Reforms at heart of growth strategy

The government has pledged a series of structural reforms to remove barriers to investment and strengthen Bangladesh’s position as an attractive destination for trade and investment amid growing global economic uncertainty.

Speaking at the inaugural session of the Roadmap for Trade, Growth & Economic Diplomacy Conference in Dhaka on Saturday, Foreign Minister Dr Khalilur Rahman outlined the government’s commitment to improving the business environment and unlocking the country’s economic potential.

The conference, organised jointly by the Ministry of Foreign Affairs and the Bangladesh Investment Development Authority (BIDA) under the theme “Navigating Risks: Leveraging Resilience”, brought together diplomats, policymakers, investors, development partners and business leaders to discuss strategies for enhancing economic resilience and attracting greater foreign investment.

Dr Rahman identified several challenges facing Bangladesh, including limited access to affordable financing, climate-related vulnerabilities, rising energy costs, slowing global demand and rapidly changing trade technologies.

He noted that while advanced economies are often able to borrow at interest rates of between 1 and 4 per cent, emerging economies such as Bangladesh frequently face borrowing costs ranging from 6 to 12 per cent or higher.

“As a result, our access to affordable and secure financing remains significantly restricted,” he said.

Referring to findings by the United Nations Conference on Trade and Development (UNCTAD), the Foreign Minister said climate-vulnerable countries incur billions of dollars in additional borrowing costs each year due to perceived climate risks.

He also pointed to rising fuel import costs, saying they have increased production expenses and diverted resources away from development priorities.

Seeking to reassure investors and development partners, Dr Rahman said Bangladesh remains a stable and reliable destination for business.

“We want to assure our citizens, our local business community and, most importantly, our international partners that Bangladesh is stable, predictable and open for business,” he said.

“Our government is fully committed to implementing deep, structural reforms to improve the ease of doing business.”

The minister said the government’s economic strategy is built around three pillars – stabilise, reform and elevate – aimed at transforming current challenges into opportunities for sustainable growth.

Addressing the conference, Minister for Local Government, Rural Development and Co-operatives Mirza Fakhrul Islam Alamgir outlined a vision for economic diplomacy and industrial development in what he described as a “new Bangladesh”.

“Our ambition is clear and unequivocal: to transform Bangladesh into a safe, resilient and industrialised nation where every citizen enjoys a fair share of prosperity and dignity,” he said.

He also highlighted the need to rebuild and strengthen institutions, while inviting both local and foreign investors to participate in the country’s future development.

“We offer a Bangladesh that is competitive, stable, ethical and genuinely people-oriented. We invite you to invest in our vision,” he said.

BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun underscored the challenge of creating employment opportunities for more than 10 million people and acknowledged persistent concerns over energy supply, logistics and regulatory procedures.

He said the government is pursuing significant reforms, including reducing factory construction permit approval times from up to one year to just 14 days and moving towards a fully digital service platform for investors.

During a panel discussion, Finance Minister Amir Khosru Mahmud Chowdhury described deregulation as one of the government’s top priorities.

He said a dedicated task force would be formed to oversee implementation of deregulation measures proposed in the national budget.

To reduce bureaucratic delays, the government plans to introduce strict timelines for approvals and licences.

Under the proposed framework, applications that do not receive a response from the relevant authority within seven days would be automatically deemed approved.

The Finance Minister also highlighted plans to support the creative economy by helping artisans, performers, designers and other creative professionals commercialise their products and access international markets through digital platforms.

“We want to give them support through branding and by providing access to platforms such as Amazon and eBay, allowing them to market and sell their products globally,” he said.

On tax administration reform, Amir Khosru said the government intends to reassess the role and functioning of the National Board of Revenue (NBR) to ensure tax policies better reflect their economic impact and support growth.

“If you get your policy right, your life is much easier. That is what we intend to reset,” he said.

NBR Chairman Md Abdur Rahman Khan said the government is shifting towards a fiscal strategy that prioritises business growth and economic expansion while reducing compliance burdens for investors and exporters.

He added that the revenue authority is increasingly relying on automation to reduce human intervention, enhance transparency and build greater trust among taxpayers.

The conference featured three plenary sessions focusing on trade and investment policy, finance and commerce, and the role of emerging sectors such as artificial intelligence, creative industries and sport in driving future economic growth.