Plastic factories still choke Old Dhaka as Munshiganj Industrial Park misses yet another deadline

Highlights:

• Relocation of Old Dhaka plastic factories stalled for a decade
• Land acquisition resistance delayed project from 2015 to 2023
• Project deadline extended five times, now set for 2027
• Only 14–15% progress completed despite recent land possession
• Project cost surged from Tk133 crore to Tk509 crore
• Delays hurting exports, safety, and plastic industry growth

Despite long-standing health and environmental concerns linked to plastic factories in Old Dhaka, the government's effort to shift them to Munshiganj has made little progress over the past ten years. Although a modern plastic industrial city was approved in 2015, persistent land acquisition hurdles stalled the project at its outset.

The project was originally approved on 1 December 2015, with a target completion date of June 2018. Following multiple extensions, the deadline was last set for December 2025, but the project has just started and the timeline has now been pushed back again to December 2027, marking the project's fifth extension.

According to the Bangladesh Small and Cottage Industries Corporation (BSCIC) sources, 47% of earth filling work has been completed, while overall project progress stands at only 14-15%. Once land filling is finished, construction will begin in phases, BSCIC Chairman Saiful Islam said.

Infograph: TBS

He said delays occurred mainly because the agency failed to secure the initially allocated land at the start of the project. Strong resistance from local residents prevented land acquisition for nearly seven years, from 2015 to 2022, and five project directors were unable to resolve the issue. Eventually, in 2023, the government decided to abandon the original site beside the expressway and relocate the project near the Chemical Industrial City.

According to BSCIC, the authority finally took possession of the new land on 15 July 2025. Boundary demarcation and pre-leveling work were completed despite adverse monsoon conditions, and earth-filling activities began soon after.

The plastic industrial city's initial estimated cost of Tk133 crore has risen to Tk509 crore, largely due to an expansion of the project area from 50 acres to 95 acres, inflation, and higher construction expenses. Project Director Md Anis Uddin explained that the expanded area doubled the length of roads, drains, and boundary walls, significantly increasing costs. 

He also noted that earth-filling costs rose from Tk200 per cubic metre in 2012 to Tk510 in 2023. Despite these challenges, he expressed hope that the project would be completed by December 2027, though low river water levels during the dry season could hamper sand transportation and impede progress. 

Industry leaders warn that prolonged delays are taking a toll on the sector. According to the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), plastic goods worth around Tk45,000 crore are produced and sold domestically, contributing about Tk3,500 crore annually in internal revenue. In the 2024–25 fiscal year, Bangladesh exported plastic products to 126 countries, earning approximately $1.2 billion – a 20% year-on-year increase. The sector supports around 1.2 million people directly and indirectly.

BPGMEA President Shamim Ahmed said plastic factories operating within Dhaka remain in hazardous conditions, frequently facing fire risks that endanger workers and nearby residents. He expressed frustration that the Munshiganj project has remained unfinished for nearly 10 years, saying the delay is hurting exports, damaging Bangladesh's image, and creating financial and psychological stress for entrepreneurs.

Regarding plot allocations, the BSCIC chairman said plots will only be handed over once the project is fully completed. He said the authority recognises the plastic industry's vast potential and is keen to complete the project swiftly to help the sector grow and attract new investment.