Bangladesh has witnessed the highest direct foreign investment (FDI) in last year exceeding $ 2 billion mark, reports BSS. The World Investment Report 2016, released yesterday by the United Nations Conference on Trade and Development (UNCTAD) showed that Bangladesh registered 44 per cent growth in receiving record breaking FDI of $ 2.235 billion in 2015. The FDI receipt was 44.10 per cent or $ 684 million higher compared to that in 2014. “Bangladesh has witnessed the highest growth among the South Asian countries due to stable and favourable investment atmosphere prevailed in the country last year,” said Board of Investment (BoI) Executive Chairman Dr S A Samad at the report launching ceremony at BOI. In terms of gross FDI inflows, the amount stands at $ 2699.05 million which was 31.08 per cent higher than in previous year to $ 2058.98 million. In South Asia, Bangladesh is ahead of all countries except India which was the 10th largest FDI recipient country in the world in 2015, receiving $ 44 billion. “Although, Bangladesh was trailing India in terms of total volume, but leading the region in attaining highest growth rate for FDI receipt,” said Power, Energy and Mineral Resources Affairs Adviser to the Prime Minister Dr Tawfiq-E-Elahi Chowdhury who was present at the unveiling ceremony as the chief guest. He said India has a big domestic market with higher per capita income that pushed them in a better position. “But, we’ve a visionary and dynamic leader like Prime Minister Sheikh Hasina and energetic young generation who must propel the country ahead.” Inflows to Pakistan and Sri Lanka declined to $ 865 million and $ 681 million respectively while In Nepal, FDI inflows rose by 74 percent to $51 million last year.According to the report, country’s power, gas and petroleum sector received highest FDI of $ 574 million followed by textile and wearing $ 443 million, telecommunication $ 255 million and banking $ 310 million. In 2014, the FDI receipt of power, gas and petroleum sector was only $ 50 million. Besides, reinvested earnings in the country continued to rise, exceeding the value of the equity component.Bangladesh, in fact, became the largest FDI host in the subgroup of exporters reinvesting their earnings, as flows into Cambodia fell slightly.The trend of reinvested earnings increased in 2015 by 15.74 per cent which signified the confidence of the investors to come in Bangladesh.“Return of investment in the country is very high and it is 14 percent that’s why those who are investing here could not want to leave,” opined the BoI executive chairman. Recovery in FDI was strong in 2015. Global FDI flows jumped by 38 per cent to $ 1.76 trillion, highest since the global economic and finance crisis of 2008-09. The report said a surge in cross-border mergers and acquisitions (M&As) to $ 721 billion, from $ 432 billion in 2014, was the principal factor behind the global rebound.However, there was no M&As in Bangladesh, but this is supposed to happen in the country in future, said S A Samad, adding: “If the M&As take place in the country, FDI receipt would jump to 5-7 billion.” Besides, the FDI outflows from Bangladesh rose slightly to $46 million last year from $44 million the year ago.This year, the UNCTAD’s report looks into global financial flows against the background of stalling global growth, falling commodity prices and geopolitical tensions.
