Saturday, 21 December, 2024
Direct foreign investment in Bangladesh has decreased by 8.8% in FY 2023-24 compared to the previous year.
A report released by Bangladesh Bank on Wednesday reveals that net foreign investment amounted to $1.47 billion, down from $1.61 billion at the end of FY 2022-23.
This reflects a decline of $142 million over the year.
Net investment is the amount remaining after deducting repayments of previous investments from the total foreign investments received during that period.
According to the report, the textile sector attracted the most investment, followed by banking, pharmaceuticals, and energy.
Economists and bankers say the economy has been facing multiple crises over the past few years, resulting in a decline in foreign investment for several reasons.
Standard Chartered Bank's Chief Executive Officer, or CEO, Naser Ejaz Bijoy pointed to several factors contributing to the decrease.
"Foreign investment has decreased this year due to the elections [12th general election]. Political conditions in the country deteriorate before and after the elections, and foreign investors observe these factors," he told bdnews24.com.
The dollar crisis that began in mid-2022 and the depreciation of the Bangladeshi taka have also affected investment sentiments. “Foreign investors consider whether they will be able to recover their investments,” Naser said.
The banking sector's negative outlook has further diminished investor confidence.
"International rating agencies have downgraded our banking sector's creditworthiness, which has reduced our credit lines with foreign banks," said the banker.
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Direct foreign investment in Bangladesh has decreased by 8.8% in FY 2023-24 compared to the previous year.
A report released by Bangladesh Bank on Wednesday reveals that net foreign investment amounted to $1.47 billion, down from $1.61 billion at the end of FY 2022-23.
This reflects a decline of $142 million over the year.
Net investment is the amount remaining after deducting repayments of previous investments from the total foreign investments received during that period.
According to the report, the textile sector attracted the most investment, followed by banking, pharmaceuticals, and energy.
Economists and bankers say the economy has been facing multiple crises over the past few years, resulting in a decline in foreign investment for several reasons.
Standard Chartered Bank's Chief Executive Officer, or CEO, Naser Ejaz Bijoy pointed to several factors contributing to the decrease.
"Foreign investment has decreased this year due to the elections [12th general election]. Political conditions in the country deteriorate before and after the elections, and foreign investors observe these factors," he told bdnews24.com.
The dollar crisis that began in mid-2022 and the depreciation of the Bangladeshi taka have also affected investment sentiments. “Foreign investors consider whether they will be able to recover their investments,” Naser said.
The banking sector's negative outlook has further diminished investor confidence.
"International rating agencies have downgraded our banking sector's creditworthiness, which has reduced our credit lines with foreign banks," said the banker.
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