BEPZA Zones Buck National Trend with 2.2% Export Growth and Record Investment
Export Processing Zones generate $8.41 billion in exports while national exports declined 0.58%
The Bangladesh Export Processing Zones Authority (BEPZA) has reported $8.41 billion in exports from its zones in fiscal year 2025-26, representing a 2.2% increase year-on-year. ๐ This positive growth stands in stark contrast to the national export decline of 0.58% during the same period. โ
๐ฐ Record Investment
BEPZA also attracted a record $718 million in new investment proposals during FY26, demonstrating continued investor confidence in the EPZ model. ๐ญ The investment came from both domestic and foreign sources, with particular interest from Chinese, Korean, and Japanese investors. ๐
๐ Why EPZs Outperformed
Several factors contributed to BEPZA's stronger performance compared to the national average:
- โก Better infrastructure โ EPZs have dedicated power, gas, and utility connections
- ๐ Streamlined regulations โ single-window clearance for businesses
- ๐ข Customs facilitation โ simplified import-export procedures within zones
- ๐ฐ Tax benefits โ duty-free import of raw materials and machinery
- ๐ Reliable energy โ priority gas and electricity supply to EPZ factories
๐ Contribution to National Exports
BEPZA zones now contribute approximately 17.51% of Bangladesh's total national exports. ๐ฏ The $8.41 billion in EPZ exports represents a significant and growing share of the country's export earnings, highlighting the importance of the EPZ model for export growth.
๐ญ Investment Breakdown
The $718 million in new investment proposals includes:
- ๐ Apparel and textile manufacturing โ largest share of new investment
- โก Electronics and electrical equipment โ growing sector
- ๐ Pharmaceuticals โ expanding production capacity
- ๐พ Agro-processing โ value-added food exports
- ๐ฒ Engineering products โ including bicycle and component manufacturing
๐ Future Outlook
BEPZA's success in attracting investment and growing exports despite national challenges suggests that the EPZ model could be a template for broader industrial policy reform. ๐ก The government's planned free trade zones, which will allow duty-free stocking of raw materials, could further enhance the competitiveness of export-oriented manufacturing in Bangladesh. ๐
This news was originally published by The Daily Star. For the full original report, please visit: https://www.thedailystar.net/business/economy/news/bepza-attracts-record-718m-investment-proposals-fy26-4224911
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