Bangladesh Implements Legal Reforms to Boost Investment Climate

May 8, 2026

59 min

May 8, 2026 09:30

Bangladesh’s Legal Reset: New reforms build a rules-based economy for investors

## Shift Towards Structural Resilience

In the latter half of 2025, Bangladesh initiated significant legal reforms aimed at transforming its investment landscape. Previously reliant on statutory guarantees, the country is now focusing on creating a more resilient and structured economic environment, crucial for attracting international investors.

## Key Changes in Energy and Logistics

A major reform includes the repeal of indemnity laws, which mandates adherence to the Public Procurement Act of 2006. This change is expected to enhance transparency and promote open tendering for large infrastructure projects. Additionally, the logistics sector has been liberalized through the new Shipping Agent Licensing Rules 2025, allowing agents to operate across all ports with a single license, thereby eliminating geographic monopolies and improving supply chain efficiency.

## Strengthening Judicial and Political Frameworks

The Commercial Court Ordinance 2025 introduces mandatory mediation for contract enforcement, strengthening institutional frameworks. Furthermore, the Supreme Court Secretariat Ordinance 2025 aims to eliminate "dual administration," ensuring judicial independence from executive influence. The reinstatement of the Non-Party Caretaker Government system is also expected to facilitate stable political transitions.

These comprehensive reforms are designed to establish a predictable, rules-based economy, making Bangladesh an attractive destination for long-term investments.

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