Highlights
- Government decides to set up a specialized Defense Economic Zone (DEZ) to strengthen defence production.
- The initiative aims to meet local demand for weapons, drones, and cyber systems, and explore export opportunities.
- Estimated investment needed: Tk 15,000 crore through public-private partnership (PPP), FDI, or joint ventures.
- Prime Advisor Dr. Muhammad Yunus has given policy approval to facilitate the plan.
- Defence experts call for strategic planning, private investment, and foreign partnerships for success.
Government Moves to Build Self-Reliant Defense Industry
As part of its long-term vision to develop a self-sufficient defense sector, the Bangladeshi government has decided to establish a specialized Defense Economic Zone (DEZ).
The zone will focus on producing weapons, ammunition, drones, and advanced cyber technologies for the armed forces and paramilitary agencies, while also aiming for future export potential.
Officials said the project will require around Tk 15,000 crore in investment, which could come from the national budget, PPP models, joint ventures, or direct foreign investment (FDI).
Policy Approval from the Interim Government
According to sources, Prime Advisor Dr. Muhammad Yunus has already approved several policy measures to accelerate technology transfer, private investment, and joint ventures in the defense sector.
The decision to establish the DEZ was taken during a September meeting chaired by BEZA Executive Chairman Chowdhury Ashiq Mahmud bin Harun, attended by both civil and military officials.
“নিজের ব্যবসার জন্য এখন নিজের ওয়েবসাইট — মাত্র কয়েক মিনিটে Storola দিয়ে!”
Foreign Interest and Investment Talks Underway
Meeting documents reveal that several foreign governments and companies have expressed interest in investing in Bangladesh’s emerging defence industry.
Ashiq Chowdhury, who is also the Executive Chairman of BIDA, told:
“We are working on establishing a specialized Defence Economic Zone to attract local and foreign investment in the defence sector. The location and land area are not yet finalized. Our goal is to make this industry export oriented.”
When asked if China or Turkey were among the interested parties, he declined to comment.
Growing Domestic Demand for Defence Equipment
Bangladesh’s internal demand for defence equipment is around Tk 8,000 crore, including needs from the Army, BGB, Coast Guard, Police, Ansar, and VDP.
Officials believe a strong local defence industry could fulfil most domestic needs and later open export pathways.
Army and BIDA Receive Investment Proposals
The armed forces and BIDA have already received proposals from foreign manufacturers interested in producing defence equipment in Bangladesh.
However, some policy-related delays are holding up further discussions.
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Private Investment Considered Crucial
Finance Secretary Dr. Md. Khairuzzaman Majumdar, who attended the meeting, stressed the importance of private sector participation, citing global examples such as Lockheed Martin and McDonnell Douglas.
He said that while Tk 15,000 crore cannot be allocated from a single year’s budget, multi-year funding is possible. The Finance Ministry will also help allocate unused state-owned factory lands for the project.
Defence Experts Welcome the Move, But Urge Caution
Defence and security analysts have welcomed the initiative, emphasizing careful planning.
Major General (Retd.) ANM Muniruzzaman, President of BIPSS, said:
“Self-reliance in the defence sector is a strategic necessity. Setting up a Defence Economic Zone is essential to achieve that goal.”
He cautioned that Tk 15,000 crore might not be enough, stressing the need for large-scale private investment and technology partnerships.
“Since Bangladesh’s defense market is limited, export is the key to sustaining the industry. But the global defense market is highly competitive, so joint ventures with foreign companies will be necessary,” he said.
Bangladesh Lags Behind Regional Players
Meeting records show that neighbouring countries are far ahead in defence investments:
- Pakistan invests about $450 million per year
- India invests around $2.76 billion
- China, Turkey, Germany, South Korea, and the U.S. have even higher investments
A senior military officer noted:
“Even after 54 years of independence, Bangladesh has not made significant progress in defence production. Building a strong industrial ecosystem is now essential to reduce import dependency.”
Calls for Clear Legal Protection for Investors
An Additional Secretary from the Ministry of Industries said foreign investors often seek legal guarantees, which are not clearly stated in current laws.
He urged the inclusion of investment security provisions in upcoming defence industry policies.
Other officials recommended new legislation to remove private sector barriers in defence procurement.
Formation of Two High-Level Committees
Two key committees have been formed to supervise the process:
- National Policy Committee for Defence Industry Development, led by the Minister or Advisor of the Ministry of Defence.
- Bangladesh National Defence Industry Development Coordination Council, to monitor overall progress.
Currently, Dr. Muhammad Yunus oversees the Ministry of Defence as part of the interim government.
Export Focus and Strategic Partnerships
Speakers at the meeting emphasized the need to move from being a net importer to an exporter of weapons and ammunition.
A Navy officer mentioned that local shipyards are already preparing to produce large naval vessels and need export access to remain viable.
He said:
“We must rely on strategic partnerships with friendly nations. A clear policy framework is needed to make that possible.”
Source: TBS
