Islamabad, 28-Jan-2026 (PPI): A renowned Japanese development economist on Monday highlighted Bangladesh’s successful transition into an East Asian-style industrial powerhouse, arguing its export-led growth offers a crucial blueprint for Pakistan and other South Asian nations to follow.
During a special guest lecture, Prof. Yamagata Tatsufumi of Ritsumeikan Asia Pacific University explained that Bangladesh has effectively shed the characteristics of a typical South Asian economy by adopting a high-intensity industrial development model.
The lecture, titled “Bangladesh as an East Asian Country: Its Pattern of Industrial Development,” was co-hosted by the Sustainable Development Policy Institute (SDPI) and the Embassy of Japan. The event brought together policymakers, researchers, and development practitioners to analyse regional industrialisation and export competitiveness.
In his opening remarks, Dr. Abid Qaiyum Suleri, Executive Director of SDPI, underscored the relevance of Bangladesh’s experience for Pakistan, citing strong similarities in natural resource endowments and economic structure. He noted that Bangladesh’s strategic pivot had not only expanded its export share but also significantly increased female participation in the workforce.
Dr. Suleri recalled a time when Pakistan and Bangladesh were competitors in sectors like bicycle exports, a market where Bangladesh has now secured a substantial share. He described the Japanese expert’s perspective as an “eye-opening” analysis for South Asian countries, aligning with SDPI’s mission to foster evidence-based policymaking.
Prof. Yamagata, a former visiting fellow at the Bangladesh Institute of Development Studies, asserted that while geographically South Asian, Bangladesh’s development trajectory increasingly mirrors that of East Asia. He challenged the “race to the bottom” theory, which attributes the nation’s apparel export growth solely to labour exploitation.
Instead, he positioned the ready-made garments sector as a crucial “window for diversification” and a foundation for wider industrial development. He pointed out that after a decline between 1985 and 2005, minimum wages in the apparel industry have shown a consistent upward trend, with real wages rising through to 2023.
The professor identified Bangladesh as a natural reference point for Pakistan, noting historical complementarities in the textile value chain where Pakistan holds strength in upstream segments and Bangladesh excels in downstream manufacturing. He added that Bangladesh is catching up with India on several economic indicators and narrowing the gap with China in apparel exports to the European Union.
According to the data presented, garments constitute nearly 80 percent of Bangladesh’s total exports, making it the third-largest textile exporter to the United States, behind only China and Vietnam.
Prof. Yamagata explained that Bangladesh’s competitiveness is rooted in its status as a labour-abundant and land-scarce economy, a feature more characteristic of East Asia than South Asia. This has enabled its success in labour-intensive industries and is now fuelling a gradual diversification.
He cited a growing assembly of electrical appliances, exports of refrigerator and air-conditioner compressors to Europe, and an expansion into transport equipment, including shipbuilding and drone manufacturing. Bangladesh, he added, is now the fourth-largest exporter of bicycles to Europe. Emerging sectors such as pharmaceuticals and electronics further signal this industrial diversification.
During the Q&A session, Prof. Yamagata addressed the challenges associated with Bangladesh’s upcoming graduation from Least Developed Country (LDC) status, which will alter trade conditions, particularly for its pharmaceutical sector. He also noted that the 2013 Rana Plaza collapse prompted stronger compliance with environmental and labour standards due to pressure from international brands.
Confidence in the economy’s readiness for this transition is evident in recent agreements with Japan, including discussions on an Economic Partnership Agreement, and growing foreign investment interest, notably from China. However, he cautioned that the export base remains heavily concentrated, with textiles accounting for about 81 percent of exports.
Speaking at the event, the Ambassador of Japan to Pakistan, Akamatsu Shuichi, said Bangladesh’s industrial journey provides an interesting reference for Pakistan, given shared challenges like labour abundance. He stressed the need for South Asian countries to create opportunities to productively absorb their growing labour force to achieve sustained economic growth.