Foreign investment plummets 24% in first nine months

Bangladesh’s net foreign direct investment (FDI) fell sharply in the first nine months of fiscal year 2025–26, declining by nearly 24 percent compared to the same period of the previous fiscal year.

According to the latest Balance of Payments data released at the end of March, net FDI stood at $1.06 billion during July–March, down 23.56 percent from $1.31 billion recorded in the same period of the previous fiscal year.

The biggest pressure came in the January–March quarter, when net FDI dropped to just $199 million, marking a steep 74.74 percent decline from $788 million in the same quarter a year earlier.

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This sharp quarterly fall significantly affected the overall nine-month investment flow, highlighting a slowdown in foreign investment during the final quarter.

Despite the recent decline, annual figures from the previous fiscal year showed relatively stronger performance. In FY 2024–25, net FDI reached $1.71 billion, up more than 20 percent from $1.425 billion in FY 2023–24.

Bangladesh Bank data show that net FDI refers to the amount remaining after foreign investors repatriate profits from total direct investment inflows, meaning both fresh investment and profit outflows influence the final figure.

While long-term annual trends show growth in foreign investment, recent quarterly fluctuations -- especially the sharp fall in January–March -- have created fresh uncertainty in the country’s investment climate.