But Bangladesh will have to double its growth rate to achieve the target as the report titled "Economic Growth in South Asia" estimated that the South Asian countries could see single-digit poverty rates in a decade if economic growth accelerates to 10 per cent a year until 2015.

"Bangladesh may find frozen foods, pharmaceuticals and ceramics as areas of growth," according to the WB report released yesterday.

To tap the growth target, the report pointed out, Bangladesh needs to become more competitive by upgrading ports, roads, power supply and transport logistics.

The report said Bangladesh, India, and Pakistan have all grown at over 5 per cent a year on average during the last five years. Growth in both Pakistan and India topped 8 per cent last year. Forecasts put South Asian economies on a steady path of expansion this year.

The recent Bangladesh Country Assistance Strategy (CAS) focuses on improving the business climate as a key pillar, particularly improving governance and efficiency in infrastructure, reducing trade restrictions and providing access to land and labour markets.

The report said economic growth has already contributed to an impressive reduction in poverty in the last decade with poverty falling by 9 per cent in Bangladesh while 10 and 11 per cent respectively in India and Nepal.

"For Bangladesh, in addition to reducing poverty, there have been significant strides in meeting the Millennium Development Goals (MDGs)," it noted.

For example, the report added, gross primary enrollment has increased from 72 per cent in 1980 to 98 per cent in 2001 and Bangladesh has already attained the MDG of eliminating gender disparity in primary and secondary enrollment.

The report further cites country-specific challenges that policymakers in Bangladesh need to strengthen governance to accelerate growth.

It stressed the need for embracing policies to increase investment and productivity, and improve the quality of labour, while addressing pervasive income inequalities and poor service delivery.

"South Asia's decade-long economic expansion has raised the possibility that the subcontinent could eliminate poverty in our lifetime," said Shantayanan Devarajan, co-author of the report and World Bank Chief Economist for the South Asia region.

"But to materialise this dream, South Asians must create the conditions and incentives necessary to sustain and accelerate growth that benefits all. The economic well-being of several hundred millions of people depends on it," he added.

The report observed that much remains to be done to achieve accelerated growth rates that increase economic prosperity across the board. Firstly, economic growth in the past decade has resulted in growing income inequality, which might act as a constraint to higher growth in the future.

Secondly, while conflict, corruption and high fiscal deficits may not have constrained growth in the past, their persistence may become binding in the future. "Faster growth must also be more equitably shared," the report said.