In a recent episode of LightCastle Live, CEO and Co-founder Bijon Islam sat down with Managing Director and Co-founder Zahedul Amin to discuss how global power shifts, rising geopolitical tensions, and evolving domestic policy decisions are influencing Bangladesh’s economic direction. From trade disruptions and inflation to investor sentiment, the conversation offered a timely deep dive into the critical forces shaping the country’s future.
The discussion opened with reflections on how the U.S. administration’s changing priorities, beginning with Donald Trump’s presidency, have impacted Bangladesh. Reduced U.S. development assistance and the abrupt closure of several aid-backed projects have created ripple effects across key sectors. As a major aid recipient, Bangladesh remains sensitive to U.S. foreign policy and the uncertainty surrounding future leadership in Washington.
Domestically, they touched on the financial decisions made in response to economic pressure, including central bank measures such as printing currency. While controversial, these moves may have been necessary in times of crisis. As client and market expectations continue to shift rapidly, the need for a more responsive and adaptive governance system is becoming increasingly clear.
On the global trade front, Zahedul and Bijon explored the implications of the U.S.-China trade war for Bangladesh. While there is opportunity, especially as global buyers look beyond China, the country’s heavy dependence on Chinese raw materials could pose serious supply chain risks. The need for strategic trade negotiations and maintaining competitiveness in the RMG sector is now more critical than ever.
They also reflected on the broader geopolitical landscape, including the Iran-Israel conflict and its effect on global oil prices. As a net importer of both fuel and agricultural goods, Bangladesh is particularly vulnerable to global supply shocks, with inflation posing a persistent threat to economic stability. With balance of payments already under stress, fuel price volatility could further complicate the macroeconomic outlook.
Looking forward, the discussion emphasized the urgency of investing in long-term solutions such as import substitution and export diversification. While the RMG sector remains the dominant export engine and remittances continue to support foreign exchange reserves, Bangladesh must expand its industrial base, attract foreign direct investment, and encourage growth in emerging sectors such as technology and energy.
Drawing on insights from the recently conducted Business Confidence Index, Bijon and Zahedul shared that while political uncertainty has made many investors cautious, there remains a prevailing sense of optimism. The survey, conducted across 25 sectors, revealed that many business leaders expect recovery and renewed investment momentum in the coming year if stability is maintained.
As the global order becomes increasingly volatile, Bangladesh stands at a critical crossroads. Navigating this landscape will require forward-thinking trade strategies, structural reforms, and a coordinated push to build economic resilience from within.
To listen to the full episode, click here
🔔 Subscribe to our channel for more in-depth conversations on Bangladesh’s evolving economic landscape.
