The government has formulated the Plastic Industry Development Policy 2023, with a vision to create 0.5 million jobs and a market of US$10 billion by 2028.
The policy also aims to achieve a steady 15 per cent annual growth and raise the plastic sector's contribution to the GDP by at least 2.0 per cent by 2028.
Approved by the cabinet in September last year, the policy outlines a five-year action plan to propel the local plastic sector forward, focusing on value chain development and skills enhancement through training.
The industries ministry issued a gazette notification on the policy on December 16.
When asked, Shamim Ahmed, president of Bangladesh Plastic Goods and Manufacturers and Exporters Association (BPGMEA), said they worked with the industries ministry on the policy two to three years ago.
About the challenges facing the sector, he said the sector is fully dependent on imported raw materials and they are currently facing difficulties in opening letters of credit (LCs) due to the prevailing dollar crisis.
He, however, expressed his hope that if the current economic situation improves, the target could be achieved. But, this 'higher' target, according to him, would be difficult to be achieved in this economic situation.
Explaining the challenges, he said the government should make the tax structure business-friendly and realistic to help sustain the sector's competitiveness.
Despite huge potential, there is absence of specific action plan and strategic guidelines to address the obstacles that hinder the growth of the sector, reads the policy.
The sector is facing a wide range of problems, including absence of required standard testing facility, innovative technology, design and dyes, proper management of plastic waste and business-friendly tax and duty, it said.
"Unless these obstacles are properly addressed, it is difficult for the locally-produced plastic goods to earn global recognition," according to the policy.
Bangladesh's plastic goods share in the US$570 billion global market is only 0.6 per cent.
The global plastic market will reach US$721.14 billion by 2025, the policy said, citing a Grand View Research study.
According to the BPGMEA, the local market for plastic is about Tk 400 billion and the policy aims for a US$10 billion and US$20 billion market by 2028 and 2030 respectively.
The average per capita local consumption of plastic in the country is about 5.0 to 7.0 kg against the 50kg global average per capita consumption.
The policy also aims to increase import-substitutes production capacity for expanding local market of plastic goods and more value-added products to export.
The BPGMEA president said the sector earned about US$1.2 billion through direct and deemed exports.
According to Export Promotion Bureau data, Bangladesh fetched US$209.86 million from plastic products exports in the last 2022-23 fiscal year.
According to the policy, a 33-member national council, headed by the industries minister, will be formed to supervise and monitor the implementation of the policy.
munni_fe@yahoo.com