B Mirror Report :  The government has taken a policy decision to offer cash incentives to non-resident Bangladeshis (NRBs) to increase foreign direct investment (FDI). If expatriates help bring FDI into the country, they will receive a certain portion of the investment as a cash incentive.

The decision was taken at a meeting of the Governing Board of the Bangladesh Investment Development Authority (BIDA) held on Monday (26 January) at the Chief Adviser’s Office in Tejgaon, Dhaka. The meeting was chaired by Chief Adviser Professor Muhammad Yunus.

After the meeting, BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun said at a briefing at the Foreign Service Academy that the new initiative aims to attract fresh investment into the country by leveraging the extensive networks of expatriate Bangladeshis.

He said that under the approved proposal, if an expatriate Bangladeshi plays a role in bringing equity investment into the country, they will receive a cash incentive of 1.25 percent of that investment. This incentive is a form of recognition for expatriates and will function in a manner similar to the existing cash incentive scheme for remittance income.

Chowdhury Ashik Mahmud added that the policy is intended to encourage expatriates to bring investments into the industrial and business sectors instead of sending money solely for personal consumption. If an expatriate helps bring in equity investment worth 100 million US dollars, the government will provide an incentive of 1.25 million US dollars.

Explaining the rationale behind the initiative, he said that expatriate Bangladeshis are well connected within the societies and investment communities of the countries where they reside. The government’s goal is to use these connections to promote Bangladesh as an investment destination.

Although the proposal has received policy approval, he noted that one final process must be completed before implementation. For final approval, the proposal will be sent to the Ministry of Finance.

Speaking about another initiative to attract foreign investment, the BIDA Executive Chairman said that a decision has been taken to establish BIDA offices abroad. In the first phase, an office will be opened in China, followed by plans to open offices in South Korea and in a country within the European Union.

He said that instead of recruiting permanent salaried staff, these offices will hire personnel on a commission-based or variable remuneration system. Their compensation will be determined based on their success in bringing in investment. In the case of China, priority will be given to recruiting Chinese nationals who have experience with the local language and market.

Chowdhury Ashik Mahmud also said that the government has approved a roadmap to merge six investment promotion agencies into a single unified structure. Under this system, known as the “Single Umbrella,” the following six agencies will be integrated: BIDA, Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA), Hi-Tech Park Authority, Public-Private Partnership (PPP) Authority, and Bangladesh Small and Cottage Industries Corporation (BSCIC).

He explained that administrative complications arise because the head of government currently serves as the chairperson of the governing boards of each of these agencies. In the past, board meetings of these agencies have been held on average only once every five years. The unified structure will ensure regular oversight and faster decision-making. Ideally, he said, board meetings should be held every six months.

To ensure that no agency receives undue advantage, the decision has been taken to appoint an independent third-party consultant. Although policy approval has been granted, he noted that legal and structural implementation will be completed during the tenure of the next government. For now, priority will be given to designing and structuring the new unified entity.

In addition, the board has approved formal guidelines for privatization under BIDA’s scope of work. While there were previously no specific directives in this regard, under the new decision, investment banks will be appointed on a commission basis to facilitate the privatization of government assets, the BIDA Executive Chairman said.