The cabinet on Monday approved the industrial policy with a focus on small and medium industries.The approval was given at Monday’s weekly cabinet meeting with the prime minister, Khaleda Zia, in the chair.

The meeting also approved the coastal area policy dealing with development activities, including disaster management and protection of environment, in 140 upazilas of 19 districts covering all the coastal regions, said sources present at the meeting.

It also approved two separate draft agreements, SAARC Multilateral Treaty on Avoidance of Double Taxation and SAARC Agreement on Mutual Administrative Assistance in Customs Matters, to be signed in the forthcoming 13th summit of the South Asian Association for Regional Cooperation and a draft of bilateral trade agreement to be signed by Bangladesh and Iran.

The sources said the industrial policy proposes to relax guidelines for foreign direct investments in export sectors, especially garments outside the export processing zones. It also seeks redefinition of the small industries in terms of asset valuation.

Major features of the new policy include setting up special economic zones or industrial parks, more incentives for women entrepreneurs and supports for food processing industries including food fortification — food enrichment with vitamins and minerals.

The policy proposes the establishment of a specialised women’s bank to facilitate women entrepreneurs.

The bank may be operated in the form of Rajshahi Krishi Unnayan Bank and will facilitate women entrepreneurs, especially in providing loans, the sources said.

The policy will increase the number of thrust sectors to 33 from the existing 16. Cold-rolled coil, furniture, toys and commercial plantations are among the new inclusions. The policy for the first time will bring the services sectors within a framework definition and identifies some 19 areas as services.

The policy seeks to keep private or foreign investments away from four sectors — forestry, defence, atomic energy and security printing.

The meeting, in the Prime Minister’s office, was attended by the cabinet ministers and state ministers in charge of ministries. The principal secretary of the Prime Minister’s Office, cabinet secretary and secretaries of the ministries concerned were also present.

After more than two years of drafting and reviewing, the draft industrial policy was placed before the cabinet for approval on July 26, 2004, when the cabinet sent back the draft to the industries ministry and asked it for placing the draft again before the cabinet after further scrutiny, as during more than an hour discussion, the meeting failed to reach a consensus.