B Mirror Report: While Bangladesh has made significant strides in improving its investment climate, urgent structural reforms are still necessary as the nation gets ready to graduate from Least Developed Country (LDC) status in November 2026, according to a recent report by the United Nations Conference on Trade and Development (UNCTAD).
The research assesses the 2013 Investment Policy Review’s (IPR) implementation and depicts a complicated but progressively improving investment environment influenced by both domestic reforms and international economic factors.
The UNCTAD Investment Policy Review (IPR) Implementation Report for Bangladesh was unveiled in the capital today by the United Nations Development Programme (UNDP), in collaboration with UNCTAD and the Bangladesh Investment Development Authority (BIDA). Senior government officials, representatives from the private sector, and development partners convened for a high-level discussion of the nation’s investment framework before to LDC graduation.
The paper claims that due to macroeconomic difficulties and worldwide disruptions, foreign direct investment (FDI) inflows into Bangladesh fell by about one-third by 2024 after reaching a peak of over $1.8 billion in 2019. However, when economic conditions stabilize, early data from 2025 point to a resurgence in FDI, fueled by intracompany loans and reinvested earnings.
The textiles, financial services, and power sectors continue to dominate investment activity, accounting for 58 percent of total inward FDI stock by end-2024. At the same time, the digital economy is gaining momentum, with telecommunications and IT services attracting growing investor interest through joint ventures and hardware manufacturing.
The report notes that while major macroeconomic and regulatory reforms have been undertaken, these efforts must be sustained. It emphasizes that deeper structural improvements are still required to ensure a smooth transition after LDC graduation.
Key bottlenecks include land scarcity, weak infrastructure integration, a complex tax regime, and institutional fragmentation, all of which continue to constrain investment potential.
At the launch event, BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun stressed the importance of attracting sustainable and quality investment to support economic transformation, diversification, technology transfer, and job creation in the post-LDC period. He called for coordinated reforms and stronger institutions aligned with national priorities.
UNDP Bangladesh Deputy Resident Representative Sonali Dayaratne said coherent investment policies and strong institutional capacity are essential to ensure responsible investment that creates jobs, supports innovation, and promotes inclusive and sustainable growth as Bangladesh approaches graduation.
The 2026 IPR Implementation Report, prepared by UNCTAD at the request of BIDA, assesses progress against the 2013 Investment Policy Review recommendations. Key achievements include the establishment of BIDA as the lead investment facilitation agency and expansion of digital investment services.
The report also outlines priority reforms, including a unified national investment policy, a consolidated investment law, and completion of digital procedures to enhance competitiveness ahead of LDC graduation.
The launch featured a video message from UNCTAD Investment and Enterprise Director Nan Li Collins, followed by a keynote presentation by Kiyoshi Adachi, Legal Officer at UNCTAD.
Owais Parray, a UNDP Bangladesh economic advisor, conducted a high-level panel discussion that examined methods to put the ideas into practice. Policy Exchange Bangladesh Chairman Dr. M Masrur Reaz, former BIDA DG Md. Ariful Hoque, BUILD CEO Ferdaus Ara Begum, and trade policy specialist Md. Hafizur Rahman were among the speakers. Md. Humayun Kabir, a BIDA Executive Member, presided over the meeting.
The discussion took place as part of the Transformative Economic Policy Programme (TEPP), which was carried out by UNDP Bangladesh with assistance from the UK government with the goal of bolstering evidence-based reforms and economic governance.
In order to help Bangladesh’s attempts to draw in quality investment and guarantee long-term economic stability and sustainable development, the report’s release represents a significant milestone.
