Japan is considering private investment of up to 1 trillion yen (approximately US$6.34 billion) in Bangladesh over the next five years, with the potential to create 200,000 jobs, as the two countries agreed to deepen economic cooperation, strengthen supply chains and upgrade their flagship development initiative to “BIG-B for Shared Prosperity.”

The announcement came in a joint statement issued following a bilateral summit between Bangladesh Prime Minister Tarique Rahman and Japanese Prime Minister Sanae Takaichi in Tokyo on Tuesday.

According to the statement, Takaichi welcomed the projected Japanese private investment, which could generate 200,000 jobs over the next five years. She also praised the efforts of Rahman’s administration to attract foreign direct investment (FDI).

The two leaders welcomed major investments expected to be announced during the visit and stressed the importance of developing complementary and resilient supply chains in manufacturing, food and agriculture, information and communication technology (ICT), and pharmaceuticals.

Cooperation in ICT and Digital Transformation

Building on existing cooperation in information technology and IT-enabled services (ITES), human resource development and digital collaboration, the two countries agreed to explore further opportunities to accelerate digital transformation.

They also emphasised the importance of developing highly skilled ICT professionals and ensuring secure and reliable digital connectivity.

Economic Partnership Agreement to Boost Trade

The two leaders welcomed the signing of the Japan-Bangladesh Economic Partnership Agreement (EPA) and reaffirmed their commitment to bringing it into force at an early date.

The agreement is expected to strengthen bilateral trade and investment while supporting Bangladesh’s smooth and sustainable graduation from the least developed country (LDC) category.

Takaichi also said Japan looks forward to further discussions on Bangladesh’s request to join the Regional Comprehensive Economic Partnership (RCEP) agreement.

The leaders reiterated their commitment to promoting trade, investment and industrial diversification while upholding a free, fair and rules-based international economic order.

BIG-B Initiative Upgraded for Shared Prosperity

Recalling progress under the Bay of Bengal Industrial Growth Belt (BIG-B), the two leaders agreed to upgrade the initiative to “BIG-B for Shared Prosperity” in response to changing global conditions, supply chain risks, rapid technological innovation and growing social challenges.

The initiative aims to integrate power, energy, deep-sea port, industrial and ICT infrastructure to establish a major hub for industrial value chains, trade and supply chains.

It will also focus on improving regional connectivity, strengthening resilience against natural disasters and geopolitical uncertainties, promoting public-private partnerships and expanding cooperation to support economic growth, peace and stability.

The two leaders agreed to develop the Matarbari-Maheshkhali area into a major logistics, energy and industrial hub centred on the Matarbari Deep Sea Port.

They also agreed to accelerate preparations for the operationalisation of the third terminal at Hazrat Shahjalal International Airport in Dhaka and advance plans for the construction of Dhaka’s mass rapid transit (MRT) lines. Both sides further agreed to discuss future cooperation in the operation and management of the Matarbari Deep Sea Port.

Japan Provides 50 Billion Yen Loan for Energy Security

On energy security, the leaders welcomed Japan’s 50-billion-yen emergency support loan to strengthen Bangladesh’s economic resilience and ensure a stable energy supply.

Rahman expressed appreciation for the assistance, which is the first yen-loan project under Japan’s Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia).

Takaichi reaffirmed Japan’s continued support for Bangladesh’s energy infrastructure to help bridge the gap between energy supply and demand.

The two countries also pledged to deepen cooperation on climate change by developing a long-term low-emission development strategy, improving energy efficiency, expanding energy capacity and promoting renewable energy.

They welcomed the signing of a letter of intent on climate change cooperation between their respective environment ministries.

Bangladesh Pledges to Improve Investment Climate

Rahman highlighted his government’s initiatives to improve the business and investment environment, pledging to strengthen regulatory frameworks, transparency and predictability in taxation, customs clearance, remittances and licensing procedures.

The leaders welcomed a memorandum of cooperation between Japan’s Ministry of Economy, Trade and Industry and Bangladesh’s Economic Relations Division on economic relations and improving the business environment.

They also welcomed two memorandums of cooperation aimed at expanding collaboration and attracting investment in food, agriculture, fisheries and livestock. A proposed yen-loan project to improve the investment environment was also welcomed.

Leaders Call for Resolution of Rohingya Crisis

The two leaders expressed concern over the worsening crisis in Myanmar and its implications for regional security, the displacement of people, including the Rohingya, and the rise of transnational crimes.

They called for an immediate cessation of violence, the release of detainees, humanitarian access and dialogue among all parties and affected groups.

Rahman emphasised that the Rohingya crisis originated in Myanmar and that its solution must be found there.

Both leaders agreed that a lasting resolution requires the voluntary, safe, dignified and sustainable return of displaced people, including the Rohingya, to Myanmar.

Cooperation to Expand Across Multiple Sectors

The two countries also agreed to strengthen cooperation in education, public health, disaster management, local governance and human resource development.

Takaichi praised Bangladesh’s vibrant democracy and welcomed the successful general election held in February 2026, describing it as credible and peaceful, as observed by an election observer mission dispatched by the Japanese government. She also congratulated Rahman on assuming office.

Rahman thanked the Japanese government and people for their warm welcome and hospitality and invited Takaichi to visit Bangladesh at a mutually convenient time.

The summit underscored the commitment of both countries to strengthening their longstanding partnership through increased investment, expanded trade, infrastructure development, energy cooperation and regional stability.

Sun News/ rabbi