A high-level bilateral dialogue between the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Economic Zones Investors Association (BEZIA) was held today (Monday) at the BGMEA Complex in Uttara to accelerate new investment in economic zones and address existing infrastructural and policy challenges faced by investors.
The BEZIA delegation was led by its President, Mr. M. A. Jabbar. Other members of the delegation included BEZIA Vice President Mr. Md. Halimuzzaman, Director Mr. Delwar H. Titu, CEO Dr. Apurba Chowdhury, and Member Mr. Md. Mustafizur Rahman.
The BGMEA delegation was led by its President, Mr. Mahmud Hasan Khan. BGMEA Vice President (Finance) Mr. Mizanur Rahman also participated in the discussion.
The meeting held productive discussions on the current progress of plots allocated in five government economic zones, which have been identified for full operationalisation as part of the government’s short-term priorities, as well as various policy-related obstacles faced by investors.
BEZIA President Mr. M. A. Jabbar said that many entrepreneurs have already paid substantial amounts for plots but are losing confidence due to the slow development of infrastructure and utility facilities.
As a result, only 27 establishments are currently in production across the five zones, covering approximately 39,000 acres of land. Only 37 percent of the total allocated land is currently operational.
The meeting emphasised the need for joint advocacy to resolve shortages of uninterrupted gas and industrial water and to oppose the imposition of additional service charges before factories become fully operational. Both organisations agreed to jointly raise several key policy issues with the highest levels of government to ensure a more investment-friendly environment in the economic zones.
The meeting strongly demanded that BEZA completely waive service charges imposed on utility bills until the promised uninterrupted utility supply is ensured. It was also emphasised that sector-specific cash incentives equivalent to those available to companies outside the economic zones should be provided to zone-based investors in order to ensure a level playing field.
The participants also called for the complete exemption of VAT on lease tariffs to eliminate the issue of double taxation arising from the obligation to pay VAT at a rate of 15 percent at both the master leaseholder and subsequent sub-lessee levels.
Particular emphasis was placed on allowing deemed export activities to domestic bond-licensed exporters without EXP and EP documentation, in order to reduce administrative complications and avoid unnecessary delays in deemed export transactions.The meeting also stressed the importance of making mutation of 99-year leases bankable and ensuring the effective implementation of the One-Stop Service.
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During the discussion, BEZIA President Mr. M. A. Jabbar specifically noted that BGMEA has 41 unit investors in the National Special Economic Zone located in Mirsarai, Chattogram. In view of this significant presence, he said there is both a strong rationale and ample scope for BGMEA and BEZIA to work together on national and policy issues concerning the garment sector.
Against this backdrop, and with the aim of ensuring sustainable industrialisation in economic zones and further strengthening coordination between the two organisations, BEZIA President Mr. M. A. Jabbar sincerely invited BGMEA to nominate a representative to serve on BEZIA’s Board of Directors.
BGMEA President Mr. Mahmud Hasan Khan welcomed the proposal and expressed his consent, assuring that BGMEA would nominate a qualified representative at the earliest.
At the conclusion of the meeting, the leaders of both organisations expressed strong optimism that the far-reaching joint policy advocacy of BGMEA and BEZIA would encourage the Bangladesh Economic Zones Authority (BEZA) to take prompt and transformative measures to address infrastructural challenges and policy complexities in the country’s economic zones.