People living in the lower levels of the income ladder in Bangladesh have registered higher growth in incomes between 2005 and 2010, compared to the overall population, according to a World Bank report.

Bangladesh is one of the 49 countries where income growth of the bottom 40 percent of the population exceeded the income growth rate of the overall population, the report added.

Bangladesh fared well compared to India in this respect, said Zahid Hussain, lead economist of the World Bank Dhaka office, at a workshop at the office premises yesterday.

Economic Reporters' Forum (ERF) and the WB Dhaka office jointly organised the event where Qimiao Fan, WB country director for Bangladesh, Bhutan, and Nepal, also spoke.

Hussain said the number of people living in extreme poverty has more than halved between 1990 and 2013.

Extreme poverty declined impressively in South Asia, he added.

However, overall inequality trends have not been impressive, said Hussain, citing that income inequality has increased in Bangladesh between 1990 and 2013.

In terms of social indicators, Bangladesh surpassed India and Pakistan but it remains well behind on per capita income, except Nepal.

Hussain said South Asia has two key assets -- demography and geography. The large and potentially competitive labour force could be the catalyst to attracting regional and global production, he added.

“South Asia, particularly India and Bangladesh, can use their central location in the Indian Ocean to become a hub for transportation, communication and trade,” he said.

However, there are challenges, he said, citing that the region's average score in Human Capital Index is lower than in Middle and North Africa. Bangladesh, India and Pakistan are held back by insufficient post primary educational enrolment rates and the poor quality of primary schools, he added.

Hussain said high productivity dispersion, weak commercial ties and a high cost of doing business are among the major challenges for the region. He suggested framing and implementing good policies.