Business Report :
Bangladesh recorded a significant decline in new foreign investments during the April-June quarter, with figures falling nearly 62 percent compared to the same period last year, according to Bangladesh Bank data.
Experts said the downward trend is unlikely to reverse unless political stability is restored and the investment climate improves, while high inflation and economic uncertainty continue to discourage investors.
In the final quarter of the last fiscal year, new foreign investments totaled $81 million, down from $214 million in April-June 2024. The figure also fell sharply from $264 million in the previous quarter (January-March 2025), representing a decline of nearly 69 percent. Intercompany loans also dropped, from $92 million to $53 million during the same period.
Despite the fall in fresh investments, reinvested earnings rose sharply, reaching $258 million compared to $33 million a year earlier. This increase helped total Foreign Direct Investment (FDI) grow modestly to $300 million, up from $270 million in the same quarter last year, marking an 11.4 percent rise. Analysts note that while reinvested earnings provide some stability, they cannot fully offset the decline in new investments, which are critical for long-term growth.
Experts also point out that Bangladesh’s interest rates, although higher than those of neighbouring countries like India, have not been enough to attract foreign investors. Political instability, slow regulatory processes, and uncertainty in economic policies remain major deterrents.
Former BIBM Director General Toufic Ahmad Chowdhury said, “The investment climate must be improved. Without domestic investment growth, foreign investment will not increase. Political stability and a better business environment are essential to attract long-term investment.”
Planning Adviser Dr. Wahiduddin Mahmud added that investment levels in both public and private sectors remain below expectations, and addressing these issues will require sustained reforms, policy consistency, and confidence-building measures over time.
To boost foreign investment, the government has planned 20 new economic zones by 2046 under a national master plan, supported by the World Bank.
Officials hope these zones will address long-standing challenges such as land acquisition, infrastructure development, legal hurdles, and investor confidence, gradually attracting both domestic and foreign investors.
