The objective of this project is to accelerate economic development of Bangladesh by promoting private sector investment in Bangladesh and foreign direct investment (FDI) through the implementation of development projects such as development of Economic Zones (EZs) and/or other industrial parks/estates, etc. and the smooth flow of financing for those enterprises doing business in such EZs with enhanced financial intermediary functions.

Under this project, a Two-Step Loan (TSL) Component, implemented by Bangladesh Bank provides reasonable financial facilities for foreign-owned companies, thereby contributing to the promotion of FDIs in the country. FDI would play a very important role in diversifying the industrial structure and sustaining economic growth of Bangladesh.