The Government follows the policy of a free market economy in Bangladesh. The private sector has been identified as the main vehicle for the development of the economy. Poverty reeducation through rapid economic growth is the core development strategy. In accordance with that, the Government’s policy on investment offers a lucrative package to attract foreign investment. Some salient features of the package are:

  • Tax holiday for industries within and outside the Export Processing Zones (EPZ).Duty-free import of machinery and raw materials for export-oriented industries.100% foreign equity allowed. Full repatriation of dividend and capital allowed upon exit. Bonded Warehouse and back-to-back Letter of Credit facility allowed for export-oriented industries. Avoidance of double taxation based on bilateral agreements.
  • Foreign investment in Bangladesh is guaranteed by an Act of Parliament against forfeiture and nationalization.