Foreign Direct Investment (FDI) has played a positive role for developing the Bangladesh economy. FDI is limited but it has various uses in the different sector of our economy. As a potential source of foreign exchange reserves, FDI needs to be encouraged. FDI has been emphasized by the Government in its 7th five year plan and has undertaken various policies for adequate incentives in attracting foreign investors. However, net FDI inflow decreased significantly by 42.5 percent to USD 1510 million in FY20. On the other hand, portfolio investment increased significantly by 61.4 percent to USD 276 million in FY20 compared to USD 171 of preceding year (Table XVI of Appendix-3).