Staff Correspondent

A taskforce of the interim government has recommended encouraging foreign direct investment (FDI) in the country's health and technical and vocational education sectors.

"The recent closure of the Indian medical market has accentuated the urgent need for high-quality healthcare within Bangladesh. To address this demand effectively, liberalising FDI in the tertiary health sector is essential," says a report of the taskforce.

Education and Planning Adviser Professor Wahiduddin Mahmud handed over the report of the taskforce on "Re-strategising the Economy and Mobilising Resources for Equitable and Sustainable Development" to Chief Adviser Professor Muhammad Yunus here on January 30 last.

Although this idea has faced resistance from vested interests in the past, it is now imperative for the government to revisit the idea.

Allowing foreign investments will significantly benefit local communities by providing access to quality medical services without the need for expensive medical tourism abroad, according to the report.

In addition, fostering competition in the healthcare sector will lead to better services, facilitate skills transfer among local healthcare providers, and establish vital backward and horizontal linkages with international and local health networks. "The time has come for this market to be liberalised," the taskforce observes.

About the attracting FDI in technical and vocational education sector, it shows that the technical skill level of the workforce is a critical constraint to the country's economic growth.

"FDI into technical and vocational education could make a huge difference to the quality of the labour force. Establishing or upgrading polytechnics that can award internationally recognised 'foreign' certifications will elevate the perception and quality of technical education," the report reads.

This will address some of the bottlenecks in acquiring essential technical skills, thereby improving employment prospects and increasing wages for graduates.

A viable approach could involve converting existing polytechnics into colleges under the National University framework, allowing them to offer a two-year BA (Tech) degree, the taskforce says, adding that such changes would not only help to upgrade the quality of education but also equip students with the necessary competencies required in a rapidly evolving job market.

"These measures will have a strong, much needed, 'gentrification effect' on the skilled- labour market."

Besides, the taskforce has recommended enhancing the One Stop Service (OSS) system.

The much-discussed OSS designed to expedite investment proposal approvals remains an essential component of improving Bangladesh's investment climate.

However, its efficiency needs substantial improvement. Currently, the process involves four different entities, creating bureaucratic delays and complexity for investors.

The taskforce has proposed consolidating all responsibilities under a single authority-specifically BIDA (Bangladesh Investment Development Authority).

This streamlined structure would enhance accountability and provide clear guidance for investors navigating the system. Additionally, integrating the PPP Authority's functions within BIDA would further simplify the investment landscape.

"A separate OSS focused on Micro, Small, and Medium Enterprises (MSMEs) is highly recommended to ensure that the sector receives the tailored attention it requires to foster growth," the report says.

The 12-member taskforce was formed on September 10 to reframe the development strategies, find out leakages in financial system and restore discipline in project implementation.