The Bangladesh Investment Development Authority (BIDA) has announced plans to establish a central Investment Promotion Agency (IPA) by merging all existing IPAs into a unified platform. This initiative aims to simplify processes for investors and attract increased foreign direct investment (FDI) to Bangladesh.

“We’ve received consistent feedback from both local and foreign investors that navigating the current structure with multiple IPAs is cumbersome,” said BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun at a seminar titled “Investment Opportunities and Challenges” organized by the Economic Reporters Forum on January 15. “The new central IPA will serve as a one-stop solution, streamlining issue resolution and reducing the need for investors to approach multiple agencies.”

Highlighting the inefficiencies of the current setup, Chowdhury mentioned that he personally oversees two separate IPAs. He added that numerous organizations, such as the Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA), Hi-Tech Park Authority, and the Bangladesh Small and Cottage Industries Corporation (BSCIC), also operate in this space. Entrepreneurs often have to visit multiple offices for approvals and registrations, a process the new agency seeks to replace with a centralized system.

To further enhance investor engagement, BIDA is organizing an investment conference from April 7 to April 10, with plans to facilitate visits to various economic zones for foreign investors. Chowdhury also revealed that the government is gradually withdrawing from direct investments in sectors where private initiatives can play a larger role, with a transition expected over the next six months. The government will instead focus on infrastructure development.

Another key initiative includes forming a private sector advisory board to incorporate industry input into decision-making. Chowdhury acknowledged that some past decisions were made without consulting private stakeholders, a practice BIDA aims to rectify under one of its 21 planned initiatives.

The seminar, presided over by ERF President Doulot Akhter Mala, featured insights from prominent speakers, including former FBCCI President AK Azad, FBCCI Administrator Hafizur Rahman, former DCCI President Abul Kashem Khan, and LafargeHolcim Bangladesh CEO Mohammad Iqbal Chowdhury.

AK Azad underscored the need to address inefficiencies in the gas supply, noting that eliminating the 10% pilferage would negate the need for price hikes. He also highlighted the lack of discussions around the broader economic impact of rising gas and VAT costs, which increase operational expenses for investors by approximately 40%.

Abul Kashem Khan emphasized that policy inconsistencies and corruption remain significant barriers to investment growth. He called for a robust institutional framework to address these systemic issues.

Mohammad Iqbal Chowdhury recommended assessing the domestic investment landscape before hosting international roadshows to attract FDI. He stressed the importance of resolving existing challenges faced by investors.

Hafizur Rahman noted that while Bangladesh is not a tax haven, offering competitive incentives is essential. He cautioned that frequent policy changes deter potential investors by creating uncertainty.

During the seminar, BIDA’s Head of Business Development, Nahian Rahman Rachi, presented a keynote titled “FDI Heatmap.” The presentation outlined 19 priority sectors identified through consultations with 20 institutions and detailed actionable steps to boost investments in these areas.

This coordinated effort to streamline investment promotion and address systemic challenges reflects BIDA’s commitment to fostering a more investor-friendly environment in Bangladesh.

Source: The Business Standard