BD must act decisively to secure its economic future: Roundtable

At the dialogue, concerns were raised about the drop in Foreign Direct Investment (FDI), the country’s preparedness for LDC graduation, and the role of foreign relations in boosting productivity.

The speakers also discussed the impact of a floating exchange rate for the US dollar, the need for scientific research into natural resources and the cost implications of relying on imported raw materials like US cotton.

The Bangladesh Institute of Peace and Security Studies (BIPSS) organised the roundtable on Sunday titled ‘Navigating Geoeconomic Challenges in a Complex Multipolar World: Options for Bangladesh’.

The event brought together a distinguished group of panelists, diplomats, academics, journalists and policy experts to assess the rapidly evolving global economic landscape and its implications for Bangladesh’s geoeconomic security and strategic positioning.

BIPSS President Major General (retd) Muniruzzaman moderated the event and opened the discussion by outlining the global shifts underway, including increasing trade disruptions, realignment of international systems and emerging economic frameworks such as safe-shoring and friend-shoring.

Centre for Policy Dialogue (CPD) Executive Director Dr Fahmida Khatun has said Bangladesh should reduce its dependency on aid and move toward a trade-based growth strategy.

With the country set to graduate from its Least Developed Country (LDC) status, she emphasised the need for a robust tariff and trade negotiation framework to preserve market access and maintain competitiveness.

Speaking at the roundtable, Dr Fahmida also pointed to the failure of multilateral economic agreements in recent years and suggested exploring regional platforms like the Regional Comprehensive Economic Partnership (RCEP) to secure more beneficial trade arrangements.

She focused on the shifting trade environment and the increasing use of tariffs by major powers, especially the United States.

Muniruzzaman emphasized that Bangladesh must respond to these changes by improving its supply chain resilience, ensuring energy security, investing in digital development and preparing for the evolving international order.

He noted that the country's limited economic diversification and exposure to global volatility make such strategic adjustments urgent.

Research Director, Bangladesh Institute Development Studies Dr Anwara Begum followed with a comprehensive overview of the role of international financial institutions and the emerging alternatives such as BRICS, the Belt and Road Initiative (BRI), and the Asian Infrastructure Investment Bank (AIIB).

She noted that Bangladesh faces increased difficulty accessing affordable loans due to shifting donor priorities and rising global interest rates.

Dr Anwara stressed the importance of attracting foreign direct investment (FDI) over aid and outlined the potential of Bangladesh’s Blue Economy.

She, however, highlighted critical gaps in infrastructure, such as vessel readiness and aquaponic capabilities, which need urgent attention. She also raised concerns about forced migration caused by climate change and emphasised the need for inclusive policies and oversight mechanisms to ensure effective implementation.

Assistant Professor, Department of Economics, East West University Parvez Karim Abbasi drew attention to Bangladesh’s vulnerability to external regulations imposed by international financial bodies.

He argued that while the digital economy has been widely discussed, implementation remains weak, as highlighted by past financial security breaches.

Abbasi identified three pressing issues for Bangladesh: the emerging realignments in the Middle East and its implications, the global race for rare earth elements, where Bangladesh holds untapped potential, and the risk of future ‘water wars’ amid regional tensions.

He underscored the need for a stable political environment to attract FDI and called for the strategic handling of Bangladesh’s natural resources to avoid exploitation.

Abbasi reiterated that economic policy must be consistent and depoliticised, warning that ad hoc shifts with every new administration weaken investor confidence.

Without research and strategic planning, he said, Bangladesh cannot effectively diversify its economy.

Dr Anwara Begum called for increased focus on sustainable development and green financing, while also urging the government to curb labor exploitation in overseas employment sectors through stronger regulation.

Dr Fahmida provided insights into recent changes in the exchange rate regime and clarified common misconceptions about U.S. tariffs on Bangladeshi exports.

She also discussed the conditions attached to recent IMF loans and highlighted the importance of macroeconomic stability and compliance with international standards on labor and environmental rights as Bangladesh approaches LDC graduation.

Muniruzzaman emphasised that Bangladesh must adopt a forward-looking, proactive approach to remain competitive in the shifting global order.

He stressed the need for a clear economic vision, institutional reforms, and consistent diplomacy to attract investment and strengthen resilience against external shocks, reports UNB.