The government is under pressure to bring about major changes in documentation of the annual development projects to be financed by the World Bank to meet 30 per cent local labour requirement.聽
On July 18, the WB announced that companies bidding on international civil works contracts must ensure that 30 per cent of labour cost is local.
Terming the aim of the policy to boost domestic job creation and skills development, the WB said the changes would apply to civil works--such as the construction and maintenance of transportation and energy infrastructure鈥攗nder competitive international procurement, starting September 1, 2025.
At present, there has been no condition on requirement of local workers in the WB financed project with the contractors recruiting local labour on their own.
Planning commission will examine the positive implications of the guidelines for new projects, which will be reflected in new Development Projects Proposals, said planning adviser Wahiduddin Mahmud in a text message.
Economists said the new policy will help addressing the jobs challenge in the countries like Bangladesh facing stagnation in the job generation against the backdrop of growing unemployment, mostly among educated youths.
Planning commission will examine the positive implications of these guidelines for new projects, which will be reflected in new Development Project Proposals, according to text message by planning adviser Wahiduddin Mahmud.聽聽聽
Md Mustafizur Rahman, a member of the planning commission said on Tuesday that they were yet to know about the policy officially.
Economic Relations Division that maintains main links with the WB has not informed the matter to the planning commission.
However, the policy looks favourable for the job generation, said the planning commission member dealing with projects links to agriculture, water resources and rural institutions.
An ERD official earlier on the day said they would inform ministries and divisions regarding the new WB policy soon.
Former World Bank Dhaka office chief economist Zahid Hussain said the WB policy shift came amid a less than expected employment in the country over the past one decade.聽聽
The number of unemployment population increased to 2.6 million in the July-September quarter of 2024 compared with that of 2.4 million in the same period of 2023 while the unemployment rate stood at 4.49 per cent in July-September period of 2024 compared with that of 4.07 per cent in the same period of 2023.
But most worrying factor is the growing number of educated unemployed youths.
A survey in December 2024 by the Bangladesh Bureau of Statistics put the number at around 1.94 million.
Besides, the country鈥檚 young population not involved in education, employment or training has increased by more than 10 percentage points in the past five years, making them vulnerable in the labour market.
The World Bank currently has 57 ongoing projects in Bangladesh with a total commitment of $16 billion in grants and concessional financing.
