** Titas seeking foreign aid to install prepaid metres in all households ** A student has his body temperature checked before entering the central library of Dhaka University on Monday amid falling Covid-19 infections in the country. ** 74 lakh cases pending before courts ** Automation of diplomatic bonded warehouse halted ** SSC exams from Nov 14, HSC Dec 2 ** Angry biker sets bike on fire in Dhaka ** Former DU student found dead ** 1,212 new Covid cases, 25 more deaths ** Technical panel to gear up e-commerce sector ** HC orders closure of unauthorized microcredit institutions ** Sheikh Hasina’s 75th birthday today ** German Social Democrats seek allies to form govt ** 15 stranded fishermen rescued ** Pfizer starts large trial for anti-Covid pill ** If VIPs can empty bank's vault then what bank robbers will do? ** Titas for foreign fund to install 1.25m metres ** A large number of pedestrians crossing a busy road in Savar EPZ area ignoring the heavy traffic, while violating rules and risking their lives, instead of using the foot overbridge that is just several feet away. ** 18k river grabbers evicted ** Flat owner gets anticipatory bail over Munia rape, murder ** Fraud case filed against Dhamaka officials ** German polls open to elect new chancellor ** History distortion HC summons Textbook Board Chairman ** Iceland elects Europe’s first female majority parliament ** Covid daily death toll falls further as 21 more die ** Where is the need for Narcotics Department? **

Big drop in FDI flow during pandemic

07 December 2020 bdnews24.com

The flow of foreign direct investment into Bangladesh is plummetting at an alarming rate as the global economy continues to reel from the coronavirus pandemic.
In the first four months (July-October) of the fiscal year 2020-21, the country raked in $720 million worth of foreign investment, marking a drop of 31 percent year-on-year, according to the latest data from Bangladesh Bank. The figure was $1.04 billion over the same period in 2019.
The net FDI has declined even further in these four months, dropping by 50.16 percent to $153 million. The figure stood at $307 million at the same time last year.
The total amount of foreign direct investment that comes in various sectors, after the investor takes the profit money to the country, the remaining amount is called net FDI.
"It's not just Bangladesh, most other countries are facing a crisis of foreign investment during the pandemic. Everyone is monitoring the situation," Ahsan H Mansur, executive director of the Policy Research Institute, said.
"Prolonged lockdowns have reduced the profit margins of large businesses in many countries. Some have suffered huge losses. In this situation, no-one is investing in another country. Its impact has also been felt in Bangladesh. It will take time to overcome this situation."
Syed Ershad Ahmed, president of the American Chamber of Commerce in Bangladesh (AmCham), said the state of FDI in Bangladesh was "never satisfactory". Due to issues over gas, electricity, ports and other infrastructural problems, foreign investors were not too keen to invest in the country in the past.
"The situation has improved a lot. Various initiatives have been taken by the government to increase foreign investment, including the establishment of special economic zones. A favourable environment for FDI growth was also being created. But the pandemic has put paid to that. FDI is now on the decline instead."

Add Rate