Cash Incentives for Expats Who Secure Foreign Investment

In a pioneering move to bolster Foreign Direct Investment (FDI), the interim government of Bangladesh has taken a policy decision to reward Non-Resident Bangladeshis (NRBs) who successfully facilitate investment into the country. Under this new framework, expatriates who act as bridges for equity capital will be entitled to a specific cash commission, marking a significant shift in how the state engages with its global diaspora.

The 1.25% Equity Incentive

The decision was formalised on Monday, 26 January, during a Governing Board meeting of the Bangladesh Investment Development Authority (BIDA). Held at the Chief Adviser’s Office in Tejgaon and chaired by Professor Muhammad Yunus, the meeting outlined a strategy to leverage the vast networks of Bangladeshis living abroad.

Following the session, BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun briefed the media at the Foreign Service Academy. He revealed that NRBs who facilitate equity investment will receive a 1.25% cash incentive on the total investment amount. This system mirrors the existing incentives for inward remittances but targets industrial and commercial growth rather than personal consumption.

“If an expatriate facilitates a $100 million equity investment, the government will provide an incentive of $1.25 million,” explained the BIDA Chairman. “Our goal is to encourage those who use their social and professional capital in host countries to promote Bangladesh as a premier investment destination.”

Institutional Reform: The ‘Single Umberella’ Model

Beyond expatriate incentives, the board approved a radical “Roadmap for Integration.” The government plans to merge six separate investment and industrial bodies into a single, streamlined entity. This “Single Umbrella” structure aims to eliminate bureaucratic overlap and administrative stagnation.

The six agencies slated for merger include:

BIDA (Investment Development)

BEZA (Economic Zones)

BEPZA (Export Processing Zones)

Hi-Tech Park Authority

PPP Authority (Public-Private Partnerships)

BSCIC (Small & Cottage Industries)

Historically, these agencies were chaired by the Head of Government, leading to infrequent board meetings—sometimes only once every five years. The new structure will ensure regular oversight, with a target of holding board meetings every six months.

Global Outreach and Privatisation

BIDA also announced plans to establish international offices to directly court global investors. The first of these will open in China, followed by South Korea and the European Union. Interestingly, these offices will operate on a “success-based” remuneration model rather than fixed salaries, ensuring that staff are incentivised by the actual volume of investment they secure.

The board further approved formal guidelines for privatisation. By hiring professional investment banks on a commission basis, the government aims to sell off state assets more efficiently and transparently than in previous decades. While the legal and structural finalisation of these mergers may fall to the next elected government, the current administration is prioritising the design and blueprint of this new investment architecture.