United News of Bangladesh

The Cabinet on Thursday approved in principle three major policy measures, including the draft Invest Bangladesh Act, 2026, the National Renewable Energy Development Strategy (2026–2030) and the Import Policy Order, 2026–2029, aimed at improving the investment climate, expanding renewable energy and updating the country's import framework. The approvals came at the 12th meeting of the Cabinet, held at the Cabinet Room of the Jatiya Sangsad Bhaban with Prime Minister Tarique Rahman in the chair. The proposed Invest Bangladesh Act, 2026 seeks to bring the Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA) and the Public-Private Partnership Authority (PPPA) under a coordinated framework. Under the proposed law, the new authority will serve as the country's apex investment promotion and coordination agency. It aims to simplify and speed up services for investors by integrating approvals, registrations, import and export procedures, incentives, industrial zone development and other government services. The Cabinet also approved the National Renewable Energy Development Strategy (2026–2030), which aims to establish a safe, affordable, sustainable and low-carbon energy system. The strategy was finalised following recommendations made by a committee formed after the special Cabinet meeting on April 16, 2026, as well as inter-ministerial consultations and feedback from 31 ministries, departments, agencies, research institutions, experts and investment organisations. Its main target is to increase the share of renewable energy in the country's total electricity generation to 20 percent by 2030 while ensuring at least 15 percent electricity savings through effective demand management. The strategy is also expected to reduce dependence on imported fossil fuels, strengthen energy security, ease subsidy pressure in the power sector and support Bangladesh's commitments to addressing climate change. The Cabinet also approved the draft Import Policy Order, 2026–2029. The new Import Policy Order, 2026–2029 introduces several key changes aimed at facilitating trade and boosting investment. Under the proposed order, both industrial and commercial importers will be allowed to import goods of any value through Letters of Credit (LCs) as well as sales contracts, in line with modern international trade practices. It also allows the use of other Bangladesh Bank-approved international payment methods, including open account transactions. The policy also includes provisions for establishing Free Trade Zones and Central Bonded Warehouses, with the aim of developing Bangladesh into a regional hub for trade, logistics and re-export. The measures are expected to attract foreign investment, promote exports, strengthen supply chains, improve the ease of doing business and ensure a smoother supply of industrial raw materials. In addition, the policy expands the facility for export-oriented industries to import raw materials and production inputs on a Free of Cost (FoC) basis. The move is intended to diversify exports and encourage the growth of high value-added export sectors.