FICCI Delegation Discusses Boosting Foreign Investment with Govt

Bangladesh is set to sign a defence equipment procurement agreement with Japan, following consent from Chief Adviser Professor Muhammad Yunus. The agreement, revised by Japan based on Bangladesh's feedback, is now under final review by multiple government divisions.

Chinese businesses are considering relocating to Bangladesh to avoid US tariffs, according to Calvin Nyan, president of the Overseas Chinese Association. However, challenges like complex export-import procedures and political instability are hindering investment.

On November 20, 2024, the Standing Committee on Non-Concessional Loans (SCNCL) approved two hard-term loans worth $260 million to fund key infrastructure projects in Bangladesh. The loans will finance power transmission upgrades, road development, and terminal projects. The Asian Development Bank (ADB) is providing $100 million for public-private partnership (PPP) projects, including the Dhaka bypass and Patenga terminal in Chittagong.

The equity market in Bangladesh has seen a surge in foreign investment since the political transition in August 2024. Foreign portfolio transactions on the Dhaka Stock Exchange rose to Tk 13.91 billion in July-September 2024, doubling the figure from the same period last year. Net portfolio investment by foreign investors also soared to $49 million in July-August FY25, compared to $3 million in the previous year.

Austrian companies are showing interest in investing in Bangladesh as part of efforts to enhance bilateral economic ties, according to Austria's non-resident ambassador, who visited Dhaka on November 18, 2024. During a meeting with the Chief Adviser, the envoy highlighted Austria's willingness to support Bangladesh's interim government in implementing sweeping reforms.