39648th Five Year Plan July 2020 June 2025 1

8thFive Year Plan (July
2020 – June 2025)

Shubhashish Bose
Chief Executive Officer
The Institute of Chartered Accountants of Bangladesh
Introduction
The duration of the 7th Five Year Plan (7FYP) ended in June 2020. However,
due to the Covid-19 pandemic the 8FYP has been delayed. The General
Economics Division of the Planning Commission (GED) had to revisit and
revise the targets and strategies in view of the pandemic. The 8th Five Year
Plan, a projected course of action for a period of 5 year, represents the first
phase of the country's Perspective Plan 2041 (PP2041).
Two broad themes of the plan:
Promoting Prosperity: The plan has emphasized on appropriate policies,
frameworks and devised suitable and sustainable development strategies for
promoting prosperity. For this, the first step is to bring Bangladesh closer to
attaining Upper Middle-Income Country (UMIC) status, major Sustainable
Development Goal (SDG) targets, and eliminating extreme poverty.
Fostering Inclusivity: A broad-based strategy of inclusiveness with a view to
empowering every citizen to participate fully and benefit from the development
process and helping the poor and vulnerable with social protection- based
income transfers has been adopted in the plan.
Plan is divided into two main parts:
A. Macroeconomic perspective: The first part delineates the

macroeconomic framework for the plan period (July 2020-June 2025) along
with strategic directions and policy framework for promoting inclusiveness,
reducing poverty and inequality. It also describes the resource envelop and
overall fiscal management tools of the government and specifies the
Development Results Framework (DRF) for proper monitoring and
evaluation.
Plan is divided into two main parts (cont.):
B. Sectoral Strategies: The second part sets out the sectoral strategies for
thirteen sectors (except defense) with some specific targets to attain by FY
2025. The ministries/divisions are expected to follow these sectoral strategies
and action measures while preparing their sector specific projects and programs
to achieve their respective targets set in the 8th Five Year Plan.
The 8th Plan centers on six sub-core themes:
1. Rapid recovery from COVID-19 to restore human health, confidence, employment, income and economic
activities;
2. GDP growth acceleration, employment generation, productivity acceleration and rapid poverty reduction;
3. A broad-based strategy of inclusiveness with a view to empowering every citizen to participate fully and
benefit from the development process and helping the poor and vulnerable with social protection- based income
transfers;
4. A sustainable development pathway that is resilient to disaster and climate change, entails sustainable use
of natural resources; and successfully managing the inevitable urbanization transition;
5. Development and improvement of critical institutions necessary to lead the economy to UMIC status;
6. Attaining SDG targets and coping up the impact of Least Developed Country (LDC) graduation
(sustainable transition with exploring alternatives to the erosion of preferential benefits and not to go back to
previous LDC status).
Table: GDP Growth Projections under the 8FYP
Particulars FY20 FY21 FY22 FY23 FY24 FY25

