Mirsarai Economic Zone: Bangladesh’s Largest Industrial Hub

Mirsarai Economic Zone (MEZ), officially known as Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN), is Bangladesh’s largest planned industrial zone. Strategically located in Chattogram, it is set to become a vital hub for economic growth, foreign investment, and industrial development in the country. As part of the government’s initiative to boost industrialization, the Mirsarai Economic Zone is designed to host diverse industries, from ready-made garments (RMG) to steel, pharmaceuticals, and more. In this article, we explore the key features, benefits, challenges, and future prospects of the Mirsarai Economic Zone.

Introduction to Mirsarai Economic Zone

Mirsarai Economic Zone, also referred to as Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN), spans over 30,000 acres of land, making it the largest industrial zone in Bangladesh. Located in Mirsarai Upazila of Chattogram, along the Dhaka-Chattogram economic corridor, the zone offers excellent connectivity by road, rail, and sea, providing easy access to national and international markets.

The Bangladesh Economic Zones Authority (BEZA) oversees the development of MEZ, aiming to transform it into a world-class industrial hub that promotes export-oriented industries, fosters job creation, and attracts foreign direct investment (FDI).

Key Features of Mirsarai Economic Zone

• Location: Mirsarai Upazila, Chattogram District, Bangladesh
• Total Area: Over 30,000 acres
• Managing Authority: Bangladesh Economic Zones Authority (BEZA)
• Connectivity: Proximity to Dhaka-Chattogram Highway, Chattogram Port, Shah Amanat International Airport, and Dhaka International Airport via proposed high-speed rail.
• Primary Industries: Ready-made garments (RMG), textiles, steel, pharmaceuticals, chemicals, food processing, shipbuilding, automotive, and more.

Development Phases and Infrastructure

The development of Mirsarai Economic Zone is taking place in multiple phases:

1. Phase 1 (2015-2022):
   • Focused on land acquisition, initial infrastructure development, and creating an investment-friendly environment.
   • Construction of basic infrastructure, including internal roads, drainage systems, and utility services such as water, gas, and electricity supply.
2. Phase 2 (2023-2025):
   • Expansion of industrial plots, construction of additional roads, bridges, and a deep-sea port at Mirsarai to facilitate easier cargo handling.
   • Development of specialized industrial clusters, export processing zones (EPZs), and hi-tech parks.
3. Phase 3 (2025-2030 and Beyond):
   • Full-scale operationalization with more than 250 industrial units expected to be in production.
   • Expansion of logistics, residential facilities, healthcare centers, educational institutions, and recreational areas to support workers and management staff.

Strategic Importance of Mirsarai Economic Zone

Mirsarai Economic Zone holds strategic significance for several reasons:

1. Boosting Export Growth: The zone is designed to host export-oriented industries, particularly in textiles, RMG, and pharmaceuticals, contributing to Bangladesh’s export diversification.
2. Job Creation: MEZ is expected to create approximately 1.5 million jobs directly and indirectly, helping to reduce unemployment and improve living standards.
3. Attracting Foreign Investment: With its investor-friendly policies, strategic location, and developed infrastructure, Mirsarai Economic Zone aims to attract significant foreign direct investment (FDI).
4. Reducing Regional Disparities: By fostering industrial development in the underdeveloped Chattogram region, the zone aims to reduce economic disparities across different regions of Bangladesh.
5. Industrial Diversification: The zone promotes industrial diversification beyond the traditional RMG sector, encouraging sectors like shipbuilding, electronics, automobile manufacturing, and more.

