Bangladesh Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in Bangladesh, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals.
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Investment Climate Statement
Last published date:

The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies. They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:

•    Openness to, and Restrictions upon, Foreign Investment, 
•    Investment and Taxation Treaties,
•    Legal Regime,
•    Industrial Policies,
•    Protection of Property Rights,
•    Financial Sector,
•    State-owned Enterprises,
•    Corruption,
•    Labor Policies and Practices,
•    Political and Security Environment

Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad.

These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors. 

To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website.

Executive Summary - Bangladesh

Bangladesh is one of the most densely populated countries in the world, with the eighth-largest population (approximately 177 million) residing within a territory the size of Iowa. Situated in the northeastern corner of the Indian subcontinent, Bangladesh shares a 2,500-mile border with India and a 150-mile border with Burma. The 2024 ouster of former Prime Minister Sheikh Hasina after weeks of violent repression against student protesters resulted in the fall of the Awami League (AL) government. An Interim Government (IG), headed by Nobel laureate Muhammad Yunus as “Chief Advisor” (Prime Minister-equivalent), initiated reforms, but much of the day-to-day regulatory landscape remained unchanged. The Bangladesh Nationalist Party (BNP) won the February 12, 2026, elections, and formed a government led by Prime Minister Tarique Rahman.

In 2023, Bangladesh obtained an International Monetary Fund (IMF) loan to bolster its foreign currency reserves. The IMF Executive Board approved $3.3 billion under the Extended Credit Facility/Extended Fund Facility and $1.4 billion under the Resilience and Sustainability Facility. In June 2025, the IMF approved an additional $800 million disbursement for Bangladesh, bringing the total approved support to $5.5 billion. As of October 2025, about $3.6 billion from the IMF loan had been disbursed.

Bangladesh averaged 6.4 percent annual GDP growth between 2013 and 2023. For fiscal year 2024-2025 (July to June), GDP growth experienced a significant slowdown, with provisional data indicating a rate of roughly 3.76 to 3.97 percent, marking the lowest growth since the COVID-19 pandemic. This performance reflected a fragile, uneven recovery plagued by high inflation, reduced consumption, and limited investment. Bangladesh’s strategic location between the emerging South and Southeast Asian markets and its large workforce have attracted some U.S. companies and investors. Bangladesh’s total foreign direct investment (FDI) inflow stood at $1.7 billion at the end of fiscal year 2025, which was up from $1.4 billion in fiscal year 2024, according to Bangladesh Bank data (the central bank).

Rising commodity prices and high imports in 2024 resulted in a substantial balance of payments deficit for Bangladesh. Gross foreign currency reserves declined from a high of $48 billion in August 2021 to below $20 billion in 2024, according to the Bangladesh Bank. Since the 2024 downturn, foreign exchange reserves have rebounded because of:

  • Strong remittance inflows
  • Steady export earnings and
  • Support from international lenders 

As of March 2026, gross reserves were above $30 billion, providing more than five months of import cover. Additionally, the IG removed the Hasina-era practice requiring Bangladesh Bank approval for foreign currency transfers, and in March 2026, the central bank raised approval thresholds of capital repatriation for foreign investors to $8.13 million from $0.81 million in order to streamline capital repatriation with a view to attracting foreign investment. The previous foreign currency shortage coincided with a banking crisis in which several major Bangladeshi banks made large, questionable loans to companies linked to members of the ruling AL party that later defaulted on the loans. By December 2025, the value of non-performing loans (NPLs) had risen to $46 billion.

Bangladesh made gradual progress over the past decade to reduce constraints on investment, such as efforts to better ensure reliable electricity service, but foreign investment continues to be hindered by issues such as:

  • Inadequate infrastructure
  • Limited financing instruments
  • Bureaucratic delays
  • Unfair tax burdens for foreign firms and
  • Corruption

 

View the Bangladesh Investment Climate Statement.

Political Environment

For background information on the political and economic environment of the country, please click on the link to the Department of State Countries & Areas website.

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