British cross-party parliamentary delegation led by Virendra Sharma calls on Prime Minister Sheikh Hasina at her official residence Ganabhaban in the capital on Sunday, January 28.
In a bid to foster economic collaboration and mutual benefits, Prime Minister Sheikh Hasina extended a warm invitation to British investors, offering them a dedicated economic zone in Bangladesh. The proposition was made during a courtesy call at her official residence, Ganabhaban, where a cross-party parliamentary delegation from the United Kingdom, led by Virendra Sharma, MP, engaged in discussions with the Prime Minister.
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During the meeting, Prime Minister Sheikh Hasina highlighted Bangladesh’s commitment to attracting foreign direct investment (FDI) by establishing 100 economic zones, high-tech parks, and incubation centers across the country. Emphasizing the nation’s open-door policy for international investors, she assured the British delegation that Bangladesh would allocate a separate economic zone exclusively for them, mirroring similar arrangements made for other nations.
Current Progress of Economic Zones
Acknowledging the importance of efficiency in the investment process, Prime Minister Hasina shared her government’s commitment to reducing procedural time through digitalization. She informed the delegation that 110 out of 170 procedural items have already been made available online, with the remaining 60 set to be accessible shortly. This move aims to streamline and expedite the investment process, making Bangladesh an even more attractive destination for foreign investors.
With 97 economic zones already sanctioned and 10 successfully concluded, the initiative is advancing at an impressive pace. An additional 29 zones are presently in the process of implementation, and production is already underway in the completed zones. Shaikh Yusuf Harun, the Executive Chairman of Beza, shared the latest developments and investment status of these economic zones in an interview with The Business Standard.
The economic zones are classified into six types, tailored to meet diverse demands. These categories include public, private, public-private partnership (PPP), and government-to-government (g2g) zones. Except government-initiated zones, all are developed in response to market demand, fostering a dynamic ecosystem for potential investors.
Notably, land allocation in the government-implemented Jamalpur Economic Zone and Srihatta Economic Zone has been successfully completed, clearing the way for the establishment of factories. Production has also commenced in 10 private economic zones, including City and Meghna. The Bangabandhu Sheikh Mujib Shilpa Nagar, the largest economic zone in South Asia, is progressing in phases, with Beza overseeing 17,000 acres of the total 33,500 acres.
Positive Response from British Delegation
The British parliamentary delegation, comprised of influential members including Paul Scully, Neil Coyle, Andrew Western, and Dominic Moffitt, expressed their commitment to working closely with Bangladesh to advance development initiatives for the socioeconomic progress of the country and its people. The visit signifies a shared interest in fostering stronger economic ties between the two nations.
International Collaborations
International collaborations, particularly in G2G zones, showcase Bangladesh’s global appeal. The Japanese Economic Zone in Araihazar is advancing steadily, with negotiations underway for the Chinese Economic Zone. Proposals from the Developing Eight (D8) Secretariat and specific requests from Saudi Arabia and Singapore further emphasize the international interest in Bangladesh’s economic potential.
Entrepreneurial Concerns
- Issue: 15% VAT on Leased Land
- Beza’s One Stop Service Launched in 2015
- Services:125 types of services offered
- Objective: Streamline processes for investors
Challenges and Solutions
Entrepreneurs have voiced concerns about the 15% VAT imposed on leased land. Beza has engaged in negotiations with stakeholders to address this issue, demonstrating its commitment to finding practical solutions. Additionally, Beza’s One Stop Service initiative, launched in 2015, aims to streamline processes for investors, offering 125 types of services, with efforts to enhance accessibility and reduce hassles.
Future Services and Coordination
As part of ongoing improvements, Beza envisions providing online access to trade licenses, land registration, environmental clearances, construction approvals, and various utility connections. As a coordinating body, Beza acts as a bridge between investors and government agencies, actively listening to and addressing the concerns of the business community.
BEZA’s objective is to establish one hundred EZs in the next fifteen years with the target of generating 10 million employment and receiving USD 40 billion in export earnings. However, some privately owned economic zone sites are being constructed in different parts of Bangladesh.
The detailed list is mentioned below
Government-owned Economic Zone Site
BEZA is constructing five economic zones in the following areas:
- Maulovibazar Economic Zone, Sylhet
- Anowara (Gohira) Economic Zone, Chittagong
- Mirsarai Economic Zone, Chittagong
- Sirajgong Economic Zone, Rajshahi
- Mongla Economic Zone, Bagerhat
Planned New Economic Zones
BEZA has planned to establish new Economic Zone in the following areas:
- Anowara-2 Economic Zone, Chittagong
- Jamalpur Economic Zone Jamalpur
- Narayanganj Economic Zone, Narayanganj
- Bhola Economic Zone, Bhola
- Ashuganj Economic Zone, Brahmanbaria
- Dhaka IT Special Economic Zone, Dhaka
- Panchghar Economic Zone¸ Panchghar
- Narsingdi Economic Zone, Narsingdi
- Manikgoni Economic Zone, Manikgoni
- Kustia Economic Zone, Kustia
- Agailjhara Economic Zone, Barisal
- Nilphamari Economic Zone¸ Nilphamari
- Shariatpur Economic Zone, Goshairhat
- Shariatpur Economic Zone, Jagira
- Dhaka Economic Zone, Dhaka
- Habiganj Economic Zone¸ Habiganj
- Jahardiwp Economic Zone, Cox’s Bazar
- Cox’s Bazar Free Trade Zone, Cox’s Bazar
- Moheshkhali Economic Zone, Moheshkhali
- Moheshkhali Economic Zone -2, Moheshkhali
- Moheshkhali Economic Zone -3, Moheshkhali
- Narayanganj Economic Zone -2, Narayanganj
- Natore Economic Zone, Natore
Private sector economic zones (proposed and operational) are listed below
- AK Khan Private Economic Zone, Narsingdi
- Abdul Monem Private Economic Zone, Munshiganj
- Meghna Private Economic Zone, Narayanganj
- Comilla Private Economic Zone, Comilla
- Garments Industrial Park, Munshiganj
- Meghna Industrial Zone, Narayanganj
- Famkam Private Economic Zone, Bagerhat
Conclusion
As Bangladesh actively seeks foreign investments to fuel its economic growth, the special economic zone offered to British investors marks a significant step towards strengthening economic ties between the two countries. This collaborative effort reflects a commitment to shared prosperity, paving the way for enhanced cooperation and increased investment inflows. The positive response from the British delegation signals a promising trajectory for the economic partnership, with both nations poised to benefit from this strategic alliance. As the delegation prepares to depart for London on January 31, the prospect of a flourishing economic relationship between Bangladesh and the United Kingdom appears bright on the horizon.
