The government has issued the first-ever logistic policy, thereby opening scope for private-sector investment in ports, railways, waterways and other investment-starved areas in Bangladesh.
The 'National Logistics Policy 2024' has outlined more than 62 reform plans in major areas to attract local and foreign investments, focusing on tech- and green-driven logistics.
On Sunday, the Prime Minister's Office issued the policy that took effect from 28 April 2024.
Logistic experts say the policy has been framed after comprehensive talks with stakeholders concerned with a 'game-changing' national vision.
Economist Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, says the policy has incorporated regulatory issues focusing on multimodal transportation aspects and logistic sub-sectors.
"There will be a time-bound framework to implement the policy, which is now under drafting stage…," adds Dr Reaz, also one of the members of logistic initiatives of the PMO.
The PMO would hold an outreach event in Dhaka city on May 02 with an eye to familiarising the policy to stakeholders, development partners and state entities.
According to Dr Reaz, the policy has outlined the need for capacity development of the skill-intensive logistic sector.
Currently, private investment in sectors like ports and railways is not encouraged in the country, which is likely to be addressed in the new policy, he cites.
Syed Ershad Ahmed, president of the American Chamber of Commerce and Industry (AmCham), says the policy has brought the vast logistic sector under one roof for the first time.
"It'd help attract both local and foreign investments. Supply-chain efficiency is one of the major factors for foreign direct investment," he adds.
Mr Ahmed hailed the policy as it has been framed based on the stakeholders' recommendations, pointing out its implementation challenges.
Abul Kasem Khan, former president of the Dhaka Chamber of Commerce and Industry (DCCI), says the country's logistic cost is around 24-25 per cent now.
The cost can be brought down to single digit with the proper execution of the policy, he adds.
Mr Khan has focused on a policy contradiction among government entities as a problem and demanded that the policy be empowered to supersede all other policies as the mother policy.
"Institutionalisation of the logistic sector is important. Saudi Arabia has a separate ministry for logistics. Now, we have to explore the possibility whether time has come to form such a ministry, authority or body to deal with the logistic sector."
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