Bangladesh's interim government has announced plans to establish the country's first free trade zone and a dedicated defence industrial park in Chattogram, in a move aimed at accelerating exports, strengthening supply chains and attracting foreign investment.
The decisions were approved on Monday at a meeting of the governing board of the Bangladesh Economic Zones Authority (BEZA), chaired by the chief adviser, Muhammad Yunus, at the Chief Adviser's Office in Dhaka.
Under the proposal, a free trade zone (FTZ) covering around 600 to 650 acres will be developed in Anwara, on the outskirts of Chattogram. The zone would operate as an offshore customs territory, allowing goods to be imported, stored, processed or re-exported without customs duties.
The BEZA executive chairman, Chowdhury Ashik Mahmud Bin Harun, said the FTZ would significantly reduce time-to-market for export-oriented industries, particularly in sectors such as textiles. Raw materials such as cotton could be stockpiled in the zone and accessed immediately by manufacturers, or redirected to other markets depending on demand.
He said the initiative had drawn inspiration from international models such as Dubai's Jebel Ali Free Zone, which handles trade volumes exceeding Bangladesh's total annual trade and accounts for a substantial share of Dubai's GDP.
The proposal will now be sent to the cabinet for final approval. Its implementation will require amendments to existing laws and regulations, a process expected to be taken forward by the next elected government. Officials said they were hopeful of achieving initial milestones by the end of the year.
The BEZA board also approved the establishment of Bangladesh's first defence industrial park, to be located in Mirsarai on about 80 acres of land. The site had previously been earmarked for an Indian economic zone, which was later cancelled.
Ashik Mahmud said the defence park would allow Bangladesh to enter the growing global defence manufacturing market while also securing domestic supply chains for essential military equipment. Recent global conflicts, he noted, had highlighted vulnerabilities in access to basic supplies such as ammunition and vehicle components.
The project is the result of coordination between BEZA, the Armed Forces Division, the Ministry of Defence and the Chief Adviser's Office, and will be incorporated into the national economic zone masterplan with immediate effect.
In a separate decision, the board approved a plan to repurpose the struggling Kushtia Sugar Mill into a full-scale industrial park, reflecting a broader effort to revive underperforming state-owned industrial assets.
To boost foreign direct investment, the Bangladesh Investment Development Authority (BIDA) has also approved a policy offering cash incentives to non-resident Bangladeshis (NRBs) who help bring equity investment into the country. Under the scheme, NRBs will receive a 1.25 per cent incentive on the value of the equity they facilitate.
Ashik Mahmud described the measure as a recognition of the role of Bangladeshi diaspora, likening it to existing cash incentives for remittances but focused instead on productive investment. An NRB who facilitates $100m in equity investment, he said, would receive $1.25m from the government.
The meeting also saw the unveiling of a five-year master plan for the Moheshkhali region, presented by Ashik Mahmud in his capacity as executive chairman of the Moheshkhali Integrated Development Authority (MIDA). The roadmap, covering 2025 to 2030, aims to transform Moheshkhali into a major energy and logistics hub.
Key priorities include operationalising the deep sea port, rapidly developing LNG and LPG terminals to ease energy shortages, and establishing a dedicated fish processing hub to diversify local economic activity. The board also approved an organisational structure of 137 staff to oversee the authority's expanding portfolio of projects.
Officials said the combined measures reflected a push to reposition Bangladesh's industrial and trade infrastructure amid global economic uncertainty and rising competition for investment.
mirmostafiz@yahoo.com
