The World Bank has cautioned that Bangladesh’s public investments are not keeping pace with the country’s shifting economic geography, leaving fast-growing areas without adequate infrastructure or services.
In its Bangladesh Development Update, the Bank said there is a “structural misalignment” between where jobs are emerging and where urban development spending is directed. While industrial and service jobs are expanding along the Dhaka–Chattogram corridor and its peripheries, most public funds still target traditional city centers.
The report noted that fragmented responsibilities among ministries and weak coordination have led to overlapping projects and missed opportunities for regional balance. Limited fiscal decentralization has further constrained local governments from responding to new growth zones.
The Bank urged Bangladesh to realign investment priorities with current economic realities, improve inter-agency coordination, and channel more resources to secondary cities and emerging industrial regions.