The first phase of Bangladesh foreign policy could be referred to as the diplomacy of recognition, which included the policy of bringing back Bangladeshis stranded in Pakistan as a result of the break-up of the latter. The diplomacy of recognition ended in 1974, particularly following Pakistan’s recognition of Bangladesh. Bangladesh’s clothing industry, for instance, has progressed well, mainly because of the relatively cheap labor and the ingenuity of some local manufacturers. Bangladesh must embark upon a new phase in its foreign policy, that is, start pursuing energy diplomacy creatively. A territorial meaning of Bangladesh has become less relevant and the meaning that has greater appeal is more demographic and cultural, which is inclusive of Bangladeshis living abroad. In the age of globalization and technological connectivity, if foreign policy compulsions are to be minimized and choices materialized then it is imperative that newer institutions are built.