance on traditional sectors like garment manufacturing is no longer sufficient and called for policy incentives to boost investment in emerging sectors such as information technology and services.

Fahim Mashroor raised the pressing issue of youth unemployment. As Bangladesh’s youth demographics reach a historic high, Mashroor highlighted the urgent need for structural reforms to create viable employment opportunities.

He noted that although more than two million graduates enter the job market each year, a significant percentage remains unemployed, indicating a critical gap between educational production and market demand.

“Our demographic dividend could turn into a demographic challenge if we fail to effectively combat youth unemployment,” he warned.

Mashroor suggested strengthening small and medium enterprises (SMEs) as key players in job creation and proposed policy measures that would facilitate access to credit and business development services for these companies.

During an interactive and engaging session, the audience raised questions on critical areas such as foreign investment, energy security and economic resilience in the face of global supply chain disruptions.

Participants from academia, business and policy-making circles shared their ideas on strengthening food security by diversifying import sources and improving national agricultural productivity.

Dr Fahmida echoed these views, saying: “Bangladesh’s economy needs to diversify its export base and reduce its dependence on a few primary sectors to ensure its long-term resilience. »

Additionally, panelists discussed the need to combat corruption, improve banking regulation, and introduce a more robust financial ecosystem that could facilitate growth in underdeveloped rural areas.