World Bank allocates $100 million to help Bangladesh diversify exports

Bangladesh will get $100 million from the World Bank for diversifying exports in labour-oriented industries beyond the ready-made garment sector.

The Washington-based organisation said in a statement on Sunday that the fund would help create more than 90,000 jobs and improve competitiveness in export sectors like leather, footwear, plastics and light engineering.

The fund comes under the global lender's Export Competitiveness for Jobs Project.

“The project will help the economy to integrate further into the world trading system, and provide better jobs to Bangladeshi youth entering the labour market in the next decade, with a particular focus in improving female labor participation” the statement quoted WB Country Director Qimiao Fan.

The 38-year interest-free credit comes with a service charge of 0.75 percent, including a 6-year grace period.

WB says employment growth in the RMG sector, which accounts over 80 percent of Bangladesh exports, has been stalled, while other sectors have been generating about 300,000 jobs annually.

"Various sectors of light manufacturing, which is labour intensive and employ women, have expanded employment by 4.3 percent annually since 2010," the statement reads.

According to WB Team Leader for the Project, Michael Olavi Engman the average wage growth for firms benefitting from the project could rise by almost 34 percent.

“The project will encourage training to improve skills and labor productivity, and thus help generate better-paid jobs," the statement quoted him.