As Bangladesh looks to graduate from least developed country (LDC) status next year -- a most significant achievement that we have been speaking of for some time now -- there is the legitimate question of whether we are truly prepared for what will transpire afterwards.
We need not look any further than the state of foreign direct investment (FDI) into the country. To say that attracting FDI will be critical to Bangladesh’s ongoing development is not a contentious statement to make. Yet, it is alarming that, for the fourth consecutive year, FDI inflows have shrunk, plunging 13% in 2024 to a five-year low of $1.27 billion.
This negative trend for years now must compel our economic experts and policy-makers to look at this with the seriousness it warrants - we can no longer afford to ignore it.
We must be clear: FDI is not a luxury. It is a pillar that powers technology transfer and job creation. Moreover, it is a crucial element in helping the diversification of an economy that has become overly reliant on the RMG sector - a reality that we must embrace if we are to truly thrive in our post-LDC era.
The reasons for this decline have been consistent as well. Investors continue to be deterred by regulatory delays, energy shortages, currency volatility, and a business environment that remains hamstrung by red tape and unpredictability. As global investment flows are redrawn by geopolitical and economic shifts, Bangladesh cannot afford complacency or incrementalism.
If we are serious about sustained prosperity for our nation after graduation from LDC, our government - present and future - must act with urgency and clarity of vision. FDI is not just about foreign capital but a reflection of international trust -- if Bangladesh truly hopes to rise as a competitive, innovation-driven economy, we must start by earning that trust.
