Economists and policymakers have called for Bangladesh to reassess its trade and economic strategies as global powers increasingly use tariffs and sanctions as political tools. Experts stressed the importance of strengthening bilateral trade relationships, diversifying exports, and improving foreign investment policies to sustain economic growth.
Rehman Sobhan, a leading economist, questioned why Bangladesh lags behind Pakistan in attracting foreign direct investment (FDI), despite strong regional economic performance. He emphasized that foreign investors’ concerns must be addressed, including regulatory barriers and inconsistent policies that hinder economic growth.
Discussions highlighted the negative impact of economic mismanagement, including the criminalization of key sectors, unnecessary projects, and money laundering. Experts recommended prioritizing industrialization and export diversification, particularly in the garment sector, which currently relies heavily on cotton-based products despite a growing global demand for man-made fibers.
The task force on economic strategy, which submitted its recommendations on Jan. 30, 2025, proposed a structured implementation plan with 30-day, 60-day, and 90-day targets. However, concerns were raised about the government’s ability to act on these recommendations, as the commerce adviser had not yet received a copy of the report.
Speakers also urged the government to streamline trade policies, enhance corporate compliance, and negotiate new trade agreements, including a free trade deal with Japan. Engaging with the European Union for GSP Plus benefits, which provide duty-free access for Bangladeshi garments, was identified as a key priority.
Commerce Adviser Sk Bashir Uddin criticized past economic policies, attributing severe economic damage to poor governance and financial misconduct. Former minister Amir Khosru Mahmud Chowdhury advocated for deregulation and business-friendly reforms, while Mustafizur Rahman and Zaved Akhtar underscored the importance of trade liberalization and investment strategies.
As the global economy becomes more protectionist, experts warned that Bangladesh cannot assume automatic benefits from tariffs imposed on Chinese exports. Instead, the country must actively negotiate bilateral agreements to secure its trade prospects.
Economic analysts stressed that import liberalization alone would not ensure success, citing comparisons between Haiti and Singapore. A broader industrial policy, alongside business-friendly reforms, is essential to positioning Bangladesh as a competitive player in global trade.