A decade after Bangladesh established its biggest industrial center, the National Special Economic Zone (NSEZ) in Mirsarai continues to be mostly unoccupied. Infrastructure delays and utility shortages, coupled with insufficient worker support facilities, have halted advancement.
Spanning 33,000 acres in Chattogram, the project aimed to attract billions in investment and create up to 1.5 million jobs. However, as of September 2026, only 16 enterprises are operational, with another 15 under construction.
Land Handover Delays Stall Construction
Just 5,500 acres have been developed, with 134 plots allocated. Local investment stands at Tk12,815 crore, alongside $147 million in foreign direct investment (FDI). Direct employment is at 8,000, far below targets.
Exports have fallen short, with NSEZ factories shipping goods worth only $47.2 million—a stark contrast to the $40 billion target set for 2030. Beza, the Bangladesh Economic Zones Authority, had aimed for $5.5 billion in investments and 238,000 jobs by 2026.
For many investors, securing land has not led to operational factories. Rakibul Alam Chowdhury, a former BGMEA vice-president, noted that investors remain stuck waiting for plots to be handed over and infrastructure developed.
“If the plots were handed over, roads developed, and electricity supplied, investors could consider starting operations,” Chowdhury said. “Until these issues are resolved, entrepreneurs are reluctant to take the risk.”
Utility Shortages Threaten Viability
Operational viability is a major concern for early tenants. Safal Barua of Modern Syntex, which invested Tk1,700 crore, stressed that uninterrupted utility supply is essential.
“When a large investment is required, uninterrupted power, water, and gas are essential,” Barua said. “Without them, operating such projects profitably becomes nearly impossible.”
Beza stated that utility infrastructure is expanding. Of 38 planned water pump houses, 15 are operational, with a treatment plant under construction. The first phase, scheduled for completion by March 2027, will supply 50 million litres of water daily, taking a significant step forward.
Power capacity has grown, with the zone’s grid having 2,280MVA of transformer capacity. The Karnaphuli Gas Distribution Company supplies around 4 million cubic feet of gas daily, but ensuring reliable supply as demand grows remains a challenge.
The remote location, 20-25km from the main highway, poses logistical and human resource challenges. Ehsanul Kabir Nizami of SQ Electricals noted that workers feel unsafe due to the area’s isolation at night.
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Nizami also highlighted the need to streamline the government’s One-Stop Service (OSS), as investors must liaise with multiple state bodies for clearances. Beza maintains that 62 services are available online through its OSS portal.
Worker housing is another critical issue. Low-cost accommodation is under construction in Sub-zone 18 to address the deficit. Amirul Haque of the Chattogram Chamber of Commerce and Industry emphasized the need for physical and social infrastructure to 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.”
Support facilities also lag behind targets. Beza’s Skill Development Centre and Childcare Centre are 87% complete, while an Environmental Laboratory is at 94%, and an Emergency Response Centre is 72% complete.
Despite the initial slowdown, industry leaders believe the hub’s long-term value remains compelling. Major domestic and Chinese groups have acquired sizable landholdings. Abdul Kader Khan, a former NSEZ consultant, believes the zone can generate up to 1.4 million direct jobs once fully integrated.
Bangladesh‘s challenge is translating paper allocations into fully serviced plots. Invest Bangladesh Chairman Ashik Chowdhury acknowledged the gap between expectations and reality, noting that the energy crisis is a national issue that cannot be resolved 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,” Ashik said.
On security, he expected improvements within one to two months, with digital surveillance being introduced. A hospital is planned, though progress has been slow. Authorities are exploring repurposing existing buildings as healthcare centers, with government support needed.
The lack of adequate worker housing is a significant barrier to attracting and retaining employees.
National Energy Crisis Impacts Progress
Ashik stated that the energy crisis is a national issue, requiring a wide-ranging approach beyond individual economic zones. He acknowledged the urgency but noted limited immediate solutions, asking investors for patience.
On security, Ashik anticipated improvements within one to two months. Digital surveillance is being introduced to enhance monitoring and enable quick deployment of security personnel during emergencies.
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