Finance Minister Amir Khosru Mahmud Chowdhury on Wednesday said the present government has identified increasing foreign investment and accelerating economic growth as one of the key priorities of its medium-term economic strategy.

He said the government is implementing the 3-R Strategy – Recovery and Stabilization, Restoration and Reconstruction for Acceleration – to achieve this objective.

Under the strategy, the government has set targets to raise the country’s real GDP growth to 8.5%, increase foreign direct investment (FDI) to 2.7% of GDP, and boost total investment to 40% of GDP by the fiscal year 2030-31 (FY31).

The finance minister disclosed the information while responding to a starred question  tabled by Treasury Bench member Rafiqul Islam Hilali from the Netrokona-3 constituency in Parliament.

He said the government has undertaken  legal and institutional reform initiatives after identifying existing barriers to business in order to create a more investment-friendly environment.

 These measures are aimed at reducing business uncertainty and costs, improving the ease of doing business, and ensuring investment security, he added. 

The minister said the government is also emphasizing deregulation to establish an effective, transparent and cost-efficient business environment that encourages both domestic and foreign investment.

To attract investment, the government has already implemented several direct measures, including the launch of the single digital platform BanglaBiz, publication of an FDI heat map covering 19 potential sectors, establishment of new Export Processing Zones (EPZs) in Patuakhali and Jashore, and initiatives to set up new economic zones in Kurigram, Nilphamari, Chandpur and Kushtia.

These projects are expected to create employment opportunities for around 250,000 people, he added.

The finance minister further said the government has undertaken initiatives to sign various agreements, including Free Trade Agreements (FTAs), Preferential Trade Agreements (PTAs) and Economic Partnership Agreements (EPAs) with potential partner countries to expand trade and investment cooperation.

Highlighting efforts to diversify exports and reduce dependence on a single product, he said facilities have been provided for duty-free import of raw materials and inputs against bank guarantees for industries such as food processing, light engineering, furniture, electronics, steel products, plastics and leather goods.

In addition, the government has taken steps to extend customs bonded and similar facilities to promising export-oriented sectors.

To strengthen the financial infrastructure supporting foreign investment, the minister said the government is giving priority to developing the capital market, corporate bond market, mutual funds, green bonds, Sukuk and other long-term financing instruments as part of efforts to build an investment-driven economy.

Measures have also been taken to facilitate listing of eligible companies, make disclosure requirements more realistic, and strengthen investor protection, he added.

The finance minister expressed hope that these coordinated initiatives would further strengthen the country’s investment climate and play a significant role in achieving sustainable economic growth.

VAT collection reaches Tk 141,586cr in previous fiscal year

Khosru informed the Parliament that the government collected Tk 141,586 crore in revenue from Value Added Tax (VAT) during the last fiscal year 2024-25.

The minister disclosed the information while replying to a written tabled question by ruling party reserved-seat lawmaker Selina Sultana in Parliament.

He said the government has plans to bring several business sectors under the VAT net in the next fiscal year 2026–27 to enhance revenue collection and expand the tax base.

The sectors proposed to be brought under VAT coverage include grocery stores, ready-made garment and clothing retailers, confectionery shops, cosmetics stores, sellers of plastic and ceramic household products, footwear outlets, hardware retailers, decorators, vendors of mobile phones, air conditioners, refrigerators, ovens and other electronic products, paint and hardware businesses, sanitary and fittings and tiles shops, corrugated sheet retailers, rod and cement businesses, furniture stores, beauty parlours, sweetmeat shops and restaurants.