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Business leaders and industry experts have called for urgent reforms to reduce Bangladesh’s growing dependence on imported industrial chemicals, warning that the current situation is undermining long-term industrial sustainability.
At a seminar organized by the Dhaka Chamber of Commerce and Industry (DCCI) in Motijheel on Saturday, speakers emphasized the need for coordinated policy changes and infrastructure investment to strengthen domestic production.
The event, chaired by DCCI President Taskeen Ahmed, focused on building stronger backward linkages in chemical-dependent export sectors.
Delivering the keynote, Asif Rabbani described chemicals as the “invisible backbone” of Bangladesh’s major industries—including garments, pharmaceuticals, leather, agriculture, construction, and plastics.
Despite this importance, the sector remains heavily import-dependent.
The domestic market stands at $6–8 billion, growing at 10–15% annually.Chemical imports reached $6.2 billion in FY2025, rising 17.8%. Imports account for প্রায় (about) 10% of total national imports.Import volume is over 15 times higher than exports.
Three major industries are particularly exposed:
The readymade garment (RMG) sector uses over 2,500 chemicals, with limited local alternatives.
The pharmaceutical industry imports about 90% of active pharmaceutical ingredients (APIs), costing roughly $1.3 billion annually.
The leather sector, valued at about $200 million, relies on imported tanning chemicals.
This dependency not only increases production costs but also creates vulnerability to global supply disruptions.
Experts identified several barriers holding back local chemical production: Inverted tariff structure: Higher duties on raw materials than finished goods.Inconsistent HS codes: Causing delays and disputes in trade.
Bonded warehouse leakage: Duty-free chemicals entering local markets unfairly
These issues, they noted, discourage domestic investment and distort market competition.
The seminar also highlighted major shortcomings in infrastructure: Lack of dedicated hazardous (DG) chemical storage facilities.Ageing and risky chemical clusters in Old Dhaka.Unreliable gas and electricity supply.Limited testing laboratories for export compliance.
A proposed Chemical Special Economic Zone (SEZ) with shared utilities could reduce production costs by 20–30%, making local manufacturers more competitive.
To address the crisis, speakers outlined a four-point strategy: Policy reform to correct tariffs and standardize regulations.Infrastructure development, including SEZs and testing labs.Regulatory simplification through a single-window system and a National Chemical Policy.Capability building via research in APIs, green chemistry, and academic partnerships.
The seminar set an ambitious goal of achieving 60% backward linkage in the chemical sector.
If implemented, this could save billions in foreign exchange, reduce production costs, create skilled jobs, and strengthen Bangladesh’s export competitiveness.
Speakers stressed that achieving this goal will require joint efforts from the government, private sector, research institutions, and infrastructure developers.
As Bangladesh continues to expand its export economy, reducing reliance on imported chemicals is no longer just an option—it is a strategic necessity.
