Bangladesh FDI surges 19.13pc within year after July Uprising

Within a year following the July Uprising in 2024, the nation had a strong 19.13 percent rise in foreign direct investment (FDI).

When compared to other countries’ investment tendencies after periods of considerable public turmoil, this performance places the country as a notable anomaly.

Chowdhury Ashik Mahmud Bin Harun, the Executive Chairman of the Bangladesh Investment Development Authority (BIDA), made the data, which was compiled by the World Bank and Bangladesh Bank, publicly available today through a Facebook post.

The data, which are titled “FDI Picture Post-Mass Uprising,” show how resilient Bangladesh is and how investors remain confident even in the face of the domestic unrest that is frequently connected to large-scale popular movements.

According to Ashik Chowdhury, a number of other countries that saw substantial political or civil upheaval during the periods under analysis contrast sharply with Bangladesh’s post-uprising FDI boom.

In the initial years after turmoil, all of these similar nations saw declines in foreign direct investment, he continued.

According to the data, Sudan experienced 27.60 percent decrease in FDI after the uprising in 2019 while Sri Lanka saw a decline of 19.49 percent in 2022, Chile 15.68 percent in 2019, Ukraine 81.21 percent in 2014, Egypt 107.55 percent in 2011 and Indonesia 161.45 percent in 1998.
 
The BIDA Executive Chairman attributed this exceptional success to a combination of factors.
 
He highlighted the sincerity shown by key institutions, including the National Board of Revenue (NBR) and Bangladesh Bank, alongside the establishment of correct economic policies and focused efforts across various sectors. 
 
He stated that the nation’s private sector’s unwavering spirit and the collective efforts of all stakeholders were mentioned as important factors.

Ashik Chowdhury also highlighted the proactive role played by government organizations in charge of promoting investment, like the PPP Authority, BEZA, and BIDA, pointing out that these organizations have actively concentrated on helping investors rather than just creating presentations.

The Chairman cautioned about short-term FDI trends because of the impending national election.
Just prior to the elections, FDI is anticipated to naturally decline, he said.

However, the expectation remains that investment will become balanced again following the election period, he added.
 
He advised stakeholders that they need to mentally prepare to play a little bit more of a long game.