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Prime Minister Tarique Rahman and his wife Zubaida Rahman arrive at Hazrat Shahjalal International Airport in Dhaka early Friday, wrapping up their four-day state visit to Japan. - PID PHOTO
Prime Minister Tarique Rahman’s four-day visit to Japan has produced an expectation of one trillion yen, about $6.35 billion, in Japanese private-sector investment over the next five years. It has also brought fresh demands for policy reforms and for careful balancing in Dhaka’s relations with major powers.
The two governments signed six bilateral cooperation instruments, and private-sector entities signed 17 memorandums of understanding. International relations experts and business leaders said the joint statement accommodated the differing perspectives of both sides.
The challenge now, they said, is to ensure the commitments lead to actual investment, employment and technology transfer rather than remaining announcements on paper.
“Whatever step Bangladesh will take in future, there will be influence of major regional and international players. We have entered a new ball game after this visit of the prime minister. It has posed a big challenge to our future diplomacy in balancing major powers,” former ambassador Mahfuzur Rahman told the Daily Sun.
Balancing major powers
Statements issued by the Bangladeshi and Japanese foreign ministries before the visit had shown that Dhaka and Tokyo had different expectations of the high-level engagement. The joint statement issued after Tarique Rahman’s meeting with Japanese Prime Minister Sanae Takaichi reflects both Bangladesh’s investment expectations and Japan’s vision of a Free and Open Indo-Pacific.
Mahfuzur Rahman pointed to the Bay of Bengal Industrial Growth Belt (BIG-B) initiative, under which the Matarbari Deep Sea Port is to be built.
“Both Japan and India look forward to use it. For this, strategic relations with Bangladesh and regional cooperation among the countries are crucial,” he said.
He added that Japan’s plans for Bangladesh have not changed, as Tokyo wants to reach the large Indian market through Bangladesh.
The former ambassador said the investment offer is not unconditional.
“Bangladesh has to meet their demands in phases. It must stress on customs regulations, product standardisation, connectivity and reforms,” he said.
He noted that partner countries now present wider, long-term plans in which investment comes bundled with strategic interests, and that Bangladeshi diplomats must prepare accordingly.
Bangladesh needs investment, technology, infrastructure financing and export markets from several partners, including Japan, China, India, the United States and European countries.
Mahfuzur Rahman said Dhaka’s priority should be to pursue areas of mutual interest without letting economic cooperation with one country be read as alignment against another.
He said the government should assess foreign investment proposals on their economic merits, financing terms, strategic implications and long-term sustainability.
Reforms for investors
Japanese companies have raised concerns about reliable energy supplies, infrastructure, customs clearance and predictable taxation.
Abdul Haque, a founding member and former president of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), said the government must move beyond inviting investors and create conditions in which they can operate efficiently and plan for the long term.
“Japanese investors mean business. The amount of private investment offered through different instruments during the prime minister’s visit is impressive. But if we want big Japanese investments, we have to bring meaningful reforms in our policies,” said Haque, who is also a recipient of Japan’s Order of the Rising Sun, Gold Rays with Rosette.
He recommended transparent approval procedures, clear rules on taxation and incentives, better coordination among government agencies and faster resolution of bureaucratic delays.
“Investment incentives should be based on clear, published criteria, with benefits linked to measurable outcomes such as employment generation, export growth, local sourcing and technology transfer,” he said.
He also called for a more coordinated approach to avoid overlapping commitments, ensure projects are commercially viable and monitor whether investors keep their promises.
The proposed investment package and two loan projects worth about $295.5 million could help improve infrastructure, the investment climate and local governance. The upgraded initiative, renamed “BIG-B for Shared Prosperity”, could also support industrial development around Matarbari and Maheshkhali. Project implementation, land availability, energy security and institutional capacity will determine how much of this potential is realised.
From diplomacy to delivery
The Bangladesh-Japan Economic Partnership Agreement, signed earlier this year, offers another route to expanding trade and investment. Economic experts said its effective implementation will matter as Bangladesh prepares to graduate from least developed country status and needs to diversify exports and improve competitiveness.
They said the visit’s success will be measured not by the value of announced commitments alone, but by how many projects materialise, how many jobs they create and whether they help build a more competitive, diversified economy. The government’s next task, they added, is to convert diplomatic goodwill into economic results while preserving Bangladesh’s strategic autonomy in a competitive regional environment.