The government is preparing to launch a new scheme offering cash incentives to Bangladeshis who facilitate fresh foreign direct investment (FDI) through equity inflows, in a bid to widen the country’s investment pipeline.

The draft Foreign Investment (FDI) Incentive Scheme proposes rewards of up to 1.5% of new equity FDI, with eligibility starting at a minimum of $1m. The Bangladesh Investment Development Authority (BIDA), which is finalising the policy, confirmed that both resident and non-resident Bangladeshis will qualify if they act as intermediaries to bring in capital.

An initial fund of $7.5m will be set aside, based on 1.25% of the $600m in equity FDI received in 2023–24. The Finance Ministry has suggested a flat 1% rate, but Bida officials say the final version may go higher.

Under the policy, only individuals will be eligible, and they must pre-register on the Bida portal. Applicants must have no direct links to the investing company, a requirement to be enforced through background checks. Approved claims will be paid in local currency via Bangladesh Bank, with expatriates allowed to transfer funds abroad.

Economists and business leaders welcomed the move but urged caution. Former World Bank economist Zahid Hussain warned that incentives should be based on a realistic assessment of returns. Industry representatives stressed that a better business climate, regulatory streamlining, and banking reforms remain crucial to attracting sustainable FDI.

Bida expects to finalise the scheme later this year following consultations with the central bank, the finance ministry, and other agencies.