Military economic zone to be established at Mirsarai: Bida
Staff Reporter :
The government has decided to set up a Military Economic Zone at the National Special Economic Zone (NSEZ) in Mirsarai, Chattogram, replacing the previously planned Indian government-to-government (G2G) economic zone, said Bangladesh Investment Development Authority (Bida) and Bangladesh Economic Zones Authority (Beza) Executive Chairman Chowdhury Ashik Mahmud Bin Harun.
Speaking at a press briefing at the Foreign Service Academy in Dhaka on Monday, Ashik said the decision was taken at the fourth meeting of the Beza Governing Board, chaired by Chief Adviser Muhammad Yunus, who also serves as the board’s chairman. “The Indian Economic Zone under the G2G framework has been excluded, leaving the land unused. The government has now decided to develop a Military Economic Zone on approximately 850 acres of that land in Mirsarai,” he said.
Ashik noted that discussions on defence industrial production—including military equipment and related manufacturing—have been ongoing for some time. “There is currently strong global demand in this sector. From an economic perspective alone, defence manufacturing is an area where Bangladesh can begin to engage and gradually build capacity,” he said.
He also emphasised the growing importance of domestic defence manufacturing in light of the global situation. “In times of supply disruptions, a lack of ammunition can leave a country unable to defend itself. Recent conflicts have shown that shortages are often not in advanced technology, but in basic items such as bullets or tank components. We are exploring whether Bangladesh can contribute in these areas,” he added.
According to Ashik, the Armed Forces Division, Beza, the Chief Adviser’s Office, and the Ministry of Defence have been working jointly on the proposal for quite some time.
“At today’s governing board meeting, we formally proposed allocating around 850 acres in Mirsarai for this purpose. A policy decision has now been taken to include the area in Beza’s master plan as a defence industrial zone,” he said.
He further explained that the land is currently vacant. “It was earlier earmarked for the Indian economic zone, but since that project has been cancelled, the site will now be utilised for military industrial development and incorporated into Beza’s master plan.”
Another major decision taken at the meeting was the policy approval to introduce a Free Trade Zone (FTZ) in Bangladesh. At present, the country does not have a formal FTZ framework. An FTZ is a designated area where goods can be stored, processed, or re-exported without customs duties, effectively operating as a deemed foreign territory.
Ashik said the introduction of an FTZ would strengthen Bangladesh’s role in global supply chains. As an initial step, the government plans to establish an FTZ on 600 to 650 acres of land in Anowara, Chattogram. The proposal will now be placed before the cabinet for final approval.
Explaining its significance, he said long lead times currently limit the use of US-imported cotton in Bangladesh’s garment industry. “If cotton can be stored in a free trade zone within the country, it can be quickly supplied to local manufacturers or re-exported to other markets as required,” he said.
The governing board also approved a policy decision to revive the Kushtia Sugar Mill.
Ashik said many sugar mills have been running at a loss for years, prompting discussions on alternative uses. Given that the Kushtia Sugar Mill already has access to gas, electricity, and road connectivity, the government sees potential to convert the area into an economic zone with new industrial activities.
Policymakers believe the initiative could create employment opportunities in the southwestern region and ensure productive use of more than 200 acres of land.
Another key decision allows the establishment of economic zones within municipality areas.
Ashik explained that under the 2012 law, municipal areas were excluded from economic zones. However, with the number of municipalities now rising to 331, setting up zones only outside urban areas is increasing pressure on agricultural land.
To address this, the government has decided to permit economic zones within municipal boundaries, particularly to bring closed or abandoned industrial units back into productive use.
The Beza Governing Board has also approved a 1.25% cashback incentive on foreign direct investment (FDI) brought in through expatriate Bangladeshis.
Ashik said the measure aims to attract greater foreign investment by utilising the global networks of expatriate Bangladeshis. To support this initiative, the government has also decided to open Bida sub-offices abroad, including in China, South Korea, and Japan.