The government's latest plan to set up a specialised defence economic zone marks a renewed push toward building a self-reliant military industrial base, something Bangladesh has never quite achieved.
The proposed zone aims to produce drones, cyber-technology systems, arms and ammunition for the armed forces and security agencies, with an eye on future export potential.
Officials estimate that developing this sector will require Tk15,000 crore in long-term investment, to be mobilised through the revenue budget, public–private partnerships, joint ventures or direct foreign investment.
How far behind is Bangladesh?
Bangladesh's progress in defence production remains limited even after 54 years of independence.
By comparison, Pakistan invests around $450 million annually in defence production, while India's annual investment exceeds $2.7 billion.
Globally, the scale is far greater: the US invested $11.3 billion, Germany $3.3 billion, China $2.4 billion, South Korea $621 million, Türkiye $600 million and the Netherlands $258 million in 2023 alone.
A senior army officer told The Business Standard that other countries of similar economic strength have advanced significantly.
He estimated it could take 25 to 30 years for Bangladesh to reach comparable levels and stressed the need to develop an industrial ecosystem that can function independently of imports for extended periods.
Private sector
Commerce Secretary Mahbubur Rahman believes Bangladesh has the potential to match Pakistan's level of investment if the right framework is put in place.
"The initiative should start immediately to strengthen both the armed forces and the national defence industry," he said, adding that the proposed defence zone should have a designated area like the Bangladesh Ordnance Factory in Gazipur.
Other officials pointed out that in neighbouring countries, defence production has expanded primarily through private-sector initiatives.
They said Bangladesh's large industrial conglomerates could also play a similar role.
However, an additional secretary from the industries ministry cautioned that foreign investors often seek guarantees, which Bangladesh's current laws and policies do not clearly provide.
Another official said the Defence Procurement Act and related laws currently restrict private participation in the sector.
Participants of a September meeting also suggested adopting policy models from Türkiye or Pakistan and forming a permanent coordination body to oversee defence industry development.