Light engineering fails to emerge as export frontier

After agriculture and readymade garments, light engineering should have been Bangladesh’s next export frontier, but that transition has yet to take place, said Md Abdur Rahim Khan, additional secretary at the commerce ministry.

The sector has remained underdeveloped for decades, limiting the country’s ability to diversify its export base, he said at the inauguration of the three-day 2nd Bangladesh Light Engineering Expo 2026, which began in Dhaka yesterday, according to a press release.

Bangladesh has failed to capitalise on the global potential of light engineering products, said Khan, who is also additional secretary and project director of the Export Competitiveness for Jobs (EC4J) project.

He added that Bangladesh’s graduation from least-developed country (LDC) status in November will gradually lead to the erosion of trade preferences, making capacity building, technological upgrading and effective policy implementation increasingly urgent.

“We still have time. We must strengthen the capacity of institutions responsible for implementing government policies, while entrepreneurs need to further enhance management efficiency, innovation and research,” he said.

Khan also urged stakeholders not to focus solely on exports but to give equal importance to domestic demand. Referring to domestic purchasing power, he said that at least 25 percent of Bangladesh’s population has considerable purchasing power, showing a sizeable domestic market.

Hosna Ferdous Sumi, an official at the World Bank, said the domestic market -- valued at about $8 billion -- offers significant opportunities, but product quality remains the biggest challenge in both local and export markets.

The light engineering sector employs around 300,000 workers across nearly 50,000 enterprises and contributes about three percent to national GDP, said Abdur Razzaque, president of the Bangladesh Engineering Industry Owners Association (BEIOA).

Exports from the sector currently stand at $795 million but could reach $12.56 billion by 2030 with appropriate policy support, investment and technological advancement, he said.

Razzaque added that proper implementation of the recently formulated Light Engineering Industry Development Policy, particularly its time-bound action plans, could play a crucial role in export diversification.

Describing the expo as more than a display event, he said it serves as an effective sourcing and networking platform, connecting manufacturers, buyers, suppliers, investors and policymakers, and facilitating technology transfer, business deals and access to global markets.

He also outlined key policy proposals, including the establishment of dedicated light engineering zones; support for technology transfer and research; reduced duties on raw material imports; simplified patent and design protection; training programmes for women and youth; cash incentives; and preferential access to bank financing.

Organised by BEIOA, the expo will continue until February 4 and remain open daily from 11:00am to 7:00pm, showcasing the latest technologies, components, machinery and innovative products from the country’s light engineering sector.

Abdur Rashid, senior vice-president of BEIOA, and Raju Ahmed, vice-president, along with other central directors, representatives from the EC4J project and officials from the Ministry of Commerce, were also present at the inauguration event.