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The government is working to raise the contribution of Bangladesh’s creative economy to at least 3 per cent of GDP by bringing people engaged in the sector into the economic mainstream through skills development, design, branding and marketing support, Finance Minister Amir Khosru Mahmud Chowdhury said on Monday.
He made the remarks while speaking as the chief guest at the inaugural ceremony of a small business and micro-enterprise finance fund launched by Karmasangsthan Bank at Osmani Memorial Auditorium in Dhaka.
The finance minister said creative economic activities account for around 10 per cent of GDP in some countries, and Bangladesh should aim to increase the sector’s contribution to at least 3 per cent.
The government has adopted a separate model to integrate marginal communities into the mainstream economy through the creative sector, he said. The initiative will combine skills training and design support with access to loans.
“Products made by these communities have markets abroad,” Mr Chowdhury said, adding that the government also plans to provide branding and marketing assistance to help them reach international consumers.
Citing Thailand as an example, he said artisans in the country’s villages produce gift items for global markets, while the government supports them with branding and marketing.
He said Karmasangsthan Bank had started providing financial services to people who are often reluctant to approach conventional banks for loans.
“The Karmasangsthan Bank has started its journey with those people who are afraid to go to banks for taking loans,” he said.
Mr Chowdhury observed that previous grants to low-income people often failed to produce sustainable results because recipients were not required to repay the money.
He expressed hope that the bank’s pilot project would help beneficiaries develop skills, increase their incomes and become capable of repaying their loans.
“Unless this segment of the population is brought into the economic mainstream, the economy cannot expand,” he said.
The finance minister also urged Karmasangsthan Bank to reduce its non-performing loan ratio, currently above 4 per cent, to 2 per cent.
Speaking as a special guest, Bijan Kanti Sarkar, Special Assistant to Prime Minister Tarique Rahman for Hindu, Buddhist, Christian and ethnic minority affairs, said Karmasangsthan Bank has the capacity to provide financial support, including collateral-free loans, to marginalised people from minority communities.
Dr Md Khairuzzaman Mozumder, Secretary of the Finance Division, said the project is expected to provide loans at an interest rate of 5-6 per cent, compared with the 24-25 per cent typically charged by microcredit providers.
Nazma Mobarek, Secretary of the Financial Institutions Division, said the initiative is closely linked to the government’s employment goals, particularly as unemployment remains high among young people aged 15 to 30.
She said the government plans to create employment opportunities for young people by providing small loans through Karmasangsthan Bank to help them become entrepreneurs. The project will initially be implemented in three districts before being expanded to other areas.
Chairing the event, Karmasangsthan Bank Chairman Dr AFM Matiur Rahman said the bank could offer loans at lower interest rates if Bangladesh Bank provided funds at 2 per cent.
He said the bank currently charges interest rates of up to 9 per cent on loans while operating on a low spread.
