Foreign and local Investments in the Karnaphuli Export Processing Zone (KEPZ) here has surged 412-fold over the past two decades, marking a significant expansion of the country’s industrial investment, says BSS report.
Anowar Parvej, Executive director of BEPZA told BSS that Karnaphuli EPZ began operations in fiscal year 2006–‘07 with an investment of just US$1.91 million. As of August this year, total investment has reached US$787.33 million- marking significant rise of investment outlay.
He said the zone spans 258 industrial plots, each covering 2,000 square meters accommodating 40 large, medium and small category industrial units. Of them, 29 are fully owned by foreign investors, three are joint ventures while eight are owned by local entrepreneurs.
Another five more industrial enterprises are under implementation process covering 49,798 square meters of floor spaces.
Entrepreneurs from 14 countries that included Bangladesh, China, Taiwan, Hong Kong, South Korea, India, Sri Lanka, Japan, UK, USA, Netherlands and Malaysia have made their investment in setting up their respected industrial units.
Anowar Parvej said Karnaphuli EPZ began operations in 2006, with exports starting in November 2007. In its maiden year (FY 2007–08), exports were totaling US$9.86 million. Since inception to August this year, cumulative exports have stood by US$14,156.46 million, sources said.
BEPZA sources informed that KEPZ’s export performance over the past five FY is US$1,448.69 million in 2021–2022, US$1,885.55 million in 2022–2023, US$1,018.87 million in 2023–2024, US$1,259.42 million in 2024–2025 and US$1,230.44 million in 2025–2026.
Apart from large volume of RMG , factories at KEPZ mainly produces tents and camping gear, bicycles, leather goods, furniture, bags, fashion apparel, and safety suits- many of them for renowned global brands.
Export destination of KEPZ factory products is around 80 countries, including markets across the European Union, non-member EU countries and USA.
Speaking at the zone’s 20th-anniversary celebration, another BEPZA Executive Director Mahbub Ahmed Siddique credited behind such robust growth was product diversification.
“The lion share of this massive export revenue stems from world-class product diversification. KEPZ has now transformed into a hub for high-value, especialized products. Items such as technical sportswear, camping tents, high-tech gear, bicycles, safety shoes, and leather goods for world-renowned premium brands are currently being manufactured here” he added.
BEPZA developed the exclusive industrial enclave on the abandoned land of Chattogram Steel Mills Ltd – a giant state-owned steel products producing factory which was declared laid off in 1998 due to mismanagement and extensive damage it suffered during 1991 devastating cyclone that causes persistent financial loss.
The factory during it’s peak production and high-performance time employed around 10,000 workforces. Once a bustling industrial hub that kept the Patenga industrial belt humming with thousands of workers, the area now turned into a lifeless place.
But the important industrial hub Patenga stretching vast Karnaphuli river bank having many public sector KPIs has regained it’s life following very prudent and time-befitting decision to set up an exclusive industrial enclave – KEPZ took by the then BNP-led government under Premiership of late Begum Khaleda Zia.
Begum Khaleda Zia formally opened the KEPZ in presence of Amir Khosru Mahmud Chowdhury, the then Commerce Minister, who is now Finance and Planning Minister, that help began new era of industrialization in Patenga industrial belt.