Albert F Park, chief economist of the Asian Development Bank (ADB), warned that Bangladesh’s heavy reliance on a single sector for export earnings poses a significant risk to the economy. While Bangladesh has made strong progress in the garments sector, it remains highly labour-intensive and needs to focus more on higher value addition, he said.

He made the remarks on Wednesday at a press briefing held on the sidelines of the ADB meeting in Samarkand, Uzbekistan. He cautioned that excessive dependence on a single sector is risky, and any unexpected shock to that sector could deliver a major blow to the economy — something observed in the past.

The ADB chief economist advised that Bangladesh should diversify into other sectors and create opportunities for duty-free imports across a broader range of industries. Extending facilities similar to those enjoyed by the garments sector to other sectors could open up new avenues for export products, he added.

ADB Chief Economist Albert F Park speaks at a sideline meeting. Photo: Bonik Barta

He noted that despite global tensions, value chains remain stable, and the role of developing Asian and Pacific economies continues to grow, adding that the benefits are not evenly distributed across countries, workers, or firms.

At the same sideline press briefing, Neil Foster-McGregor, principal economist at the ADB, said that while global value chains contribute to economic growth and poverty reduction, the benefits are largely concentrated among large companies and high-value, capital-intensive sectors. This has created significant disparities in capabilities across countries, he noted.

He further said that competitiveness in global value chains will not depend solely on cheap labour; rather, resilience, sustainability, and institutional capacity will be the key determinants.

(Reporting from Samarkand, Uzbekistan)