Bangladesh plans first free trade zone in Chattogram to boost exports and investment
Bangladesh’s interim government has announced plans to establish the country’s first free trade zone (FTZ) in Chattogram, as part of a broader strategy to accelerate exports, strengthen supply chains and attract foreign investment.
The proposal was approved on Monday at a meeting of the governing board of the Bangladesh Economic Zones Authority (BEZA), chaired by Chief Adviser Muhammad Yunus, and held at the Chief Adviser’s Office in Dhaka.
Under the plan, a free trade zone spanning approximately 600–650 acres will be developed in Anwara, on the outskirts of Chattogram. The zone will operate as an offshore customs territory, allowing goods to be imported, stored, processed and re-exported without the imposition of customs duties. The structure is intended to provide exporters with quicker access to raw materials while reducing logistics costs and turnaround times.
Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of BEZA, said the proposed zone would substantially reduce time-to-market for export-oriented industries, particularly textiles. He noted that raw materials such as cotton could be stockpiled within the zone and accessed immediately by manufacturers, or diverted to alternative markets in response to changing demand.
Officials said the initiative draws inspiration from global benchmarks such as Dubai’s Jebel Ali Free Zone, which handles trade volumes exceeding Bangladesh’s total annual trade and contributes significantly to Dubai’s gross domestic product.
The proposal will now be submitted to the cabinet for final approval. Its implementation will require amendments to existing laws and regulations, a process that is expected to be taken forward by the next elected government. Officials indicated that, subject to approvals, initial milestones for the project could be achieved by the end of the year.
In parallel, the authorities have identified several complementary priorities, including operationalising the deep-sea port, accelerating the development of LNG and LPG terminals to address energy shortages, and establishing a dedicated fish processing hub to diversify economic activity in the region.
The BEZA board also approved an organisational structure comprising 137 staff members to manage the authority’s expanding portfolio of projects.
Officials said the proposed free trade zone reflects the government’s broader push to modernise Bangladesh’s trade and industrial infrastructure and to enhance the country’s competitiveness amid rising global uncertainty and intensifying competition for foreign investment.
