Bangladesh is placing greater emphasis on domestic investment as geopolitical tensions, global economic uncertainty, and cautious investor sentiment continue to constrain foreign investment flows, according to Bangladesh Investment Development Authority (BIDA) Executive Chairman Ashik Chowdhury.
Speaking at a workshop titled “Bangladesh’s Investment Flows and Investment Facilitation”, organised by BIDA in Dhaka, Ashik said the government is recalibrating its investment strategy by focusing more on local investors while continuing efforts to improve the overall business environment and attract foreign capital.
“We are focusing more on Bangladesh rather than looking outside Bangladesh at this moment,” he said, noting that many global investors are delaying investment decisions until geopolitical and economic uncertainties ease.
The BIDA chief explained that ongoing international conflicts, volatile energy prices, and uncertainty in global financial markets have weakened investment sentiment worldwide, prompting investors to adopt a more cautious approach.
Despite these challenges, Ashik said Bangladesh has recorded encouraging investment indicators in recent months. He noted that foreign direct investment (FDI) has increased by approximately 40 percent, while gross investment has also risen following the Bangladesh Investment Summit held earlier this year.
However, he acknowledged that many investment commitments generated during the summit are taking longer than expected to materialise.
According to Ashik, the government had initially anticipated faster conversion of investment proposals into active projects. However, uncertainty surrounding the election timeline, renewed geopolitical tensions, and concerns over global oil prices have caused many investors to postpone final decisions and adopt a wait-and-see approach.
“Until the current geopolitical situation improves, global investment activity is likely to remain weak,” he said.
Against this backdrop, BIDA is prioritising domestic investment and exploring opportunities to unlock economic value from underutilised state-owned and closed industrial assets through privatisation and monetisation initiatives.
Ashik also highlighted longstanding structural challenges that continue to affect Bangladesh’s investment climate, particularly delays in obtaining licences, permits, and regulatory approvals. He noted that investors often spend several months navigating multiple government agencies before commencing operations.
To address these bottlenecks, BIDA has launched an ambitious digitalisation agenda aimed at streamlining investment-related services, improving transparency, and significantly reducing approval timelines.
“We cannot improve service quality without digitalising the system and monitoring service standards,” he said.
The investment promotion agency is currently working to bring multiple licensing and approval services under a centralised digital framework and expects visible progress within the next three months. The initiative aims to reduce approval periods from several months to just a few days, improving the ease of doing business for both local and foreign investors.
Ashik stressed that Bangladesh’s investment challenge is not necessarily the absence of incentives or supportive policies but rather inconsistencies in implementation.
“Our incentive schemes are broadly comparable with those offered by competing economies in the region,” he said. “The problem arises when investors interpret a policy one way and implementing agencies interpret it differently.”
He emphasized that policy predictability, regulatory clarity, and consistent implementation are more important to investors than generous incentive packages. Ensuring long-term certainty and minimizing administrative ambiguities, he added, will be essential for sustaining investment growth and strengthening Bangladesh’s competitiveness.
Addressing environmental compliance, Ashik noted that Bangladesh’s regulatory framework is generally aligned with international standards. However, he acknowledged that enforcement remains a challenge.
He argued that increased digitalisation, transparency, and automated monitoring systems would strengthen compliance, improve accountability, and reduce opportunities for discretionary decision-making across regulatory agencies.
The remarks reflect the government’s broader efforts to strengthen domestic investment momentum, accelerate business reforms, and create a more efficient and predictable investment environment amid a challenging global economic landscape.
