The government is set to finalise shortly the incentives it would offer to foreigners for luring foreign direct investment in the proposed special economic zones, officials said.
The Prime Minister’s Office has asked finance minister AMA Muhith to prepare the incentives for the proposed special economic zones immediately after both the Chinese and Japanese investors wanted finalization of the rules and regulations quickly.
Finance ministry officials said Muhith was scheduled to hold a meeting Tuesday after a committee under the PMO had primarily outlined the incentives for the investors.
They said incentives were like tax holiday, duty waive for imports, profit repatriation and price of utility services.
FDI flow to Bangladesh increased by 24 per cent to US$ 1,599 million in 2013 compared with US$ 1,293 million in the previous year. But the country made only 9 per cent growth in attracting fresh FDI in the last year.
Bangladesh Institute of Development Studies director general MK Mujeri said it would be a big boost for the country if the present government could increase the FDI flow.
Various non-economic factors like political instability, lack of good governance, crisis of land and extortion already gave wrong signal to the foreign investors, he said.
The government policy-makers are however upbeat about reversing the trend through promotional activities taken by the government despite negative sentiments abroad following non-participatory election on January 5.
Planning minister AHM Mustafa Kamal said there were differences between export processing zones and SEZ. EPZs only deals with export-oriented products and the SEZs are to produce all types of goods.
The government would provide land and utility services while the investing companies would develop infrastructure, he said, adding that the government’s main object was to attract foreign investors.
Officials said an added advantage of the SEZ investors would be that they would sell their products in the local market which is restricted for the investors in EPZs.
A few months ago, the government decided to develop five special economic zones at a cost of Tk 81.95 crore in Mongla, Moulvibazar and Chittagong’s Anwara and Mirersorai areas. The fifth SEZ will be developed in Sirajganj.
The SEZs are being planned to be developed on 8,827.99 acres of land and they would create jobs for 1.5 crore people by 2021.
-With New Age input
