Bangladesh faces fiercer competition in global markets: Khalilur

Foreign Minister Dr Khalilur Rahman on Saturday said Bangladesh must compete more aggressively to maintain and expand its export market share as slowing global growth, rising trade barriers, climate vulnerabilities and shifts in global trade and investment patterns reshape the international economy.

“We will need to compete ever more fiercely in order to maintain and expand our export position,” he said while inaugurating the “Roadmap for Trade, Growth and Economic Diplomacy 2026: Navigating Risks, Leveraging Resilience” conference in the capital.

The Ministry of Foreign Affairs and the Bangladesh Investment Development Authority (BIDA) jointly organised the conference, bringing together senior government officials, diplomats, development partners and business leaders to discuss Bangladesh’s future economic engagement.

State Minister for Foreign Affairs Shama Obaed Islam, Prime Minister’s Foreign Affairs Adviser Humayun Kabir and Foreign Secretary Asad Alam Siam also spoke at the event.

Khalilur, who is also president-elect of the 81st session of the United Nations General Assembly, said Bangladesh’s major export destinations continue to register positive growth, but at a slower pace. He warned that weaker consumer demand in those markets could affect Bangladesh’s exports in the coming years.

The foreign minister said the new government assumed office at a time when the global economy faces slowing trade and economic growth, geopolitical tensions, policy uncertainty, climate risks, rising protectionism and major shifts in supply chains.

“Moreover, the ongoing energy crisis has added a new layer of complications,” he said.

He noted that Bangladesh cannot remain insulated from these developments and must adjust its policies and economic diplomacy accordingly.

Khalilur said the government organised the conference to facilitate open discussions among policymakers, diplomats, development partners and business leaders and support informed decision-making on trade, investment and economic cooperation.

Highlighting challenges in global finance, he said international financial markets increasingly influence production, trade and investment flows.

“Countries like Bangladesh find it harder to raise capital, pay significantly higher borrowing costs and remain acutely vulnerable to swings in market sentiment,” he said.

According to the foreign minister, advanced economies generally borrow at interest rates ranging from 1 to 4 per cent, while developing economies often face borrowing costs between 6 and 12 per cent or higher.

“As a result, our access to affordable and secure financing remains significantly restricted,” he added.

Khalilur also underscored the growing link between climate vulnerability and financing costs. Referring to a recent Investment Policy Review conducted by the United Nations Conference on Trade and Development (UNCTAD), he said some climate-vulnerable countries pay an additional $20 billion annually in interest costs because of climate-related risks.

“External debt and climate crisis have become intertwined,” he observed.

The foreign minister warned that the global energy crisis has increased Bangladesh’s spending on imported fuel, raising production costs and affecting competitiveness. He said higher energy bills could also divert resources from development programmes and create long-term economic challenges.

Citing the International Energy Agency, he said the current energy crisis could surpass the scale of the oil shocks of the 1970s, which contributed to a “lost decade” of development for many developing countries during the 1980s.

Khalilur also highlighted the growing importance of Trade Tech — the convergence of trade, investment and technology — in reshaping global commerce.

He said innovations such as artificial intelligence, the Internet of Things, blockchain and 5G technology are transforming cross-border trade and investment.

“This poses both a challenge and an opportunity depending on how quickly and effectively countries can take advantage of the fast-moving Trade Tech landscape,” he said.

The foreign minister said Prime Minister Tarique Rahman’s economic vision centres on three strategic goals — stabilise, reform and elevate.

“We need to convert his vision into concrete action as it comes to our work on economic and trade diplomacy,” he said.

Khalilur stressed that restoring confidence among citizens, businesses and international partners remains one of the government’s immediate priorities.

“We want to assure our citizens, our local business community and, most importantly, our international partners that Bangladesh is stable, predictable and open for business,” he said.

Reaffirming Bangladesh’s longstanding foreign policy principle of friendship, he said the country would continue to pursue mutually beneficial bilateral and multilateral partnerships to promote growth and shared prosperity.

He added that Bangladesh’s embassies and high commissions abroad are being reoriented to act as proactive facilitators of trade and investment while helping secure market access and strengthen economic integration.

Addressing business leaders, the foreign minister pledged reforms to improve the ease of doing business and remove barriers to investment and entrepreneurship.

“You are the driving force of our economic progress, and this government stands fully ready to power your growth,” he said.

He said the government aims to replace bureaucratic bottlenecks with policy predictability, transparency and a level playing field for businesses ranging from small and medium-sized enterprises to large industrial groups.

Khalilur said the administration has already received encouraging responses from domestic and international stakeholders during its first 100 days in office.

Describing political transition as an opportunity for transformation, he said the government possesses the political will, strategic vision and commitment necessary to make Bangladesh the most competitive investment destination in South Asia.

The conference featured three thematic sessions focusing on trade and investment, financing reforms, and emerging growth sectors including artificial intelligence, creative industries and sports.

According to the Ministry of Foreign Affairs, the conference aims to strengthen links between policymaking and implementation, enhance Bangladesh’s economic diplomacy and foster stronger international partnerships to support sustainable growth and trade expansion.