Investment promotion agencies have become dysfunctional: White Paper
The document said although BIDA is meant to serve as the central body for investment support, its effectiveness is hindered by poor coordination with other IPAs, regulatory bodies, and service providers
The investment promotion ecosystem in Bangladesh is fragmented, with investment promotion agencies (IPAs) operating in isolation rather than as a cohesive unit, according to the final draft of the White Paper on the State of Bangladesh's Economy.
The document, submitted to the chief adviser of the interim government today (1 December), stated that although the Bangladesh Investment Development Authority (BIDA) is meant to serve as the central body for investment support, its effectiveness is hindered by poor coordination with other IPAs, regulatory bodies, and service providers.
Moreover, it said these regional offices of BIDA equally face infrastructural inhibitions from fully using the One Stop Services (OSS) platform to smoothly and in the shortest lengthily process issues related to investments.
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"A similar support integrated system one-stop investment for transparency, reduction of tape, and helping the system build investor confidence exists in Malaysia, Singapore, and Dubai. However, such initiatives have yet to be prioritised in Bangladesh, which made the OSS of BIDA dysfunctional," said the draft document.
It mentioned that data inconsistencies are evident in the records maintained by different IPAs.
According to the White Paper, an analysis of 3,111 industries registered with BIDA (2019–2024) reveals that many have investments below Tk15 crore, raising questions about the necessity of BIDA registration for such small-scale projects, which could operate with a trade licence.
According to the Standard Operating Procedure (SOP), investments under Tk100 million do not require a project profile.
Moreover, discussions indicate that many industries registered through BIDA's OSS are non-operational.
It stated that the absence of a centralised Master OSS, initially planned to integrate services from agencies like Bangladesh Export Processing Zone (BEPZA), Bangladesh Economic Zone Authority (BEZA), and Hi-Tech Park Authority (HTPA), hampers data accuracy and coordination.
Additionally, the White Paper Committee found that the lack of officials authorised to provide critical services such as fire safety, taxation, and environmental compliance across all IPAs further complicates the process.
It said duplication in registrations across agencies could be resolved by introducing a unique investor identification system to improve transparency and efficiency.
