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Role of the private sector
In the Industrial Policy, the role of the private sector has
been recognized as a predominant one. Except reserve sectors,
private sector investment has been kept open without any
ceiling and with the only formality for automatic
registration. Private investment both local and foreign or
under joint venture between local and foreign or with public
sector is allowed.
Regulated Industries
To protect environment, public health and national interest
the Government may frame rules from time to time for certain
industries and such industries can be established subject to
these rules. These industries will be treated as Regulated
Industries.
Foreign investment
Private investment from overseas sources is welcome in all
areas of the economy with the exception of only five
industrial sectors (reserved for public sector) as mentioned
earlier. Such investments can be made either independently or
through joint venture on mutually beneficial terms and
conditions. In other words, 100% foreign direct investment as
well as joint venture both with local private sponsor or with
public sector is allowed. Foreign investment, however, is
specially desired in the following categories:
◊ Export-oriented industries.
◊ Industries in the Export Processing Zones.
◊ High technology products that will be either
import-substitute or export-oriented.
◊ Undertaking in which more diversified use of
indigenous natural resources is possible.
◊ Basic industries based mainly on local raw materials.
◊ Investment towards improvement of quality and marketing of
goods manufactured and/or increase of production capacities of
existing industries and
◊ Labour intensive/technology intensive/capital intensive
industries.
Facilities and incentive S ensured to foreign investors
◊ Tax exemption on royalties, technical know-how,
technical assistance fees and the facilities for their
repatriation.
◊ Tax exemption on the interest on foreign loans.
◊ Tax exemption on capital gains from the transfer of
shares by the investing company.
◊ Avoidance of double taxation in case of foreign
investors on the basis of bilateral agreements.
◊ Exemption of income tax upto three years for the
foreign technicians employed under the approved industries.
◊ Remittance upto 50% of the salary of the foreigners
employed in Bangladesh and the facilities for repatriation of
their savings and retirement benefits and personal assets at
the time of their return.
◊ No restriction in issuing work permits to foreign
nationals in Bangladesh.
◊ Facilities for repatriation of invested capital,
profits and dividends.
◊ provision for transfer of shares held by foreign
share holders to local share holders/investors with the
clearance of the Exchange Control department of the Bangladesh
Bank.
◊ 'TAKA' the nation's currency is convertible for international
payments in the current account.
◊ Re-investment of reparable dividend is treated as new
investment;
◊ Working capital loan as well as term loan from local
commercial banks is allowed to the industries set up with
foreign investment.
◊ Foreign investors are entitled to get concessionary financial
benefits similar to the local investors and
◊ Any person from a country recognized by Bangladesh investing a
minimum of US $ 75,000 or equivalent amount (non-reparable)
may get permanent residentship and may get citizenship by
investing a minimum of US $ 5,00,000 or transferring US $
10,00,000 to any recognized financing institution which shall
be non-repatriable.
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