Bangladesh and Japan have agreed to significantly enhance their economic partnership through a commitment of nearly 1 trillion yen (approximately $6.3 billion) in private investment over the next five years. The announcement followed a high-level summit in Tokyo on October 27, 2026, between Bangladeshi Prime Minister Tarique Rahman and Japanese Prime Minister Takaichi Sanae. The planned investments are anticipated to generate around 200,000 jobs in Bangladesh, supporting the country's economic growth as it transitions from Least Developed Country (LDC) status.
During the summit, the two leaders signed the Japan-Bangladesh Economic Partnership Agreement (EPA), designed to boost trade, promote industrial diversification, and facilitate deeper economic integration. A key outcome was the decision to upgrade the Bay of Bengal Industrial Growth Belt initiative to "BIG-B for Shared Prosperity." This enhanced framework focuses on integrating energy, deep-sea port development, industrial expansion, and information and communications technology infrastructure. Central to this plan is the transformation of the Matarbari-Maheshkhali area, anchored by the Matarbari Deep Sea Port, into a regional logistics and manufacturing hub.
Both governments expressed their intention to accelerate infrastructure projects, including advancing preparations for the early operation of Terminal 3 at Dhaka’s Hazrat Shahjalal International Airport and the construction of additional Mass Rapid Transit (MRT) lines in the capital. Energy security was a significant topic, with Bangladesh welcoming a 50 billion yen emergency support loan under Japan’s Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia). The leaders also signed a Letter of Intent aimed at expanding renewable energy collaborations to address Bangladesh’s growing energy demands.
Bangladeshi Prime Minister Tarique Rahman pledged reforms to improve the country’s business environment, including enhancing transparency, regulatory predictability, and simplifying customs and taxation processes. Both sides agreed to a Memorandum of Cooperation between Japan’s Ministry of Economy, Trade and Industry and Bangladesh’s Economic Relations Division to facilitate ease of doing business further. Prime Minister Takaichi also expressed support for Bangladesh’s prospective accession to the Regional Comprehensive Economic Partnership (RCEP).
The summit included discussions on regional security, particularly the escalating humanitarian crisis in Myanmar. Both leaders voiced shared concerns regarding regional instability and transnational crimes, agreeing that the resolution of the Rohingya crisis requires voluntary, safe, dignified, and sustainable repatriation to Myanmar.
Economic and trade experts in Bangladesh welcomed the announcements, highlighting Japan’s leadership in sectors such as heavy manufacturing, automobiles, and clean energy. They noted that Japanese investment could help elevate local compliance, labor, and environmental standards, provided Bangladesh maintains policy consistency and administrative efficiency.
The two leaders further committed to cooperation in education, public health, disaster management, local governance, and human resource development. Prime Minister Takaichi congratulated Tarique Rahman on his recent election victory in February 2026, noting Japan’s presence as observers to the election, and both leaders reiterated the importance of upholding a free and rules-based international economic order.
Prime Minister Rahman proposed establishing a ministerial-level joint commission to oversee and accelerate project implementation, aiming to translate cooperative ambitions into concrete outcomes. Tarique arrived in Tokyo on October 26 for the four-day official visit, concluding with official talks, a guard of honor, the signing of several memorandums, and an official luncheon at the Japanese Prime Minister’s Office. He plans to return to Dhaka on October 29.