Govt targets investment to revive economy
State Minister for Foreign Affairs Shama Obaed on Sunday said the government was placing economic diplomacy at the centre of its foreign policy to revive what she described as a fragile economy inherited by the current administration.
Speaking to journalists after a closed-door roundtable titled “The Capital Dialogue” at the foreign ministry, she said the government was working with relevant ministries and stakeholders to identify and address barriers faced by foreign investors and expatriate Bangladeshis seeking to invest in the country.
The meeting was held as a follow-up to the Trade and Investment Conference organised by the foreign ministry in June. It brought together the finance adviser, representatives of international organisations, investors and capital-market experts to discuss policy reforms aimed at attracting more foreign direct investment.
“The foreign ministry, under the prime minister’s leadership and in line with our election manifesto, is giving the highest priority to economic diplomacy,” Shama said.
She said the discussions focused on the ease of doing business, foreign direct investment, capital-market development, Bangladesh’s graduation from least developed country status and policy changes needed to improve the investment climate.
Recommendations from the meeting would be shared with the relevant ministries to facilitate reforms through coordinated government action, she added.
Responding to a question, Shama said different groups of investors faced different challenges, including expatriate Bangladeshis interested in investing in the country.
She alleged that the banking sector, capital market and other key economic systems had been severely weakened over the past one and a half decades.
“The government is adopting the necessary policies to transform this damaged economy into a vibrant one. The national budget is the first step towards that objective,” she said.
The meeting also discussed procedural reforms and investment facilitation in economic zones and other sectors to make Bangladesh a more attractive destination for foreign investors.
Shama identified energy as a priority sector, alongside textiles, the readymade garment industry, agriculture and agro-based industries.
She also highlighted investment opportunities in the creative economy, including cottage industries, cultural sectors and initiatives aimed at expanding economic participation among women and marginalised communities.
The government was also exploring sports diplomacy as a means of attracting investment and strengthening international partnerships, she said.
Describing the blue economy as a major priority, Shama said several European countries had expressed interest in investing in marine-based industries and related sectors.
“We will continue holding these roundtable discussions so that investors’ problems can be identified and resolved,” she said.
Investment talks were already under way with several countries, including China, Japan and the United States, she added.
“Investment is an ongoing process. It does not happen in one or two days. Discussions and engagement with investors are continuing,” Shama said.
She said Bangladesh was working towards becoming a one-trillion-dollar economy, in line with the target announced in the national budget, and that attracting greater foreign investment would be essential to achieving that goal.
