The Bangladesh Investment Development Authority (BIDA) is deliberating whether to permit a proposed export-oriented joint venture in the tobacco sector, as the plan faces restrictions from the Supreme Court and the health ministry.

Officials confirmed that Turkish and Bangladeshi investors have applied to establish Dhaka Leaf Processing Limited in Mirpur, Kushtia, with a total investment of Tk 2.286 billion.

The venture, aimed exclusively at export markets, would process threshed leaf and cut rolled stems from tobacco. Proposed equity includes Tk 127 million from Turkey, Tk 941 million from local sources, and Tk 1.345 billion in domestic loans.

However, the Supreme Court’s Appellate Division has prohibited licensing new tobacco companies or firms linked to tobacco products. The health ministry has also directed BIDA not to register businesses under the “Manufacture of Tobacco Products” category.

In response, BIDA has decided to seek permission from the court and commission research through the UNDP to weigh the economic benefits of such investment against public health risks.

At a recent inter-ministerial meeting, differing views emerged. Commerce ministry representatives argued that, since the entire output would be exported, the project could bolster the economy with limited domestic health risks. Officials from the industries ministry echoed this view.

Conversely, the National Tobacco Control Cell opposed the plan outright, citing the public health implications of supporting tobacco-related investment.

The final decision now hinges on court approval and the outcome of BIDA’s review.