Dhaka Chamber of Commerce and Industry has urged the government to incorporate a clear roadmap for investment and infrastructure development financing within the National Logistic Policy-2024, which has recently approved by the cabinet.

The DCCI in a statement on Monday said that Bangladesh has made remarkable strides in its development journey, but persistent challenges in the infrastructure and logistics sectors have been hindering its full potential.

The trade body identified that inadequate infrastructure and logistics systems, has been deter foreign investment and hinder economic growth of the country.

While the recent endorsement of a logistics policy is a positive step, its success hinges on effective implementation and financing, the statement said.

DCCI stated that the private sector, investors, and stakeholders needed reassurance on how infrastructure investments would be funded and how they would contribute to economic growth.

Dhaka Chamber underscored the importance of incorporating a clear roadmap for investment and infrastructure development financing within the policy framework.

The trade body emphasised the importance of aligning the policy with annual objectives and setting targets for priority projects.

Moreover, long-term debt and equity financing were deemed essential for sustaining infrastructure development, the statement said.

According to the DCCI statement, Bangladesh has heavily relied on external sources for infrastructure and logistics financing.

Given the current economic challenges, incorporating clear and sustainable infrastructure financing mechanisms in the new policy would significantly benefit all stakeholders, especially the private sector, and provide a substantial boost to the overall economy, the trade body said.

‘A comprehensive policy with a focus to local and diversified financing will not only enhance the resilience of the infrastructure sector but also make a strong basis for our economic development in future,’ it said.

DCCI said that despite achieving significant economic progress, Bangladesh had traditionally been ranked low in terms of the cost of doing business.

As Bangladesh transitioned from Least Developed Country (LDC) status, it aimed to diversify and strengthen its trade and economic connectivity by 2026, becoming more multidimensional and aiming to be a developed economy by 2041, it said.

In this connection, international think tanks had estimated the need for $608 billion in infrastructure investment by 2041, the trade body mentioned.

‘An integrated, seamless, and reliable logistics system can address these issues, attract foreign investment, and foster greater global interest in Bangladesh. In this regard, the logistics policy recently endorsed by the government of Bangladesh is a key step forward and has been widely praised by the private sector,’ the statement read.

If this logistics policy is implemented, Dhaka Chamber expected it would significantly reduce the cost of doing business in Bangladesh, also encouraging substantial infrastructure investment in the country.

DCCI said that investing in the logistics infrastructure sector was believed to yield significant returns, with each dollar invested potentially generating significant multiples.