Bangladesh must adopt a comprehensive economic diplomacy strategy integrating trade, foreign policy and domestic reforms to secure sustainable growth amid rising global trade fragmentation and protectionism, policymakers and experts said at a high-level discussion held in Dhaka on Saturday.
The discussion, held at the Pan Pacific Sonargaon Hotel, focused on the evolving role of economic diplomacy in safeguarding Bangladesh’s long-term economic prospects and strengthening the country’s competitiveness in an increasingly challenging global environment.
Speakers noted that the primary objective of modern economic diplomacy is no longer limited to trade promotion. Instead, it encompasses strengthening trade relations, attracting foreign direct investment (FDI), diversifying exports and maintaining macroeconomic stability through a coordinated approach involving foreign policy, investment promotion, economic reforms and sustainable development.
For Bangladesh, which is preparing for its graduation from the United Nations’ Least Developed Country (LDC) category, participants identified addressing post-LDC challenges as one of the country’s most pressing priorities. They emphasized the need to negotiate new trade agreements, expand export markets, attract greater foreign investment and strengthen macroeconomic fundamentals to sustain economic growth in the coming years.
The speakers also underscored the importance of ensuring good governance in the banking and financial sectors, describing it as essential for restoring investor confidence and enhancing economic resilience. Business-friendly reforms, institutional capacity building, and the adoption of green technologies were highlighted as critical elements for maintaining competitiveness and supporting sustainable industrial development.
Regional cooperation was also identified as a key pillar of future growth, with participants stressing that stronger economic ties and collaboration with neighboring countries and trading partners could help Bangladesh better integrate into evolving global value chains.
The event was inaugurated by Mirza Fakhrul Islam Alamgir, who attended as the chief guest and formally opened the discussion.
Among the distinguished participants was Amir Khasru Mahmud Chowdhury, Minister of Finance. Also present was Dr. Khalilur Rahman, who currently serves as Minister of Foreign Affairs and has been elected President of the 81st Session of the United Nations General Assembly.
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Other notable attendees included Shama Obaed Islam, Honorable State Minister for Foreign Affairs; Humayun Kabir, Foreign Affairs Adviser to the Chief Adviser; Dr. Mahdi Amin, Adviser on Education, Expatriates’ Welfare and Overseas Employment, and Labour and Employment; Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of the Bangladesh Investment Development Authority (BIDA).
Participants observed that increasing geopolitical tensions, fragmentation in global trade and the growing trend of protectionism are creating new challenges for emerging economies such as Bangladesh. They argued that a proactive and forward-looking economic diplomacy framework will be essential to navigating these uncertainties and ensuring sustainable growth.
According to the discussion, economic diplomacy today extends beyond conventional trade negotiations and requires a broader strategy that aligns external engagement with domestic reforms. Such a strategy, speakers said, should focus on strengthening trade partnerships, promoting investment, improving governance, and creating a more favorable business environment.
The participants further emphasized that export diversification will be crucial as Bangladesh transitions from LDC status. With preferential trade benefits expected to diminish following graduation, the country will need to pursue new bilateral and regional trade agreements while enhancing industrial competitiveness and expanding into higher-value products and markets.
Sustainability also emerged as a major theme during the event. Speakers highlighted the need for wider adoption of green technologies and environmentally responsible industrial practices to ensure long-term competitiveness and align with evolving global market requirements.
Institutional strengthening was identified as another critical area. Participants stressed that stronger institutions and better policy coordination would enable Bangladesh to implement reforms more effectively and capitalize on emerging opportunities in international trade and investment.
The discussion concluded with a consensus that economic diplomacy should serve as a central pillar of Bangladesh’s future development strategy. By integrating trade, foreign policy and internal reforms, the country can better position itself to overcome post-LDC challenges, strengthen its role in the global economy and sustain long-term economic growth.
Against a backdrop of increasing protectionism and shifting global economic dynamics, participants agreed that a coordinated approach combining business-friendly reforms, sound governance, green transformation and regional cooperation will be essential for Bangladesh to maintain its development momentum and secure its place in the increasingly competitive global marketplace.
