Bangladesh to Establish First Defence Manufacturing Zone in Mirsarai

The Bangladesh Economic Zones Authority (BEZA) has announced plans to create the country's first Defence Industrial Zone in Mirsarai, Chattogram. The zone, aimed at producing military equipment for domestic consumption and export, was approved in a meeting of the Investment Promotion Agency (IPA), chaired by Chief Adviser Prof Muhammad Yunus.

BEZA Executive Chairman Chowdhury Ashik Mahmud Bin Harun, in a press briefing at the Foreign Service Academy, stated that the zone will be developed on approximately 850 acres of land. This decision was made after consultations with the Armed Forces Division and with the government's approval. The project is part of a broader strategy to bolster the country’s defence industry and reduce reliance on foreign imports for essential military items.

Ashik explained that the zone will initially focus on producing basic military equipment such as bullets and tank components, addressing shortages that have often arisen during conflicts. The establishment of a local manufacturing base will not only cater to Bangladesh's needs but also create future export opportunities. “Having a dedicated zone for production will help us meet local demand, and once operational, it will also support exports,” Ashik said.

The land chosen for this project had previously been designated for an Indian Economic Zone, but that plan was cancelled. Several countries have expressed interest in investing in the Defence Industrial Zone, though their identities remain confidential due to security concerns.

The executive chairman also noted that Bangladesh’s current arms manufacturing facilities are not enough to meet the growing domestic demand. "This zone will allow us to gradually meet the local demand and eventually scale up to exports. The initial development will begin on 50 acres, with plans for expansion," he added.

In addition to the Defence Industrial Zone, BEZA also announced the creation of a Free Trade Zone (FTZ) on 650 acres of land in Anwara, Chattogram. This FTZ is expected to boost trade by allowing goods to be stored without customs complications, offering a model similar to Dubai’s successful trade zones.

“We are hopeful that this will enhance Bangladesh’s trade capabilities, enabling smoother exports and imports, including goods for re-export to other regions like Vietnam,” said Ashik. The establishment of the FTZ will require legal amendments involving multiple ministries, which are currently under review.

Moreover, BEZA plans to revive the Kushtia Sugar Mill on 200 acres of land and bring 331 municipalities under its jurisdiction to better manage land use and promote industrialisation while protecting agricultural areas.
 

These initiatives are part of a wider effort to drive planned industrial growth in Bangladesh, improving economic infrastructure while safeguarding the country’s agricultural assets.