The government is looking for a suitable land area for setting up a “Specialised Defence Economic Zone” to manufacture weapons and ammunition.

The government has decided to establish such an “Economic Zone” to meet the growing domestic demand for modern weapons, including drones and cyber-technology-based defence systems for military purposes.

The initiative also aims to tap into the potential for exporting these defence products, said a source of Bangladesh Economic Zones Authority (BEZA).

According to the source, the officials estimated that the development of this industry will require a long-term investment of approximately $1.5 billion. The project is likely to be set up as a Public-Private Partnership (PPP), a joint venture, or Foreign Direct Investment (FDI).

According to concerned officials, Chief Adviser Muhammad Yunus has approved several key policy decisions to facilitate technology transfer, joint investment, PPP, and FDI, all aimed at modernizing the defence sector and achieving self-sufficiency.

The decision to establish the specialised Defence Economic Zone was reportedly made during a meeting chaired by Chowdhury Ashik Mahmud Bin Harun, executive chairman of BEZA, in September.

High-level military and civilian officials were present at the meeting.