Bida to form central investment agency to attract FDI

The Bangladesh Investment Development Authority plans to create a central Investment Promotion Agency (IPA) by merging all existing IPAs into a unified solution centre to attract foreign direct investment.

"We've received feedback from both foreign and local investors that there are too many IPAs," Bida Executive Chairman Chowdhury Ashik Mahmud Bin Harun said while outlining the plan at a seminar titled "Investment Opportunities and Challenges" organised by the Economic Reporters Forum today (15 January).

"We aim to consolidate all IPAs into a central IPA, allowing investors to resolve their issues through a single entry point instead of multiple ones. This new system will make it easier and faster for investors to determine the right IPA."

"I am currently in charge of two myself. There are many other such agencies," he said, while revealing plans for an investment conference from 7-10 April, with arrangements for foreign investors to visit various economic zones.

Currently, several organisations, including Beza, Bepza, Hi-Tech Park Authority, and the Bangladesh Small and Cottage Industries Corporation, alongside Bida, handle investment promotion, requiring entrepreneurs to visit these offices for business approval and registration.

Bida's executive chairman stated that while the government typically invests in sectors related to national interests in other countries, in Bangladesh, direct government investment in various sectors is often unnecessary, and the government plans to gradually withdraw from these areas within the next six months, leaving business to the private sector while focusing on creating necessary infrastructure.

Bida is also planning to form a private sector advisory board to ensure decisions are made with input from various industries, addressing issues where past decisions were made without consulting the private sector, as part of one of 21 initiatives.

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

AK Azad highlighted the need to eliminate the 10% pilferage in gas supply, stating that stopping it would negate the need for gas price hikes. 

He also noted that the impact of gas and VAT increases on the economy and public life was not discussed, and that irregularities raise investors' expenses by about 40%.

Abul Kashem Khan said lack of policy consistency and corruption are major obstacles to investment growth, emphasising the need to create an institutional framework to address these issues.

LafargeHolcim Bangladesh CEO Mohammad Iqbal Chowdhury highlighted the need for analysing the domestic investment situation before holding roadshows to attract foreign investment, stressing that initiatives are needed to address investor challenges.

FBCCI Administrator Hafizur Rahman emphasised that while Bangladesh may not be a tax haven, offering benefits to investors is crucial, noting that frequent policy changes create uncertainty.

At the seminar, Bida Head of Business Development Nahian Rahman Rachi presented a keynote titled "FDI Heatmap," revealing 19 priority sectors identified through input from 20 institutions, with specific steps to boost investment.