This is a very alarming sign that the foreign direct investment in Bangladesh has declined by 36 per cent in the last year. According to the World Investment Report, 2010 the FDI stood at $700 million compared to 20.11 per cent decline in South Asian countries and 14 per cent in terms of the least developed ones.
We definitely need foreign investment for economic development. The economy will be benefited if investment is injected in real manufacturing sectors.
Global economic downswing, crises of power, energy and gas are said to discourage investment, particularly that of FDI, in the country now and in future.
According to the UN statistics on WIR, Bangladesh received $700 million FDI in 2009 compared to $1.86 billion in 2008, India received $34.61 billion FDI in 2009 compared to $40.14 billion in 2008, Pakistan received $2.38 billion FDI in 2009 compared to $5.43 billion in 2008, Sri Lanka received $404 million FDI in 2009 compared to $752 million in 2008, Afghanistan received $185 million FDI in 2009 compared to $300 million in 2008.
The government initiative to solve the power and gas crisis is not enough. It should take immediate steps to solve the problems so that domestic and foreign investment take place in the country.
Bangladesh has offered one the hgihest incentives for FDI but it is not working. It should be noted that incentives alone could not attract FDI in any country. If economic growth takes place and rule of law is ensured, the much needed foreign investment will come to Bangladesh to a great extent.