Budget gives private investment a push: Masrur Reaz

M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh, said the proposed budget makes a strong push for private investment through a combination of tax incentives, regulatory reforms and financing support aimed at boosting business activity and employment.

He said the government's decision to keep corporate tax rates unchanged, alongside measures to lower the cost of foreign borrowing and machinery leasing, would provide greater certainty for investors.

Planned reforms, including a digital one-stop investment platform, streamlined licensing procedures, and the expansion of economic and export processing zones, could also help improve the business environment.

The budget's focus on trade and logistics reforms, such as free trade zones, greater foreign participation in off-docks and inland container depots, and new frameworks for private investment in cargo and port operations, is expected to strengthen export competitiveness and attract fresh investment into supply chain infrastructure.

Reaz said the proposed incentives for renewable energy, electric vehicles, semiconductors, electronics and other technology-based industries signal a broader effort to diversify the economy beyond traditional sectors. Tax benefits for startups, freelancers and small businesses, along with dedicated financing support for SMEs, could also encourage entrepreneurship and job creation.

However, he cautioned that the budget's success would depend largely on implementation. Longstanding challenges in the financial sector, limited access to long-term financing, infrastructure bottlenecks, and weaknesses in public institutions continue to weigh on private investment.

While the policy direction is clearly pro-investment, translating the announced measures into tangible improvements in the business climate will be the key test, he said.