Expatriates will receive cash incentives if they bring in foreign investment

Bangla Press Desk:  The government has taken a policy decision to provide cash incentives to non-resident Bangladeshis (NRBs) to increase foreign direct investment (FDI). If the expatriates help bring FDI to the country, they will get a certain portion of the investment as cash incentives.

The decision was taken at a meeting of the Bangladesh Investment Development Authority (BIDA) Governing Board at the office of the Chief Advisor in Tejgaon in the capital on Monday. The meeting was presided over by Chief Advisor Professor Muhammad Yunus.

At a briefing at the Foreign Service Academy after the meeting, BIDA Executive Chairman Chowdhury Ashiq Mahmud Bin Harun said that through this new initiative, the aim is to bring new investments to the country by using the extensive network of non-resident Bangladeshis.

He said that according to the approved proposal, if any non-resident Bangladeshi plays a role in bringing equity investment to the country, he will get a cash incentive of 1.25 percent on that investment. This is a recognition incentive for expatriates, which will work like the existing cash incentive system for expatriate income.

Chowdhury Ashiq Mahmud said that instead of sending money for personal consumption, those who will invest in the industrial and business sectors will be encouraged through this policy. If an expatriate helps bring in an equity investment of $100 million, the government will give him an incentive of $1.25 million.The rationale behind this initiative, he said, is that expatriate Bangladeshis are well connected to the society and investment circles of the countries they live in. The government's goal is to promote Bangladesh as an investment destination by utilizing that connection.

He said that even if the proposal is approved in principle, one last process needs to be completed before it can be implemented. The proposal will be sent to the Ministry of Finance for final approval in this regard.

Informing 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. After that, there are plans to establish offices in South Korea and a country in the European Union.

He said that instead of permanent salary-based appointments, manpower will be appointed in these offices on a commission or variable remuneration system. Their remuneration will be determined based on the success of bringing in investment. In the case of China, priority will be given to appointing Chinese citizens with experience in the local language and market.

Chowdhury Ashiq Mahmud further said that the government has approved a roadmap to merge the country's six investment development agencies and bring them under a single structure. Under this system known as 'Single Umbrella', six organizations - 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) - will be merged.

He said that administrative complications arise because the head of government is currently the chairman of the governing board of each organization. In the past, board meetings of these organizations were held once in five years on average. Regular supervision and quick decisions will be ensured through the unified structure. Ideally, he opined that board meetings should be held every six months.

In this case, it has been decided to appoint an independent third-party consultant so as not to give any organization additional benefits. He said that even if the policy approval is received, the legal and structural implementation work will be completed during the next government. For now, the work of designing and creating the structure of the new organization will be given priority.

In addition, the board has also approved a formal directive for the privatization process under the terms of reference of BIDA. Although there were no specific guidelines in this regard earlier, according to the new decision, the path to privatization of government assets will be paved by appointing an investment bank on a commission basis, said the BIDA executive chairman.

The Chief Advisor's Press Secretary Shafiqul Alam was present at the briefing.

BP/SP