FDI inflow records 63pc fall in first 3 quarters
Sunday, 23 May 2010
Monira Munni
The country's foreign direct investment (FDI) inflow recorded a 63 per cent fall in the first three quarters of the current fiscal year due to global recession, the central bank in its monthly update revealed.
During July to March period of 2009-10 fiscal, the country received only US$288 million in FDI against $782 million during the same period of the 2008-09 fiscal, the Bangladesh Bank (BB) data showed.
"The FDI flow drastically fell during the period due to the global meltdown that had hit different countries including Bangladesh," a senior BB official told the FE Tuesday.
Besides, acute shortage of gas and electricity in the country also contributed to cut FDI inflow to a great extent, the official added.
However, another BB official expressed the hope that the FDI flow might rise in the coming months due to recovery of the major global economies.
Though the FDI fell in the first nine months of the 2009-10 fiscal, it is increasing gradually since the first half of the current fiscal, he added.
However, experts said the country's infrastructure facilities, including gas and electricity supply, are not favourable for domestic as well as foreign investment.
Unless the government takes quick and effective measures for infrastructure development and gas exploration, there is little hope of increasing FDI, they added.
The country's foreign direct investment (FDI) inflow recorded a 63 per cent fall in the first three quarters of the current fiscal year due to global recession, the central bank in its monthly update revealed.
During July to March period of 2009-10 fiscal, the country received only US$288 million in FDI against $782 million during the same period of the 2008-09 fiscal, the Bangladesh Bank (BB) data showed.
"The FDI flow drastically fell during the period due to the global meltdown that had hit different countries including Bangladesh," a senior BB official told the FE Tuesday.
Besides, acute shortage of gas and electricity in the country also contributed to cut FDI inflow to a great extent, the official added.
However, another BB official expressed the hope that the FDI flow might rise in the coming months due to recovery of the major global economies.
Though the FDI fell in the first nine months of the 2009-10 fiscal, it is increasing gradually since the first half of the current fiscal, he added.
However, experts said the country's infrastructure facilities, including gas and electricity supply, are not favourable for domestic as well as foreign investment.
Unless the government takes quick and effective measures for infrastructure development and gas exploration, there is little hope of increasing FDI, they added.