No immediate merger of investment bodies; Bida-PPPA move first

The committee reviewing the merger of investment agencies
in Bangladesh has recommended a phased approach, beginning with the
consolidation of the Bangladesh Investment Development Authority (Bida) and the
Public–Private Partnership Authority (PPPA).
The
issue was discussed at the second meeting of the committee formed to examine
and recommend restructuring options, held on 22 April and chaired by Cabinet
Secretary Nasimul Gani.
At
present, six state bodies handle investment-related functions: Bida, PPPA,
Bangladesh Economic Zones Authority (Beza), Bangladesh Export Processing Zones
Authority (Bepza), Bangladesh Small and Cottage Industries Corporation (BSCIC),
and Bangladesh Hi-Tech Park Authority (BHTPA).
The meeting participants opined against immediate merger of
these organisations.
According
to meeting sources, the committee suggested that since Bida and the PPPA are
primarily responsible for investment promotion, they could be merged in the
first phase of reform.
The
effectiveness of this integration would then be assessed before considering
further mergers involving Beza and the Hi-Tech Park Authority, the sources
said. Subsequent phases may include a broader consolidation of remaining
agencies, depending on outcomes and implementation performance.
The
meeting also directed the preparation of a concept paper for the next session
on how unused land under BSCIC could be utilised to attract foreign investment.
Proposals were also discussed to reclassify economic zones under Beza as
export-oriented industrial areas for both local and foreign investors.
In
addition, the possibility of transferring management of certain zones to Bepza
was discussed, alongside alignment of tax holidays and incentive structures for
export-focused regions.
Senior
officials from the Prime Minister's Office, Ministries of Public
Administration, Industries, ICT Division and Legislative and Parliamentary
Affairs Division, heads of relevant agencies attended the meeting. The third
meeting is scheduled for 29 April, where further discussions will continue.
What experts say
Kiyoshi
Adachi, legal officer at Division on Investment and Enterprise, United Nations
Conference on Trade and Development (UNCTAD), said a merger of the six agencies
would be a positive move.
"If
a merger is implemented, it is essential to ensure that experts from diverse
sectors are included – especially those familiar with both large-scale
industrial operations and small enterprise ecosystems such as those in EPZs and
API parks," he told The Business Standard.
He
further explained that having a wide range of expertise within one unified
agency would be crucial to effectively address the varied needs of different
types of businesses.
Overall,
he viewed the "One Umbrella" initiative positively, stating that it
could improve coordination among investment-related agencies, provided that
sector-specific expertise is properly represented.
However,
Abul Kasem Khan, chairperson of BUILD, questioned the rationale behind
restructuring existing effective institutions. For instance, he said
Bangladesh's Export Processing Zones, managed by Bepza, have been highly
successful and operate with strong administrative efficiency and investment
performance.
"Why
are we trying to dismantle a system that is already functioning well?"
questioned Kasem, also former president of Dhaka Chamber of Commerce and
Industry (DCCI).
He
further said the justification for merger proposals remains unclear. "If
the objective is to improve investment and ease of doing business, reforms must
be based on clear and logical reasoning. But well-functioning institutions
should be strengthened, not disrupted," he said.
He
also warned that merging effective organisations could risk losing accumulated
institutional knowledge and operational efficiency.
Abul
Kashem said the proposal is still at a discussion stage. A third-party
consultancy will conduct an assessment, after which recommendations will be
submitted to the Prime Minister's Office. Final decisions will be taken
following consultations with businesses and other stakeholders.
He
also said private sector input is essential in policymaking, noting that
practical experience can improve policy effectiveness. "The more views you
gather, the more ideas you generate," he said.
The
initiative to unify investment-related agencies under a single umbrella was
originally conceived under the previous interim government to simplify investment
procedures for domestic and foreign investors.
A
proposal was also made at the time to establish a central Investment Promotion
Agency (IPA), with a committee tasked with reviewing detailed integration
options before final recommendations are made.
Earlier,
on 14 March, proposals on merging investment promotion agencies and related
reform plans were presented to the prime minister by Bida Executive Chairman
Ashik Chowdhury.
Bida
Executive Member and Head of Business Development Nahian Rahman Rochi told TBS
that the merger plan is considered a "major enabler" within Bida's
180-day action roadmap.
















