Bangladesh Embraces Investors with Pro-Business Reforms

May 8, 2026

70 min

May 8, 2026 08:31

Bangladesh opens doors to investors as Tarique Rahman drives pro-business reforms

## Pro-Business Reforms Underway

Bangladesh, under the leadership of Prime Minister Tarique Rahman, is actively working to attract investors by simplifying the investment process. In May, Rahman instructed officials to streamline approvals for investment projects and increase loans for private investments in government factories. This initiative is part of a broader strategy to boost both local and international capital.

## Economic Outlook

According to the International Monetary Fund's April 2026 report, Bangladesh's GDP is estimated at $511 billion, making it the second-largest economy in South Asia after India. The country's growth is projected to reach 4.7% in the 2026 fiscal year, supported by moderating inflation and rising foreign-exchange reserves.

## Investment Opportunities

Net foreign direct investment in Bangladesh increased by 39% in 2025, reaching $1.77 billion. While textiles and garments remain key sectors, there is growing interest in pharmaceuticals, telecommunications, and the digital economy. Renewable energy is also a focus, with initiatives like the Merchant Power Policy and a rooftop solar program aiming to expand solar capacity significantly.

## Renewable Energy Focus

Bangladesh is making strides in renewable energy, with plans to increase solar capacity to 8.5GW by 2035. The Merchant Power Policy allows private sector involvement in energy supply, and a new public-private partnership framework is set to open public land for large-scale solar projects. Gulf investors are already participating in Bangladesh's energy and infrastructure sectors, highlighting the potential for further growth.

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