At the 2025 Foreign Investors Summit in Dhaka, global financiers delivered a clear message: without stable and inclusive governance, Bangladesh risks losing the confidence of long-term investors.

Foreign Investors’ Warning

Takao Hirose, Managing Director of Contextual Investment LLC, recounted his conversations with hotel staff, cab drivers and restaurant workers upon arriving in Dhaka. While many were cautiously optimistic about the recent political transition—led by Gen Z demands for accountability—Hirose stressed that sustained foreign capital requires non-negotiable stability. “Fast money is capricious,” he warned. “At the first sign of unrest, investors will withdraw.”

The Need for Inclusive Growth

Highlighting microfinance pioneers like BRAC and Grameen Bank, Hirose praised Bangladesh’s early economic momentum but urged a shift towards long-term equity capital. He argued that democratizing investment through digital trading platforms and broader stock ownership, much like the U.S. 401(k) model, is critical to building a robust domestic investor base.

Lessons from Sri Lanka

Ruchir Desai of Asia Frontier Investments drew parallels with Sri Lanka’s collapse and recovery. He noted that regulatory overhangs and market shutdowns in 2018–19 had already dampened investor sentiment in Bangladesh. However, with inflation easing, export growth, and strong remittances, he believes that a stable policy environment could unlock Bangladesh’s full potential over the next five to six years.

Local Leaders Respond

Anisuzzaman Chowdhury, Special Assistant for Economic Affairs, reaffirmed that Bangladesh’s capital market remains resilient despite political upheaval. He highlighted government reforms aligned with the “Three Zeros” vision—zero poverty, zero unemployment, zero carbon—and called on both foreign and domestic investors to seize long-term opportunities now.

Strengthening the Capital Market

BNP’s Amir Khasru Mahmud Chowdhury emphasized the mismatch between short-term bank lending and the need for long-term financing. He advocated deregulation and market openness to attract quality IPOs and strengthen market depth. DSE Chairman Mominul Islam echoed these points, noting tax incentives for listed firms and ongoing legal reforms to ensure regulator independence.