Renowned economist and CEO of Policy Exchange Bangladesh Dr Masrur Reaz has said that under the current circumstances in the country, existing investors are unwilling to take any further risks. At the same time, potential new investors are adopting a wait-and-see approach, keeping a close eye on whether a stable environment emerges. He noted that the overall macroeconomic condition is already sluggish, and investors are refraining from importing capital machinery. According to data from Bangladesh Bank, imports of capital machinery have declined by 30 percent—an indicator of decreasing investment.

Dr Riaz warned that the ultimate impact of falling investment would be felt on employment generation, further slowing down the macroeconomy. Speaking to Bangladesh Pratidin yesterday, the Policy Exchange CEO added that although exports and remittances have increased slightly compared to previous months—helping to halt the decline in reserves—new challenges are emerging.

He particularly pointed to the 37 percent tariff imposed by the Trump administration, which, although currently suspended for three months, poses a serious threat to Bangladesh’s export sector if enforced later. “Such a move would reduce demand for our export goods, placing the sector under even greater pressure,” he said.

Dr Riaz also observed that domestic demand in business and the broader economy has declined. As a result, no significant new investment is taking place at the moment. He emphasised that political stability is the foremost prerequisite for reversing this downward trend and restoring investor confidence.