The Cabinet Committee on Economic Affairs (CCEA) has approved a proposal to establish Bangladesh’s first-ever Free Trade Zone (FTZ) in Anwara, Chattogram, aiming to boost international trade, attract foreign investment and enhance the country’s export capacity.

The proposal was approved at a meeting chaired by Finance Minister Amir Khasru Mahmud Chowdhury on Wednesday, according to a press release issued by the Bangladesh Economic Zones Authority (BEZA).

BEZA said a high-level committee comprising representatives from 10 government agencies, including the Ministry of Commerce, Ministry of Industries, Finance Division, National Board of Revenue (NBR) and Ministry of Shipping, reviewed international FTZ models, laws, policies and incentive structures before preparing its recommendations.

Based on the committee’s findings, Anwara on the banks of the Karnaphuli River was selected as the most suitable location for the country’s first FTZ, considering its infrastructure, trade connectivity, logistics capabilities and future expansion potential.

According to BEZA, the proposed FTZ is expected to open a new chapter in Bangladesh’s international trade and supply chain management by attracting foreign direct investment, diversifying exports, developing a world-class logistics hub and creating new employment opportunities.

The establishment of the FTZ had earlier been approved at the ninth meeting of BEZA’s Governing Board on January 26, 2026.

BEZA also said work has already begun to reform the necessary laws and policies for the FTZ, including reviews and updates of the Bangladesh Economic Zones Authority Act 2010, Customs Act 2023, Warehouse Licensing Rules 2024, Import Policy Order 2021-24, Export Policy Order 2024-27, Foreign Exchange Management Guidelines, National Industrial Policy 2022 and National Logistics Policy 2024.

Officials believe the country’s first FTZ will be a landmark step in Bangladesh’s economic transformation, expansion of global trade links and enhancement of regional competitiveness, helping position the country as a major trade and logistics hub in South and Southeast Asia.