FDI grows 19% in FY25, defying global post-uprising trend

Despite a fiscal year (FY) that opened with a mass uprising and a change of government, Bangladesh's foreign direct investment (FDI) increased 19.13 percent in FY2024-25.

Net FDI inflow reached $1.69 billion, up from $1.42 billion in FY2023–24, the Bangladesh Investment Development Authority (Bida) said in a press release yesterday.

Commenting on the figures, Bida Executive Chairman Ashik Chowdhury said, "FDI usually decreases after political unrests. In this case, the opposite has occurred."

"From policy formulation to institutional coordination involving the Bangladesh Bank, National Board of Revenue, and other agencies, along with engagement from the private sector, this result reflects combined efforts," he said.

"All problems have not been resolved, but steps have been taken to assist investors. Bida will soon publish a full-year performance report," he added.

World Bank data from the past two decades show that countries experiencing major uprisings typically face a sharp fall in FDI the following year.

For instance, Sri Lanka recorded a 19.49 percent decline after 2022, Chile 15.68 percent after 2019, Sudan 27.60 percent after 2019, Ukraine 81.21 percent after 2014, Egypt 107.55 percent after 2011, and Indonesia 151.45 percent after 1998.