The Cabinet Committee on Economic Affairs approved on Wednesday the establishment of Bangladesh’s first free trade zone, selecting a riverside site in Chattogram’s Anwara as its location.

The approval follows a detailed review by a high-level inter-agency committee that examined free-trade-zone operating models, legal frameworks and incentive structures across multiple countries. The committee comprised representatives from 10 bodies including the commerce, industry and shipping ministries, the finance division and the National Board of Revenue, the Prime Minister’s Office said.

Bangladesh Economic Zones Authority (BEZA) said it had been working to establish a modern free trade zone in line with international standards.

Anwara was chosen on the basis of its infrastructure facilities, international trade connectivity, logistics capacity and scope for future expansion, officials said.

The proposed free trade zone is expected to open new avenues for Bangladesh in international trade and supply-chain management. Authorities anticipate it will play a significant role in attracting foreign investment, diversifying exports, developing an international logistics hub and generating employment.

The BEZA’s governing board had endorsed the free-trade-zone proposal at its ninth meeting on January 26. Work has since begun on the necessary legal and policy reforms, with reviews underway of the Bangladesh Economic Zones Act 2010, the Customs Act 2023, the Warehouse Licensing Rules 2024, the Import Policy Order 2021-2024, the Export Policy Order 2024-2027, foreign exchange management guidelines, the National Industrial Policy 2022 and the National Logistics Policy 2024.

The government said the initiative would be considered a transformative step in Bangladesh’s economic evolution. The project is expected to strengthen global trade links and position the country as an important trade and logistics centre in South and Southeast Asia.