Khulna is the third largest economic centre in Bangladesh. It is situated north of the Port of Mongla and has various heavy and light industries. The N7 national highway connects the city with most other parts of the country. The region has an Export Processing Zone which has attracted substantial foreign investment. In the south-western part of Bangladesh, in the district of greater Khulna, lies the Sundarbans (world's largest mangrove forest), the home of royal Bengal tiger.

The city becomes a very important communication hub for adjoining major district headquarters. Khulna railway station is a railway station in Khulna, Bangladesh. The railway station is the main station of the city, and links to Jessore railway station via the Jessore-Khulna Rail Line Bangladesh Railway has plan to construct modern hospitals, medical colleges, five-star hotel-cum-commercial buildings, multistoried shopping mall-cum-guest houses on its unused lands in Khulna.

Despite being business Centre there is not sufficient modern Medical College Hospital in Khulna. But the demands for high quality medical education are very high. There is also scarcity of private land in town area. So that the needs of the demanding medical facilities and education Bangladesh Railway planned for establish a hospital and college in Khulna. There are sufficient unused lands adjacent to the hospital. The utilization of this unused land recommended by a committee formed by Bangladesh Railway for establishing a medical college under PPP. But, Bangladesh Railway has spare-able open land in the Khulna town. Hence, the Project will attract numerous of Private entrepreneurs.