Efforts to tackle air pollution in Dhaka are showing tangible economic benefits for businesses, with Bangladeshi firms reporting notable gains in productivity and profits after improving indoor air quality, according to the World Development Report 2025: Standards for Development.

Despite the capital’s persistent high PM2.5 levels, which forced authorities to relax national air quality standards, studies reveal that installing air purifiers in workplaces reduced indoor pollution by 15 percent, leading to a 10 percent rise in daily labor productivity and an 18 percent increase in monthly profits.

The report highlights Bangladesh’s evolving standards landscape. The Bangladesh Standards and Testing Institution (BSTI), an autonomous government body, sets national benchmarks for products and services. Factory safety also improved after incidents such as the 2012 Tazreen Fashions fire, prompting multi-buyer initiatives like the Accord on Fire and Building Safety to harmonize standards and strengthen compliance in the garment sector.

However, challenges remain. Dhaka’s slums, concentrated in flood-prone areas, increase urban risk, while national pollution standards have been relaxed to reflect on-the-ground realities, which remain well above the World Health Organization’s guidelines. Compliance with international standards also carries costs; ISO 14001 certification in Bangladesh requires fees of US$458–606 (Tk 53,000–70,000).

The report situates Bangladesh in a broader South Asian context. India’s experience shows how rigorous standardization—from adopting the metric system to integrating railway gauges and regulating vehicle emissions—can improve governance, trade, and public health.

Pakistan’s challenges highlight the cost and complexity of certification for small manufacturers and the mixed impact of education reforms. Sri Lanka’s failed shift to organic farming demonstrates the risks of rapid policy changes without adequate preparation.

Experts say that as Bangladesh strengthens standards in areas from workplace safety to pollution control, it can accelerate productivity gains and economic development, mirroring lessons from its regional neighbors while addressing its unique urban and industrial challenges.