According to Bangladesh Bank, foreign direct investment hit an all-time high of $2.45 billion in fiscal 2016-17 on the back of a flow in equity investment by telecom, textile particularly weaving sectors. According to data from the Bangladesh Bank, the inflows are an increase of 22.54 percent from a year before.
The telecom sector saw the highest inflows of $594 million, followed by textile and garment at $360.35 million and power at $334.26 million. Last fiscal year, $701 million flew in from the Singapore, $314 million from the UK, $208 million from the US, $187 million from Norway, $178 million from South Korea, $112 million from Hong Kong, $95 million from India and $90.04 million from the Netherlands.
Bangladesh Bank officially said, “Some mobile phone operators brought in a significant amount of equity capital last fiscal year. This had a positive impact on the net FDI flow. It is a positive indicator for the country’s private sector that the foreign companies have not repatriated their profit abroad,they are raising their investment.”
The central bank calculates the FDI in three categories: equity, reinvestment of earnings and intra-company loan.
In the last fiscal year, equity capital or new investment shot up 99.13 percent to $1 billion. Reinvestment of earnings by existing foreign companies also edged up 8.70 percent to $1.25 billion. Intra-company loans more than doubled year-on-year to $195.07 million during the period.
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