Bangladesh is experiencing a sharp decline in both domestic and foreign investment, with private sector credit growth dropping to 6.03 percent in February 2026—the lowest in two decades, according to Bangladesh Bank. The slowdown follows months of reduced investment activity and growing uncertainty linked to the Middle East conflict, rising oil prices, and supply chain disruptions. Despite these challenges, the BNP government aims to create 10 million new jobs within 18 months through investment-driven growth.

To revive industrial activity, Prime Minister Tarique Rahman has directed efforts to reopen sick and closed factories, while four key investment agencies—BIDA, BEZA, PPP Authority, and MIDA—have jointly prepared a 180-day action plan focusing on infrastructure, investment support, and development. However, economists and business leaders doubt the feasibility of the government’s employment target amid global economic instability and declining exports.

The World Bank warns that ongoing conflicts could push about 1.2 million Bangladeshis below the poverty line, with economic recovery forecasts for 2026 now at risk. Experts emphasize that stabilizing the economy, rather than rapid job creation, remains Bangladesh’s most urgent challenge.