The logistics sector should be declared as a thrust sector and proper incentives need to be declared to attract local and foreign investment, according to Abul Kasem Khan, chairperson of Business Initiative Leading Development (BUILD).

Developing countries invest 9 percent to 10 percent of their total economic output to improve the logistics environment, he added. "Success stories of China, India, and Vietnam stand out as best practices in logistics. Their return on investment is one of the highest in the world."

Kasem was speaking at the meeting of the Logistics Infrastructure Development Working Committee (LIDWC) Saturday. BUILD, and the Prime Minister's Office jointly organised the virtual meeting.

The logistics sector needs more investment while the existing policy should to be reformed so that more investment could be made, Md Tofazzel Hossain Miah, secretary at the Prime Minister's Office, said at the meeting.

He suggested having a structured policy framework that may steer regulatory reforms as well as policy interventions, paving the way for a better "logistics environment."

Dhaka Chamber of Commerce and Industry President Rizwan Rahman said: "Logistics should be included in the industrial policy as a sector. Special Procurement Act should be considered to prepare logistics policy."

BUILD and the Ministry of Industries are working together to include logistics as a high priority sector and declare investment incentives for logistics and its sub-sectors in a separate chapter of the upcoming National Industrial Policy 2021, BUILD CEO Ferdaus Ara Begum said.

"Formulation and implementation of the National Integrated Logistics Policy or Master Plan could help attract investment and increase export competitiveness to realise the targets of the 8th Five Year Plan and Perspective Plan 2041," she added.

"Two issues will be presented at the third meeting of the LIDWC. Framework or position paper will be prepared to set the national target for reducing logistics cost and outline to prepare national logistics policy, plan or strategy."

Tatiana Peralta Quiros, a senior transport specialist of the World Bank Group, said logistics cost increases the overall production and business operation cost by 4.5 per cent to 4.8 percent.

Implementation of three initiatives like reducing dwell times at Chittagong Port and national highways congestion along with initiation of national logistics strategy would increase overall export of Bangladesh by 19 percent, she added.

Masrur Reaz, chairman of Policy Exchange, said there is no alternative to an efficient logistics system to ensure export-led growth and diversification.

He focused on the initiation and implementation of national logistics policy, demand identification of the production houses, priority sectors, and trade gateways on logistics.