Unblocking payments, shareholder dividends ignites investment zeal

A faster coordinated action by the interim government resolving several longstanding issues of payment obligations and shareholder dividends with three prominent multinational corporations in order to ease foreign-investment facilities in Bangladesh regenerates investment vibes.

Industry stakeholders assert that such decisive actions will help eliminate uncertainties, enhance investor confidence, and reinforce Bangladesh's credibility as a competitive investment destination.

With support from the Bangladesh Investment Development Authority (BIDA), the Ministry of Finance and the Insurance Development and Regulatory Authority (IDRA), the government addressed long-pending concerns involving Youngone Corporation, Chevron Bangladesh, and MetLife.

These issues, exacerbated by previous foreign-exchange constraints, had remained unresolved for several years like a bone stuck in one's throat.

The Chief Adviser's Office played a direct role in facilitating these resolutions. Special Envoy Lutfey Siddiqi was instrumental in engaging with stakeholders, coordinating across ministries, and ensuring that the necessary policy and regulatory approvals were secured.

In one major development, the state-owned Petrobangla has settled outstanding dues to Chevron Bangladesh totalling over US$190 million. The US energy major confirmed that payment was settled last April.

Meanwhile, South Korea's Youngone Corporation executed a long-awaited deed of land transfer within the Korean Export Processing Zone (KEPZ) in Chattogram.

This milestone, which overcomes significant administrative delays, is expected to unlock up to US$500 million in potential investment in textiles, logistics, and technology infrastructures.

In another breakthrough, MetLife-the oldest foreign investor in Bangladesh-has secured regulatory approval for repatriating long-overdue shareholder dividends.

Having operated in Bangladesh since 1952, MetLife, renamed from American Life Insurance Company (ALICO), is the largest investor in government bonds, the top taxpayer in the life-insurance sector, and consistently the leading life insurer in terms of claims settlement.

Despite this stature in the corporate world, the stakeholders say, "prolonged bureaucratic hurdles around dividend repatriation had adversely impacted Bangladesh's reputation as a business-friendly environment".

These recent actions by the government align with the Foreign Private Investment (Promotion and Protection) Act 1980, which guarantees protection against expropriation and ensures the repatriation of capital and profits.

Officials emphasise that the Act remains a vital assurance mechanism for foreign investors.

According to stakeholders familiar with the developments, the resolution of legacy disputes and improvements in administrative efficiency signal a renewed policy focus on fostering an environment conducive to investment.

The business community-both current multinationals and prospective investors-are observing these changes with keen interest.

Ala Ahmad, Chief Executive Officer of MetLife Bangladesh, says, "We welcome the government's proactive efforts to streamline key processes for the investors. As a long-term partner to Bangladesh, MetLife sees this as a strong signal of the country's commitment to an investor-friendly environment."

The Bangladesh Investment Development Authority, the national investment-promotion agency, reported receiving investment proposals amounting to Tk 338.06 billion in the first quarter of 2025, including Tk 161.69 billion from foreign and joint-venture investors, according to official figures.

Ashik Chowdhury, Executive Chairman of BIDA and BEZA both, has said Bangladesh's ambition is clear regarding obtaining foreign investment. "We want to become a globally competitive investment destination and the only way we can achieve our ambition is by converting our existing investors into ambassadors."

He said the government was laying the groundwork for a future where international investors see not just potential, but performance.

Lutfey Siddiqi, Special Envoy on International Affairs to the Chief Adviser, has said attracting foreign investment is essential not just for growth but also for building the fiscal and productive backbone of the economy.

"This requires a consistent approach across departmental silos, in both our policies and actions, and nurturing an environment that facilitates high-quality investments," he added.

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