Foreign investment in ten months of fiscal year higher by 21 percent than last year’s

Foreign Direct Investments in the ten months of the outgoing FY 15-16 has clocked $1.82 billion, up 21 percent over the corresponding period in previous fiscal year.

The finance minister has described it as ‘the result of a stable political scenario’ while an economist says a ‘climate for investment’ has flourished in Bangladesh with the initiation of a few large infrastructure projects.

The latest balance of payment (BoP) figures released by the central bank shows the net FDI between July and April in the current fiscal was $1.82 billion against $1.50 billion in FY 14-15.

 

>>Most of the FDIs coming in last year were from the US, UK, South Korea, Australia, the Netherlands, Malaysia, Hong Kong, Singapore, Japan and India.

>>The sectors that attracted foreign investors the most were gas and petroleum, textiles, banking, telecom, power, food, cement, leather and leather goods.

AMA Muhith

Finance Minister

We have seen an escalation in both foreign and domestic investment. I think, the country’ situation in the last one and half year has created an air of confidence. Foreign investors are now feel that people are no longer interested in strikes or shutdowns.

Net FDI inflow is calculated by deducting the Disinvested  amount from the Gross flow.

FDIs in Bangladesh come as equity capital, reinvested earning and intra-company loan, makinf up the gross flow.

Disinvestment is calculated by deducting the cost recovery and profit-sharing amount, which the foreign companies take out from the country, from the investments they made.

Bangladesh’s gross flow crossed $2 billion for the first time in 2014 and the net flow that year was a little over $1.5 billion. In 2015, the net flow stood at $2.2 billion.

Finance Minister AMA Muhith says it is ‘the highest ever’ in the country’s history and added that what was more important was an ‘escalation’ in investment.

Zaid Bakht

Research Director

Bangladesh Institute of Development Studies

A climate of investment has been created as some large infrastructure projects, including Padma Bridge and metro rail, have kicked off. It has prompted domestic as well foreign entities to invest. It seems that the investment scenario in Bangladesh has got a boost.

According to central bank statistics, the gross flow of FDI in 2014 was $2.05 billion and the net flow— after deducting the disinvested amount— was $1.52 billion.

In 2015, the net flow rose to $2.2 billion, an increase of over 44 percent in one year.