FDI Inflows Increase 20% in FY25

Foreign direct investment (FDI) in Bangladesh recorded significant growth in the fiscal year 2024-25, with net inflows reaching $1.71 billion. The chart indicates a 20% increase compared to the previous year, signaling improving investor sentiment after several years of slowdown.

According to the latest data released by the central bank, the upturn in FDI follows a three-year low in FY24. This decline was largely attributed to political uncertainty surrounding the national elections and weakened investor confidence.

Economists, business leaders, and industry experts have welcomed this improvement, viewing it as an indicator of renewed trust among investors. However, they cautioned that the overall FDI volume still remains insufficient to meet Bangladesh’s long-term development goals.

Experts have emphasized the importance of sustained policy reforms, political stability, improved infrastructure, and investor-friendly measures to attract a broader base of greenfield investments. They also highlighted the need to diversify FDI to ensure sustainable growth across emerging sectors.

Well know economist Syed Akhtar Mahmood stressed, the importance of distinguishing between fresh investments and reinvestments from existing investors. He underscored that Bangladesh must actively pursue new foreign investors, particularly in the energy, logistics, export-oriented, and product innovation sectors, to achieve long-term growth and enhance global competitiveness