AmCham calls for stronger reforms to boost investor confidence as experts warn of slowing growth
CPD's Fahmida Khatun noted that Bangladesh’s GDP growth has slowed to around 4% in FY2025, while private investment has hit a five-year low
Bangladesh needs urgent reforms in fiscal management, energy governance, and banking oversight to restore investor confidence and sustain post-LDC economic resilience, experts said at an engagement session titled "AmCham Insights: Economic & Investment Outlook," organized by the American Chamber of Commerce in Bangladesh (AmCham) on Thursday at the Sheraton Dhaka.
The session—supported by Philip Morris Bangladesh Ltd—featured key insights from Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), and Shah Mohammad Mahboob, Executive Member of the Bangladesh Investment Development Authority (BIDA).
Khatun warned that Bangladesh's GDP growth has slowed to around 4% in FY2025, with private investment reaching a five-year low and non-performing loans (NPLs) exceeding 20%, the highest in Asia.
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"Rising remittances and export earnings have provided some cushion, but persistent inflation and stagnant wage growth continue to strain household budgets," she said.
Khatun called for "decisive reforms in fiscal management, energy pricing, and banking supervision" to stabilize the macroeconomy ahead of the country's LDC graduation in 2026.
She emphasised policy consistency, export diversification, and inclusive job creation as key to sustaining competitiveness.
"To achieve sustainable growth beyond LDC graduation, we must focus on climate resilience and employment for youth and women," she added.
Bida Executive Member Mahboob presented a more optimistic investment outlook, citing improving macroeconomic indicators.
"Inflation has come down from double to single digits, the stock market rallied by 12.5%, and foreign reserves are rising," he said.
He said foreign direct investment (FDI) has more than doubled year-on-year, driven by improved investor sentiment following successful US tariff talks and new investment interest from China and South Korea.
Highlighting Bida's recent reforms, Mahboob said: "We have co-located agency officials, initiated monthly coordination meetings with NBR, and deployed relationship management teams to strengthen investor services."
He added that banking reforms, tax rationalization, and asset recovery mechanisms are essential to sustain investor confidence.
AmCham President Syed Ershad Ahmed stated that Bangladesh is currently in a crucial transitional phase, citing ongoing reforms in logistics, taxation, and banking governance.
"To build a resilient and investor-friendly economy, we must ensure energy security, curb corruption, and maintain long-term policy consistency," he said.
AmCham Treasurer, Al Mamun M Rashel & Managing Director of NATco Bangladesh, and AmCham Executive Committee Member, Rashed Mujib Noman, Managing Director of Augmedix BD Ltd, were also present at the event.
