Bangladesh Plans 30-Day Deadline for Foreign Profit Repatriation in Reform Push

🤝 The government has planned to introduce a 30-day deadline for processing applications to repatriate profits from lawful foreign investments, alongside a series of financial reforms aimed at reducing business costs and strengthening investor confidence. The proposed measures, outlined in a budget document, seek to address administrative bottlenecks that have long frustrated foreign investors while making banking services, foreign trade transactions and access to financing more efficient across the board.

📚 The document says coordination among banking verification, tax-related documents and approval processes will be strengthened to ensure timely processing of profit repatriation applications. For multinational executives and institutional investors, the move responds directly to one of the most common complaints about doing business in Bangladesh — that legally earned profits can sit stuck in bureaucratic limbo for months after all taxes are paid.

💰 Simpler rules for NITA investors

✅ The government has also simplified the repatriation and reinvestment of proceeds from shares or securities purchased through a Non-Resident Investors' Taka Account (NITA). The requirement for an auditor's certificate has been withdrawn, allowing such proceeds to be credited directly to the relevant NITA. This will enable repatriation and reinvestment within one working day and reduce compliance costs — a meaningful upgrade for foreign portfolio investors who value speed and predictability when recycling capital.

🏢 Share transfers in unlisted companies eased

📄 Share transfers and capital repatriation involving unlisted companies will also become easier. No valuation report will be required for transactions worth up to Tk 10 million (Tk 1 crore), while repatriation of transaction proceeds of up to Tk 1.0 billion (Tk 100 crore) will be allowed without prior approval from Bangladesh Bank. For larger transactions, licensed valuation firms will be introduced to ensure more neutral and acceptable share valuations, replacing the ad-hoc appraisal practices that often triggered disputes between investors and regulators.

🔧 The government is also considering a certification board comprising representatives from Bangladesh Bank, the Bangladesh Investment Development Authority (BIDA), the Bangladesh Securities and Exchange Commission (BSEC), the National Board of Revenue and the private sector. Acceptance of reports from approved valuation firms could reduce repeated verification and delays in capital repatriation, giving foreign shareholders a single, credible reference point for pricing unlisted equity.

🚤 Cheaper and faster foreign trade

💶 To cut the time and cost of foreign trade, the government will consider gradually relaxing the mandatory use of letters of credit for reliable importers and low-risk goods. The use of Documents against Payment (D/P) and Telegraphic Transfer (TT) will be expanded where appropriate — a change that lowers transaction costs for established importers without opening the door for risky, undocumented trade.

💪 Companies registered in Bangladesh will also be able to obtain loans in taka against foreign bank guarantees or Standby Letters of Credit (SBLC), regardless of their ownership or control structure, subject to applicable rules. The requirement for separate prior approval for each loan from an Offshore Banking Unit (OBU) will be reviewed, though existing provisions on Credit Information Bureau reporting, single-borrower limits, loan classification and provisioning will remain in force — a signal that facilitation is being paired with continued prudential oversight.

🏦 Banking and digital finance measures

• 🗄 The approval process for renting, leasing, renewing and relocating bank branches and business centres has been simplified — within prescribed region-wise rent ceilings, banks may take such decisions with approval from their own boards of directors.
• 💿 The process of obtaining a Sukuk Investor ID (SIID) for investment in government Sukuk has been simplified by determining the required application forms, documents and fee structures.
• ⚡ Real Time Gross Settlement (RTGS) will be made more effective, with faster payment and settlement arrangements among banks, mobile financial service providers and other payment platforms.
• 💻 Digital small loans, or e-Loans, have been permitted — loans of up to Tk 500,000 (Tk 5 lakh) may be provided for 12 months through a fully digital process to improve access to credit and reduce customers' time and operational costs.
• ⚖ Pre-suit mediation has been encouraged for recovering defaulted loans, to reduce court-related delays and expenses and improve recovery efficiency.

🚰 Greener vehicles, bigger retail credit

🚍 Lending rules have also been relaxed for environment-friendly vehicles and personal financing. The maximum auto loan for electric and hybrid vehicles has been increased from Tk 6.0 million (Tk 60 lakh) to Tk 8.0 million (Tk 80 lakh), while the debt-equity ratio has been raised from 60:40 to 80:20 — a nudge that aligns household credit with the country's climate commitments.

👕 On the consumer side, the ceiling for unsecured personal loans has been doubled from Tk 500,000 (Tk 5 lakh) to Tk 1.0 million (Tk 10 lakh), while secured personal loans may now be provided up to Tk 4.0 million (Tk 40 lakh). Credit card limits have also been increased: the maximum limit for unsecured credit cards has risen from Tk 1.0 million (Tk 10 lakh) to Tk 2.0 million (Tk 20 lakh), while the limit against securities has increased from Tk 2.0 million (Tk 20 lakh) to Tk 4.0 million (Tk 40 lakh). Banks may introduce new credit cards with approval from their boards of directors without obtaining prior approval from Bangladesh Bank.

🌏 Why this matters for Bangladesh's investment outlook

📈 The reform package arrives at a consequential moment. As Bangladesh approaches its graduation from Least Developed Country status, the country must compete for foreign direct investment on the strength of its business environment rather than aid-driven goodwill. Easy, predictable repatriation of profits is one of the first boxes global investors tick when comparing Bangladesh with Vietnam, India or Indonesia, and a 30-day processing commitment — if enforced — would remove a persistent friction point that has featured in investor surveys for years.

💡 The measures also serve the broader documentation of the economy. Digital e-Loans, expanded RTGS settlement and board-level freedom for branch decisions all push financial activity into faster, more traceable channels, which in turn improves credit discipline and tax capture. For exporters and importers, the loosened LC requirements promise working-capital relief, since letters of credit tie up limits and add bank charges that documented, trusted importers have long argued they should not have to bear.

🔭 Execution will be the real test. The budget document's language is largely enabling — measures will be considered, requirements have been withdrawn, ceilings have been raised — and the investment community will watch whether the 30-day repatriation deadline, one-working-day NITA credit and Tk 100 crore no-approval threshold translate into consistent practice at Bangladesh Bank desks. If they do, the package could mark a tangible step toward the investor-friendly, lower-cost regulatory environment that both BIDA and foreign chambers have been advocating on behalf of Bangladesh's next phase of export-led growth.