Staff Reporter :
The government has established a high-level committee tasked with recommending measures to boost foreign direct investment (FDI) through enhanced incentives.
A circular issued by the Chief Adviser’s Office on 29 May announced the formation of the five-member committee, chaired by Finance Adviser Salehuddin Ahmed. The committee also includes Bangladesh Bank Governor Ahsan H Mansur, National Board of Revenue Chairman Md Abdur Rahman Khan, and Finance Division Secretary Md Khairuzzaman Majumder. Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of the Bangladesh Investment Development Authority (BIDA), has been appointed as the committee’s member secretary.
The committee is expected to submit its recommendations within one month. Meanwhile, provisional figures from Bangladesh Bank reveal that net FDI inflows fell to a five-year low in 2024, raising concerns over investor confidence amid economic challenges and policy uncertainties. According to central bank data, net FDI amounted to $1.27 billion in 2024, down from $1.46 billion in the previous year. The decline of 13.25 percent year-on-year has been attributed to sluggish inflows during the first half of the year, the student-led mass uprising, the subsequent fall of the Awami League government in August, and ongoing foreign exchange volatility.
An analysis of Bangladesh Bank data shows a consistent decline in net FDI since 2021, when the country received $1.57 billion. The 2024 figure represents the lowest inflow since 2020, based on revised data following the BPM6 manual. Data prior to 2000, recorded under the BPM5 manual, is not directly comparable.
In 2024, nearly half of the net FDI – $622 million – consisted of reinvested earnings, while equity capital accounted for $545 million. Intra-company loans contributed $104 million.
The banking sector attracted the highest investment at $416 million, followed closely by the textile and wearing sectors, which received $407 million. Other significant investments were recorded in pharmaceuticals and chemicals, power, gas and petroleum, and the food sector.
Contrary to recent claims suggesting a halt in foreign investment, BIDA reported last week that Bangladesh secured foreign investment proposals worth $1 billion over the past nine months.
The authority also refuted allegations from an industry representative that FDI has dried up and that BIDA has been inactive in promoting joint ventures or engaging with investors.
BIDA’s statement noted that from October 2024 to March 2025, Bangladesh received net FDI totalling $756 million, directly countering claims of stagnation in foreign investment.
During this period, BIDA registered 739 industrial projects, including 66 wholly foreign-owned ventures and 61 joint ventures.
