A high-level bilateral meeting was held between Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Economic Zones Investors Association (BEZIA) at the BGMEA Complex in Uttara today (Monday) to increase the pace of new investments in economic zones and resolve existing infrastructural and policy problems of investors.

The BEZIA delegation was led by the organization’s President, M. A. Jabbar. The delegation was also attended by BEZIA Vice President, Md. Halimuzzaman, Director, Delwar H. Titu, CEO Dr. Aparup Chowdhury and Member, Md. Mustafizur Rahman. On behalf of BGMEA, the meeting was led by BGMEA President, Mahmud Hasan Khan.  BGMEA Vice President (Finance) Mizanur Rahman also participated in the discussion.

The meeting had a fruitful discussion on the current progress of the plots allocated in favor of the 5 government economic zones for full implementation in the first phase as part of the government’s short-term priorities and various policy obstacles for investors.

BEZIA Chairman MA Jabbar said that many entrepreneurs are suffering from lack of confidence due to slow infrastructure and utility facilities despite paying huge amounts for the plots. As a result, only 27 companies are in production on 39,000 acres of land in the mentioned 5 zones. Only 37% of the total allocated land is currently in operation. Emphasis was placed on joint lobbying to overcome the crisis of uninterrupted gas and industrial water and against imposing additional service charges before the factories are fully operational.

Both the organizations agreed to jointly highlight some key policy issues at the highest level of the government to ensure an investment-friendly environment.

The meeting strongly demanded that the service charge imposed on utility bills used should be completely waived until the promised uninterrupted utility supply is ensured. In order to maintain equality with institutions outside the economic zone, it is very important to provide sector-wise equivalent cash incentives for investors in the zoned units. In addition, the obligation to pay VAT at the rate of 15% at both the master lease holder and later sub-lease recipients, i.e., double taxation, was removed and VAT on lease tariffs was completely waived. Special emphasis was placed on allowing domestic bond-licensed exporters to conduct concealed export activities without EXP and EP to prevent administrative complications and additional time wastage in concealed exports.

In addition, the meeting emphasized on making 99-year lease mutation bankable and implementing one-stop service.

In the discussion, BEZIA Chairman M. A. Jabbar specifically mentioned that BGMEA has 41 unit investors in the National Special Economic Zone located in Mirsarai Upazila of Chittagong. As a result, there is an opportunity and rationale for BGMEA and Bezia to work together on various national and policy-related issues of interest in the garment sector. A Chairman M. A. Jabbar sincerely called for including BGMEA representatives in the Board of Directors of Bezia in order to ensure sustainable industrialization in the economic zone and further strengthen the mutual coordination between both organizations. BGMEA President Mahmud Hasan Khan welcomed the proposal and expressed his agreement to it and promised to nominate a qualified representative on behalf of BGMEA as soon as possible.

At the conclusion of the meeting, top leaders of the two organizations expressed strong optimism that this far-reaching joint policy advocacy by BGMEA and BEZA will encourage the Bangladesh Economic Zone Authority (BEZA) to take swift and groundbreaking steps to address infrastructure challenges and policy complexities.