Govt moves to unify 5 investment bodies under single authority

The interim government has taken a step towards reshaping Bangladesh’s investment landscape by initiating a move to consolidate the country’s key investment promotion agencies into a single authority.

This aims to simplify procedures, reduce regulatory overlap and improve the ease of doing business for both domestic and foreign investors.

Officials at the Bangladesh Investment Development Authority (BIDA) said work is underway to draft the rules, regulations and organisational framework of the proposed unified body.

A senior BIDA official told Daily Sun that the initial groundwork, including the conceptual and structural design, is expected to be completed by 12 February, within the tenure of the interim government.

The operational merger, however, will take place after the national election.

BIDA Executive Member and Head of Business Development Nahian Rahman Rochi said the merger process has already begun at the preparatory level.

“There are two elements involved,” he said. “One is the design and outline of the unified entity, and the second is the operational merger of the agencies.”

Nahian noted that the operational phase would be more time-consuming, potentially taking several months or even years, as is typical for large institutional mergers.

“At this stage, we are working on the first element, which is the design or outlook of the unified entity,” he said. “A third party has been engaged to carry out the groundwork. Once the design is approved, the physical merger process will begin.”

He added that the aim is to advance the design phase as far as possible so that the next elected government can continue the process without disruption. As a result, the operational merger is expected to be implemented after the election.

One-stop platform for investors

Under the plan, five major agencies will be merged: Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA), Bangladesh Hi-Tech Park Authority (BHTPA), and the Public-Private Partnership Authority (PPPA).

Officials said BIDA has been tasked with preparing the draft rules, regulations and operational guidelines. Once finalised, the draft will be submitted to the Chief Adviser’s Office for approval.

An international consulting firm has been engaged since November to assist with drafting the required legislation and designing the institutional structure of the new authority. The assignment will be implemented in three phases.

“The move is aimed at accelerating investment inflows and ensuring a one-stop service for both domestic and foreign investors,” a BIDA official said.

While BIDA, BEZA and PPPA already maintain a degree of coordination, BEPZA and BHTPA are expected to be fully integrated following the restructuring.

Efficiency versus centralisation

Government officials argue that the merger will enhance coordination, cut red tape and provide investors with streamlined services through a single point of contact.

However, the initiative has drawn mixed reactions within policy circles. Some insiders caution that excessive centralisation could slow decision-making and weaken existing fast-track mechanisms currently available under separate agency laws.

Each of the five agencies operates under distinct legal and operational frameworks tailored to specific sectors, including economic zones, export processing zones, hi-tech parks and public-private partnerships.

Integrating these diverse mandates will require extensive legal harmonisation and policy alignment.

Differences in incentive structures, investor registration processes and regulatory mechanisms are seen as major challenges to creating a genuinely unified investment system.

Experts urge deeper reforms

Economist Dr Mustafa K Mujeri described the proposed merger as a positive step but warned that institutional restructuring alone would not guarantee improved investment outcomes.

He stressed that the initiative must be supported by a clear and actionable roadmap that directly addresses the real constraints faced by investors.

He also noted that despite repeated efforts by investment promotion agencies in the past, actual investment inflows have often fallen short of national targets.

High-level oversight committee

To oversee the transition, the Chief Adviser’s Office has formed an eight-member committee following a recommendation from a BIDA Governing Board meeting held on 13 April 2025, chaired by Chief Adviser Prof Muhammad Yunus. A gazette notification was issued on 30 April.

The committee is headed by Industries Adviser Adilur Rahman Khan, with BIDA and BEZA Executive Chairman Ashik Chowdhury serving as member secretary.

Other members include Commerce Adviser SK Bashir Uddin; Chief Adviser’s International Affairs Envoy Lutfey Siddiqi; Bangladesh Bank Governor Dr Ahsan H Mansur; Principal Secretary M Siraz Uddin Miah; Senior Secretary of the Ministry of Public Administration Md Mokhles Ur Rahman; and Finance Secretary Md Khairuzzaman Mozumder.