This paper makes an attempt to evaluate private foreign investment in the industries sector of Bangladesh on the basis of data generated by a sample survey of some local and joint venture firms in late 1982. While deriving the results both ‘direct’ and ‘total’ balance of payments effects were estimated. It is found that the direct effects, which immediately affect the foreign exchanges are negative in most cases. The results, however, vastly improve with the inclusion of the indirect effects, although the net total balance of payments effects of the firms remain fairly moderate. What is clear is that there are some industrial sectors with positive while others with negative payments effects. This underscores the need for selectivity or a judicious choice of sectors where private foreign investment should be welcome.