Today in the developing world private sector is considered the driving force behind economic advancement. Private sector development is also relevant to the all-inclusive growth of a nation. With tremendous growth potential in various sectors of the economy, Bangladesh now is considered an “emerging economy”. Increasing participation of the private sector along with required support from the public sector in terms of maintaining economic stability and taking effective policy measures can lead us to the next trajectory of growth. In order to achieve the same, we need to focus on the following:

AGRICULTURE
The government has undertaken a number of policy reforms in terms of privatisation of trade in fertiliser, liberalisation of trade and foreign exchange regime, liberalisation of production, processing, distribution and import of seeds to ensure participation of the private sector. Proper disbursement of farm loan and appropriate price support can greatly help this sector.

APPAREL
The size of the global RMG export market is worth around $410 billion where Bangladesh's market share is only 2 percent. Bangladesh is sustaining the challenges of global recession because it dominates the low-end apparel exports. In FY2008-09 apparel exports to Canada, Mexico, Australia and South Africa were worth $587 million, $82 million, $49 million and $42.5 million respectively. Within Asia, the country exported $23 million to Hong Kong, $14 million to Singapore and $9.5 million to China. Bangladesh is yet to derive benefits from Safta (South Asian Free Trade Area). Efforts to enhance our trade share should continue. Diversification of buyers should also remain a key priority.

PHARMACEUTICALS
More than 80 percent of the Active Pharmaceutical Ingredients (API) and almost the entire vaccine and injectable market are import driven. Between 2003-04 and 2008-09 pharmaceutical exports more than quadrupled from $10.1 million to $45.7 million. As more Western companies seek to minimise expenses in their manufacture of bulk drugs, while they focus more on high-cost patented drugs, Bangladesh can present itself as an attractive destination for off-shoring. Also, with the decline in reverse-engineering in India and China, Bangladesh is in a position to emerge as one of the regional research and development centres. Some are also venturing into newer horizons like biotechnological drugs. Bangladesh should take advantage of the flexibility for patenting medicines under the WTO agreements (LDCs exempted from compulsory licensing until 2016).

POWER
Only 43 percent of the population has access to electricity. There are investment opportunities in the independent/small power plants and nuclear power plants. Replacing the old government-owned power plants, off-shore gas exploration and production, regional energy integration through grid connection should also be explored. The government plans to implement power projects of around 7,000MW in the next five years worth $10 billion.

BANKING & FINANCIAL INSTITUTIONS
With Basel II implementation, the capital requirements of banks will go up considerably. Although market consolidation is expected, many banks will also issue corporate bonds. Private commercial banks should build up expertise in formulating new products in equity and debt capital markets, advisory services, wealth management, etc. Insurance penetration is a mere 0.8 percent in Bangladesh, which is one of the lowest in the world. Islamic insurance is another area, which has scope for growth in our predominantly Muslim country.

TELECOM
Presently the operators generate more than 90 percent of their revenue from voice-based services but data-based services such as mobile internet is gaining ground. 3G licences have already been awarded implementation of which will require significant investment. Grameenphone has recently floated the largest IPO in the country's history. Other operators are also contemplating enlisting.

HEALTHCARE
The demand for healthcare services is rising rapidly due to increasing purchasing power, declining mortality rate and increasing incidence of chronic and treatable diseases. Private high-end hospitals with international standards are also becoming popular. The movement of patients to other countries for treatment costs the healthcare industry an estimated $200 million each year. Therefore investment is needed in the areas of creating healthcare professionals, building specialised facilities, popularising telemedicine, etc.

EDUCATION
Private sector participation in education is being promoted to minimise pressure on public expenditure as well as to lessen dependence on foreign aid. This initiative encouraged the establishment of many schools, colleges, and especially private universities. Private University Act 1992 has resulted in the establishment of 51 private universities. There are still space available for private sector investment in secondary and higher secondary level, if not also primary education.

CHALLENGES & WAY FORWARD
The main challenges inhibiting private sector growth include a lack of accountability, weak corporate governance, ineffective human resource management, failure to attract young talent and negative brand equity. Our private sector to a great extent has failed to adopt itself with the changing needs of the times. Our entire economic system is still heavily dominated by the public sector and the 'public sector mentality'. Private sector investment currently stands at only 19.2 percent of gross domestic product. Success stories around the globe have been possible only through the fruits of privatisation and private sector-led growth. Our existing private sector entities are still raising capital using outdated and inefficient methods.

Policy support from the government is of paramount importance. The government should strive to ensure economic, political and social stability. On the other hand, the private sector also needs to move forward from the 'seeking all support from the government' syndrome. More efforts should be given to corporate governance, financial transparency and appropriate assessment of income tax. Long-term strategic and visionary thinking is also needed. The public sector must also recognise their responsibilities as a corporate citizen for long-term balanced growth. If wealth cannot be created on a sustainable basis, the distribution economics will also not work efficiently.