Outcomes of Economic Zone-1

Al Masud Nayon: The Economic Zone (EZ) concept is first in this Country Bangladesh as planned in 2007. Its implemented organization Bangladesh Economic Zone Authority (BEZA) has established in 2010 and in 2017 economic zone (EZ) is going to establish in Bangladesh. It was the Dream of Bangabondhu Sheikh Mujibur Rahman that Bangladesh will be the Switzerland of Prachcha. 

In 1971, After the Liberation war of the country Bangladesh, Bangabondhu had expressed his dream about this country that Bangladesh will be an Economic Zone. From than the economic zone concept had born in Bangladesh. After the 46 years of liberation of the country Bangladesh the Economic zone concept is going to be finalized. 

This Economic Zone will be contributed a lot for the economic Development of this Country Bangladesh as Rapid growth of Economy. Economic Zones will rapidly extend economic flow of this country. By the flow, in 2030, Bangladesh will be the 30th largest Economy country in the world. The economic zone is one of the pave the way to be a largest economic country for the country.

Basics of Economic Zone: 

The government has taken the role of facilitator by creating investment friendly environment; linking Bangladesh will free market economy and liberalizing trade. So that, private entrepreneurs can obtain opportunities of establishing and running industrial enterprises profitably. In order to fostering industrialization, the government has taken initiatives to set up new economic zones.

Since the establishment of WTO on January 1995, Bangladesh playing an Active role in the ongoing WTO negotiations with a view to protecting the legitimate claim and interests of (latest developing countries) LDCs in an extremely competitive global trading environment. Bangladesh also attached equal importance to its bilateral and regional trade. 

In the Context of Bilateral trade, Bangladesh already held preliminary discussion on possible bilateral FTAs with India, Pakistan and Srilanka. Nepal and Bhutan are also interested in having bilateral FTAs with Bangladesh. An economic zone area is a free trade area (FTA), in where the Domestic and international investors, buyers, sellers and all kind of businessmen will get the free trade opportunity.    

The Bankok Agreement was established in 1975. Member Countries of this trading block are Bangladesh, India, Srilanka, China, The Republic of Korea and Lao people’s democratic Republic. The Bankok Agreement has been reviewed and Renamed as the Asia Pacific Trade Agreement (APTA). This agreement is also related to Economic zone (EZ).   

The 12th SAARC summit was held in Islamabad between 4-6 January 2004, Member states sign an agreement came into force on south Asian free trade Area (SAFTA) to promote and enhance mutual trade and economic co-operation. The agreement came into force on January 1, 2006 with the reflection of all member countries after completion of formalities. The agreement covers only trade in goods. 

The BIMSTEC (the Bay of Bengal Initiatives to Multi-sectoral Technical & economic Cooperation) Framework Agreement on FTA was concluded in February 2004. Member countries of this block area were Bangladesh, India, Myanmar, Srilanka, Thailand, Nepal and Bhutan. It is an agreement on trade in goods, trade in services and invest must has been incorporated in the framework agreement. A trade negotiating committee (NTC) has been constituted to conduct negotiations. This agreement contents are also included in Economic Zone (EZ). Including all these agreements Economic Zones are going to build with a huge enrichment. 

Beside these, including with OIC and D-8 agreement were established for the development of international business in a free trade area. An Economic Zone (EZ) is the Combination of all agreements like APTA, SAFTA, OIC, BIMSTEC, D -8 and so on.     

Employment opportunity: 

Bangladesh is a Developing country. In this country a lot of educated and uneducated peoples are unemployed. In an Economic zone area have a lot of employment opportunity created for the unemployed peoples. 

Near about 10 laces educated and uneducated peoples will get the work opportunity in an economic zone area. It will develop country’s Men Power nationally and internationally. Technical and Non Technical persons also will get the employment opportunity in an economic zone with an international business environment. Numbers of Illiterate peoples who are the daily basis labors, living hand to mouth also get the work opportunity in an economic zone area. 

Agricultural Business, RMG sector, Car and Motor Vehicles parts industry and importing, Consumer Products, ICT, Ship Building, Textiles, Garments and Accessories, Lather products and shoe industry, Food Processing, Food and beverage, pharmaceuticals, Manufacturer business also consist in this economic zone area. So, Agriculturist, Engineers, agricultural and business researchers, electrical engineers, computer engineers, Architectures, ship Engineers, Textile Engineers, Merchandisers, food and beverage specialists, scientists, Pharmacists also get the work opportunity in this economic zone area. 

Business Development: 

The contribution of industry sector in Bangladesh economy has an increasing trend. In (fiscal year) FY 2006-07, the contribution of the industry sector to real GDP is 29.77 percent while it was 17.31 percent in FY (fiscal year) 1980-81. It is expected that this upward growth trend of the industrial sector will help to achieve the national growth rate at 7 percent level. 

Among the fifteen sectors identified for computing national income, the greater industry sector include five sub-sectors such as mining and quarrying, manufacturing, construction, electricity, gas and water supply. Among these sub-sectors the contribution of manufacturing is the highest. In FY (fiscal year) 2006-07, the growth of the manufacturing industry reached double-digit level like previous fiscal year. 

The contribution of the industrial sector to Bangladesh economy has been on the rise. During the period of 1971-80, the contribution of the board industry sector to GDP was 11 percent and it increased to 30 percent in (fiscal year) FY 2015-16. In the face of challenges of open Market economy and globalization, the government believes that private sector led industrial development could be one of the prime movers of economic growth. 

Beside this, Government, by now, liberalized the trade regime by introducing a range of reforms. So that, the entrepreneurs can set up industries and operate them profitably without any misgivings. 

Meanwhile, The Government has handed over a number of (state owned Enterprises) SOEs to the private ownership. In order to establish economically viable industrial enterprises, the government has taken initiatives to set up industrial and special economic zones. So that, the huge land area of these industrial zones is effectively used to set a new trend for industrialization that would facilitate creation of huge employment opportunities. 

In the age of ICT, it is possible to provide accurate and rapid customer services by using ICT for cost effectiveness and improvement of the quality products. This is why providing encouragement to the intensive use of ICT on certain specific areas is another important feature of the present industrial policy. 

The present Industrial Policy has laid special emphasis on strengthening efforts to establish agro-based and agricultural product processing, together with step to face the possible adverse situation in export-oriented RMG industry and SMEs sector, to extend facilities to women entrepreneurs on priority basis, to set up Special Economic zones in various regions of the country Bangladesh.   

Vat and Tax Free Area: 

An economic zone (EZ) is a free trade area (FTA). In the last three Decades, the domestic and International Businessmen of Different countries were made various agreements for the free trade opportunity and the reduction of tariff. 

After the last three decades, domestic and international businessmen are getting the opportunity to do business without tariff in Bangladesh in an Economic Zone (EZ) area. An EZ is 100 percent free trade area (FTA). 

It is totally out of Value added tax (VAT) and Tax. So, it is the Great opportunity for the domestic and International Businessmen to extend their Business without any kinds of Tariff in the country Bangladesh. The government provides unique fiscal and non-fiscal incentives and benefits to economic zones developers and the industrial units.