The Bangladesh Economic Zones Authority has taken a policy decision to establish Bangladesh’s first Free Trade Zone (FTZ) to boost global trade connectivity and cut lead times for export-oriented industries.
The decision came at a meeting of the BEZA governing board chaired by Chief Adviser Muhammad Yunus at the Chief Adviser’s Office in Tejgaon.
Briefing reporters after the meeting, BEZA Executive Chairman Chowdhury Ashik Mahmud Bin Harun said the proposed FTZ will be set up at Anowara in Chattogram, covering about 600 to 650 acres of land.
He said Bangladesh currently does not have any free trade zone and explained that the proposed FTZ will operate as an offshore territory from a customs perspective.
Under the arrangement, goods can be stored, re-exported or manufactured without customs obligations, allowing manufacturers to access raw materials immediately and significantly reducing time to market, he added.
Citing the example of American cotton, Ashik Chowdhury said materials could be stored in the FTZ and supplied instantly to local factories when needed, or re-exported to other markets such as Vietnam depending on demand.
He said the initiative draws inspiration from global models such as the Jebel Ali Free Zone in Dubai, which alone handles trade worth about $190 billion and contributes around 36 per cent to Dubai’s gross domestic product.
Ashik Chowdhury said the proposal will now be sent to the cabinet for final approval, noting that amendments to existing laws and policies will be required, which the next government is expected to undertake.
He expressed optimism that an initial milestone for establishing the FTZ can be achieved by the end of the year.
At the same meeting, the BEZA governing board also approved a policy decision to establish a dedicated Defence Industrial Park.
Ashik Chowdhury said the park will be located at Mirsarai, using around 80 acres of land previously earmarked for the now-cancelled Indian Economic Zone.
He said the defence park will be incorporated into the BEZA master plan and aims to position Bangladesh as a participant in the growing global defence industry while ensuring domestic supply-chain security for essential military hardware.
Referring to recent global conflicts, he said shortages often arise in basic supplies rather than advanced equipment, underlining the need for local manufacturing capacity for critical items.
He said the initiative is the result of long-term coordination among the Armed Forces Division, BEZA, the Chief Adviser’s Office and the Ministry of Defence, and that work to include the park in the national master plan will begin immediately.
Ashik Chowdhury also said the board has decided to repurpose the Kushtia Sugar Mill into a full-fledged industrial park.
Acknowledging that many sugar mills are struggling to operate efficiently, he said the Kushtia facility will be transformed into an economic zone under BEZA’s supervision through a collaborative process.
