Health investment key to economic growth, experts say

Investment in the health sector should be viewed as a long-term investment in economic growth rather than merely an expenditure, experts have said, stressing stronger public-private partnerships (PPP) to expand quality healthcare across Bangladesh.

They said a healthy and productive population is essential for higher productivity, reduced household medical expenses and sustained economic growth. Chronic illness, high treatment costs and inadequate healthcare directly reduce working hours and household savings.

Health Minister Sarder Md Sakhawat Hossain Bokul stressed the role of the private sector alongside government initiatives. He said in a recent event that the government is working to bring private hospitals, clinics and diagnostic centres under quality standards while ensuring reasonable costs and patients’ rights. He added that cooperation between the public and private sectors is necessary to bring healthcare closer to people.

The minister said investment in healthcare has a direct impact on the economy, as healthier workers remain productive for longer, while illness reduces working hours and increases household financial pressure.

Prime Minister’s Health Affairs Special Assistant Dr SM Ziauddin Hyder highlighted the importance of digital healthcare. He said initiatives are being taken to strengthen primary healthcare at the union level and introduce digital health cards to preserve patients’ medical records. Such systems could reduce unnecessary tests and treatment costs while helping doctors access patients’ medical histories quickly.

Sakif Shamim, chairman of the Center for Strategic and Economic Research (CSER) and managing director of Labaid Hospital Group, said healthcare should be viewed not only as a social service but also as a major economic sector. Investment in hospitals, specialised treatment, medical technology, pharmaceuticals, equipment, skilled manpower and research can create jobs and reduce the amount of money spent abroad on medical treatment.

He called for regional specialised healthcare centres, particularly for cancer, cardiac and kidney treatment, and said PPP could help expand capacity quickly. However, he stressed that projects should be based on local demand, including the required number of beds, doctors, nurses and equipment.

Dhaka University economics professor and health economist Dr Rumana Haque said increasing health allocations is positive, but effective use of funds and structural reforms are equally important. She said healthcare investment should be linked to poverty reduction, human-resource development and higher productivity, with greater emphasis on primary healthcare to reduce expensive treatment at later stages.

The health sector has received Tk69,409 crore in the 2026-27 fiscal year, nearly double the revised allocation of Tk35,477 crore in the previous fiscal year, according to the report. The allocation is equivalent to around 1.1% of GDP.

Sakif Shamim said an effective PPP model should combine government regulation, quality control and incentives with private investment, technology and management expertise. He also stressed that affordability, patient safety, transparency and regular monitoring must remain central to any PPP project.

He further called for district-level health hubs, telemedicine, artificial intelligence and digital health records to reduce pressure on Dhaka and expand specialised care outside major cities.

Experts said a healthy population is one of the country’s most important economic assets and that Bangladesh must integrate healthcare more closely with its national economic planning as it seeks higher growth, industrialisation and new investment.