Streamlining of Investment Promotion Agencies for attracting FDI in Bangladesh

This study examines the structural and functional inefficiencies of Bangladesh’s Investment Promotion Agencies (IPAs) and proposes strategic reforms to enhance their role in attracting Foreign Direct Investment (FDI). Despite Bangladesh’s competitive advantages—such as a large domestic market, strategic location, and low production costs—FDI inflows remain below potential due to fragmented institutional mandates, procedural delays, and weak coordination across agencies. Using a mixed-methods design combining policy review, stakeholder analysis, and quantitative and qualitative evidence, the study identifies key constraints limiting the effectiveness, transparency, and digital readiness of existing IPAs. Findings underscore the need for a unified and streamlined institutional architecture to improve service delivery, accountability, and policy alignment. The paper recommends legal and regulatory harmonization, consolidation of current agencies into a single autonomous authority, and targeted capacity strengthening to reduce duplication and enhance investor facilitation. These reforms are expected to improve Bangladesh’s investment climate and support long-term industrial transformation and sustainable economic growth. The study adds to investment governance discourse by illustrating how institutional modernization can position Bangladesh as a more competitive FDI destination.