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Bangladesh Politics

Foreign Investment in Bangladesh Hindered by Taxes, Corruption, and Bureaucracy

1Nojor Desk

30 Sep 25
10:56 PM

Bangladesh continues to face significant barriers to foreign investment despite efforts to improve electricity reliability. A U.S. State Department report highlights unfair taxes on foreign firms, corruption, red tape, and weak infrastructure as key challenges. The interim government has taken early steps but lacks effective action on labor rights and intellectual property enforcement. Foreign reserves dropped from USD 48 billion in 2021 to under USD 20 billion in 2024, worsened by banking scandals and loan defaults. Reforms are underway to stabilize the sector.

News Source

Jugantor 30 Sep 25

Unfair Taxes, Corruption, and Bureaucracy Major Obstacles to Investment in Bangladesh

Despite efforts to ensure reliable electricity services, inadequate infrastructure, bureaucratic red tape, unfair tax burdens on foreign companies, and corruption remain major barriers to foreign investment in Bangladesh, according to a statement issued by the U.S. Department of State in 2025 regarding the country’s investment climate.

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