Bangladesh decentralises industry with five regional economic hubs

Bangladesh decentralises industry with five regional economic hubs
Photo: Collected

Online Desk

Published: 2026-06-14 15:10:56

The Bangladesh Government has initiated a comprehensive expansion of its industrial infrastructure, approving the development of new export and economic zones across five districts. The strategy aims to decentralise industrial production, catalyse foreign direct investment, and stimulate job creation in underdeveloped regions.

Under the new directives issued by the Cabinet Division, the government will establish fresh Export Processing Zones (EPZs) in the districts of Barishal and Lalmonirhat. Concurrently, Special Economic Zones (SEZs) are slated for development in Gazipur, Barguna, and Pirojpur.

The decision follows the annual Deputy Commissioners (DC) Conference held in May, during which local administrators presented over 1,700 regional development proposals. Following rigorous feasibility assessments by relevant ministries and implementing agencies, six core initiatives were selected for execution. The Prime Minister’s Office has structured the implementation into three distinct phases: short-term goals to be met within one year, medium-term targets within three years, and long-term infrastructure projects spanning five years.

At present, the Bangladesh Export Processing Zones Authority (BEPZA) oversees eight state-owned operational enclaves, including hubs in Dhaka, Chattogram, and Mongla. These zones are designed to bolster the national economy by offering fiscal incentives, such as the duty-free import of raw materials, alongside streamlined channels for direct manufacturing exports.

Senior officials confirmed that the administrative machinery is already in motion. Joint Secretary of the Cabinet Division, Mohammad Khorshed Alam Khan, stated that formal directives have been dispatched to the respective ministries to initiate the first phase of development. To ensure bureaucratic accountability, ministry secretaries have been tasked with submitting monthly progress updates to the Cabinet Division.

 

Regional economic breakdown

The geographical distribution of the newly selected zones reflects a calculated effort to leverage local infrastructure and resources:

Barishal, Lalmonirhat (EPZs): The Barishal enclave is expected to capitalise on direct road links to the capital and its proximity to Payra Port, helping to mitigate economic migration to major urban centres. In the north, the Lalmonirhat zone will focus on agro-industrial processing, utilising the Burimari Land Port and existing rail networks to streamline cross-border trade.

Gazipur, Barguna, Pirojpur (Economic Zones): The Gazipur zone is designed to facilitate the relocation of existing industries into a structured environment to curb urban pollution and safeguard agricultural land. In the coastal district of Barguna, the focus will turn to marine resources, fisheries, and tourism near Payra Port. Pirojpur’s zone will exploit its multi-modal transport connectivity with major seaports to establish robust supply chains for manufacturing and agriculture.

 

Structural reforms and institutional integration

The infrastructure rollout coincides with broader regulatory reforms aimed at restoring economic discipline. Addressing parliament, Prime Minister Tarique Rahman emphasised that structural adjustments are vital to securing sustainable national development.

As part of an ongoing effort to simplify investment procedures for both domestic and international businesses, the administration has updated its national Export Policy. Furthermore, drafts are currently being finalised to revise the Import Policy Order 2026–2029, with the aim of significantly reducing market entry barriers.

To eliminate bureaucratic redundancies, the Prime Minister announced a major institutional consolidation. The state plans to integrate the Bangladesh Investment Development Authority (BIDA), the Bangladesh Economic Zones Authority (BEZA), the Public-Private Partnership Authority (PPPA), and the Bangladesh Hi-Tech Park Authority into a single, unified regulatory framework. This amalgamation is intended to reduce administrative delays and provide a streamlined, single-window service for global investors looking to establish operations within the country’s expanding industrial network.