Govt eyes 2-3% GDP contribution from creative economy: Khosru

Finance and Planning Minister Amir Khosru Mahmud Chowdhury today said the government is working to raise the contribution of the creative economy to 2 to 3 percent of the country’s gross domestic product (GDP).

Utilising the potential of this sector would generate widespread employment, boost foreign exchange earnings, and unlock new economic opportunities, he said at an event organised by Karmasangsthan Bank at the Osmani Memorial Auditorium in Dhaka.

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The state bank launched the ‘Small Business and Micro-Entrepreneur Financing Fund’ (SBMEF) at the programme.

Highlighting global trends, Khosru said the creative economy accounts for up to 10 percent of GDP—the final value of goods and services produced in an economy over a certain period—in several countries.

He said that Bangladesh’s culinary heritage, music, culture, theatre, film, and online-based creative outputs have strong potential in global markets.

While extensive creative work takes place across rural areas, it has remained largely unmonetised. With targeted support, these creative endeavours can be transformed into marketable products, he added.

Underlining the promise of IT professionals and freelancers, the minister emphasised adding value to their work to make it competitive nationally and internationally.

Khosru cited Thailand's "One Village, One Product" initiative and said home-based rural production was integrated into global supply chains in the Southeast Asian country through government assistance in raw material sourcing, skill development, design, and branding.

A similar support framework can be implemented in Bangladesh, he said.

Under the SBMEF, the government has allocated Tk 50 crore for the pilot phase and is expected to provide more based on the success of the pilot phase.

Finance Secretary Md Khairuzzaman Mozumder said loans under the scheme would carry an interest rate of 5 to 6 percent—significantly lower than standard microcredit rates, which typically range between 24 and 25 percent.

Financial Institutions Division Secretary Nazma Mobarek said the initiative directly aligns with national employment objectives, particularly targeting the high unemployment rate among youth aged 15 to 30.

Loans disbursed via Karmasangsthan Bank will help build youth entrepreneurship, initially rolling out across three districts before expanding nationwide, she added.

Karmasangsthan Bank Managing Director Arun Kumar Chowdhury said it has a target to create employment for 900,000 unemployed individuals over the next five years, aligning with the government’s goal of generating ten million jobs in the country during the same period.

Karmasangsthan Bank aims to disburse 50 percent of the loans from the fund to women entrepreneurs.