The New Nation - Internet Edition

ACCORDING to media reports, earnings from Export Processing Zones (EPZs) in the country cannot keep pace with the increased volume of investment although foreign investment in the EPZs has reportedly doubled in fiscal 2007-08. According to the Bangladesh Export Processing Zones Authority (BEPZA) EPZs received US$302 million as investment in 2007-08 as against US$152 million in the previous FY. But, compared to that the growth of export earnings during the same period is much less. Earnings from export from the EPZs reached to US$2.43 billion in 2007-08 from US$2.06 billion in 2006-07, a growth of only 17.73 per cent. Local value addition to this earnings has been poor.

The BEPZA was set up in 1980 and the number of EPZs is now nine. Some specific objectives were set to achieve from them. The most important of those is to promote foreign and local investment. Other objectives are promotion and diversification of export, development of backward linkage industries, employment generation and transfer of technology. According to official sources, about 2,18,000 workers are employed in the EPZs.

The zones are provided with congenial investment climate. Investors there enjoy infrastructural facilities, various business support services as well as fiscal and non-fiscal incentives. In spite of all these, EPZs' performances are reportedly below the mark. If this is the case, a full-fledged survey of the EPZs needs to be conducted to evaluate them. Special emphasis should be given on calculation of the contribution of the EPZs to the national economy. If the EPZs are found not up to the expected level of performance, the authorities must take up the tasks of making those special economic zones more efficient and rewarding, otherwise the objectives of setting up these zones will never be achieved. Experiences gained from the existing export processing zones must be utilised while setting up new ones.