Foreign direct investment is likely to get focus in the upcoming fiscal year (FY) as the new budget proposed to enhance allocation for the development projects under the Prime Minister's Office (PMO).
According to the budget proposals, Tk 32.17 billion has been allocated for the projects in FY 2020-21, up from Tk 29.64 billion in the current fiscal year.
However, the allocation for FY '20 has been revised upward by Tk 1.51 billion. According to the revised budget, Tk 31.15 billion was allocated for the projects under the annual development programme.
A number of investment authorities, including the Bangladesh Export Processing Zones Authority, the Bangladesh Investment Development Authority, the Public Private Partnership Authority (PPPA), are working under the PMO to attract foreign direct investment.
In his budget speech, Finance Minister AHM Mustafa Kamal said an allocation of Tk 366.10 billion was proposed for the public-private partnerships (PPP), financial assistance to different industries, subsidies and equity investments in nationalised corporations, banks and financial institutions.
The proposed allocation is 6.45 per cent of the total allocation, he said.
The minister also said establishment of 100 Economic Zones (EZs) is to create about 10 million new jobs. Development work on 93 EZs has already been approved. Among them, permission was given to 11 EZs in the private sector, of which eight have already commenced operations.
Development work involving Tk 17 billion is underway in government Economic Zones under which investment proposals worth about US$ 20.25 billion, including US$ 17.00 billion in government EZs and US$ 3.25 billion in private EZs, have so far been received, he added.
To increase the number of PPP initiatives in improving the country's infrastructure, step has been taken to amend the Bangladesh Public-Private Partnership Act, 2015, said the minister.
To streamline production and business in the export-oriented industrial sector, the government will start a programme to fully automate the bonded warehousing management, he added.
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