Bangladesh is planning to establish a ‘Specialized Defence Economic Zone’ to manufacture weapons and ammunition as part of a broader effort to modernize its military and develop a self-sustaining defence industry, according to officials of the Bangladesh Economic Zones Authority (BEZA).

The proposed zone, currently in the site-selection stage, will focus on producing advanced defense equipment, such as drones and cyber-technology-based systems, to meet growing domestic demand. Authorities also see potential for export to international markets, BEZA sources said.

Officials estimate that developing the industry will require long-term investment of around US$1.5 billion. The project is expected to take shape through Public-Private Partnerships (PPPs), joint ventures, or foreign direct investment (FDI), depending on investor interest and strategic alignment.

Chief Adviser Dr Muhammad Yunus has already approved several key policy measures to support the initiative, including provisions for technology transfer, joint investment, and international collaboration.

The goal, officials say, is to strengthen national defence capabilities while positioning Bangladesh as a future producer of high-tech military systems.

The decision to move forward with the specialized zone was reportedly made during a September meeting chaired by BEZA Executive Chairman Chowdhury Ashik Mahmood Bin Harun. Senior representatives from both the military and civilian sectors attended the meeting, reflecting a coordinated approach between defence authorities and the government’s economic planning agencies.

Officials noted that the project marks a strategic shift in Bangladesh’s industrial development, aiming to integrate defence manufacturing within the country’s wider economic growth agenda.