Araihajar Economic Zone

Bangladesh has achieved relatively high average annual growth rate at 5-6% over the last ten years. Bangladesh has set eight aspiring inter-linked goals with the vision to a transition from lower-income to poverty free middle-income nation by 2021. In order to achieve a transition from to a middle-income nation by 2021, Bangladesh needs to achieve its GDP growth rate at about 8%. The GDP target has been set at 7.4% for the 2017-2018 fiscal years. At present, Bangladesh economy is heavily relying on garment export and remittance from overseas workers. In order to become middle-income nation by 2021, Bangladesh needs to shift away it existing economic structure by promoting investment, diversification on national industry focusing on manufacturing industries that have competitiveness in export. 

Under these circumstances, the government of Bangladesh has requested the government of Japan to provide Yen loan for “the Foreign Direct Investment Promotion Project (hereinafter FDIPP)” in order to establish a new EZ mainly targeting Japanese companies and to further facilitate investments from Japan. The loan agreement for FDIPP was already signed in December 2015. 

Previously, in connection with FDIPP, JICA implemented “Project for Development Study and Capacity Enhancement of Bangladesh Economic Zone Development Plan Authority” from February 2015 thru March 2017. Within the above project, analysis and site comparisons of the candidate EZ locations were conducted, and Araihazar was selected as prominent locations for JEZ development. The project has scope of land acquisition and displacement of livelihood resources. Land acquisition and resettlement involved with the project.    

Share this page via