Bangladesh has taken the initiative to establish its first-ever two Free Trade Zones (FTZs), with planned locations near the Matarbari deep-sea port in Cox’s Bazar and the Port of Chattogram, as part of efforts to boost trade, attract foreign investment and expand port-based economic activities.

The Cabinet Committee on Economic Affairs (CCEA) granted in-principle approval for the initiative at a meeting chaired by Finance Minister Amir Khasru Mahmud Chowdhury at the Secretariat on Wednesday.

Briefing reporters after the meeting, Cabinet Secretary Nasimul Ghani said the proposed FTZs aim to accelerate economic activity, promote international trade, attract foreign direct investment and strengthen Bangladesh’s position as a regional trade and logistics hub.

Initially, the government plans to establish the two zones on approximately 600 acres of land, including around 300 acres in the Matarbari area. The second zone will be developed near Chattogram Port.

Ghani said the proposal remains at the conceptual stage and that detailed plans regarding investment structures, operational mechanisms and infrastructure development will be finalised in subsequent phases.

Free trade zones generally offer relaxed customs and tax regulations, enabling foreign and domestic businesses to conduct trade more efficiently. Under the proposed framework, international vessels would be able to unload, sell or re-export goods from these zones, while Bangladeshi entrepreneurs would gain easier access to global markets.

The cabinet secretary said the initiative is expected to increase the overall volume of economic activity, positively impact GDP, boost port utilisation and facilitate faster movement of goods and services. It is also expected to create new employment opportunities and improve access to internationally competitive products and services.

He cited examples from countries such as the United Arab Emirates, particularly Dubai, where free economic zones have played a significant role in attracting investment and transforming the city into a global trade hub despite limited natural resources.

According to Ghani, the FTZs will be open to both Bangladeshi and foreign investors, and could accommodate manufacturing industries, warehousing, logistics, commercial services and tourism-related activities. However, the government has yet to determine which sectors will receive priority.

The meeting also approved in principle the formation of a special-purpose company (SPC) and related development and land lease agreements for establishing the Chinese Economic and Industrial Zone (CEIZ) in Chattogram’s Anwara upazila.

Officials said the integrated Chinese industrial zone could strengthen economic ties between Bangladesh and China and make Bangladesh a more attractive investment destination for Chinese businesses.

The government stressed that the FTZ initiative is not a short-term measure but part of a long-term economic strategy centred on leveraging the commercial potential of the Matarbari deep-sea port and Chattogram Port.

The next phase will include feasibility studies, reviews of international experiences, determination of investment frameworks and preparation of detailed infrastructure plans.

According to meeting sources, the approval was granted based on recommendations submitted by a committee comprising representatives from 10 government agencies, including the ministries of commerce, industries and shipping, the Finance Division and the National Board of Revenue (NBR).

As part of the plan, Bangladesh Economic Zones Authority (BEZA) will acquire land owned by the Bangladesh Power Development Board (BPDB) for the country’s first FTZ in Anwara, and will provide the utility with equivalent land elsewhere in exchange, in line with a decision of the BEZA governing board.