The foreign direct investment (FDI) to Bangladesh reportedly dropped in the last fiscal year, the first decline in the 7 years with net FDI falling 39 per cent year-on-year to US $ 2.37 billion.
This is as per data of the country’s central bank, the Bangladesh Bank (BB).
As per economists and analysts, regulatory barriers and the pandemic-induced business slowdown are two major reasons behind this drop in FDI.
Speaking to the media, distinguished fellow of the Centre for Policy Dialogue (CPD), Mustafizur Rahman maintained that consequent to the financial crisis that started in March, FDI flow across the globe has declined in the recent periods, while reportedly adding that apart from economic slowdown, red tape is also to be held responsible for Bangladesh’s struggle to attract desired FDI for years.
It is to be noted here that the reversal in FDI, reportedly, came just a year after it surged to its highest on the back of record of Japan Tobacco Inc’s acquisition of Akij Group’s tobacco business for US $ 1.47 billion while in 2018-19, net FDI stood at around US $ 3.88 billion.
For information, as per the World Investment Report 2020 of the United Nations Conference on Trade and Development (UNCTAD) released in June, from the 2019 value of US $ 1.54 trillion, FDI flows are forecast to decrease by up to 40 per cent in 2020.
