A policy approval has been granted to offer a 1.25pc cashback on foreign direct investments (FDI) brought into Bangladesh by non-resident Bangladeshis (NRBs), aiming to boost foreign direct investment through expatriate networks.
Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority (BIDA), said the issue had been under discussion for a long time and had now received policy-level approval from the authority’s governing board.
The proposal will be ratified after discussions with the finance adviser, he added, while briefing the media on Monday at the Bangladesh Foreign Service Academy in Dhaka.
Explaining the initiative, he said Bangladeshis living abroad have strong business and investment networks and are well connected with the global investment community.
If investments are channelled into Bangladesh through these networks, the government plans to provide cashback incentives under a framework similar to remittance incentives.
He said, for instance, an expatriate investor bringing in $100 million as equity investment would be eligible for a cashback of $1.25 million.
Officials concerned believe that once implemented, the scheme could help mobilise greater investment through NRB networks, support the establishment of new industries, create employment opportunities and strengthen foreign currency inflows into the country.
