Bangladesh must accelerate its shift towards a circular economy to remain competitive in global markets after graduating from the least developed country (LDC) category, as the country prepares to face stricter trade conditions and rising global sustainability standards, Commerce Minister Khandaker Abdul Muqtadir said on Wednesday.
A circular economy refers to a production system that reduces waste through recycling, reuse, repair, and efficient resource management instead of the traditional “produce-use-dispose” model.
The minister said the transition is no longer only an environmental issue but has become a key condition for industrial competitiveness, export growth, and long-term economic sustainability.
He made the remarks while addressing a seminar titled “Accelerating Circular Economy Transition through SWITCH2CE Pilot Initiatives in Bangladesh” in Dhaka as the chief guest.
“The global market is changing rapidly. Sustainable production is now one of the determinants of competitive capability in international trade,” he said.
Buyers, investors, and consumers are increasingly favouring production systems that ensure efficiency, accountability, lower waste generation, and long-term sustainability, he added.
Abdul Muktadir said pilot initiatives under the “SWITCH to Circular Economy” programme have already shown that circular production models are commercially viable in Bangladesh.
According to him, projects involving H&M Group and Bestseller generated practical experience in textile waste management, recycling systems, and value-chain coordination in the country’s textile and garment sector.
He said a circular economy would help Bangladesh improve resource efficiency, reduce industrial waste, strengthen supply-chain stability, and increase innovation and value addition across sectors.
The minister warned that Bangladesh’s economic environment would become more challenging after LDC graduation as the country gradually loses preferential trade benefits, duty-free market access in some destinations, and concessional foreign loans offered to poorer economies.
“After LDC graduation, Bangladesh will face a completely new economic reality. We will lose low-interest loan facilities and many LDC-based trade preferences,” he said.
To improve competitiveness, the government is focusing on reducing logistics costs and simplifying investment procedures, he added.
Abdul Muktadir said Bangladesh’s logistics-cost-to-GDP ratio stands at around 16 per cent, significantly higher than the global average of 10 per cent.
As part of efforts to improve efficiency at ports, the government has appointed a Danish company to operate a terminal at Chattogram port and plans to involve more international operators in the future, he said.
The minister also said, the government is planning to introduce a temporary approval system allowing businesses to begin operations immediately after registration while securing permanent licences within 12 months.
“We want to turn the One-Stop Service into a true one-stop service. Investors will no longer have to move from one office to another,” he said.
He added that all Bangladeshi products, including ready-made garments (RMG), pharmaceuticals, leather, and jute goods, must become sustainable to survive in changing global markets.
While the world increasingly recognises the need to protect ecosystems and cut carbon emissions, developed economies responsible for much of the global carbon crisis must lead efforts toward a sustainable future, he added.
The seminar was jointly organised by the Ministry of Commerce and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Ministry of Commerce Secretary Md Abdur Rahim Khan presided over the event.
European Union Delegation to Bangladesh Ambassador Michael Miller and BGMEA President Mahmud Hasan Khan attended the seminar as special guests.
