The Chairman of the Investment Corporation of Bangladesh (ICB) has urged multinational and foreign companies operating in the country to share a portion of their profits with the local public. His comments, delivered during a recent capital market event, reflect growing concern over the imbalance between foreign earnings and domestic benefit. Several multinational corporations listed on the Dhaka Stock Exchange (DSE) have posted strong profits and generous dividends in recent years. However, a significant portion of those earnings—often in the form of dividends—are being repatriated to their home countries. In some cases, dividend distributions have exceeded net annual profits, being paid out of retained earnings. This pattern, the ICB chief warned, may harm long-term domestic financial health if not addressed. He emphasized that while foreign direct investment (FDI) is critical for Bangladesh’s economic development, it must also ensure tangible returns for local stakeholders. The call is part of a broader push to create a more inclusive financial ecosystem where both foreign investors and the Bangladeshi public benefit. To promote equitable distribution, the ICB chairman proposed that foreign firms: Increase dividend payouts to local shareholders; Reinvest a portion of their profits into the Bangladeshi economy; Support Corporate Social Responsibility (CSR) programs that contribute to sustainable development. The proposal aligns with recent discussions on reforming dividend and repatriation policies for foreign firms. While Bangladesh offers attractive returns to foreign investors, limited local participation in those profits remains a persistent issue. Policymakers and market analysts suggest that inclusive profit-sharing can enhance public trust, improve corporate reputation, and support long-term market stability. Critics argue that without regulatory mandates, such expectations may not lead to meaningful changes. To that end, the ICB also recommended reviewing fiscal incentives, tax structures, and listing conditions for foreign companies. For example, firms enjoying tax benefits or access to public markets could be encouraged—or required—to meet profit retention and reinvestment benchmarks. The Bangladesh Securities and Exchange Commission (BSEC) has expressed interest in exploring such policy tools, aiming to deepen capital market participation and align foreign corporate activities with national development priorities. In a time when the Bangladeshi economy is navigating global volatility and seeking greater economic resilience, the ICB chief’s call resonates with growing public demand for fairer corporate practices. If implemented effectively, profit-sharing from foreign firms could strengthen the country’s capital markets and ensure a broader base of beneficiaries from FDI inflows.
