<p>Ensuring access to improved water, sanitation and hygiene facilities is paramount for achieving Sustainable Development Goal (SDG) 6 – Clean Water and Sanitation. This problem is largely concentrated in Low- and Middle-Income Countries such as Bangladesh which has one of the lowest urban sanitation access rates in South Asia. The objective of this study is to evaluate the socio-economically equitable outcomes, with a focus on the sanitation and hygiene sectors and additionally conduct the economic valuation of Faecal Sludge Management (FSM) along with its co-benefits through organic fertilizer production using an Input–Output framework. Results indicate that the investment in sanitation and hygiene services would increase GDP per capita between US$1.4—US$107 by 2030, with notable growth in total industrial output and employment as high as US$32 billion and 3.9 million respectively by 2030. The positive spillover effects from safely managed sanitation services leads to a Benefit Cost Ratio of 3.33 during the period 2024–30. Effective FSM can boost total industrial production by $153 million and create 18,000 jobs, while also reducing GHG emissions by 7.2 million tCO2eq, thus providing an opportunity to generate US$4.48 million through carbon credits. The study highlights the critical need for increased public and private investments in safely managed sanitation and hygiene services, emphasizing their role in promoting public health and stimulating economic growth. The outcome and findings of this research provides a potential blueprint for the Global South, aiming to assess the impact of sanitation investments.</p>