Dhaka: The interim government on Monday announced a strategic decision to merge all investment promotion agencies (IPAs) in Bangladesh, aiming to streamline procedures and enhance the country’s investor appeal. The decision was finalized during a meeting of the IPA Governing Board, overseen by Chief Adviser Prof Muhammad Yunus.
According to United News of Bangladesh, the announcement was made by Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of BIDA, BEZA, and MIDA, as well as CEO of the PPP Authority, during a press briefing at the Foreign Service Academy. The government plans to consolidate 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 into a single entity. This move is intended to facilitate both local and foreign investment by reducing the bureaucratic complexities currently faced by investors.
Ashik emphasized that the merger process will be conducted through an independent third-party consultancy to ensure that the interests of the involved agencies are protected. Although the interim government has initiated this policy decision, the responsibility for implementation will fall to the next elected government.
Elaborating on the reasons for this move, Ashik highlighted the challenges investors face due to the existence of multiple authorities, each with different regulations. He noted that transitioning from one agency to another requires investors to navigate entirely different sets of rules and procedures, akin to dealing with multiple countries. The merger is designed to eliminate these barriers and make investing in Bangladesh more straightforward.
Addressing concerns about centralization, Ashik explained that excessive fragmentation has hindered investment inflows. By unifying these institutions, the government aims to create a more investment-friendly environment in Bangladesh.
Additionally, the government plans to establish BIDA agent offices abroad, starting in China and European Union countries. These agent offices, staffed by local citizens, will operate without fixed salaries and will earn incentives based on the investment volume they attract. This approach is expected to overcome language barriers and more effectively identify potential investors interested in Bangladesh.
Ashik also announced that expatriate Bangladeshis bringing foreign direct investment (FDI) into the country will be offered special incentives. Under the proposed FDI incentive scheme, expatriates will receive a 1.25 percent cashback on their investment contributions, mirroring existing remittance incentives.
Furthermore, Ashik revealed that a 137-member organizational structure has been approved for MIDA to enhance its functionality. Over the next five years, significant projects, including the development of the Maheshkhali deep-sea port, LNG terminal, LPG terminal, and a fish hub, are planned for the area.