Special economic zone for Bhutan in Kurigram to boost trade: Beza

The creation of a special economic zone for Bhutan in Kurigram will open new avenues for business and trade between Bangladesh and its South Asian neighbour, according to Bangladesh Economic Zones Authority (Beza) officials.

Kurigram's proximity to Bhutan can benefit the economic zone, with easy travel access through Sonahali and Roumari land ports, along with Chilmari river port, they say.

A memorandum of understanding regarding the establishment of the special economic zone is expected to be signed during the five-day visit of Bhutanese King Jigme Khesar Namgyel Wangchuck to Bangladesh starting tomorrow.

Beza has prepared a draft agreement and sent it to the Prime Minister's Office for authorisation to sign the agreement between the two countries, officials concerned said.

BEZA Executive Chairman Shaikh Yusuf Harun told TBS that the Bhutanese ambassador to Bangladesh recently visited Kurigram to see the land for the economic zone.

Beza has already placed a proposal on setting up a government-to-government (G2G) special economic zone for Bhutan at "Kurigram Economic Zone-1."

Harun said the economic zone comprises Madhobram Mouza, Banchharam Mouza, Sada Mouza, and Kalyan Mouza within Kurigram sadar upazila. For the establishment of the economic zone, 133.92 acres of land have been acquired, he said, adding that another 61.87 acres of land are currently in the process of acquisition.

The Bhutanese government expressed interest in establishing a special economic zone in Kurigram after Prime Minister Sheikh Hasina, during a meeting with the Bhutanese king in London on 6 May 2023, offered the kingdom an economic zone in Bangladesh.

PM Hasina had announced the establishment of a special economic zone in Kurigram during a rally in the district town in 2015. Consequently, a location was designated for the economic zone on the eastern side of the Kurigram-Bhurungamari road, east of the Dharla Bridge in the eastern part of the district town.

Hamid Uz Zaman Mamun, a resident of Kurigram, told TBS that if industrial factories are set up in the economic zone, people in the area will come by employment. "If the special economic zone is established, there will be significant development in business and commerce in this district."

Trade between Bangladesh and Bhutan

Bangladesh struck its maiden preferential trade agreement with Bhutan in 2020. The deal allowed duty-free export of 100 goods and import of 34 goods.

According to official data from the fiscal year 2021-22, the total volume of trade between Bangladesh and Bhutan stood at $45.06 million, with Bangladesh exporting pharmaceuticals, ceramics, garments and food items while Bhutan exports mainly calcium carbide, cement, ferrosilicon and food items.

Beza says it is working towards establishing 100 economic zones across the country by 2041. The goal is to create employment for one crore people. It also expects to produce goods in and export products worth $40 billion annually from these economic zones.

Currently, G2G economic cooperation is being developed with Japan, India and China. Among them, the most progress has been made with Japan.

The Bangladesh Special Economic Zone, also known as the Japanese economic zone, in Araihazar upazila of Narayanganj is ready to welcome investors. So far, five companies have signed land lease agreements with the Bangladesh Economic Zones Authority to construct factories there.