Foreign investment, with particular preference to foreign direct investment will be encouraged in all industrial activities in Bangladesh including service industries and toll manufacturing, excluding those in the list of "Reserved Industries" and ready made garments, banks, insurance companies and other financial institutions. Such investments may be undertaken either independently or through joint ventures, either with the local private or public sector. The capital market will also remain open for portfolio investment.

The policy framework for foreign investment in Bangladesh is based on Foreign Private Investment (Promotion and Protection) Act, 1980 which provides for; -non-discriminatory treatment between foreign and local investment -protection of foreign investment from expropriation by the state and -ensured repatriation of proceeds from sale of shares and profit.

For foreign investment, there will be no limitation pertaining to equity participation, i.e. 100 percent foreign equity will be allowed. Fully foreign owned firms or joint ventures will in no way be obliged to sell their shares through public issues, irrespective of the amount of their paid-up capital. However, foreign investors or companies -with foreign investment will be eligible to buy shares through the stock exchange. Foreign investors or companies may obtain full working capital loans from local banks. The terms of such loans will be determined on the basis of bank client relationship.

Foreign entrepreneurs will enjoy the same facilities as the domestic entrepreneurs in respect of tax holiday, payment of royalty, technical know- how fees etc. A foreign technician employed in foreign companies will not be subjected to personal income tax up to 3 years, and beyond that period his/her personal income tax payment will be governed by the existence or non-existence of agreement on avoidance of double taxation with country of citizenship.

Full repatriation of capital invested from foreign sources will be allowed. Similarly, profits and dividend accruing to foreign investment may be transferred in full. If foreign investors reinvest their repatriable dividends and or retained earnings, those will be treated as new investment. Foreigners employed in Bangladesh are entitled to remit up to 50 percent of their salary and will enjoy facilities for full repatriation of their savings and retirement benefits.

The process of issuing work permit to foreign experts on the recommendation of investing foreign companies or joint ventures will operate without any hindrance or restriction. "Multiple entry visa" will be issued to prospective foreign investors for 3 years. In case of experts, "multiple entry visa" will be issued for the whole tenure of their assignments.

Foreign investment in "Thrust Sectors", particularly in small industrial units, will be given priority in allocation of plots in BSCIC industrial estates.

Investment of non-resident Bangladeshis will be treated at par with foreign direct investment.

Measures will be taken to protect the intellectual property rights of new products and processes.

Investment guarantee and dispute settlement will be guided by international arrangements and provisions.