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The government has taken a policy decision to offer cash incentives to Bangladeshi expatriates (NRBs) to boost Foreign Direct Investment (FDI). Expatriates who help bring FDI into the country will receive a specific portion of the investment as a cash incentive.
This decision was made at a meeting of the Governing Board of the Bangladesh Investment Development Authority (BIDA) held on Monday at the Chief Adviser’s Office in Tejgaon, Dhaka. The meeting was chaired by Chief Adviser Professor Muhammad Yunus.
In a briefing at the Foreign Service Academy after the meeting, BIDA Executive Chairman Chowdhury Aashiq Mahmud Bin Harun stated that the new initiative aims to attract fresh investment into the country by leveraging the extensive network of Bangladeshi expatriates.
He explained that, according to the approved proposal, any Bangladeshi expatriate who plays a role in bringing equity investment into the country will receive a 1.25 percent cash incentive on that investment. This incentive is a form of recognition for expatriates and will function similarly to the existing cash incentive system for remittances.
Chowdhury Aashiq Mahmud added that this policy aims to encourage those who bring investments into industrial and business sectors, rather than just sending money for personal consumption. For example, if an expatriate helps bring $100 million in equity investment, the government will provide them with a $1.25 million incentive.
He justified this initiative by stating that Bangladeshi expatriates are well-connected within the social and investment circles of their resident countries. The government’s goal is to utilize these connections to position Bangladesh as an attractive investment destination.
Although conceptually approved, he noted that one final process must be completed before this proposal can be implemented. The proposal will be sent to the Ministry of Finance for final approval.
Announcing another initiative to attract foreign investment, the BIDA Executive Chairman said that a decision has been made to establish BIDA offices abroad. Initially, an office will be opened in China, followed by plans to establish offices in South Korea and a European Union country.
He informed that instead of permanent salaried appointments, personnel in these offices will be hired on a commission or variable remuneration basis. Their compensation will be determined based on their success in attracting investment. For China, priority will be given to hiring Chinese citizens experienced in local language and market dynamics.
Chowdhury Aashiq Mahmud further announced that the government has approved a roadmap to merge six investment promotion agencies under a single umbrella structure. Under this ‘Single Umbrella’ system, BIDA, Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zone Authority (BEPZA), High-Tech Park Authority, Public-Private Partnership (PPP) Authority, and Bangladesh Small and Cottage Industries Corporation (BSCIC) will be integrated.
He stated that the current situation, where the head of government chairs the governing board of each agency, creates administrative complexities. Historically, board meetings for these agencies have been held on average once every five years. The integrated structure will ensure regular oversight and swift decision-making. Ideally, board meetings should be held every six months, he opined.
To avoid granting undue advantage to any single agency in this merger, a decision has been made to appoint an independent third-party consultant. Although a policy approval has been granted, he mentioned that the legal and structural implementation work would be completed during the tenure of the next government. For now, the priority will be on designing the new agency’s structure and framework.
Additionally, the Board has approved a formal directive for the privatization process under BIDA’s purview. Previously, there were no specific guidelines on this matter, but the new decision will pave the way for privatizing government assets by appointing investment banks on a commission basis, the BIDA Executive Chairman stated.
Chief Adviser’s Press Secretary Shofiqul Alam was present at the briefing.
