Bangladesh to Establish First-Ever Free Trade Zones in Chattogram and Cox's Bazar

Bangladesh is set to establish its first two free trade zones (FTZs) near the Matarbari seaport in Cox’s Bazar and the Chattogram port. The Cabinet Committee on Economic Affairs gave in-principle approval to the initiative on Wednesday.

The approval came during a committee meeting at the Secretariat, chaired by the Finance Minister.

Following the meeting, Cabinet Secretary Nasimul Gani informed reporters that the FTZs aim to accelerate the economy, expand international trade, attract foreign investment, and increase port-centric economic activities.

The zones will cover approximately 600 acres across both locations. The project is currently in its conceptual phase, with detailed plans, investment structures, and management frameworks to be finalized later.

An FTZ is a designated area with relaxed customs and tax regulations, enabling domestic and foreign investors to conduct international trade with ease. Gani stated that international ships can unload, sell, or re-export goods within these zones. Simultaneously, Bangladeshi entrepreneurs will have a streamlined channel to supply products to global markets.

This initiative is expected to positively impact GDP, maximize port utilization, and increase maritime traffic. It will facilitate the rapid transfer of goods and services, create new employment opportunities, and make high-quality international products more accessible. Increased market competition may also help lower consumer prices.

Citing Dubai as an example, Gani noted that despite limited natural resources, its free economic zones transformed the city into a global trade hub. Bangladesh is striving to replicate this success.

Both local and foreign investors are welcome to invest in the FTZs, which will support manufacturing, warehousing, logistics, commercial services, and tourism-based activities. Chinese Economic and Industrial Zone in Anwara

The committee also granted in-principle approval to form a special company to establish a Chinese Economic and Industrial Zone (CEIZ) in Anwara upazila, Chattogram, alongside related development and land lease agreements.

Gani stated that this zone will further strengthen economic ties between Bangladesh and China. "Foreign investors prefer operating within familiar business networks. A dedicated industrial zone will make it significantly easier for Chinese entrepreneurs to invest in Bangladesh," he added.