Investment Climate Set to Surge After Elections, ABB Chairman Predicts

The investment climate in Bangladesh is expected to improve after the upcoming national elections, according to Mashrur Arefin, chairman of the Association of Bankers, Bangladesh (ABB).

“Credit growth is generally slow at the moment because businesses are waiting. They want to see the country’s direction. Investment conditions will improve after the elections,” he said while addressing the Fourth Bangladesh Economic Summit 2025, held today (29 November) at a hotel in Dhaka.

He further noted, “Previously, inflation was a major concern. It has come down from 12% to 8.17%, and the central bank is still working to bring it down to 5%.”

Arefin mentioned that there is currently no intervention in the dollar market, describing this as “a long-held dream.”

Bangladesh earns roughly $50 billion annually from exports and $30 billion from remittances, while imports are about $5 billion per month, or $70 billion annually.

“We are earning $80 billion and spending $70 billion – this is positive and reflects growing discipline in the external sector,” he added.

Around 50 million transactions take place daily in the bank-to-bank interbank market. The current account deficit, once $19 billion, has now narrowed to $400 million, while the financial account shows a $2 billion surplus.

“Reserve money has declined to approximately Tk3 lakh crore,” he added. “Previously, the government would devolve treasury bills and bonds onto itself, but that is no longer happening. Deposit growth is slightly lower but still close to 10%.”

Although overall credit growth in the banking sector remains subdued, loan growth at The City Bank is strong, and top-tier banks are seeing the expected improvement in lending activities.