Bangladesh’s economic growth story, once wrongly termed a beacon of hope, is ultimately facing a significant challenge: a decline in foreign direct investment (FDI) as the ousted regime’s foreign policy was imbalance and myopic.
The 8.37 per cent year-on-year drop in FDI inflow during the first nine months of the fiscal year 2023-24 is a stark reminder of the headwinds facing the country’s economy.
A confluence of factors has contributed to this downturn. The volatile foreign exchange market, characterized by a depreciating taka and acute dollar shortages, has created an uncertain investment climate.
Foreign investors are understandably hesitant to commit capital to an economy where repatriating profits is a daunting task.
Moreover, the recent credit rating downgrades by international agencies have cast a long shadow over Bangladesh’s economic prospects.
These downgrades signal concerns about the country’s macroeconomic stability and policy predictability, further deterring potential investors.
While reinvestment earnings continue to prop up the FDI figures, the decline in new investments is a cause for alarm.
The government must address the underlying issues hindering fresh capital inflows.
This includes stabilizing the forex market, improving the ease of doing business, and implementing policies that enhance investor confidence.
The banking, textile, apparel, power, gas, petroleum, and food sectors have shown resilience in attracting investments. However, a broader-based FDI revival is essential for Bangladesh to sustain its growth trajectory.
The government must prioritize creating an investment-friendly environment to attract a diverse range of foreign investors. The decline in FDI is a red flag that cannot be ignored.
It underscores the urgency of addressing the macroeconomic challenges and implementing structural reforms to restore investor confidence.
The future of Bangladesh’s economy hinges on its ability to reverse this trend and attract the foreign capital necessary to fuel its growth aspirations.
The ousted fascist regime based on inaccurate data, lie, false information, mega corruption, promotion of demons pushed the economy to the verge of collapse.
The August 5 unprecedented revolution that brought us a new Bangladesh with a promise of new era without any discrimination will surely fix the economy.