Govt to merge authorities to boost FDI

The government has finalised a draft law to form a single authority by merging at least three investment-related institutions to improve Bangladesh’s position in attracting foreign direct investment.

The draft “Invest Bangladesh Act, 2026” aims to simplify approval, registration, import-export and other investor services. Under it, the government will set up a modern one-stop service.

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The Cabinet Division said the draft was finalised at the weekly cabinet meeting yesterday at the Cabinet Room of the National Parliament, chaired by Prime Minister Tarique Rahman.

The cabinet also approved the drafts of the “National Renewable Energy Development Strategy 2026-2030” and the “Import Policy Order 2026-2029”.

Meeting sources said Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA), and Public-Private Partnership Authority (PPPA) would be abolished and merged once the law takes effect, making many foreign investment-related tasks easier for investors.

The Cabinet Division said, “The main objective of the law is to make the process of receiving services simple, fast, and integrated for investors. Under this, the processes of approval, registration, import-export, incentives, industrial zone development, and access to public services will be coordinated more effectively.”

“It will help in implementing the goals of single-window clearance, one-stop service, digitalisation of approval and licensing processes, increasing domestic and foreign investment, industrialisation, expanding public-private partnerships, and creating employment,” the Cabinet Division said in a press release.

Once enacted, the law will bring industrial zones, economic zones, free trade zones and other declared industrial zones under a unified framework. It will also allow the government to use unused land, installations, shares and rights for productive purposes.

The World Investment Report 2026, published last Tuesday by the United Nations Conference on Trade and Development, showed Bangladesh’s position in attracting FDI was lower than those of Uganda, Ghana and the Democratic Republic of the Congo, although Bangladesh has a larger economy.

The Prime Minister’s Office initiated the Investment Act. A PMO source told The Daily Star that Bangladesh was not attracting foreign investment in proportion to its global economic position. The source said bureaucratic complexities were widely known as the main reason, but no previous government had taken any major step.

“After taking charge of the government, Tarique Rahman gave instructions to solve this issue with the highest priority. The drafting of the law is the first step in that direction. This law will be passed in parliament and implemented soon,” the official said.

Sources said a powerful authority would be led by an individual with ministerial rank, with ministers and state ministers of trade and investment-related ministries as members. This will speed up decisions, they said. The authority will act swiftly whenever problems arise, they added.

RENEWABLE ENERGY STRATEGY

The cabinet approved the draft National Renewable Energy Development Strategy 2026-2030, targeting 20 percent electricity from renewable sources by 2030 and a 15 percent cut in power use through demand-side management.

Prepared by the Power Division, it seeks to reduce fossil-fuel imports, strengthen energy security, lower subsidies and meet climate commitments. It was finalised after recommendations from a committee formed following a special cabinet meeting on April 16 and feedback from 31 ministries, divisions, agencies, research institutions, experts and investor groups.

To attract private investment, it focuses on rooftop solar, net metering, OPEX-based solar projects, battery storage, floating solar, waste-to-energy, wind and hydropower, biogas, EV charging and clean cooking. It also proposes a renewable energy fund, concessional financing, credit guarantees, carbon credit mechanisms, tax incentives and support for local manufacturing.

The strategy includes measures to protect farmland, manage e-waste, recycle solar panels and batteries, develop skilled workers, and ensure at least 30 percent female participation in renewable energy technology training. The Power Division will launch a dashboard, while a national policy council headed by the prime minister will guide implementation.

NEW IMPORT POLICY

The cabinet also approved the draft Import Policy Order 2026-2029 to modernise trade procedures and facilitate investment.

The policy allows imports through sales contracts in addition to letters of credit, regardless of value, and recognises Open Account transactions and other Bangladesh Bank-approved payment methods.

It introduces Free Trade Zones and Central Bonded Warehouses for trade, logistics and re-export, and expands duty-free raw material imports under Free of Cost arrangements for export-oriented industries.

The policy incorporates international food safety standards, eases import procedures for approved non-resident Bangladeshi ventures, includes WTO measures such as risk-based customs management, post-clearance audit, electronic licences and online payment systems, restricts hazardous pesticides, and allows disease-free livestock semen imports for research with prior approval.

For the first time, it defines “Non-Resident Bangladeshis” and gives their approved ventures easier access to capital machinery, spare parts and raw materials to encourage expatriate investment in industry.