Free Trade Zone by this year, committee formed: Beza

Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority (Bida) and Bangladesh Economic Zones Authority (Beza), said that a national committee has been formed to establish a Free Trade Zone in Bangladesh. 

He expressed hope that, with effective coordination from this committee and proactive engagement from all relevant ministries, it will be possible to officially declare an FTZ within this year.

This information was disclosed in a press release issued by Beza yesterday.

A Free Trade Zone is a designated area where goods can be imported, produced, and re-exported without direct interference from customs authorities. FTZs are considered vital components of successful economic zones due to their ability to stimulate trade, investment, and industrialisation.

Ashik Mahmud stated that efforts have already begun to position Bangladesh as a global manufacturing hub, and FTZs are a crucial element of that vision.

Beza noted that FTZs have gained immense global popularity due to their ability to attract foreign investment, create employment, develop skills, diversify the economy and exports, and drive regional development. 

In this context, a national committee was formed on 21 April by Beza to assess the feasibility of establishing FTZs in Bangladesh, study relevant laws, incentives, and models from other countries, and determine a path forward.

The committee includes representatives from Beza, commerce ministry, Economic Relations Division, industries ministry, NBR, Chattogram Port Authority, and Bida.

This committee will review relevant laws and regulations of the land and draft or amend laws, policies, and guidelines necessary to facilitate establishing FTZs. The implementation of the FTZ will be a joint initiative of the commerce ministry's adviser Sk Bashir Uddin and the executive chairmen of Beza and Bida.

Notably, as part of the Bangladesh Investment Summit scheduled for 7–10 April 2025, a sensitisation seminar was organised with DP World, a company specialising in FTZ development. In that session, DP World presented its operational expertise. 

Following the seminar, the chairman of DP World met with Chief Adviser Dr Muhammad Yunus and expressed interest in investing in Bangladesh.

At a press briefing during the investment summit, Ashik Mahmud said that the chief adviser had instructed steps be taken toward establishing a Free Trade Zone near the Matarbari deep-sea port, ensuring that upstream countries like Nepal, Bhutan, and China can benefit from these facilities.

The first meeting of the newly formed national committee on FTZs is scheduled for 6 May. The committee's scope includes identifying potentially viable FTZ sites and conducting initial feasibility assessments, evaluating geographic, infrastructural, and logistical advantages of these locations. 

It will also identify relevant stakeholders, hold necessary discussions, and make recommendations to support the establishment of FTZs.

Singapore's emergence as a global trade hub is credited to its well-planned FTZs, such as Jurong Island, which boasts world-class infrastructure and connectivity with ports and airports. 

Another prominent example is Dubai's Jebel Ali Free Zone (JAFZA), one of the largest and most successful FTZs in the world. Established in 1985, it is managed by DP World, which has earned international acclaim for operating the Dubai port and FTZ.