At a recent luncheon meeting, organized by the American Chamber of Commerce in Bangladesh (AmCham), leaders emphasized the critical role of digitization in bolstering the country's economic stability and advancement.

Syed Ershad Ahmed, President of AmCham, highlighted that Bangladesh has so far made good progress but the country will lose some benefits when graduating from its Least Developed country (LDC) status in 2026.

“To overcome challenges, RMG and all experts should focus more on reducing management as well as running costs and increasing efficiency,” he said.

Digitization holds the key to achieving these goals, making international trade more efficient, secure, and less vulnerable to fraudulent activities.

"Increasing digital payments across sectors will streamline operations, reduce costs, and ensure sustainability," noted Ershad. He advocated for a shift towards a cashless economy, citing the potential for American companies like MasterCard and Visa to support Bangladesh in establishing an open-loop payment ecosystem.

State Minister for Finance, Waseqa Ayesha Khan, emphasized these sentiments, affirming the government's commitment to transforming Bangladesh into a 'Smart Nation' by 2041 through widespread digitalization. She outlined ambitious targets including a 100% digital economy and significant reductions in poverty and inflation rates.

In the 'Smart Bangladesh', she said per-capita income is expected to reach at least $12,500, with less than 3.0 percent of the population below the poverty line and extreme poverty eradicated.

"Inflation will be maintained between 4.0-5.0 percent, the budget deficit will stay below 5.0 percent of the GDP, the revenue-GDP ratio will exceed 20 percent and investment will account for 40 percent of the GDP."

According to Waseqa, the government aims for 100 percent digital economy, and science and technology-based literacy.

"By 2025, 30 percent of transactions are targeted to be cashless, to reach 100 percent by 2031, as discussed in the first Smart Bangladesh Taskforce Meeting in August 2023," she added.

In August 2023, Prime Minister Sheikh Hasina directed the "Smart Bangladesh Task Force" to work on spreading technology further among the common people.

She said, “Skilled human resources have to be developed in the country as digital devices are opening up new opportunities.”

Furthermore, addressing challenges such as inflation management and logistical infrastructure deficits, stakeholders emphasized the urgent need for robust policy implementations to sustain economic growth.

The government's focus on promoting scientific education and innovation underscores its strategy to leverage technology for economic development.

To reach 100% financial inclusion by 2026, Bangladesh Bank introduced the 'Crawling Peg System and put the National Financial Inclusion Strategy 2021–2026 into practice.

Accordingly, financial inclusion has been transformed by the bKash and Nagad, which have made millions of people in rural areas who were previously shut out of the official banking system.
There are currently more mobile financial service accounts in Bangladesh (22.4 crore) than people living there.

According to the state minister, branchless and cashless services are being created in large part via automated teller machines, debit cards, credit cards, point-of-sale systems, and online banking.

To promote the financial inclusion of the general public, around 11,295 bank branches, 3,656 sub-branches, 21,613 agent outlets, 1.77 million MFS agent points, 25,336 MFI branches, and 9,886 post offices are active nationwide, she added.

Notably, Bangladesh navigates towards economic stability and prosperity. For this, stakeholders emphasize that embracing digitization will not only drive efficiencies but also foster a conducive environment for business and investment, ultimately paving the way for sustainable growth in the global market.