Economy
PM Sheikh Hasina Invites Commonwealth Nations to Invest in Its Booming Market
Prime Minister Sheikh Hasina has extended an invitation for investment from Commonwealth countries and others into Bangladesh, emphasizing the nation’s strategic location as a gateway to a market of three billion people. During the inauguration of the two-day Commonwealth Trade and Investment Forum-2023, she highlighted Bangladesh’s position at the heart of this expansive market and its own population of 170 million. Sheikh Hasina also projected that, by 2030, Bangladesh’s affluent population would reach 35 million, making it the world’s third-largest market, surpassing Germany and the United Kingdom.
Sheikh Hasina expressed her government’s readiness to establish enduring partnerships with nations and investors willing to contribute to Bangladesh’s development and that of other Commonwealth countries through this forum. She underlined the need for high-quality and sustainable investments to accelerate Bangladesh’s economic advancement.
The Prime Minister pointed out that her government had prioritized organizational reforms and established entities such as the Bangladesh Investment Development Authority (BIDA) and the Bangladesh Economic Zones Authority (BEZA) to facilitate investors with attractive incentives and post-investment services. She emphasized that almost all sectors in Bangladesh are open for investment, with a particular emphasis on encouraging investments in agriculture, food processing, leather, medical equipment, automobiles, shipbuilding, and ICT.
Furthermore, Sheikh Hasina highlighted Bangladesh’s leadership in the Commonwealth Business to Business (B2B) Connectivity Cluster and its goal to achieve the Intra-Commonwealth trade target of US$2 trillion. She proposed the formation of a “Legal Reform and Digitization Working Group” among Commonwealth members to promote trade and business while maintaining a balance with climate concerns.
She underscored that a significant portion of Bangladesh’s foreign direct investment stems from reinvestment, indicating the favorable investment environment. BIDA’s one-stop fast-track delivery service, providing access to 78 services from 26 government departments through a single platform, was also noted.
Regarding infrastructure development, Sheikh Hasina highlighted the establishment of economic zones, hi-tech and software technology parks, and IT training centers across Bangladesh. She mentioned ongoing efforts to improve land, rail, and air connectivity, including the Padma Bridge, the first underwater tunnel in South Asia in Chattogram, and the development of Matarbari Deep Sea port.
To bolster logistics capabilities, the government has set up a “Floating LNG” terminal and is constructing the Payra Sea Port and Chattogram Bay Terminal. Infrastructure enhancements, such as the Hazrat Shahjalal International Airport’s Third Terminal and Cox’s Bazar Airport’s upgrade, are poised to enhance business prospects.
The Prime Minister outlined Bangladesh’s socio-economic progress, transitioning from a “digital Bangladesh” to a “Smart Bangladesh” by building a smart government, smart citizens, a smart economy, and a smart society. The nation’s goal is to become a knowledge-based and developed smart country by 2041 and a prosperous delta by 2100.
The Commonwealth Trade and Investment Forum-2023 was organized by the Commonwealth Enterprise and Investment Council (CWEIC) in collaboration with the Bangladesh Investment Development Authority (BIDA), the Ministry of Foreign Affairs, and ZI Foundation. The event featured the presentation of the “Commonwealth-Bangladesh Bangabandhu Green Investment Award,” with Eco Brixs of Uganda as the recipient.
In the two-day forum, participants from various countries engaged in over 12 sessions, reflecting the Commonwealth’s role as a voluntary association of 56 countries sharing common values, with Bangladesh as its 34th member since 1972.
Prime Minister Sheikh Hasina has reaffirmed her government’s unwavering commitment to implementing the Sustainable Development Goals (SDGs), even in the face of challenges posed by the Covid-19 pandemic, the Ukraine war, and the climate crisis. She made this declaration during a meeting with Helen Clark, Chair of the Partnership for Maternal, Newborn and Child Health (PMNCH), at the United Nations Headquarters.
As part of her commitment to healthcare services accessibility for all citizens, PM Sheikh Hasina mentioned the implementation of the National Health Sector Strategic Plan (2011-2030) and a 27% increase in healthcare sector allocations for the current fiscal year 2023-24.
Helen Clark commended Bangladesh’s exceptional progress in healthcare under Prime Minister Sheikh Hasina’s visionary leadership, citing the nation’s remarkable achievements in reducing maternal and child mortality rates and ensuring universal healthcare services.
Bangladesh’s economy is anticipated to expand by 6.5% in fiscal year 2024, reflecting an improvement in domestic demand and enhanced export growth, as per the recent Asian Development Bank (ADB) report titled “Asian Development Outlook (ADO) September 2023.” This growth projection is slightly higher than the 6.0% recorded in the previous fiscal year, driven by a recovering euro area.
Inflation is predicted to decrease to 6.6% in the current fiscal year, down from 9.0% in FY2023. Additionally, the current account deficit is expected to narrow marginally, from 0.7% of GDP in the previous fiscal year to 0.5% in FY2024, thanks to improved remittance growth.
The report identifies the main risk to this growth projection as a potential deterioration in export growth if global demand remains weaker than anticipated.
ADB Country Director Edimon Ginting commented on the government’s effective management of external economic uncertainties, highlighting ongoing infrastructure development and crucial reforms aimed at enhancing the investment climate. These structural reforms encompass bolstering public financial management, mobilizing domestic resources, optimizing logistics, and deepening the financial sector to foster private sector growth, diversify exports, and create productive employment opportunities in the medium term.
The report also underscores the importance of addressing climate change by expanding domestic renewable energy supply in the context of elevated oil prices.
The revival of private consumption, driven by moderate inflation and increased remittances, coupled with the completion of significant government infrastructure projects boosting investment, is expected to stimulate economic growth. However, the initial uptick in interest rates following adjustments to the country’s monetary policy framework may temper private investment.
Inflation is projected to ease due to lower global non-fuel commodity prices, increased agricultural production, and the initial tightening of monetary policy under the new framework.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country’s foremost trade organization, has joined hands with the Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) to bolster business and investment opportunities and narrow the trade deficit between Bangladesh and Malaysia. Both organizations aim to facilitate the export of skilled labor from Bangladesh to Malaysia, a crucial labor market for the nation.
During a courtesy meeting at the FBCCI Icon in Dhaka on September 19, 2023, FBCCI President Mr. Mahbubul Alam expressed these intentions while meeting with a BMCCI delegation, led by its President, Syed Almas Kabir. The collaboration between FBCCI and BMCCI seeks to address Bangladesh’s substantial trade deficit through Free Trade Agreements (FTAs), Preferential Trade Agreements (PTAs), and other trade mechanisms. Both organizations are committed to working together to tackle this issue.
The meeting was attended by FBCCI Director Hafez Hazi Harun-Or-Rashid (CIP), Mohammad Nizam Uddin, BMCCI Senior Vice President Mr. Sabbir Ahmed Khan, Vice President Mr. Jamilur Rahman, BMCCI Secretary General Mr. Md. Motaher Hoshan Khan, Director Mr. Mamunur Rahman, and other dignitaries.
