Al Amin :
The flow of Foreign Direct Investment (FDI) into Bangladesh has dropped 44 per cent in the first quarter of this year due to slowed global economy caused by the ongoing Covid-19 pandemic, according to the latest data of the Bangladesh Bank.
Analysts said that the drop in FDI will impact domestic investment as well, weakening the economy further. According to the data of the central bank, foreign investment amounting $58,21,70,000 have come in January to March of this year, which was 44 percent less than the same period of the previous year. The inflow of the FDI was $103,55,60,000 in the same period of the last year.
Most of the FDIs come from UK and followed by Norway, UAE, USA, Singapore, Thailand, India, Hong Kong, Taiwan, South Korea, Malaysia, Netherland, Switzerland, China and Japan, among other countries.
The highest inflows of the foreign investment were seen in telecommunications, construction, electricity, textiles and clothing, trade, food, banking, gas, information technology, leather, chemicals, insurance, cement and fertilizers sectors during the time.
Meanwhile, the latest data of Bangladesh Investment Development Authority (BIDA) showed that the registration of the investment dropped 55 per cent in the last three months (April to June) this year. The FDI registered amounting $15.3 during the time, which was $34.2 million in the same period of the previous year. Despite a lack of infrastructure and other disadvantages, FDI in Bangladesh jumped to record $4.5 billion in 2018-19 thanks to Japan Tobacco’s investment in Akij Group. The amount started dropping afterwards and has not bounced back as the pandemic hit.
BIDA Chairman Sirajul Islam said time befitted strategy should be taken to attract foreign investment in the country in the post-covid period.
Economists said that the scenario of declining FDI before Corona was a reflection of the fragile realities of the country’s investment atmosphere.
