Staff reporter :
Paul Frost, the newly appointed commercial counselor at the US Embassy in Dhaka, has warned that corruption, financial governance weaknesses, complex taxation, poor infrastructure, and bureaucratic delays remain key obstacles to US business operations in Bangladesh.
Speaking at an AmCham luncheon in Dhaka on Tuesday, Frost said these systemic issues continue to weigh heavily on American companies despite Bangladesh’s growing appeal as a trade and investment destination.
“We are aware of the systemic issues that affect the private sector – including corruption, financial governance concerns, a complicated tax regime, infrastructure and logistics limitations, and excessive bureaucracy,” Frost remarked.
He noted that the embassy has been actively working with companies facing challenges such as delayed payments, difficulties in repatriating earnings, and unfulfilled contracts from both government and private partners.
Despite these concerns, Frost highlighted promising areas for US businesses. He pointed to strong demand for agricultural commodities, aircraft, and energy, alongside opportunities in ICT, healthcare, engineering services, infrastructure development, and defense equipment.
He also underscored the importance of investing in cold chain and storage facilities to support Bangladesh’s food security. Another growing area of bilateral trade, he noted, is US-made synthetic fibers for the textile sector, where Bangladeshi companies are showing increasing interest.
He further encouraged Bangladeshi participation in the upcoming USA Investment Summit in Washington, DC, scheduled for 3-6 May 2026, following a record turnout of 40 Bangladeshi firms at the last event.
“The US business community here is vibrant and has already shown what’s possible. I am confident the next chapter in our partnership will be even more productive,” Frost concluded.
BNP Acting Chairman Tarique Rahman has cautioned about potential economic challenges as Bangladesh prepares to graduate from the UN’s Least Developed Country (LDC) category in November 2026.
In a Facebook post on Monday (16 September), he wrote: “Graduation is not just a milestone; it comes with risks and challenges that will directly impact our economy and people.”
Meanwhile, Bangladesh is preparing to seek a three-year deferment of its scheduled graduation from Least Developed Country (LDC) status. Commerce Secretary Mahbubur Rahman confirmed at a workshop on reciprocal tariffs and LDC graduation that the government is consulting experts to retain existing trade privileges for as long as possible.
“Our primary objective is to preserve trade benefits for a few more years. Although the prospects are not very encouraging, there is no reason to be completely disheartened,” Rahman said at the event organised by Research and Policy Integration for Development (RAPID).
However, Rahman acknowledged that securing a delay would require a UN General Assembly resolution, a challenge given that several key partners, including the US, Japan, Turkey, and India, are opposed to the extension. Instead, Bangladesh is seeking broader technical assistance to ease the transition.
At a related seminar on “LDC Graduation and Structural Transformation,” Special Assistant to the Chief Adviser for Finance Anisuzzaman Chowdhury stressed the need for Bangladesh to prepare for a future without LDC-specific trade benefits, as global support measures are expected to shrink.
