Economy
“Bangladesh Emerges as a Highly Attractive Destination for Rapid Investment!”
Prime Minister Sheikh Hasina has invited Japanese business leaders to invest more in Bangladesh, highlighting the country’s tremendous potential and opportunities. Speaking at the Dhaka Rise of Bengal Tiger: Investment Summit on Thursday at a hotel in Tokyo, she said Bangladesh is emerging as an extremely attractive destination for investment.
The Prime Minister added that Bangladesh will ensure a conducive business environment and equal opportunities and facilities for everyone in the field of business. She mentioned the growing Japanese business and investment in Bangladesh, even amid the pressure of the COVID-19 pandemic. The bilateral trade between the two countries has seen significant growth, exceeding $4 billion for the first time in the 2021-22 fiscal year.
Sheikh Hasina also pointed out that the number of Japanese companies operating in Bangladesh has been steadily increasing over the past few years, especially since 2014 when the two countries embarked on a “comprehensive partnership” and the “big-B” initiative.
Prime Minister expressed that she is confident that even Japanese businessmen are following this upward trend and they will expand their existing businesses and open new ventures in Bangladesh. She stated that our embassy in Tokyo is ready to cooperate and facilitate your initiatives.
Assuring Japanese business leaders, the Prime Minister said, “I want to assure you that our government and relevant institutions are eager to support the business endeavors of Japanese friends in Bangladesh.”
Sheikh Hasina stated that based on the significant outcomes of bilateral relations between the two countries in the past five decades, she is hopeful for greater Japanese initiatives in Bangladesh in the coming years.
The Prime Minister revealed that several regulatory and policy issues raised by Japanese companies have already been addressed. She mentioned Bangladesh’s liberal trade policy in South Asia as the most accommodating.
She stated, “With competitive costs, abundant human resources, high purchasing power, and a rapidly growing middle class, Bangladesh has emerged as an extremely attractive destination for investment.”
Highlighting Bangladesh’s efforts to enhance regional and international market access, the Prime Minister said, “We are establishing high-tech/software technology parks throughout the country. Bangladesh is creating a planned infrastructure base to position itself as a connectivity hub between South Asia and Southeast Asia.”
During the event, top Japanese entrepreneurs discussed investment plans and their future prospects in Bangladesh.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
