They will be allowed to make equity investment abroad up to 20 per cent of their average annual income from exports during the last five years or 25 per cent of net asset mentioned in the last audited financial report.

Another condition is that an entrepreneur who wants to make overseas investment has to be an exporter with adequate balance in his company’s Exporters' Retention Quota (ERQ) account. The entrepreneur needs to be financially sound, according to audited accounts of his or her company in the past five years, in line with the directives in the Financial Reporting Act 2015.

No loan defaulters should be allowed to make investment abroad. The credit-rating grade of the entrepreneur has to be at least 2.0, according to the mapping set in the Guidelines on Risk-Based Capital Adequacy, prepared by the central bank. The equity-investment proposal has to be proved economically viable in a feasibility study.

The financial institutions division of the ministry of finance published a gazette notification on the 'Capital Account Transactions (Overseas Equity Investment) Guidelines 2022', Bangla media reported.

The government has permitted eight companies to invest abroad since 2013. The firms are DBL Group, Mobil Jamuna, ACI Healthcare, Square Pharma, Incepta Pharmaceuticals, BSRM Steel, Spectrum Engineering and Akij Group.

The Ha-Meem Group, the Nitol-Niloy Group, the Summit Group, the Meghna Group and the Pran-RFL Group have also expressed interest in making equity investment abroad.

A 15-member high-powered committee, comprising representatives from various ministries, divisions, and departments, led by the central bank governor, will scrutinise overseas equity-investment proposals and have decision by consulting the government, says the investment guidebook.

Overseas equity investment will get priority in countries where there are no restrictions on Bangladeshi nationals to work and repatriate their income to Bangladesh.

The countries with which Bangladesh has dual taxation-avoidance agreement, and where investment from Bangladesh and the repatriation of capital including capital gains, dividends, and other admissible earnings including technical know-how fees, royalty, consultancy fees, commission or other entitlements are allowed will get priority for investment.

Also, overseas equity investment will get priority in countries with which Bangladesh has agreements on bilateral equity investment, development, expansion and conservation.

However, equity investment by Bangladeshi entrepreneurs would not be allowed in countries where sanctions have been imposed by the United Nations, the European Union, Office of Foreign Asset Control (OFAC), and the countries which are not compatible with Financial Action Task Force (FATF) requirements.

Entrepreneurs also would not be allowed to make equity investment in countries with which Bangladesh has no diplomatic relations.

Fibre2Fashion News Desk (DS)