Make the most out of industrial parks

It is an irony that, amid persistent unemployment, an industrial park with the potential to create 50,000 jobs remains underutilised due to decades of infrastructural neglect. The Bangladesh Small and Cottage Industries Corporation (BSCIC) estate in Barishal, one of the earliest industrial parks established in 1960, still lacks an industrial gas connection even after six decades. Built on a 131-acre industrial site, the estate comprises 470 plots: 377 allocated to various businesses, and 93 remaining vacant. Of the allocated plots, only 115 have fully active production units. The rest include shuttered factories or ones with limited, intermittent production.

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An industrial park plagued by unrelenting delays

One reason the estate has failed to attract investors is the high production costs. Many factories rely on cylinder gas, which increases production costs. Additionally, the lack of industrial clustering—geographical proximity of interconnected businesses—fails to attract buyers, according to some factory owners. They also point out that the limited number of flights at Barishal airport—only one per day to and from Dhaka—discourages potential buyers. Additionally, businesses have to travel to Khulna for VAT-related matters as the divisional office is still located there.

The neglect of this BSCIC park is evident. Until recently, it lacked basic facilities like boundary walls, security services, and a proper drainage system. Media reports from last year also highlighted the lack of an uninterrupted power supply, a dedicated fire service, and a health centre for workers. After the opening of Padma Bridge, which improved road connectivity with the southern part of the country, there was hope that Barishal BSCIC would finally become a vibrant industrial hub. However, the slow pace of infrastructural development continues to be a barrier for potential investors. As a result, new jobs are not being created, and the government is losing crores in potential revenue.

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Getting the most out of our economic zones

Underutilisation of industrial parks is not new in Bangladesh. Past political governments invested huge sums to build estates without proper planning or supporting infrastructure. For instance, BSCIC has 82 estates with 11,271 allocated plots and 6,200 production units. However, only 4,704 units are in production, employing roughly six lakh people. Given the land scarcity in Bangladesh, the BSCIC should have a higher utilisation rate. Therefore, we urge the government to prioritise the proper development of existing industrial estates before taking on new projects. Businesses should be given appropriate incentives to relocate to these parks. And infrastructure development should generate long-term economic benefits such as jobs and revenue, not just political capital.