Investment Scenario: Overseas up, local down All eyes on election
Muhammad Ayub Ali :
Domestic investment in Bangladesh remains sluggish, even as overseas investment by Bangladeshi entrepreneurs has risen sharply, and since the July movement, there has been little impact on domestic investment or job growth.
Experts believe that once the national election is held, both domestic and foreign investment in Bangladesh could pick up, as a stable, elected government would provide a more predictable economic and policy environment, boosting investor confidence.
According to Bangladesh Bank, Bangladeshi overseas investment jumped to $15.8 million in July–September of FY2025–26, up from just $1.7 million a year earlier—an 829 percent increase over the same period of the previous fiscal year.
This figure reflects only central bank–approved overseas capital and excludes any funds sent abroad illegally or through money laundering.
By the end of July–September FY2025–26, the total stock of overseas investment by Bangladeshi entrepreneurs reached $362 million, up from $348.3 million during the same period last fiscal year.
For comparison, overseas investments stood at $337.3 million in FY2023–24
and rose slightly to $352.9 million in FY2024–25.
Despite these overseas gains, domestic investment has lagged. Expectations that the political transition would revive economic activity have largely fallen short.
The Bangladesh Investment Development Authority (BIDA) has acknowledged that tangible results from last year’s investment conference will take more time to materialize.
BIDA Chairman Chowdhury Ashiq Mahmud bin Harun, said in a conference recently foreign investment naturally takes time and Bangladesh needs patience to see the outcomes of last year’s conference.
Since taking charge in September 2024, he visited the US, Japan, the UK, and Qatar, but results were limited: no investment from Qatar, a 40.7percent drop in UK FDI, and US repatriation exceeding inflows.
The Tk 3,100 crore investment proposals announced at the conference initially raised hopes, but no new projects followed. BIDA reported a 58 percent drop in domestic and foreign investment registrations in 2024–25, with private sector proposals falling to Tk 66,570 crore, including declines from Japan and the UK and none from Qatar.
Economists note that investment stagnation was expected during a political transition.
Dr Zahid Hossain, former World Bank Dhaka chief economist, said unresolved infrastructure and policy issues contributed to the slowdown but expressed hope that an elected government could restore stability and encourage investment.
Currently, Bangladesh’s GDP is estimated at Tk 55 lakh crore, but annual investment registrations amount to only Tk 1–1.5 lakh crore—just 2–3% of GDP.
Actual investment is even lower, hampered by energy shortages, service delays, and logistical challenges.