Govt targets creative economy to contribute 1.5% of GDP

The government aims to raise the creative economy’s contribution to the country’s gross domestic product (GDP) to 1.5 percent, viewing the largely untapped sector as a potential source of growth, jobs and export earnings, according to Finance Minister Amir Khosru Mahmud Chowdhury.

Speaking at an economic diplomacy conference in Dhaka yesterday, he said Bangladesh should invest more in culture, arts, entertainment and design to diversify its economy.

Drawing a comparison with the United Kingdom’s thriving creative industries, the minister said creative products and services generate significant economic value and serve as an important source of soft power.

According to UNCTAD estimates, the global creative economy accounts for about 3 percent of world GDP, or around $2.25 trillion. In India, the sector contributes around 1.5 percent of GDP.

“Bangladesh possesses strong creative talent but has yet to adequately protect, promote and commercialise it,” said Khosru at the conference, titled “Roadmap for Trade, Growth and Economic Diplomacy”, jointly organised by the foreign ministry and the Bangladesh Investment Development Authority (Bida) at Pan Pacific Sonargaon Dhaka.

In his proposed budget for fiscal year 2026-27, the finance minister outlined the 1.5 percent target, alongside a 10-year investment strategy and time-bound action plans aimed at creating 5 lakh new jobs in the creative economy.

Currently, there is little data available on how many activities such as performing arts, design, stand-up comedy and other creative pursuits contribute to the economy.

The finance minister said there are plans to establish a dedicated “theatre district” on 150 acres of land. Such a hub would create new opportunities for spending and economic activity while strengthening the country’s cultural influence.

He highlighted the budget’s focus on developing the creative economy by supporting artisans, designers, performers and cottage industry entrepreneurs through financing, skills development, branding support and access to digital marketplaces.

“We have to protect it, promote it and monetise it,” he said.

He also spoke about streamlining business approvals and deregulation. Khosru said deregulation is central to the government’s efforts to create a more business-friendly environment.

Responding to concerns from foreign investors about higher taxes on compliant businesses, Khosru said the government’s priority is to expand the tax net rather than increase the burden on existing taxpayers.

He added that reforms, including separating tax policy formulation from tax administration, are aimed at improving efficiency and making tax collection more predictable.

He called for a rethink of Bangladesh’s public finance architecture, citing rising borrowing costs and growing interest payments.

Khosru urged greater reliance on the capital market for large investments and said state-owned enterprises should raise funds independently.

He also pledged financial sector reforms and faster regulatory simplification to improve the business environment.

Foreign Minister Khalilur Rahman said Bangladesh must redesign its international economic engagement to cope with slowing global trade and growth, geopolitical tensions, climate risks, rising protectionism and supply chain disruptions.

He cautioned that weaker demand in major export markets, high borrowing costs, climate vulnerability and the global energy crisis pose significant challenges.

Developing countries, he noted, face much higher financing costs and remain vulnerable to volatility in global financial markets.

Rahman said the government’s strategy focuses on stabilisation, reforms and economic transformation, while assuring investors and development partners that Bangladesh remains open for business.

Bida Executive Chairman Ashik Chowdhury said Bangladesh’s biggest achievement over the past year was restoring democratic accountability through a free and fair election, which had strengthened policy stability and investor confidence.

He outlined reforms to support an investment-led growth strategy aimed at creating more than 1 crore jobs, including reducing factory permit approval times to 14 days, expanding digital services and streamlining regulatory procedures.

Acknowledging energy and logistics constraints, he said Bangladesh would accelerate solar power projects, diversify energy sources and fast-track LNG infrastructure development.

He also announced plans to privatise or develop partnerships for around 20 underperforming state-owned enterprises.

“The biggest challenge is execution,” he said.

LGRD and Cooperatives Minister Mirza Fakhrul Islam Alamgir said the government is committed to building a self-reliant and resilient industrial economy in which every citizen could share in prosperity and dignity.

He described the proposed budget as a roadmap towards that goal and said small and informal businesses would be promoted as important drivers of growth.

NBR Chairman Md Abdur Rahman Khan said Bangladesh must raise domestic revenue to support economic transformation, but cautioned against tax policies that could undermine business growth and employment.

He said reforms are focused on lowering compliance costs, simplifying procedures and helping businesses expand. Exporters would receive broader bonded warehouse facilities, while automation is being expanded across tax administration.

More than 45 lakh taxpayers filed returns online last year, while more than 12 lakh users obtained licences and permits through the National Single Window platform, he said.

Among others, Shama Obaed Islam, state minister for foreign affairs; Humayun Kabir, foreign affairs adviser to the prime minister; Mahadi Amin, adviser to the prime minister; Jahrat Adib Chowdhury, member of parliament; Asad Alam Siam, foreign secretary; and M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh, spoke in separate sessions.

Senior government leaders, diplomats, development partners and private sector representatives attended the event.