(Actual)
Pre-COVID-19 GDP 8.19 8.23 8.29 8.32 8.37 8.51

growth (as per
pp2041)
GDP growth with 5.24 7.40 7.70 8.00 8.32 8.51
COVID-19
Source: BBS and GED Projections
Challenges in implementations of the plan:-
During the implementation period of the 8FYP, the government will face a number of
challenges. The four specific ones are the following:
1. Covid-19 pandemic
2. Graduation from the least developed country (LDC) category
3. Implementation of the Sustainable Development Goals (SDGs) and
4. Climate change vulnerability.
Besides, Russia Ukraine war, rise in fuel price, disruption in supply chain & currency
devaluation are some other major challenges that government needs to confront with.
Effects of the challenges in implementation of
the plan:-
1. Covid-19 pandemic: Covid-19 has deteriorated economic and social
conditions. The pandemic has put pressure on the economy which has resulted
in a rise in poverty and inequality. Informal workers, the urban poor, migrant
workers, small businesses and women are among the most affected segments.
Before the outbreak of the pandemic in Bangladesh some of the
macroeconomic indicators were under pressure.
the plan (cont.):-
2. Graduation from the least developed country (LDC) category: The effects of
graduation that every LDC faces is the loss of LDC-specific international support
measures (ISMs), such as preferential market access. The decline of existing privileges
and preferences will adversely hit the exports of Bangladesh, especially that of apparel
products, to European and North-American markets. It is estimated that Bangladesh
may experience a shortfall of 8-10 percent of its gross export revenue, amounting to
almost USD 2.5 billion annually, due to the loss of duty-free and quota-free market
access. Besides, the duty-free trading facilities that Bangladesh is currently enjoying
under the World Trade Organization's (WTO) generalized system of preferences
(GSP) will be curtailed once it leaves the LDC group. With graduation, Bangladesh will
no longer be eligible for LDC-specific special and differential treatment, aimed to
facilitate LDCs to increase participation in international trade, under WTO agreement.
the plan (cont.)
3. Implementation of the Sustainable Development Goals (SDGs): The
8th Five-Year Plan (FYP) is crucial to realizing the SDGs by 2030. The key
focus of 8th FYP during the 2020-2025 period will be on creating sustainable
jobs and reduction of poverty for inclusive growth. In order to compete in the
global market, the country has to improve on social, environmental and labor
related compliances.
the plan (cont.)
4. Climate change: Despite Bangladesh's resilience to various shocks including natural
disasters, dealing with the impact of climate change will be beyond its capacity given the nature
and scale of the impact. The Intergovernmental Panel on Climate Change (IPCC) has provided
scientific evidence on this. Bangladesh will have to negotiate at the global level to receive funds
for climate change adaptation. During the 8FYP period Bangladesh needs to invest in green
energy, green building, green transportation and green agriculture. In the first phase of
implementation, the 8FYP will prioritize the ongoing efforts to reduce air and water pollution,
strengthen forestry management and implement the BDP2100. Efforts will be made to build
up institutional capabilities, policies and regulations for the implementation of environmental
fiscal reforms (EFR) and the development of the green growth strategy. Proper coordination
with global climate change programmes will be maintained along with stronger efforts to
mobilize global climate change resources.
Focus of the Plan:
The plan mainly focuses on 7 areas:
a) Labour-intensive manufacturing
b) Export-oriented manufacturing-led growth
c) Agricultural diversification
d) Dynamism in cottage, small and medium enterprises
e) Modern services sector
f) ICT based entrepreneurship, and
g) Overseas employment.
8FYP targets for indicators:
 Inflation – 4.60%
 Public & Private Investment – Public (25.3%) & Private (74.7%)
 Employment - 1 crore 13 lakh 30 thousand
 Poverty reduction – 15.60%
 Revenue mobilization – 12.3% of GDP
 Allocation for Annual Development Plan (ADP) – 3675.3 billion
Key Takeaways:-
• Bangladesh has targeted 8.51 per cent economic growth for the 8th Five Year Plan.
To accommodate this growth target, the gross investment needs to be raised to
36.59 per cent of GDP by FY 2025.
• As per the Planning Minister, some Tk. 64,959.8 billion is required to implement
the 8th Five-Year Plan. Out of the amount, 94.9% will be mobilized from the
domestic source, while 5.1% will be financed from external resources.
• Since the beginning of the COVID-19 pandemic, the government has taken
various steps to combat its fallout. It has taken a comprehensive plan to overcome
the negative impacts of pandemic on economy and people.
Key Takeaways (cont.):-
• The comprehensive plan is based on 4 (four) main strategies --discouraging
luxury expenditures and prioritizing government spending that creates job,
creating loan facilities through commercial banks at subsidized interest rate
for the affected industries and businesses, expanding the coverage of the
government’s social safety net programs.
• In light of the comprehensive plan and strategies, the government has
declared a number of stimulus packages to support the emergency healthcare
services to protect jobs and achieve smooth economic recovery.
Concluding remarks
The Government needs to address issues relating to forex reserve, surge in
import, export development, remittance inflow, inflation, GDP growth, Tax
to GDP ratio, Foreign Direct Investment, and Human Resource
Development.
Policy measures would drive the issues to a positive direction.

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8thFive Year Plan (July

2020 – June 2025)

A. Macroeconomic perspective: The first part delineates the

Particulars FY20 FY21 FY22 FY23 FY24 FY25

Pre-COVID-19 GDP 8.19 8.23 8.29 8.32 8.37 8.51

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