2024 marks a significant year in Bangladesh’s history as in August of that year, a shaky political transition took place, hoping to establish a new democracy and fortify its unsteady institutions. Lots of individuals wish to see Bangladesh become a developed country that is comparable to other developed nations worldwide and seek to transform the country into an economic hub, much more reputable to the world than it is now.
We wonder how the nation should interact with other nations in order to achieve those aims, as well as how to align important indicators at home and abroad to meet the requirements of realizing such visions. Furthermore, what priorities and areas of focus should Bangladesh’s foreign policy be in 2025?
Challenges in 2025:
- Economy in 2025 could see a muted recovery as the growth momentum after last year’s political changeover generated mix reactions to the country’s economy where some sectors are booming and some are still sluggish amid high inflation. Foreign Direct Investment (FDI) dropped by 8.8% in FY24, reflecting economic and political volatility that requires urgent attention.
- India continues to influence Bangladesh’s political, economic, and border security challenges. Geopolitical and geostrategic issues persist, demanding careful navigation in the new year.
- Human metapneumovirus (HMPV), a looming pandemic, originated in China again surged worldwide, posing a global health risk and may create a COVID-19-like situation.
- Enjoying duty-free access to the EU may come to a halt when Bangladesh graduates from LDC nation, and challenges from the Trump administration’s protectionist policies can threaten exports.
- Conflicts in the Middle East and stricter labor migration regimes worldwide can create a reduced labor export for Bangladesh in 2025.
- The worsening situation in Myanmar, including threats to the Rohingya population, highlights Bangladesh’s need for more proactive border and foreign policies with both the undeniable Arakan Army and the Junta.
Foreign Policy Priorities in 2025
Bangladesh’s foreign policy priorities in 2025 should be guided by its strategic interests, economic goals, and geopolitical realities. Both immediate goals and long-term visions are needed to address. Here are some key areas of focus:
Economic Diversification and Growth
Public expectations for an economic improvement remain high now. Bangladesh’s overreliance on the garment sector must be diversified through exports of already-thriving IT, pharmaceuticals, and shipbuilding industries. The investment climate in Bangladesh must be upgraded significantly in 2025 with increasing engagement of Special Economic Zones (SEZ) to attract more FDIs from the globe. As seen in cases where Aramco, the biggest oil company in the world is willing to build an oil refinery in Bangladesh; unlike thrice they wanted to build that in between the years 2016-2018.
Economic diplomacy and sector-specific tax incentives should be placed at the forefront, prioritizing Free Trade Agreements (FTAs) with influential countries becoming a key focus in Bangladesh’s reforming foreign policy strategy.
Bilateral Engagement with EU
Bangladesh is the top apparel exporters in terms of volume in the EU countries and EU exports to Bangladesh are mostly dominated by machinery and chemical products. Apart from this, Bangladesh has lots of scope to increase and diversify trade and economic activities with the EU.
There are 7 EU member resident embassies in Bangladesh alongside consular offices of other EU member states. However, in many cases, Bangladeshi people must frequently travel to India, in order to receive consular services from many EU countries. The Chief Adviser requested European Union (EU) member states in a meeting last year with foreign diplomats to move their visa centers from New Delhi to Dhaka or a neighboring country.
New Labor Market in 2025
Labor migration is one of the most important sectors Bangladesh has ever produced, and it has helped Bangladesh survive many critical situations such as COVID-19 thanks to the remittances Bangladesh received. However, mostly unskilled laborers are migrating from Bangladesh to Saudi Arabia, the United Arab Emirates, Libya, Malaysia, Italy, and other destinations. Sending skilled workers is preferable to sending unskilled migrants in large numbers. Many countries require a high-quality workforce. Bangladesh must meet these demands; skill development is crucial for 2025. Establishing more Technical Training Centers (TTCs) is helpful, but focus should be given to improving training quality.
Besides, addressing fraudulent practices by recruiting agencies and subagents should be on priority lists in 2025. Effective migration management and safeguarding the rights of Bangladeshi migrant workers abroad are essential for success in this sector.
Furthermore, to adapt to the probable shrinking labor market in the Middle East, Bangladesh needs to search for new labor markets to maintain the steady growth of its remittance.
Hoping Rohingya Repatriation amid Myanmar Crisis
Rohingya refugee repatriation has two major potential solutions.
First, repatriation to Myanmar seems unlikely due to opposition from both the Arakan Army and the ousted Myanmar junta, for the Rohingya’s “Muslim identity”. Secondly, without significant changes, they may remain in Bangladesh, requiring international funding essential for burden-sharing and sustaining aid efforts.
However, Bangladesh seeks further global support for resolving the prolonged crisis by increasing diplomatic pressure on Myanmar to facilitate the safe and dignified return of Rohingya refugees. Adjusting foreign policy to incorporate dialogue between the undeniable Arakan Army and a people-to-people interaction is indispensable to working with Bangladesh’s southeast border neighbor.
Besides, Bangladesh needs to ensure steady flow of the fund required for maintaining the existing camps. For the last few years, Bangladesh did not receive the required amount to maintain the camps which took toll on camp management and regional security.
Regional Stability and Connectivity
Exploiting its strategic geopolitical advantage in South Asia, both in terms of geographical expanse and maritime positioning, Bangladesh can attract foreign regional and international powers to align its national interests. Bangladesh must offer good opportunities to countries like Nepal, Bhutan, and Myanmar as well as balance among powers like India, China, and the USA.
For example, if Bangladesh joins the Indo-Pacific Strategy to balance interests in maritime security, as well as the Regional Comprehensive Economic Partnership (RCEP) to improve economic conditions, trade, and regional stability, there shouldn’t be any challenges in 2025. On top of that, having defense cooperation and strengthening military ties with friendly nations and investing in modernizing defense capabilities must be prioritized in 2025.
India: A Key Factor
Bangladesh’s foreign policy making needs lots to consider Indian factor, as India remains both a significant partner and a critical factor in regional dynamics. While Bangladesh relies on trade, cultural exchanges, and people-to-people interactions with India, its 2025 strategy aims to balance this relationship more effectively.
A key priority is renewing the Ganges water-sharing agreement, set to expire in 2026. The deal was signed in 1996 based on inaccurate data of that time that do not address Bangladesh’s increasing freshwater needs amidst climate change challenges.
Additionally, Bangladesh must ensure India acknowledges its reform efforts, strengthening mutual recognition and cooperation.
Global Health and Climate
Strengthening collaboration on healthcare innovation for the country’s growing domestic need is imperative, as every year; the people of Bangladesh heavily rely on overseas treatment. Pandemic preparedness, including for potential HMPV cases, must also be bolstered.
Facing severe climate threats, Bangladesh must focus on climate diplomacy in 2025 to secure funding for mitigation efforts. Mitigation, adaptation, disaster management, as well as cooperation, green initiatives and renewable energy adoption are also fundamental to strengthening its global leadership on climate issues.
Opportunities for Bangladesh:
The Bangladeshi population is a big factor in finding the country’s opportunities and attaining its foreign policy objectives from the world. Apart from the abovementioned initiatives into consideration of Bangladesh’s 2025 foreign policy outlooks, Bangladesh must also focus on its soft power diplomacy, using cultural exchanges, Bangladeshi diaspora networks, and international sports diplomacy to improve the country’s global image. By focusing on these priorities, Bangladesh can secure its strategic interests, ensure sustainable development, and enhance its stature on the global stage in 2025 and beyond.