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Since assuming office under the leadership of Prime Minister Tarique Rahman, the current government has undertaken active diplomatic initiatives to strengthen international relations, attract foreign investment and create a favourable business environment. Its efforts to engage with business leaders and investors from Malaysia, China, the United States and other countries, alongside initiatives to expand economic cooperation, reflect this commitment. Against this backdrop, the PM’s recent visit to Japan has emerged as a major turning point in Bangladesh’s economic diplomacy. During the visit, potential investment opportunities worth approximately US$6.3 billion emerged from Japan’s private sector, with the probability of creating employment opportunities for more than 200,000 people.
New momentum in political and economic relations
On the first day of the visit, Prime Minister Tarique Rahman met a delegation led by Taro Aso, former Prime Minister of Japan and President of the Japan-Bangladesh Parliamentary Friendship League. Their discussions focused on further strengthening the longstanding friendship between the two countries, enhancing political engagement and expanding economic cooperation. On the same day, the prime minister met Chairman of Marubeni Corporation and President of the Japan-Bangladesh Committee for Commercial and Economic Cooperation (JBCCEC) Masumi Kakinoki. Their discussions covered the prospects for implementing the Bangladesh-Japan Economic Partnership Agreement (EPA) and attracting Japanese investment in promising sectors, including information technology, renewable energy and advanced manufacturing. They also discussed the modernisation of KAFCO and the establishment of a second fertiliser factory in Bangladesh. The PM also held a meeting with JICA President Dr Akihiko Tanaka and discussed accelerating the implementation of ongoing development projects in Bangladesh, financing priority projects, securing concessional loans and continuing technical assistance.
On the third day, he met Governor of the Japan Bank for International Cooperation (JBIC) Kazuhiko Amakawa. The two sides held constructive discussions on the possibility of establishing a JBIC office in Bangladesh that could facilitate financing for Japanese investors, project preparation and investment-related communication. In addition, Japan’s Minister of Economy, Trade and Industry, Ryosei Akazawa, paid a courtesy call to Prime Minister Tarique Rahman.
Elevating bilateral relations to a strategic level
On the second day, Prime Minister Tarique Rahman held a formal summit meeting with Japanese Prime Minister Sanae Takaichi. Their discussions covered a wide range of issues, including elevating the longstanding friendship between the two countries to a new level, energy security, technology, artificial intelligence, space research, infrastructure development and the expansion of trade and investment.
Tarique Rahman proposed establishing a Bangladesh-Japan Tech Park, developing a high-speed railway network connecting the country’s six divisional cities and constructing elevated roads. Both leaders emphasised the importance of bringing the EPA into force in the quickest possible time and establishing a ministerial-level joint commission to ensure the effective implementation of priority areas of cooperation. One of the most significant aspects of the summit was the clear commitment to transforming bilateral relations beyond the existing framework of development cooperation into a comprehensive strategic economic partnership.
Agreements and loan assistance
During the visit, six bilateral cooperation documents were signed between Bangladesh and Japan, covering several areas of mutual interest. A Memorandum of Cooperation (MoC) on strengthening economic relations and improving the business environment was signed between Japan’s Ministry of Economy, Trade and Industry and the Economic Relations Division (ERD) of Bangladesh’s Ministry of Finance. A total of four Memoranda of Understanding (MoUs) were also signed, among whom two are on agricultural cooperation and one on an employment generation programme through skills development. To strengthen cooperation on climate change, a Letter of Intent (LoI) was also signed.
In addition, a grant agreement worth up to US$13.44 million was signed for the provision of a patrol vessel to strengthen Bangladesh’s coastal security capabilities. Japan also pledged a loan of US$100.8 million for the implementation of a project aimed at improving the investment environment. Furthermore, a loan commitment of US$295.5 million was made for the second phase of the Upazila Governance and Development Project.
PM’s call for investment
During the visit, the prime minister also met Susumu Kataoka, president of the Japan External Trade Organization (JETRO). Their discussions covered export diversification, skills development and the establishment of Japanese language training centres. Later, addressing the Bangladesh-Japan Economic Forum organised by JETRO, the PM highlighted Bangladesh’s large domestic market, young and productive workforce, and ambition to become a trillion-dollar economy by 2034. He called upon Japanese businesses to invest in Bangladesh.
In his address, Tarique Rahman identified several priority sectors for investment, including energy and renewable power, artificial intelligence, cloud computing, robotics, electronics and space technology. He also emphasised the development of industrial facilities in Japanese Economic Zone in Araihazar.
During the visit, initiatives involving at least 17 MoUs and agreements in the private sector generated potential investment opportunities worth approximately US$6.3 billion.
The growing interest among some of the world’s leading companies in investing in Bangladesh sends a positive signal about the government’s economic diplomacy. If implemented, these initiatives could create new employment opportunities and facilitate technology transfer across the manufacturing, energy, technology and infrastructure sectors.
Moving from planning to implementation
The decision to upgrade the existing Bay of Bengal Industrial Growth Belt (BIG-B) initiative to “BIG-B for Shared Prosperity” carries particular significance. Under this initiative, the plan is to transform the Matarbari-Maheshkhali region, centred around the Matarbari deep-sea port, into a major hub for logistics, energy and industrial development. In addition, an emergency assistance package worth US$317 million has been announced to strengthen Bangladesh’s energy supply and economic capacity.
Bangladesh now has a significant opportunity to harness Japan’s capital, technology and experience to build a productive economy, diversify its exports and create employment opportunities for its young population. Prime Minister Tarique Rahman’s visit to Japan has opened the door to these possibilities. What is now required is the timely implementation of the initiatives announced during the visit.
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The writer is Deputy Press Secretary to Prime Minister