Energy supply, tariff impacts among four key concerns flagged by investors: Bida chair

Domestic and foreign investors have identified and expressed concerns over four key challenges that they think are impacting Bangladesh's investment climate – energy and pricing policy, the implications of new tariffs, persistent bureaucratic practices at the grassroots level, and the speed of execution and implementation.

The concerns were brought up by Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority (Bida), during the third episode of the "State of Investment Climate" webinar series organised by Bida on Tuesday (6 May).

He shared investors' expectations with Commerce Adviser Sk Bashir Uddin who responded to various questions from investors through the Bida chairman.

Earlier, the development authority had collected the questions online from entrepreneurs. In this session, around 150 local and foreign entrepreneurs participated, seeking insights into the investment climate in Bangladesh and exploring available opportunities.

During the webinar, Ashik Mahmud said, after discussions with both local and foreign business entities, these four areas have been identified as critical challenges from the perspective of investors.

Sk Bashir Uddin said the full development of Bangladesh's LNG infrastructure is underway and, once completed, industries will be able to access high-quality fuel at a lower cost.

"Liquefied natural gas will be regasified and distributed through a pipeline network. Once commissioned, hopefully within two years, industries that use captive power generation will benefit significantly. It will be more cost-effective than grid electricity and better in quality," he explained.

He also said, "I see challenges, and we need to recognise them. But once LNG is brought into the country, and the necessary infrastructure is in place to regasify it, we hope to address these problems."

He also pointed out that one region in Bangladesh already has a gas surplus, where investors can immediately secure gas connections to start operations without delay.

"If you generate your own electricity using gas generators, it will be cheaper, of better quality, and should effectively meet your needs," he added.

Reflecting on the recently held Bangladesh Investment Summit 2025, Bida Chairman Ashik Mahmud emphasised the importance of holding such events regularly.

"Now, we must prioritise key reforms. Foreign investors appreciated the transparency and openness we demonstrated. This summit was a great example of teamwork – among government agencies and the private sector," he added.

The webinar also highlighted the government's ongoing efforts to improve the current investment climate in Bangladesh.

On the energy front, Ashik expressed optimism that the gas supply situation will improve within the next three to six months.

Highlighting recent progress in investment facilitation, he noted that several steps have already been taken, including the launch of the Authorised Economic Operator (AEO) programme, the National Single Window initiative, and a national port strategy. 

In addition, new regulations have been introduced to boost foreign investment, including rules on foreign currency loans and the appointment of an "FDI hetman" to streamline investor support, he added.