Interim govt to focus on 10 economic zones instead of 100 planned by AL

Infographic: TBS

The interim government, led by Professor Muhammad Yunus, plans to work on 10 economic zones instead of the 100 planned by the former Awami League (AL) government.

In the first phase, six zones will be completed with adequate utility connections (gas, electricity and water) and road infrastructure, before work commences on the remaining four, according to Bangladesh Economic Zones Authority (Beza) officials familiar with the matter.

The 10 zones are National Special Economic Zone, Srihatta Economic Zone, Japanese Economic Zone, Maheshkhali Economic Zone, Jamalpur Economic Zone, Anwara Economic Zone, Sabrang Tourism Park, Chandpur Economic Zone, Kushtia Economic Zone and Bhutanese Economic Zone in Kurigram.

Beza Executive Chairman Chowdhury Ashik Mahmud Bin Harun is expected to announce these developments at a press conference on 7 January, the officials told TBS on condition of anonymity.

Efforts to reach Chowdhury Ashik Mahmud on Thursday evening for his comments were unsuccessful, as calls and text messages to his mobile phone went unanswered.

A year after the AL government began its second term in 2009, it established the Bangladesh Economic Zones Authority with an ambitious plan to develop 100 public and private economic zones across the country. Since then, Beza has been working to secure lands for these zones.

Officials said the lands acquired during the 15-year rule of the AL, which was ousted on 5 August 2024 through a mass uprising, will remain unused for now. The next elected government will decide whether to move forward with the projects.

At a recent event hosted by the Bangladesh Chamber of Industries (BCI), Energy Adviser Muhammad Fauzul Kabir Khan said, "The AL government acquired thousands of acres of land nationwide for the economic zones, without any logical justification."

EZs to be prioritised and ignored:

The six economic zones that the interim government aims to complete in the first phase are National Special Economic Zone, Srihatta Economic Zone, Japanese Economic Zone, Maheshkhali Economic Zone, Jamalpur Economic Zone, and Anwara Economic Zone.

Of these, the Anwara Economic Zone is being developed with Chinese funding, with Chinese investors expected to contribute further.

Srihatta, Jamalpur, Japanese and National Special Economic zones already have partial connections to gas, electricity and water. The government aims to fully complete these zones with infrastructure development, including road construction, in the first phase.

Once the first phase is complete, Beza will move on to the second phase, focusing on the implementation of four zones – Sabrang Tourism Park, Chandpur Economic Zone, Kushtia Economic Zone and Bhutanese Economic Zone in Kurigram.

The Beza executive chairman will outline a roadmap at the upcoming press conference, detailing the timeline for providing utility connections to the 10 zones, officials said, adding that the press conference will cover estimates of domestic and foreign investment as well as projected employment in these zones.

A senior BEZA official told TBS that work on projects beyond the 10 designated zones will be halted during the interim government's tenure, for the next political government to decide the fate of the acquired lands for other planned economic zones.

Chief Adviser Muhammad Yunus in December said the next general election could be held between the end of 2025 and the first half of 2026 after the completion of necessary reforms.

The decision on the Indian economic zone in Mirsarai will also depend on the next politically elected government. Beza has been reportedly instructed not to work on the project now.

A senior Beza official said the Indian Economic Zone project, funded under an Indian Line of Credit, has faced delays despite a loan agreement of over $100 million signed in 2015. To date, less than $5 million has been released. Although the project requires land development work to be carried out by Indian contractors, Indian companies have not participated, resulting in minimal progress.

"Following the AL government's fall, Beza sought directives from the Chief Adviser's Office, highlighting the challenges in establishing the Indian economic zone. It was decided not to prioritise the project. However, it will not be cancelled, and the interim government will not decide whether the project will proceed with Indian funding," said the official.

Under the AL government, Beza approved 97 economic zone sites nationwide – 68 government and 27 private – out of the planned 100. There are six types of economic zones, including public, private, public-private partnership (PPP) and government-to-government (g2g).