Facilities and Infrastructure at Mirsarai Economic Zone

Mirsarai Economic Zone offers world-class facilities and infrastructure to support industrial activities:

1. Industrial Plots and Clusters:
   • Divided into several sectors to host various industries, including RMG, textiles, steel, pharmaceuticals, chemicals, food processing, and electronics.
2. Utilities and Services:
   • Uninterrupted power supply through dedicated power plants.
   • Adequate water supply sourced from the Feni River and groundwater.
   • Modern waste management and treatment facilities to ensure environmental sustainability.
3. Transport and Connectivity:
   • Proximity to Chattogram Port (60 km), Shah Amanat International Airport (70 km), and Dhaka International Airport (250 km).
   • Planned deep-sea port to facilitate direct international shipping.
   • Integrated road, rail, and sea networks to ensure seamless movement of goods and raw materials.
4. Special Economic Zones (SEZs):
   • Designated areas within the economic zone for specific industries, offering incentives like tax breaks, duty exemptions, and simplified regulatory procedures.
5. Social Infrastructure:
   • Planned residential areas, healthcare centers, educational institutions, and recreational facilities to support workers and their families.

Challenges Facing Mirsarai Economic Zone

While the Mirsarai Economic Zone offers significant opportunities, it also faces several challenges:

1. Land Acquisition and Resettlement: Acquiring land and resettling displaced communities have been complex, requiring careful management and compensation to ensure fairness.
2. Environmental Concerns: Ensuring sustainable development while minimizing the impact on local ecosystems, including mangroves and aquatic life, is crucial.
3. Reluctance of RMG Owners: Despite government incentives, some RMG owners remain hesitant to move operations to MEZ due to concerns over infrastructure readiness, logistics, and cost implications.
4. Investment Uncertainty: While the government is promoting FDI, global economic uncertainties and the pandemic’s impact may affect investor confidence and commitment.

Opportunities and Future Prospects of Mirsarai Economic Zone

Despite challenges, the Mirsarai Economic Zone presents several opportunities:

1. Government Support and Incentives: The government offers numerous incentives, including tax holidays, duty-free import of raw materials, and easy repatriation of profits to attract both local and foreign investors.
2. Strategic Location: MEZ’s location along the Dhaka-Chattogram industrial corridor provides access to major markets, both domestic and international.
3. Private-Public Partnership (PPP): Encouraging collaboration between the public and private sectors can help accelerate infrastructure development and attract investment.
4. Sustainable Development: The zone aims to become a model for sustainable industrialization, focusing on green technologies, efficient resource management, and eco-friendly practices.

Key Benefits of Mirsarai Economic Zone

• Increased Exports: Enhanced infrastructure and facilities will boost export volumes, particularly in diversified sectors.
• Economic Development: Contributes significantly to the national GDP and reduces regional economic disparities.
• Employment Generation: Expected to create 1.5 million jobs, both direct and indirect, improving socio-economic conditions.
• Foreign Investment: Attracts FDI by providing a conducive business environment with modern infrastructure and favorable policies.
• Industrial Growth: Facilitates the growth of new industries beyond traditional sectors, promoting innovation and diversification.

Interesting Facts About Mirsarai Economic Zone

• Largest Industrial Zone: MEZ is the largest industrial zone in Bangladesh, with over 30,000 acres of land.
• Sustainable Industrial Hub: The zone aims to be a sustainable industrial hub, incorporating green technologies and practices.
• High Investor Interest: Over 150 investors, both local and international, have shown interest in establishing operations in MEZ.
• Strategic Location: Positioned along the Dhaka-Chattogram economic corridor, offering easy access to key domestic and international markets.

Conclusion

Mirsarai Economic Zone, or Bangabandhu Sheikh Mujib Shilpa Nagar, represents a cornerstone of Bangladesh’s ambitious industrial development strategy. With its strategic location, extensive infrastructure, and government-backed incentives, MEZ is poised to become a critical hub for export-oriented industries, foreign investment, and economic growth. As the zone continues to expand and overcome its challenges, it is set to play a vital role in transforming Bangladesh into a leading industrial and trade center in South Asia.

By fostering industrial diversification, generating employment, and promoting sustainable practices, Mirsarai Economic Zone is building a brighter future for Bangladesh, positioning itself as a key player in the global economic landscape.