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A broader global slowdown has also made investors more cautious, with capital flowing to more stable and predictable destinations.

To attract fresh FDI, she stressed the need for consistent policies, respect for contracts, improved infrastructure, and above all, political and social stability.

Khondker Golam Moazzem, research director at the Centre for Policy Dialogue, meanwhile, pointed out that Bangladesh’s FDI inflows remain subdued, with limited signs of strong growth compared with regional peers such as India.

He said a major concern is the composition of inflows. “Intra-company loans have risen sharply, but these largely reflect financing by parent companies to existing operations, not fresh investment.”

He added, “Greenfield investors continue to face hurdles, including complex licensing requirements, delays in opening bank accounts, land acquisition difficulties, and slow approvals.”

FDI also remains concentrated in traditional sectors, he said, while weak intellectual property enforcement and regulatory gaps have kept investment out of non-traditional, export-oriented industries.

In a similar tone, M Masrur Reaz, chairman and CEO of the Policy Exchange of Bangladesh, noted that equity accounts for only around a third of total FDI. “This composition is not encouraging for job creation or economic diversification, even though net FDI recorded strong growth in 2025.”