PowerPac Economic Zone: An overview

Ron Haque Sikder Managing Director PowerPac Economic Zone Pvt. Ltd.

Ron Haque Sikder
Managing Director
PowerPac Economic Zone Pvt. Ltd.

Bangladesh is anemergingeconomic power housethat is classified as aNext Eleven emerging market and one of the Frontier Five. Its economy isgrowing at a sustained annual GDP growth of over 6% since FY 2010. The government of Bangladesh has taken initiatives to establish 100 Economic Zones on 30,000 hectares of land in the next 15 years with an employment generation for 10 million people. As response to the government, PowerPac Economic Zone (Pvt.) Ltd. (PEZ) (a concern of Sikder Group)established with the purpose of start- up and development of efficient industrial activities through absorption of domestic and foreign investment using modern technology and providing special service towards national quantitative and qualitative boom. PEZ is the first Economic Zone inMongla, Bagerhat, Bangladesh awarded on Public Private Partnership (PPP) basis under the Bangladesh Economic Zone Authority (BEZA).

PEZ’s Vision and Mission

Development of infrastructure facilities

Promotion of investment from domestic and foreign sources

Generation of additional economic activity

Promotional export goods and services

Creation of employment opportunities


Why Invest In PEZ?

Presence of Mongla Port adjacent to the PEZ and existing Export Processing Zone (EPZ) will provide most cost effective and timely logistic support resulting in sustainable logistic service, such as:


Captive Power Plant

International Management Team

Hassle free land

One stop service

Sewerage Treatment Plant

Effluent Treatment Plant

Water Treatment Plant

Waste Management Plant

Uninterrupted Utility Service

Key Information of PEZ

Access: Adjacent to Mongla Port, 40 km from Khulna City, 105 km to Jessore Airport and 230 km to Dhaka

Land: Gross area 205 acres

Facilities: Bank, Retail Shops, Administration Block, Training Center, Community Hospital, Filling Station, Mosque & Place for Religious activities, Day Care Center, Housing Facility, Residential Hotel.

Suitable Industries

Apparel / RMG

Paper Industry

Plastic Goods

Agro Products Industry

Metal Product Industry

Steel & Re-Rolling Mills


Furniture Factory

Footwear & Leather

Solar Energy

Cement Industry

Light Engineering

Chemical Industry

Food Processing

Ship Building



Toy Industry


Incentives for Investors

Tax Holiday: Year 1 : 100%; Year 2 :100%; Year 3 :80%; Year 4 :70%;

(Of 35% Corporate Year 5 : 60%;   Year 6 :50%;Year 7 :40%;Year 8 :40%;

Tax Rate) Year 9 : 20%; Year 10 : 10%

Duty free import of raw materials

Exemption from dividend Tax (after tax holiday elapsed)

Full repatriation of capital and Dividend

No ceiling of FDI

20% sale of finished product to DTA

Sub-contracting with DTA allowed

50% exemption of stamp duty

50% exemption of registration fee

Exemption of VAT on all utility services

Duty exemption on export

Exemption of income from IT for expatriates’

Foreign loan is allowed in compliance of existing laws

FC Account for non-residents

FC Account for both local & Joint Venture (JV) industry

Foreign investors are free to enter into JV

Tax exemption on royalties, technical fees etc

Resident visa for investment of USD 75,000

Citizenship for investment of USD 500,000 or more

100% backward linkage raw-materials and accessories to sell for E01 in DTA

Exemption of double taxation subject to Double taxation agreement

Consider Export Processing Area of Economic Zone as custom bonded area

Tax exemption on capital gains from transfer of shares

Provision of transfer shares by foreign shareholders to local shareholders and investors

Issuance of work permits to foreigners is allowed up to 5% of total officers / employees of a unit


Process to be adapted

The Unit Investor apply to PEZ for the Plot at Economic Zone

PEZ confirm the plot subject to the availability and sign the contract with the Unit InvestorThe Unit Investor setup the business and start the commercial operation.