The interim government on Monday decided to merge all investment promotion agencies (IPAs) in Bangladesh in a move aimed at simplifying procedures and making the country more investor-friendly.
The decision was taken at a meeting of the IPA Governing Board, chaired by Chief Adviser Prof Muhammad Yunus.
Speaking at a press briefing at the Foreign Service Academy after the meeting, Executive Chairman of BIDA, BEZA and MIDA and CEO of the PPP Authority, Chowdhury Ashik Mahmud Bin Harun, said the government has taken a policy decision to bring all IPAs under a single umbrella to facilitate both local and foreign investment.
Under the move, the Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA), Bangladesh Hi-Tech Park Authority, Maheshkhali Integrated Development Authority (MIDA) and the Public-Private Partnership (PPP) Authority will be merged into one entity.
Ashik said the merger will be carried out through an independent third-party consultancy to ensure that the interests of none of the agencies are harmed.
Although the interim government has taken the policy decision, implementation will be left to the next elected government.
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Explaining the rationale behind the move, Ashik said investors currently face policy and procedural complications due to the presence of multiple authorities.
“An investor moving from BEZA to BEPZA has to follow a completely different set of rules. The Hi-Tech Park has another set of regulations. Investors have to visit six offices and deal with six different land prices, incentives and facilities. It often feels like dealing with six different countries. The merger aims to relieve investors from this complexity,” he said.
Responding to questions on why the government is centralising investment instead of decentralising it, Ashik said excessive fragmentation has made it difficult to attract investment. “There has been so much decentralisation in investment management that investment inflow itself has become difficult. Bringing the institutions together is intended to make Bangladesh more investment-friendly.”
Ashik also said the government has decided to open BIDA agent offices abroad, initially in China and European Union countries. These will operate as agent offices without fixed salaries, where agents will receive incentives based on the volume of investment they bring in.
Local citizens of those countries will be appointed as agents to overcome language barriers and better identify potential investors interested in Bangladesh, he said.
The BIDA Executive Chairman said special incentives will be offered to expatriate Bangladeshis who bring foreign direct investment (FDI) into the country. Under the proposed FDI incentive scheme, expatriates will receive a 1.25 percent cashback. “For example, if someone brings in USD 100 million in investment, the government will provide USD 1.25 million as an incentive, similar to existing remittance incentives.”
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Ashik also informed that a 137-member organisational structure has been approved for MIDA to make it functional. Within the next five years, major projects including the Maheshkhali deep-sea port, LNG terminal, LPG terminal and a fish hub will be developed in the area.