What is the current investment and business situation of BSRM, and what challenges does it face now?

We are going through a challenging time right now. The country’s economy has slowed somewhat. Government development spending has also decreased. This has affected the entire industrial sector, especially steel. Demand from buyers in the market is much lower than usual. Yet we had already expanded production capacity in the steel sector and made new investments. With demand so low, we cannot fully utilize our production capacity. As far as we know, the same situation exists for other companies as well. The capacity expansion has now turned into overcapacity. As a result, there is now intense price competition among companies in the market. In addition, various crises in the country, along with the political situation, have broken the momentum that had built up in the steel industry.

Is the government taking any steps to address these challenges?

If the government implements the necessary projects to overcome the current crisis, the situation will improve. Tax exemptions have decreased, and in some cases, taxes have even increased. We believe that to increase tax collection, the government must raise development spending. If road, infrastructure, and bridge projects are completed quickly, steel demand will rise, and so will our production.

How would you evaluate Bangladesh’s overall investment climate over the past year?

The entire private sector is now in a “wait-and-see” mode when it comes to investment. Everyone is waiting to see how the election unfolds and how stable the political situation becomes. Globally, we see that investment slows during times of uncertainty. Once elections conclude peacefully and stability returns, investment tends to rise again. I am optimistic about that better time.

How is the rise in electricity, gas, and energy costs affecting your competitiveness?

The interim government has done relatively well here. Gas prices were not raised as much as expected. If the current situation continues, there will be some relief. But if costs rise further, the pressure on industries will only grow.

Tell us about the export situation.

To boost exports, incentives must continue. Logistics costs in Bangladesh are much higher than in competing countries. Our freight costs are higher compared to theirs. That puts us at a disadvantage. But Bangladesh is efficient in terms of production costs. If the government improves logistics infrastructure, we can do much better in exports. Because we have a lot of capacity here, there is no doubt about that. But high domestic logistics costs remain a challenge.

Tell us about BSRM’s current production capacity and future employment plans.

We have expanded the production capacity of billets, the intermediate raw material for rod production, through a new factory. This has increased our annual production capacity to 2.4 million tons. After expansion, we are using this capacity for both billets and long steel. For the first time in the country, we are producing wire rods at the new factory. Wire rods are used as intermediate raw materials for products such as nuts, bolts, screws, welding materials, and machine parts. Previously, we relied entirely on imports for this product.

Recruitment is now underway at the new plant in Mirsarai, Chattogram. But to plan further expansion, we need a favorable environment. We must have confidence in business growth. If the market improves, GDP growth rises, and the government focuses more on infrastructure, BSRM will invest further and set up new plants. With political stability, higher government development spending, and skilled manpower, Bangladesh’s steel industry can achieve even greater success. Our goal is to keep pace with the country’s growth.

What impact do you think technology and automation will have on employment in the industry? And how do you evaluate Bangladesh’s vocational education and skill development?

It is true that the nature of employment will change in the future. Manual labor will decrease, while system- and software-based work will increase. The quality of manual work and automated products is completely different. Since both the quality and demand for automated products are higher, it is essential for workers to learn new skills. If the government strengthens polytechnic and technical training institutes, we can develop skilled manpower within the country.

In South Asia, countries like India and Sri Lanka have much more advanced systems of polytechnic and vocational education, making their workers more skilled. In Bangladesh, the skill gap remains a major problem. If skill levels do not meet the required standard, there will be a persistent shortage of skilled manpower. Without skill development, an automated work environment cannot be established here. The limitations in our current polytechnic education system must be addressed so that we can produce skilled workers. The government has opportunities to do more in technical education, which can create a significant positive impact on employment.

The government has also been talking about high-value-added industries. Every year, there will be inflation, and wages will rise along with it. As a result, production costs will increase over time. Like the rest of the world, industries in Bangladesh will gradually become more technology-driven, automation will rise, and industries will shift toward high-value-added production.

If workers engaged in manual labor are not trained in computer-based tasks, they will fall behind. Because the nature of work will be system-oriented, involving daily data entry, machine operation, and data management. Those lacking digital or technical skills will lose job opportunities.

Improving skills will not only increase domestic employment but also help workers abroad earn higher wages. If we can raise the skill levels of our overseas workers by 30 percent, their incomes will grow, and naturally, the country’s remittance flow will rise significantly.

We need major investment in skill development right now. Our biggest weakness lies in the education sector. If we fail to improve the quality of our education system, we will lose the opportunity of the demographic dividend. That is why the education system must be modernized and given top priority for skill development.