Japan Leads as Top Financial Supporter to Bangladesh

Bangladesh has formed a national committee, led by the commerce adviser and Beza’s executive chairman, to evaluate the feasibility of establishing Free Trade Zones (FTZs), as announced on April 21, 2025. This move follows the Bangladesh Investment Summit (April 7–10), where attracting foreign investment, boosting exports, and creating jobs were key topics.

Bangladesh and the European Union (EU) held the first round of negotiations on the Partnership and Cooperation Agreement (PCA) on April 10, 2025, in Brussels, aiming to finalize the agreement by 2026. The PCA seeks to establish a comprehensive framework for enhancing cooperation in areas like trade, investment, climate action, digital transformation, migration, human rights, and security.

UK Trade Envoy to Bangladesh, Baroness Rosie Winterton, emphasized the UK's commitment to deepening economic ties with Bangladesh during her first official visit. Highlighting the UK's role as Bangladesh's third-largest export market for ready-made garments and a top foreign investor, she stressed the goal of enhancing bilateral trade and investment.

Bangladesh and the UK strengthened economic ties through trade and investment discussions in London from March 10-13, focusing on education, aviation, and renewable energy. UK Investment Minister Baroness Gustafsson and BIDA Executive Chairman Ashik Chowdhury explored expanding foreign direct investment (FDI) and bilateral business cooperation.

Bangladesh faces a substantial trade imbalance with Saarc nations, as import payments far exceed export earnings, according to the Bangladesh Bank report for FY24. The country imported goods worth $9.76 billion from Saarc while exporting only $1.74 billion, resulting in a trade gap of over $8 billion.

Canada has allocated $272.1 million in foreign aid for Bangladesh and the Indo-Pacific region, focusing on healthcare, women's empowerment, and climate change initiatives. This funding supports 14 projects in the region, with a significant emphasis on gender equality, sexual and reproductive health, and inclusive education.