Net FDI rises 12.78pc in April-June as reinvested earnings surge

Bangladesh’s net foreign direct investment (FDI) has risen 12.78 percent year-on-year to $346.9 million in April-June.

The increase was driven by reinvested earnings, which offset declines in fresh equity investment and intercompany loans.

The Bangladesh Bank released the latest investment figures on Sunday, showing that net FDI increased from $307.6 million in the same quarter of 2025.
Gross FDI stood at $1.11 billion in the second quarter of 2026.

Foreign investors withdrew $766.3 million, leaving net investment of $346.9 million. In April-June last year, gross FDI totalled $1.09 billion, while withdrawals amounted to $787.1 million.

Net fresh investment, or equity, fell 4.77 percent year-on-year to $77.42 million, from $81.3 million.

Reinvested earnings, however, rose 55.08 percent to $260.9 million, compared with $168.2 million a year earlier.

Intercompany loans plunged 85.17 percent to $8.6 million from $58.1 million.

Reinvestment by companies already operating in Bangladesh accounts for a substantial share of the country’s FDI.

Down 22.44% from Previous Quarter. Despite the annual increase, net FDI fell 22.44 percent from the first quarter of 2026, when it reached $447.31 million.
Gross FDI in January-March stood at $1.1043 billion, with foreign investors withdrawing $657 million. Net FDI in the quarter was 43.84 percent lower than in the same period of 2025.

Bangladesh received $1.5783 billion in gross FDI in January-March last year, while withdrawals totalled $781.7 million, leaving net investment of $796.6 million.

Net FDI had been declining for several years, but rose 39.35 percent in 2025 despite political instability, gas and electricity shortages, and other obstacles.�"bdnews24.com