The government has decided to establish a ‘Military Economic Zone’ at the National Special Economic Zone (NSEZ) in Mirsarai, Chattogram, replacing the previously planned Indian government-to-government (G2G) economic zone.
Bangladesh Investment Development Authority (Bida) Executive Chairman Chowdhury Ashik Mahmud Bin Harun announced it on Monday.
Speaking at a press briefing at the Foreign Service Academy in Dhaka on January 26, Ashik said the decision was taken at the fourth meeting of the Bangladesh Economic Zones Authority (Beza) Governing Board, chaired by Chief Adviser Professor Muhammad Yunus.
“The Indian Economic Zone has been excluded from the G2G framework, leaving the land vacant. The proposed Military Economic Zone will be developed on around 850 acres in Mirsarai,” he said, adding that the area will now be designated as a defence industrial zone in Beza’s master plan.
Ashik said the government has been working for some time on plans to enter defence industrial production, citing growing global demand and lessons from recent conflicts. “Recent wars have shown that shortages often occur in basic military items like bullets and tank components, not just high-tech equipment. We are considering whether Bangladesh can play a role in producing such essentials,” he said.
He noted that having domestic arms manufacturing capacity has become increasingly important in the current global context, particularly to ensure supply security during crises. The Armed Forces Division, Beza, the Chief Adviser’s Office and the Ministry of Defence have been jointly working on the initiative, he added.
According to Ashik, the land earmarked for the defence zone had remained unused after the cancellation of the Indian Economic Zone project. Several countries have reportedly shown interest in investing in the new defence industrial zone, though their identities were not disclosed due to security concerns.
He said the zone will initially focus on basic military equipment production for domestic use, with a long-term plan to expand into exports. Work may begin on about 50 acres in the first phase, with gradual expansion over time.
Free Trade Zone planned in Anwara
Alongside the defence zone, BEZA has also decided to establish a Free Trade Zone (FTZ) on 650 acres in Anwara, Chattogram. Ashik said the FTZ would allow countries to store and re-export goods without complex customs procedures, positioning Bangladesh to benefit more from Bay of Bengal trade routes.
He cited Dubai’s free trade zone as an example, noting that similar models could help boost Bangladesh’s trade competitiveness. However, he said setting up the FTZ would require amendments to eight legal and regulatory provisions, involving multiple ministries.
Other industrial moves
Ashik also said BEZA plans to revive Kushtia Sugar Mill on 200 acres of land and bring 331 municipalities under its jurisdiction to better manage industrial expansion while protecting agricultural land.
“These initiatives are part of a broader effort to promote planned industrialisation without compromising farmland,” he said.
The projects will be carried forward under future government execution following completion of policy-level work.