Foreign Ownership Liberalization has taken center stage in recent US-Bangladesh economic dialogues. The United States is urging Bangladesh to allow 100% foreign ownership in key sectors like energy, telecommunications, and insurance—raising major concerns over national sovereignty and strategic control.
During the recent Indo-Pacific Trade Forum, the US delegation emphasized that full ownership rights are critical to attract high-volume foreign direct investment. This would include allowing foreign firms full decision-making power over power generation units, telecom infrastructure, and financial service entities.
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However, economic and security experts in Bangladesh caution that such liberalization, if unchecked, could compromise strategic autonomy. “Liberalization should not come at the cost of control,” said Dr. Nayeem Arefin, an economic policy analyst. He pointed to examples like Sri Lanka and Pakistan, where similar policies eventually created long-term vulnerabilities.
Currently, Bangladesh maintains caps on foreign ownership in sensitive sectors—typically around 40% to 60%. Any move to eliminate these caps would require not only policy shifts but also legal reforms. The Bangladesh Energy Regulatory Commission (BERC) and the Finance Ministry have acknowledged ongoing internal evaluations, but no final decision has been made.
“Strategic sectors should prioritize national control,” said retired Brigadier Gen. Shamim Kabir. “Granting foreign control over telecom infrastructure, for example, could expose us to geopolitical threats, surveillance, and data breaches.”
In light of these concerns, several policymakers are recommending alternative frameworks—such as Public-Private Partnerships (PPP) or performance-based foreign participation—where control remains with the state while investment flows in through controlled mechanisms.
A taskforce under the Prime Minister’s Office is reportedly being considered to study the impact of Foreign Ownership Liberalization on national interests, economy, and long-term security.
👉 What comes next?
Will Bangladesh bow to US pressure or chart its own course? The answer will define its economic and geopolitical posture in the years ahead.
