Govt rolls out strong policy package to boost investment, national savings

In a firm push to solidify Bangladesh’s economic foundation and accelerate its transition toward a high-growth, sustainable trajectory, the government has rolled out a comprehensive set of policies aimed at revitalising investment and strengthening national savings.

Investment remains a central pillar of economic growth, and in recent years, Bangladesh has experienced a slowdown in investment momentum.

Recognising the muted share of investment in GDP, the government has undertaken a range of multi-sectoral strategies to revitalise investment dynamics, according to the Medium Term Macroeconomic Policy Statement of the Finance Ministry.

It said these initiatives are expected to gradually strengthen the investment climate and pave the way for higher levels of both private and public investment over the medium-term.

While public investment is slower initially, it is anticipated to reach 6.77 percent of GDP by FY28.

“To support this trajectory, the government is prioritising key infrastructure development, improving ease of doing business, streamlining regulatory frameworks, expanding digital governance and promoting foreign investment,” the document said.

The government is also actively working to promote public private partnership (PPP) and enhance access to finance for SMEs and startups.

These multi-sectoral strategies, backed by policy coherence and institutional strengthening, as per the Finance Ministry document, are expected to create a more conducive environment for sustainable and inclusive investment-led growth.

Bangladesh is pursuing a broad-based strategy to elevate investment — both public and private — as part of its post‑LDC transition and economic modernisation.

Public investment via the Annual Development Programme (ADP) is poised for a boost, with capital spending set to rise to 6.68% of GDP in FY 2025‑26, up from 6.50% in FY 2023‑24 and 6.41% in FY 2024‑25.

The ADP aims to reinforce infrastructure, social safety nets, and reduce bottlenecks affecting private-sector growth.

In a parallel move, the Bangladesh Investment Summit 2025 held in April in Dhaka yielded a high-profile Investment Portfolio and a Tk 900 crore Innovation Fund, generating over 150 B2G meetings.

The summit reinforced Bangladesh’s reform-minded image and secured fresh FDI commitments in renewable energy, digital economy, textiles, healthcare and agro‑processing.

Alongside efforts to boost investment, the government is also focusing on strengthening national savings to ensure a more balanced and self-reliant financing structure for growth.

National savings are also projected to rise in tandem, which will help narrow the savings-investment gap over the medium-term.

Gross national savings, which slightly dipped to 28.42 percent of GDP in FY24, are expected to improve steadily.

It is expected to reach 31.66 percent by FY28 as there are expectations that inflation will stabilise, remittance inflows strengthen, and household and corporate savings behaviour improve.

Similarly, gross domestic savings are projected to increase from 23.96 percent in FY24 to 26.59 percent by FY28.

Bangladesh’s gross domestic savings has registered a modest improvement in the current fiscal year, reflecting cautious optimism in the country’s macroeconomic stability.

The increase is attributed to restrained private consumption, improved remittance inflow and moderate inflationary pressure.

Despite the improvement, Bangladesh still faces challenges in translating higher domestic savings into productive investment.

The investment-to-GDP ratio remains relatively stagnant, indicating a gap between available savings and capital deployment.

Finance ministry officials noted that greater financial inclusion, reforms in the banking sector, and improved investment climate are essential to harness domestic savings effectively.

They also emphasised the need to channel savings into productive sectors, especially manufacturing and infrastructure, to support long-term growth.

These projections and the government’s policy measures are expected to strengthen the savings outlook, which will reduce the reliance on external financing and ensure greater macroeconomic stability, the document hoped.