Inside The Foreign Exchange Investment Department Of Bangladesh Bank – Bangladesh has made significant progress on its development path in recent years and is expected to end its least developed country (LDC) status within a decade. The country offers promising prospects for investors and is expected to become one of the most preferred low-cost manufacturing centers in Asia given its fast-growing economy, abundant labor force and strategic geographical location. However, the country has so far attracted relatively little FDI and has performed poorly compared to peer countries. So far, FDI has had a limited impact on industries such as mobile telephony, power generation and financial services. Poor infrastructure is often cited as a major barrier to FDI, but Bangladesh’s regulatory problems also prove important.
Although the Public Investment Law is open to FDI, its scope and scope are very limited and leave a lot of room to regulate FDI entry policy at the sector level where it can be managed in a more regulated manner. For example, there is a list of “regulated industries” that may be subject to ownership restrictions that require approval from the relevant ministry. Another example is high growth industries such as apparel and pharmaceuticals where FDI is not encouraged. In the area of intellectual property rights, the pharmaceutical industry is considered as a case study to show how industrial policy has shaped development and to suggest ways to achieve long-term sustainability through greater openness to FDI and trade. The IPR analysis calls for the adoption of a modern investment law, among other regulatory reforms, to address issues affecting the broader business environment, including exchange controls, corporate taxation, access to land, expertise and public governance.
Inside The Foreign Exchange Investment Department Of Bangladesh Bank
At the request of the Government of Bangladesh, IPR’s strategic focus is to attract FDI through PPPs to improve the country’s power, road and port infrastructure.
Pdf) Foreign Direct Investment In Bangladesh: Analysis Of Policy Framework, Impact, And Potential
In terms of electricity, Bangladesh faces the significant challenge of increasing supply to address chronic shortages and meet rapidly growing demand. Although the country is attracting foreign investment in power generation through power purchase agreements, government action is needed to encourage greater foreign investment. For example, prices must reflect costs to make the investment profitable. In addition, Bangladesh should continue to promote renewable energy sources and try to attract green foreign investment that can provide the best technology to exploit its potential.
In terms of road infrastructure, there is a good range of priority highway projects with socio-economic returns and favorable conditions for PPPs. Policy making and more disciplined project selection need to be further developed. Also, past mistakes characterizing the bidding process, including clearing land in the future, should be avoided.
In ports, policy is at an early stage to scope out private investment and formulate a strategy for the sector. Major port companies are likely to be interested in investing through PPPs, including the proposed deepwater port.
