Govt plans two free trade zones near major ports

The government has, for the first time, taken steps to establish two free trade zones in the country near the Matarbari seaport in Cox's Bazar and Chattogram Port.

The Cabinet Committee on Economic Affairs gave policy approval to the initiative today at a meeting chaired by the finance minister at the Secretariat in Dhaka.

Speaking to reporters afterwards, Cabinet Secretary Nasimul Gani said the initiative aims to accelerate economic growth, expand international trade, attract foreign investment, and boost port-based economic activities.

He said the plan is initially to establish the two zones on about 600 acres of land, with around 300 acres in Matarbari and the remainder near Chattogram Port.

"The matter is currently at the conceptual stage," he said.

"The committee has discussed it and given a positive policy opinion. In the next phase, detailed project plans, investment structures, and operational modalities will be finalised."

The committee also gave in-principle approval for a development agreement and a land lease agreement to be signed with Bangladesh CEIZ Company Ltd, a special-purpose company formed to establish the Chinese Economic and Industrial Zone (CEIZ) in Anwara Upazila of Chattogram district. The proposal was placed by the Prime Minister's Office.

The Executive Committee of the National Economic Council yesterday approved a Tk 4,189 crore project to develop supporting infrastructure for the CEIZ in Anwara.

According to Planning Commission documents, Bangladesh sought a $221.18 million loan from China in 2018 for the zone's infrastructure, which Beijing later agreed to finance under its Preferential Buyer's Credit (PBC) arrangement.

Of the total project cost, Tk 1,722 crore will come from government funds, while Tk 2,467 crore will be financed through PBC loans.