What lies behind Sheikh Hasina's firm determination and confidence to bring Bangladesh—suddenly hit by major economic challenges—back onto the growth trajectory? To find the answer to this question, one must look at past and future plans. The various courageous initiatives and far-reaching strategies undertaken during her tenure form the core foundation of this self-conviction.

For an emerging economy like Bangladesh, Foreign Direct Investment (FDI) is an extremely effective tool. It does not merely address the capital deficit; rather, it accelerates sustainable growth by transferring modern technology, advanced management expertise, and creating millions of new jobs. This exact formula lies behind the record amount of FDI flowing into Asia's emerging economies.

Economic Zones and New Horizons for Foreign Investment To leverage Bangladesh's vast human resources, Sheikh Hasina's government established the Bangladesh Economic Zones Authority (BEZA) in 2010 with technical assistance from the World Bank and JICA, alongside the Bangladesh Export Processing Zones Authority (BEPZA). Under this plan, 97 Special Economic Zones (SEZs) were approved. Among these, major economic zones have been identified and developed for specific countries on a G2G (Government-to-Government) basis: • Japanese Economic Zone: Located in Araihazar, Narayanganj.

• Chinese Economic and Industrial Zone (CEIZ): Located in Anwara, Chattogram.

• Indian Economic Zone: Allocated across two locations, including Bangabandhu Sheikh Mujib Shilpa Nagar in Mirsarai.

• Other Countries: The process of allocating zones for several countries, including South Korea, is ongoing. Why is FDI Essential? It is difficult to meet the full cost of a country's large infrastructure and industrial projects through domestic savings alone. FDI resolves this capital crisis. At the same time, FDI plays a crucial role in bringing eco-friendly modern technology, diversifying the IT, pharmaceuticals, and manufacturing sectors, and broadening the export basket beyond readymade garments.

Prerequisites for Attracting FDI and International Experience Drawing from long experience, Sheikh Hasina knows that creating an investment-friendly environment requires simplifying tax procedures, reducing bureaucratic red tape, and establishing a business-friendly legal framework. Alongside these, ensuring political stability, good governance, and strong infrastructure (electricity, gas, ports, and modern communication) is indispensable.

The experience of other countries serves as a major example for us: • India: In the 2025–26 fiscal year, total FDI inflow into India reached a record $94.53 billion, up 17–18% from the previous year.

• Malaysia: Starting from the 1960s, the country received a record 65.9 billion Ringgit in FDI by 2025. Dato’ J. Jegathesan, former Deputy Director-General of Malaysia's Investment Development Authority (MIDA) and a renowned economist, later served as an advisor to the Bangladesh Investment Development Authority (BIDA).

Bangladesh's Current Scenario and Necessary Actions According to government data, net FDI inflow into Bangladesh grew by approximately 39–44% in 2025, reaching $1.77 billion to $1.85 billion (compared to $1.27 billion in 2024). However, a large portion of this consists of reinvested earnings from foreign companies already operating in the country—meaning new equity investment remains low.

To attract actual new investments, the following are required: • One-Stop Service: Speedy acquisition of licenses, company registration, and elimination of bureaucratic hurdles. • Legal Protection: Guarantees for the smooth repatriation of capital and earned profits back to the home country.

• Skilled Workforce: Developing world-class skilled human resources through TTCs, vocational institutes, and BITAC.

• Quality of Life and Recreation: Creating a safe environment for foreign investors featuring attractive, dedicated recreational facilities so they do not need to travel to other countries for leisure. • Conclusion The foundation of Sheikh Hasina’s confidence has been built through long-term planning and structural changes. However, compared to India or Malaysia, Bangladesh still lags somewhat behind in attracting actual new FDI. Merely adopting policies will not suffice; whether sustainable, large-scale FDI flows into Bangladesh will depend on how effectively administrative simplification, law and order, good governance, and skilled human resource development are implemented on the ground.

Author: Niharika Roy, Development Worker, Political Analyst, and Columnist