Abdur Rahim Harmachi, Chief Economics Correspondent, bdnews24.com
Published: 2020-07-02 23:29:40 BdST
FDI in Bangladesh in the 11 months of the fiscal 2019-20 to May dropped by 14 percent year on year to $3.73 billion, according to Bangladesh Bank data.
Analysts believe the situation did not improve in the last month of the fiscal year in June as the pandemic has continued to shatter the global economy.
They think the drop in FDI will impact domestic investment as well, weakening the economy further.
“It’s natural that FDI will decrease due to the pandemic. Now we are concerned how much the FDI will fall,” the executive director of Policy Research Institute said.
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.
He described the failure to automate Chattogram seaport, telecom regulator BTRC’s row over audit demand with Grameenphone, and a lack of financial diplomacy as the other problems in getting FDI.