Highlights:
- NSEZ remains largely vacant, with only 16 enterprises operational
- Infrastructure delays and land handover problems are stalling investments
- Unreliable utilities threaten factory operations and discourage potential investors
- Worker housing, safety, skills and support facilities remain inadequate
- Exports total $47.2 million, far below the $40 billion target
- Long-term success depends on coordinated infrastructure, utilities and regulatory improvements
A decade after Bangladesh set out to construct its largest industrial hub, the National Special Economic Zone (NSEZ) in Mirsarai remains largely vacant, hindered by infrastructure delays, utility shortages, and a complete absence of supporting worker ecosystems.
Spanning 33,000 acres in Chattogram, the mega-project was conceived to attract billions of dollars in foreign and domestic capital, with the potential to create up to 15 lakh jobs upon full realisation.
However, official figures from the Bangladesh Economic Zones Authority (Beza), recently merged with Invest Bangladesh, show that as of 8 September 2026, only 16 enterprises have entered commercial production, while another 15 remain under construction.
To date, merely 5,500 acres of the massive zone have been developed, with 134 plots allocated. Realised capital stands at Tk12,815 crore in local investment alongside $147 million in Foreign Direct Investment (FDI). Direct employment within the zone remains at approximately 8,000.
Exports have similarly fallen short of targets. NSEZ factories have shipped goods worth just $47.2 million, contrasting sharply with the initial $40 billion target set for 2030. Beza had aimed to secure $5.5 billion in investments and generate 238,000 jobs by 2026, while stakeholders previously estimated total investments could surpass $19 billion by the decade’s end.
Land allocations stalled on the ground
For many investors, securing a land allocation has not translated into operational factories. Delays in site development and plot demarcation continue to stall construction.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) was allocated about 500 acres, but parts of the land have yet to be demarcated or formally handed over.
“Investors have paid and met all the required conditions, but they remain stuck waiting,” said Rakibul Alam Chowdhury, a former BGMEA vice-president.
“If the plots were handed over, roads developed and electricity supplied, investors could consider starting operations. Until these issues are resolved, entrepreneurs are reluctant to take the risk,” he said.
Utility shortages strain viability
Operational viability remains a major hurdle for early tenants. Safal Barua, senior general manager of Modern Syntex, which invested approximately Tk1,700 crore in its plant, stressed that uninterrupted utility supply is non-negotiable.
“When a large investment is required, uninterrupted power, water, and gas are essential,” Barua noted. “Without them, operating such projects profitably becomes nearly impossible.” He added that factories still rely heavily on groundwater extraction, warning that prospective investors will hesitate until permanent utility lines are active.
Beza in a written statement said utility infrastructure is expanding. Of 38 planned water pump houses, 15 are operational, while a treatment plant is under construction.
Its first phase is scheduled for completion by March 2027 and will supply 50 million litres of water daily, with a second phase adding another 50 million litres.
Power capacity has also grown, according to Beza. The zone’s grid has 2,280MVA of transformer capacity, while connected load in the Rural Electrification area is about 230MW against peak demand of 60MW.
Karnaphuli Gas Distribution Company has installed three stations, supplying around 4 million cubic feet of gas daily. The challenge is ensuring reliable supply as demand grows, Beza said.
A missing industrial ecosystem
Positioned 20-25km from the main highway and directly adjacent to the coast, the remote site poses logistical and human resource challenges.
Ehsanul Kabir Nizami, an HR official at SQ Electricals, which invested around Tk400 crore, said recruitment remains a persistent hurdle.
“The location becomes quiet and dark at night, so workers do not feel comfortable or safe working here,” he said.
He also urged for streamlining the government’s One-Stop Service (OSS), noting that investors must liaise independently with multiple state bodies for environmental, fire, trade, and other clearance approvals.
Beza maintains that 62 services are available online through its OSS portal. Integration with the National Board of Revenue’s Single Window is nearly complete though integration with the Department of Environment’s system remains ongoing.
Housing deficits and skilling lags
Worker housing represents another critical bottleneck as industrial operations begin to scale. Low-cost worker accommodation is currently under construction in Sub-zone 18 to address the deficit.
Amirul Haque, president of the Chattogram Chamber of Commerce and Industry (CCCI), noted that physical and social infrastructure must advance together.
“There is a billion-dollar dream here, but workers currently have no proper living facilities nearby,” Amirul said. “If we can guarantee gas, power, water, and proper housing for workers, drawing investment will not be difficult.”
Simultaneously, support facilities lag behind baseline targets. Beza’s Skill Development Centre and Childcare Centre stand at 87% completion, while an Environmental Laboratory is at 94%, and an Emergency Response Centre is 72% complete.
Long-term fundamentals remain intact
Despite the initial slowdown, industry leaders maintain that the hub’s long-term value proposition remains compelling. Major domestic conglomerates and Chinese industrial groups have already acquired sizable landholdings within the complex.
Abdul Kader Khan, a former consultant to the NSEZ, believes the zone can eventually generate up to 1.4 million direct jobs once fully integrated.
“Internal roads, water distribution, gas pipelines, and power grids require synchronised development through coordinated government execution,” Kader emphasised.
Bangladesh’s primary challenge moving forward will be translating paper allocations into fully serviced industrial plots through expedited land handovers, reliable utility hookups, worker housing, and seamless regulatory clearances.
‘Extremely ambitious project’
Invest Bangladesh Chairman Ashik Chowdhury said NSEZ was an overly ambitious project and bridging the gap between expectations and reality remains a major challenge.
Ashik said the energy crisis was a national problem that could not be resolved by addressing individual economic zones in isolation. “We are trying to address it as quickly as possible, but investors will have to wait as we don’t have all the options needed to resolve this national problem immediately.”
On security, he expected significant improvements within the next one to two months. The authorities were working to introduce digital surveillance to improve monitoring and enable rapid deployment of security personnel in emergencies.
A hospital was also planned, although little progress had been made. The authorities are exploring whether one or two existing buildings could be repurposed as healthcare centres, he said, adding that government support would be needed.
Source: https://www.tbsnews.net/economy/33000-acres-land-only-16-factories-why-special-economic-zone-fails-deliver-1567806
