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. š This positive growth stands in stark contrast to the national export decline of 0.58% during the same period. ā
š° Record Investment
BEPZA also attracted a record $718 million in new investment proposals during FY26, demonstrating continued investor confidence in the EPZ model. š The investment came from both domestic and foreign sources, with particular interest from Chinese, Korean, and Japanese investors. š
š Why EPZs Outperformed
Several factors contributed to BEPZA's stronger performance compared to the national average:
- ā” Better infrastructure ā EPZs have dedicated power, gas, and utility connections
- š Streamlined regulations ā single-window clearance for businesses
- š¢ Customs facilitation ā simplified import-export procedures within zones
- š° Tax benefits ā duty-free import of raw materials and machinery
- š Reliable energy ā priority gas and electricity supply to EPZ factories
š Contribution to National Exports
BEPZA zones now contribute approximately 17.51% of Bangladesh's total national exports. šÆ 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.
š Investment Breakdown
The $718 million in new investment proposals includes:
- š Apparel and textile manufacturing ā largest share of new investment
- ā” Electronics and electrical equipment ā growing sector
- š Pharmaceuticals ā expanding production capacity
- š¾ Agro-processing ā value-added food exports
- š² Engineering products ā including bicycle and component manufacturing
š 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. š” 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. š
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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