Publish: 09:54, 14 Apr, 2025

Investors seek political stability for long-term investment

Online Desk
Investors seek political stability for long-term investment
Symbolic

Foreign investors attending the recently concluded Bangladesh Investment Summit 2025 emphasised the need for a sustainable atmosphere, and political stability in order to boost the country’s economic growth.

During their meetings with key stakeholders, including Chief Adviser Prof Muhammad Yunus, investors raised concerns about the political landscape and inquired about the timing of the upcoming general election.

According to diplomatic sources, the investors underscored the importance of a predictable and investor-friendly environment and emphasised on holding national election for an elected government to ensure long-term returns on investment.

UK Prime Minister’s Trade Envoy Baroness Rosie Winterton met Prof Yunus and sought clarity on the election timeline. In response, Yunus reportedly stated, “If political parties agree on a shorter reform process, elections could take place in December. But if a more extensive reform path is chosen, the election can be held by June.”

Economist Dr Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development and former Chief Economist of Bangladesh Bank, told the Daily Sun that foreign investors are primarily driven by their own interests and expected returns.

“Investors will go where profit is likely. It’s not only about Bangladesh—every country is competing to attract foreign investment,” Dr Mujeri said.

“The key is to create an investment-friendly environment. Currently, that environment is not conducive, even domestic investors are hesitant.”

He further said, “There is still uncertainty regarding when the elections will take place or how long the interim government will stay in power. Investors typically plan for five to ten years, and they are unsure whether the policies of the interim government will be continued by the next elected government. Stability and policy continuity are critical.”

Dr Mujeri also noted that while the summit provided useful insights for investors, concrete steps are now required to address structural and governance issues to turn interest into actual investment.

“We’ve had the summit, and many investors visited. But without real stability and reform, foreign investors will remain cautious. The summit served as a platform for information-sharing. Now we need action to remove barriers – only then will the ‘investment rain’ come.”

Nicholas Qi, CEO of Genew Bangladesh Ltd, praised Bangladesh’s potential but stressed the need for policy continuity. “The interim government has made encouraging moves – we hope for consistent policies ahead,” he said.

Wu Jianbo, secretary general of China’s Green and Smart Energy Organization, called for more incentives and market access. “Bangladesh must support investors in identifying customers. That would boost confidence,” he noted.

BNP senior leader Amir Khasru Mahmud Chowdhury said at the summit that a democratic process under an elected government is essential for boosting the economy and attracting investment.

“The economy will remain stable as long as the democratic process continues. So, we must ensure its continuation. We aim to rebuild the economy by increasing investment,” he said.

Khasru, a BNP Standing Committee member, said the speakers at the summit emphasised the importance of continuing the democratic process for economic development.

“We must initiate a democratic process and, of course, sustain it through elections and an elected government,” he said.

At the summit, Khasru also said they promised investors a more investment-friendly and transparent trade environment in Bangladesh by introducing "Investor Protection Regulations."

When asked about political stability and a business-friendly environment, Nahian Rahman Rochi, Head of Business Development at Bangladesh Investment Development Authority, said during a press conference that they have arranged separate meetings between foreign investors and political parties to promote business and investment in the country.

“Both sides discussed policy continuation and reform. The political parties assured investors of their continued support,” Rochi added.

Courtesy: Daily Sun.

Bd-pratidin English/Tanvir Raihan

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