The government has taken a series of initiatives to expand Bangladesh's micro, small and medium enterprises (MSME) sector, including plans to establish new industrial parks alongside the existing Bangladesh Small and Cottage Industries Corporation (BSCIC) industrial estates, Commerce Minister Khandaker Abdul Muktadir said on Sunday.

Speaking at a programme organised by the Bangladesh Investment Development Authority (Bida) in Dhaka to mark the International Day of Micro, Small and Medium-sized Enterprises, the minister said strengthening the MSME sector was vital to sustaining economic growth and generating employment.

He said MSMEs currently contribute around 34 percent to the national economy and described the sector as the "lifeline" of Bangladesh's economy.

"So, the more dynamic this sector becomes, the higher our GDP growth will be," Muktadir said.

The minister said the government was working to create a more supportive environment for entrepreneurs by expanding industrial infrastructure and addressing long-standing constraints facing businesses.

Reflecting on the past 17 years, he said the rate of creating new entrepreneurs had remained critically low, while many existing industrial units were unable to utilise their full production capacity because of acute gas shortages.

According to the minister, these challenges had not only constrained industrial output but also contributed to widening income inequality.

He assured business owners that the government was working with sincerity to resolve the country's gas supply crisis, which he said would help increase factories' manufacturing capacity and strengthen the overall industrial sector.

Senior government officials, business leaders and representatives from the MSME sector attended the event.