The investment climate in Bangladesh is expected to improve markedly following the forthcoming national election, according to Mashrur Arefin, chairman of the Association of Bankers, Bangladesh (ABB).
Speaking at the Fourth Bangladesh Economic Summit 2025 in Dhaka on 29 November, Arefin noted that business sentiment is currently cautious, with firms holding back on credit and investment decisions pending greater clarity on the country’s economic direction. “Business confidence is cautious at present. Credit growth remains sluggish as companies await a clearer roadmap for the national economy. We anticipate that investment activity will gain momentum once the elections conclude,” he said.
Bangladesh has witnessed a notable decline in inflation, which has dropped from 12% to 8.17%, with the central bank targeting a further reduction to 5%. Meanwhile, the foreign exchange market has remained free from intervention, a milestone Arefin described as “a long-cherished objective for the nation.”
The country’s external earnings reflect a growing fiscal discipline. Exports contribute approximately $50 billion, while remittances add another $30 billion annually. Monthly imports average $5 billion, translating to $70 billion over a year.
| Sector | Amount |
|---|---|
| Export Earnings | $50 billion |
| Remittances | $30 billion |
| Monthly Imports | $5 billion |
| Annual Imports | $70 billion |
“We are earning $80 billion while spending $70 billion, illustrating strengthened discipline in external finances,” Arefin remarked.
The interbank market remains highly active, with roughly 50 million transactions processed daily. The current account deficit, previously as high as $19 billion, has narrowed dramatically to just $400 million, while the financial account now records a surplus of $2 billion.
Reserve money in the economy stands at around Tk3 lakh crore. Arefin highlighted that the government has ceased the previous practice of devolving treasury bills and bonds onto itself, signalling greater transparency and efficiency in public finance management. Deposit growth remains robust at approximately 10%.
Although overall credit expansion has been slow, leading banks such as The City Bank have demonstrated strong loan growth. Top-tier financial institutions are increasingly improving lending performance, aligning with expectations for post-election economic revitalisation.
With these indicators, Bangladesh’s economic fundamentals appear resilient, laying the groundwork for a surge in investment and growth in the months ahead.