Prof. Syed Munir Khasru speaks on South Asia’s challenges and opportunities

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As the Chairman of IPAG and e.Gen Consultants, you’ve built two world class institutions in the global knowledge industry. What inspired you to establish IPAG, and how do you see its role in shaping policy and governance in South Asia and globally?

What inspired me to establish the Institute for Policy, Advocacy, and Governance (IPAG) is the conviction that evidence-based policymaking and constructive dialogue are essential for addressing global challenges. Coming from a background that combines academia, research, and policy engagement as well as project management and implementation, I saw the need for an institution from the developing Global South that could bridge the gap between policy formulation and implementation by providing solution driven research & analysis. IPAG was founded with the vision of creating a global think tank that not only generates knowledge but also engages with diverse stakeholders to drive impactful changes.

IPAG’s role in shaping policy and good governance, both in South Asia and globally, has evolved significantly over the years. It is one of the world’s fastest growing think tanks with a presence in five continents South Asia (Dhaka & Delhi), Asia Pacific (Melbourne), Europe (Vienna), Middle East (Dubai), and Africa (Mauritius). Our work is multi-disciplinary and cross functional spanning across a wide range of critical areas which include SDGs, trade & investment, international relations & strategic affairs, climate change & energy transition, digital transformation & cyber security, regional cooperation & connectivity.

One of the key contributions of IPAG has been its engagement with influential global platforms like the G20 and G7 whereby I have had the privilege to be Co-chairs multiple task forces for both G20 and G7, making IPAG one of the very few institutions from the Global South to have a strong voice in shaping global policy and governance frameworks. From SDG & trade to democracy & good governance, from multilateralism to G7- G20 synergy, climate change & energy security to smart food & agriculture, digital transformation & newly emerging technologies to AI – IPAG has led from the front with participation from multi stakeholders which include the likes of the UN, FAO, WFP, WTO, World Bank, ADB, Google, Microsoft. Meta, Harvard, Stanford, Oxford, Cambridge etc. We also contribute to the World Economic Forum (WEF) and rea member of the Council for Global Problem-Solving, an exclusive consortium of world-class think tanks driving the global policy landscape.

South Asia is one of the fastest growing regions in the world, yet it faces significant challenges like poverty, climate change, and political instability. How can South Asia leverage its demographic dividend and economic potential to become a global leader in sustainable development and governance?

South Asia is at a crucial moment experiencing rapid economic growth while grappling with deep rooted structural challenges. A vital opportunity lies in our workforce, particularly our youth and the untapped potential of women. Currently, two thirds of working age women are not in the labor force. Closing this gap could boost per capita income by nearly 50% but it requires stronger legal protections, better workplace policies, and societal shifts.

Trade and investment remain another challenge as we are one of the least open regions. Reducing barriers, cutting red tape, and encouraging a business friendly environment could attract foreign investment, drive technology transfers, and create jobs. Governance issues, including political instability and corruption, hold us back. Strengthening institutions, building capacity, increasing transparency, and leveraging digital tools like AI and blockchain can improve efficiency and accountability.

SDGs are a universal call to action, but their implementation varies significantly across regions. How is South Asia progressing toward achieving the SDGs, and what role can organizations like IPAG play in accelerating this progress?

South Asia’s progress on the SDGs? Yes, it’s mixed. Some countries are doing well while others are struggling to keep up. If you look at Bhutan and the Maldives, they’re leading the region in terms of SDG rankings, both scoring above 70, which is impressive. They’ve got relatively stable governance and strong policies that seem to be working. Sri Lanka and Nepal are also doing okay, hovering around the mid-60s in their scores, so they’re making decent progress.

Then you’ve got the bigger countries like India and Bangladesh which are kind of in the middle of the pack. Bangladesh, for example, has made considerable progress in things like poverty alleviation and gender equality but there are still challenges, especially with climate resilience and infrastructure. India is similar, progress is happening but there are big issues with inequality, environmental sustainability, and social disparities. Pakistan is struggling more with a score below 60 and Afghanistan is far behind with a score of 48 So overall, there’s progress in South Asia but it’s uneven.

International knowledge outfits such as IPAG can play a crucial role in accelerating SDG progress by offering evidence-based recommendations, and influencing government strategies through data driven insights, policy recommendations, advocacy and dialogue.

IPAG has a strong focus on energy transition and renewables, and climate change is a key agenda item for the G20. Given that South Asia is one of the most vulnerable regions to climate change, how can the region transition to a green economy while balancing rapid industrialization and economic growth? Additionally, how can South Asian countries collaborate with G20 nations to secure funding, technology transfer, and capacity-building support to achieve these goals?

South Asia faces severe climate threats while also being a hub for fast-growing economies. The region still depends heavily on fossil fuels, with energy accounting for 63% of missions. Bangladesh relies on liquefied natural gas for 70% of its energy needs, while India generates about 70% of its electricity from coal. Transitioning to renewables is both an environmental and economic necessity, especially given the volatility of fossil fuel prices.

Financing is the biggest hurdle given the IFC estimates a $3.4 trillion climate investment opportunity in South Asia by 2030 if policy targets are met. Given that India and China are part of the G20, cooperation on climate adaptation, climate finance, and just energy transition can be explored. South Asian nations may gain better access to advanced green solutions like carbon capture and energy-efficient manufacturing which are costly and often restricted.

South Asia is a region of strategic importance with complex geopolitical dynamics. How do you see the role of regional cooperation, through organizations like SAARC and others, in addressing shared challenges such as trade, cyber security, global health and climate change?

Regional cooperation in South Asia is crucial, but political tensions, particularly between India and Pakistan, have stalled efforts. For instance, SAFTA is aimed at boosting regional trade, yet after nearly two decades, trade within South Asia remains around 5%, compared to ASEAN’s 25%. The 19th SAARC Summit in 2016 was even canceled due to political disagreements.

