Bangladesh Bank Governor Urges Firms to Invest Abroad

Bangladesh Bank Governor Ahsan H. Mansur has called on the country’s corporate sector to step up overseas investment, arguing that improving macroeconomic conditions and a stabilising foreign exchange reserve position have created a timely window for international expansion. He maintained that sustainable outward investment is only possible when the domestic economy is resilient, a condition he believes Bangladesh is now steadily regaining after a period of strain.

The governor made these remarks on Monday evening at a seminar in Gulshan, Dhaka, jointly organised by Policy Exchange Bangladesh and the Metropolitan Chamber of Commerce and Industry (MCCI). Reflecting on recent challenges, he recalled that Bangladesh’s foreign currency reserves had fallen to worrying levels not long ago, eroding market confidence. However, a combination of timely policy interventions, tighter macroeconomic management and stronger foreign inflows has since improved the situation, restoring a measure of stability and trust in the economy.

According to Mansur, foreign exchange reserves currently stand at around USD 33 billion, with an official target of reaching USD 35 billion by June this year. This recovery has eased pressure on the balance of payments and given policymakers greater room to pursue growth-oriented measures, including facilitating foreign investment by Bangladeshi companies. He emphasised that outward investment should be viewed not as capital flight, but as a strategic tool to enhance competitiveness, secure new markets and diversify income streams.

The governor also expressed optimism about liquidity conditions in the banking sector. Imports grew by approximately 6 per cent in December, signalling a gradual revival in economic activity after a slowdown. At the same time, bank deposits increased by about BDT 2.2 trillion during 2025, significantly improving system-wide liquidity. With stronger balance sheets, banks are expected to be better positioned to lend to creditworthy borrowers, potentially allowing lending rates to decline by up to two percentage points.

Addressing concerns over loan rescheduling, Mansur was unequivocal that political considerations had played no role. Applications from large conglomerates, including Gazi Group, Bashundhara Group and Monno Ceramics, were assessed strictly under existing regulatory frameworks. Support, he said, would only be extended where there is genuine business viability and a credible path to recovery.

The seminar also highlighted Bangladesh’s international economic partnerships. UK Deputy High Commissioner James Goldman reiterated Britain’s interest in deepening investment ties, noting that duty-free access for Bangladeshi exports to the UK will remain in place until 2029, offering a significant opportunity for exporters. Policy Exchange chairman Mashrur Riaz stressed the need for timely and reliable data in policymaking, while MCCI president Kamran T. Rahman delivered the welcome address. Additional contributions came from Policy Research Institute chairman Zaidi Sattar and Bangladesh Bank deputy governors Habibur Rahman and Nurun Nahar.

Participants discussed the relevance of the Purchasing Managers’ Index (PMI), which stood at 54.2 points in December, indicating overall economic expansion. While agriculture and services continued to grow, some moderation was observed in manufacturing and construction.

Analysts attending the event agreed that stronger reserves and improved banking liquidity make overseas investment more feasible. Over the long term, such investments could enhance the global competitiveness of Bangladeshi firms and help diversify the country’s growth drivers.

Selected Economic Indicators (December)