FM shares strategic vision to make Bangladesh most competitive investment destination in South Asia

Foreign Minister Dr Khalilur Rahman today (13 June) said the government is fully committed to implementing deep, structural reforms to improve the ease of doing business, stressing that the government holds the political will and strategic vision to make Bangladesh the most competitive investment destination in South Asia.

"Our government possesses the political will, the strategic vision, and the unwavering commitment to make Bangladesh the most competitive investment destination in South Asia," he said while describing the local business community as primary strategic partners.

Speaking at the high-level conference titled "Roadmap for Trade, Growth & Economic Diplomacy 2026: Navigating Risks, Leveraging Resilience" in a city hotel, the Foreign Minister and President-elect of the 81st UN General Assembly said they view every foreign ambassador not just as a diplomat but as a crucial partner in their development. 


"We view every business leader here, not just as an investor or a taxpayer, but as a stakeholder in our national success," he added.

Organised by the Ministry of Foreign Affairs in collaboration with the Bangladesh Investment Development Authority (BIDA), the conference brought together senior government leaders, heads of diplomatic missions, development partners, and representatives from the private sector to chart a forward-looking agenda for Bangladesh's economic engagement.

State Minister for Foreign Affairs Shama Obaed Islam, Prime Minister's Foreign Affairs Adviser Humaiun Kobir and Foreign Secretary Asad Alam Siam also spoke at the event.

The Foreign Minister said they must remain connected. "We must remain in dialogue. We must get feedback from you.... work with us as we rebuild trust and unlock the true vibrant potential of Bangladesh."

Today, faced with the energy crisis and developments in international trade, finance and technology, Foreign Minister Dr Khalilur said Prime Minister Tarique Rahman also has a clear vision to transform the challenges into new opportunities with three key goals: stabilise, reform and elevate.

"We need to convert his vision into concrete action as it comes to our work on economic and trade diplomacy," he said.

As the new government begins its work, Dr Khalilur said they have before them the challenge of redesigning their international economic engagements against the backdrop of slowing global economic and trade growth, geopolitical tensions, trade policy uncertainties, calamities, rising trade barriers and structural shifts in supply chains.

Moreover, the ongoing energy crisis has added a new layer of complications, he said.

"We are not immune to these developments, which have crucial implications for our approaches to overall policy making, in general, and economic diplomacy, in particular," said the Foreign Minister.

This is the very reason why the Ministry of Foreign Affairs and the Bangladesh Investment Development Authority (BIDA) decided to organise today's event that brings together our partners and stakeholders for open and purposeful deliberations with a view to helping informed policymaking, he said.

"The challenges we face are critical. The growth prospects in our major markets remain in the positive territory but at a moderate level. This is likely to translate into sluggish consumer demand, which will affect our exports to these markets," Dr Khalilur said.

He said they will need to compete ever more fiercely in order to maintain and expand our export position.

Secondly, he said, financial markets and institutions are increasingly affecting the production of goods and services and trade thereof.

"Trade flows have become increasingly susceptible to movements in interest rates or changes in investor sentiments," Dr Khalilur said.

Countries like Bangladesh find it harder to raise capital, pay significantly higher borrowing costs and remain acutely vulnerable to swings in market sentiment, said the Foreign Minister.

While advanced economies are able to borrow at roughly 1-4%, the rate for emerging developing countries typically ranges from 6-12% or even higher.

"Thus, our access to affordable and secure financing remains significantly restricted," the Foreign Minister said.

Like many other developing countries, Bangladesh remains acutely susceptible to factors such as currency volatility, shifts in risk-taking appetite and financial volatility, said the Foreign Minister.

Thirdly, he said, climate vulnerability has introduced another difficulty in access to finance.

According to UNCTAD, which recently carried out an Investment Policy Review of Bangladesh, some climate-vulnerable countries are paying an extra 20 billion dollars annually in interest due to their climate risk.

"External debt and climate crisis are becoming intertwined," said the Foreign Minister.

Fourthly, he said, the ongoing energy crisis has already caused them to spend more on imported fuel."Increased fuel prices directly affect our cost of production and competitiveness."

"By taking away critical funding that would have gone for development activities, we are likely to witness second-round effects of the crisis in the form of reduced funding for development in the years to come," the Foreign Minister said.

The International Energy Association opined that the scope of the current energy crisis could be larger than that of the twin oil shocks of the 1970s, which were a major cause for the 1980s to become a lost decade of development for many developing countries.

The Foreign Minister said trade tech, which is the intersection of trade, investment and technology, is fast redefining the global economy and trade by making cross-border transactions quicker and more efficient through the increasing use of innovations like AI, Internet of Things, Blockchain and 5G.

"This poses both a challenge and an opportunity depending on how quickly and effectively countries can take advantage of the fast-moving Trade Tech landscape," he said.

The conference is featuring three thematic sessions: The Policy Compass – Advancing Trade & Investment, focusing on policy predictability, market access, and investor confidence; Capital for Growth – Finance, Commerce and Trade, addressing financing reforms and investment mobilisation; ​The New Stage – Government Policy, AI, Creative Industries and Sport, exploring emerging growth sectors and diversification opportunities.

The "Roadmap for Trade, Growth & Economic Diplomacy 2026" is being held at a critical juncture of global transitions, risks and uncertainties, said the Ministry of Foreign Affairs.

The event aims to foster greater coordination between policy and implementation, enhance Bangladesh's economic diplomacy, and build stronger partnerships with the international community.