Given the rise in cyberattacks, financial fraud, and misinformation, regional cooperation is urgently needed to secure South Asia’s digital space and promote better connectivity. However, there are instances whereby leaders have come together like during COVID-19, Indian PM Modi convened SAARC leaders for a meeting on measures to deal with COVID-19, proving that on issues of common interest, the region can come together.

Climate change is another major challenge. Rising temperatures, floods, and extreme weather are already impacting South Asia. SAARC’s Thimphu Statement on climate change was a step forward, but little has been done to implement it. Despite its challenges, SAARC can still play a role through track 1,5 and 2.0 dialogues, involving government, private sector, and civil society to drive progress. On that note, IPAG is ready to extend its knowhow and expertise to the services of people of the region.

Bangladesh has achieved remarkable economic growth over the past decade, with a strong focus on industries like RMG and remittances. However, challenges like income inequality and job creation persist. What policy measures would you recommend ensuring that this growth is more inclusive and sustainable?

The Ready-Made Garments (RMG) sector makes up 20% of GDP and employs over 4 million people, benefiting from liberal trade policies. In contrast, non RMG exports face more restrictions, limiting diversification. Beyond tariffs, restrictive trade practices also hinder FDI in non-RMG manufacturing, a missed opportunity. In a nutshell, with LDC graduation in 2026, expanding exports beyond RMG is vital for Bangladesh. Sectors like agro-processing, light engineering, and pharmaceuticals have potential and to stay competitive, we must adjust tariffs, improve trade facilitation, digitize processes, and strengthen regional trade agreements.

As the largest economy in South Asia, how can India play a more constructive role in uplifting smaller regional economies through trade, investment, and technology-sharing? What specific initiatives or policies would you recommend strengthening regional economic integration?

It is an open secret that India has shifted its focus towards BIMSTEC to avoid being in regional groupings that include Pakistan. However, as South Asia’s largest economy, India should ideally lead from the front to ensure no neighboring countries are left behind. India can accelerate FTAs, reduce barriers, streamline customs, and improve logistics with its neighbors, making it easier for smaller economies to access larger markets. Second, though trade with BIMSTEC nations grew from $4.8 billion in 2000 to $45.9 billion in 2019, much more can be done if India prioritizes SAARC. Third, India’s digital and IT expertise offers new opportunities. Additionally, India’s expertise in hydropower, solar, and wind can further drive sustainable growth in South Asia.

Air connectivity remains a major bottleneck in South Asia, with limited direct flights between key cities. This lack of connectivity is costing businesses time and money, hindering trade, tourism, and people-to-people ties. How can the region urgently address this issue to unlock its economic potential?

South Asia has one fifth of the world’s population but only saw 27 million tourists in 2019, compared to 198 million in North America and 968 million in Europe. Poor connectivity is a big reason and air connectivity in South Asia is a major roadblock, slowing down trade, tourism, and business. For example, in absence of direct flights, India-Pakistan flights require a stopover, mainly in the Middle East, adding cost and time and does not make sense – economically, logistically, and even politically. The biggest hurdle is the lack of a regional aviation framework. SAARC aviation policies need a reset to encourage direct flights. At the same time, airport infrastructure must improve. Given that cost is another factor, airlines need fuelefficient jets like the Boeing 737 MAX, which will make up 90% of new deliveries in the region over the next 20 years. e-visas and visas on arrival would also boost tourism and business travel.

As China’s economic influence grows and India positions itself as a regional leader, how can South Asian nations navigate between these two powers to advance a balanced and inclusive regional integration agenda?

Honestly, balancing China’s economic influence and India’s regional aspirations is one of the trickiest challenges for South Asian nations. China’s Belt and Road Initiative has brought massive infrastructure investments to countries like Pakistan, Nepal, Sri Lanka, and Bangladesh. That kind of funding is hard to ignore. So how do we navigate this? The best approach is a multialignment strategy. Take Bangladesh, for example which has deftly navigated its engagement with both the Asian giants by prioritizing its national interest ahead of anything else.

Regional organizations like SAARC need to be revitalized to serve as neutral platforms for dialogue. Whatever partnerships we engage in, whether it is Chinese-funded ports or Indian backed energy projects, they need to be transparent and sustainable. South Asia does not have to pick a side. We can work with both China and India while keeping our own interests front and center.

South Asia is undergoing a digital transformation, with countries like Bangladesh making significant strides. How can the region harness digital technologies to bridge the development gap and create opportunities for its youth?

Well, you see, we have a huge opportunity to bridge the development gap in South Asia through digital transformation, but right now, 61% of people in our region live within a telecom network but a significant portion still do not use the internet. We need to understand that making data and devices more affordable is crucial.

Financial inclusion remains a major challenge, with 650 million unbanked adults in the region. Expanding digital payments and modernizing credit systems can integrate millions into the formal economy. Supporting digital businesses, especially women led ventures, with early-stage financing is important. Despite 90 percent of jobs requiring digital skills, many marginalized youths lack training. Expanding vocational programs in technology, AI, and digital marketing can bridge this gap. Additionally, microloans, e commerce platforms, and startup incubators can drive entrepreneurship and job creation.

There also is a serious gender dimension to it. 170.6 million adolescent girls in South Asia could benefit from increased digital access, yet they are 35% less likely than boys to possess basic digital skills, such as sending emails or managing files. Girls are also half as likely as boys to be enrolled in digital training programs. Governments must introduce policies that prioritize digital education for girls, particularly in underserved areas. The private sector should provide low-cost devices and internet access while funding digital skills training.