The interim government has decided to merge all major investment promotion agencies (IPAs) in Bangladesh into a single entity, aiming to simplify procedures and improve the country’s appeal to both local and foreign investors.
The decision was taken at a meeting of the IPA Governing Board on Monday, chaired by Chief Adviser Professor Muhammad Yunus.
Briefing reporters at the Foreign Service Academy after the meeting, Executive Chairman of BIDA, BEZA and MIDA, and CEO of the PPP Authority, Chowdhury Ashik Mahmud Bin Harun, said the move is intended to reduce regulatory complexity and make investment processes more efficient.
Under the plan, 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 will be merged under a single institutional framework.
Ashik said the restructuring will be carried out through an independent third-party consultancy to ensure fairness and protect the interests of all existing agencies. While the interim government has approved the policy decision, implementation will be left to the next elected government.
He explained that the current fragmented system creates unnecessary hurdles for investors, who often have to deal with multiple authorities, different rules, varying land prices, and separate incentive structures.
“An investor moving from BEZA to BEPZA has to follow an entirely different set of rules. The Hi-Tech Park has another system altogether. In many cases, it feels like dealing with six different countries. This merger aims to remove that complexity,” Ashik said.
Responding to concerns about centralisation, he argued that excessive decentralisation has actually made it harder to attract investment. “Bringing these institutions together is meant to make Bangladesh more investment-friendly, not less,” he added.
Overseas BIDA offices planned
Ashik also announced plans to open BIDA agent offices abroad, initially in China and European Union countries, to attract foreign direct investment (FDI). These offices will operate on a performance-based model, where local agents will earn incentives based on the volume of investment they bring to Bangladesh.
Local nationals will be hired as agents to overcome language barriers and better identify potential investors, he said.
Incentives for expatriate investors
The government is also planning special incentives for expatriate Bangladeshis who bring FDI into the country. Under a proposed scheme, expatriates would receive a 1.25 per cent cashback on the investment amount.
“For example, if someone brings $100 million in investment, they would receive $1.25 million as an incentive, similar to existing remittance benefits,” Ashik said.
MIDA expansion and Maheshkhali projects
Ashik further said a 137-member organisational structure has been approved to make MIDA fully operational. Over the next five years, several major projects are planned in Maheshkhali, including a deep-sea port, LNG terminal, LPG terminal, and a fish hub.
He said the broader goal of these reforms is to modernise Bangladesh’s investment ecosystem, improve ease of doing business, and accelerate large-scale industrial development.