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Macroeconomics Assignment
Assignment Title:- A Roadmap to Transform Bangladesh into a
Progressive Country.
Submitted to,
Shahnawaz Mohammad Rafi
Macro Economics
Department of Economics
Semester: Summer 2009-10
American International University – Bangladesh
Submitted by,
Name: Subrata Roy
ID No: 08-10949-2
Section:A
Semester: Summer 2009-10
American International University – Bangladesh
House 83/B,Road 4, Kamal Ataturk Avenue, Banani, Dhaka 1231.
LETTER OF TRANSMITTAL
26 July, 2009.
Shahnawaz Mohammad Rafi,
Faculty of Economics,
American International University of Bangladesh (AIUB),
58/B, Road#21, Kemal Ataturk Aveneu,
Banani, Dhaka.
.
Subject: Letter regarding submission of Assignment on “A Roadmap to Transform
Bangladesh into a Progressive Country.”
Dear Sir,
It's a great pleasure for me to have the opportunity to submit an assignment on a case on" A
Road map to Transforms Bangladesh into a progressive country” which had been a great
experience for me to work with such a practical & real life issue. I tried utmost to make & let it
look like a professional one. Any shortcomings are expected to have a kind view for me
encouragement.
Thank you for your sincere & honest try to let me make easy & get familiar with the terms &
facts of Bangladesh as well as about the progressive country and to help me make the paper a
successful one.
My efforts will be valued, if this report can serve for what it’s been meant for & my assistance
will be there for any queries.
Sincerely yours
-----------------------
Subrata Roy
Acknowledgement
My work on preparing an assignment on “A Road map to Transform Bangladesh into a
progressive country” is a great experience for me in light of the course Macro Economics. I
truly gratified that, I received the regulation and assistance of my honorable course instructor in
the preparation of this assignment. For this reason, I especially appreciate my praiseworthy
course instructor Shahnawaz Mohammad Rafi, for his constant effort in imparting valuable
knowledge and expertise enabling me to prepare such a proper assignment on this suitable focus.
This is an enormous opportunity for my future accomplishment and achievements of my goals by
preparing an assignment on this attractive focus. I tried to follow the guidelines of preparing a
formal report, which will be beneficial for me in future.
At last, I thank to the Almighty Allah to give me the energy and the patience to complete this
report in this short time.
CONTENTS PAGE NO.
Objective of the report i
Research methodology i
Limitation of the study i
Introduction 1-2
The growth rate of Bangladesh 2-4
Bangladesh GDP - composition by sector 5
The Sectors Bangladesh economic
Agriculture 6
Manufacturing & Industry7-8
Ready Made Garments Sectors of Bangladesh 8-9
Development of Knitwear of Bangladesh 10-12
Power and Energy 13-14
Textile sector14-15
Tourism in Bangladesh Economic Development15-16
Pharmaceutical sector of Bangladesh 17
Transport and Communication 18-19
Crocodile Industry of Bangladesh 20
Recommendations 21
Conclusion 22
Reference 23
1.2 Objectives of the Report
The report has been prepared with a view to analyzing the road map to transform Bangladesh
into a progressive country. Besides the report has been composed to obtain following objectives -
To identify the sectors which contribute Bangladesh economy?
To find out which sectors are more progressive & which sectors are less progressive
To analyzes the percentage of Bangladesh progress?
1.3 Research Methodology
I used descriptive research method to complete this report. In my research, I used book,
journals, and internet to collect this secondary data.
1.4 Limitation of the Study
There are some limitations to do any types of works .I also faced a number of problems that may
be turned as the limitation of the study. The problems are given below:
Shortage of information.
Lack of experience.
Shortage of time.
i
Introduction
The economy of Bangladesh is constituted by that of a developing country. Its per capita income
in 2008 was US$1389 lower than the world average of $10,497. According to the gradation by
the International Monetary Fund, Bangladesh ranked as the 48th largest economy in the world in
2008, with a gross domestic product of US$224,889 million. The economy has grown at the rate
of 6-7% p.a. over the past few years. While more than half of the GDP belongs to the service
sector, nearly two-thirds of Bangladeshis are employed in the agriculture sector, with rice as the
single-most-important produce.
Remittances from Bangladeshis working overseas, mainly in the Middle East and East Asia, as
well as exports of garments are the main source of foreign exchange earnings. Economic growth
is rather endogenous with slow growth in foreign direct investment. Although one of the world's
poorest and most densely populated countries, Bangladesh has made major strides to meet the
food needs of its ever growing population.
The land is devoted mainly to rice and jute cultivation, although wheat production has increased
in recent years; the country is largely self-sufficient in rice production. Nonetheless, an estimated
10% to 15% of the population faces serious nutritional risk, and that food security is at risk for
45% of the population. Bangladesh's predominantly agricultural economy depends heavily on an
erratic monsoonal cycle, with periodic flooding and drought.
Although improving at a very fast rate, infrastructure to support transportation, communications,
power supply and water distribution is poorly developed. Bangladesh is limited in its reserves of
oil, but recently there was huge development in coal mining. While the service sector has
expanded rapidly during last two decades, country's industrial base remains narrow. The
country's main endowments include its vast human resource base, rich agricultural land,
relatively abundant water, and substantial reserves of natural gas which are depleting quickly and
may disappear in the next 7-8 years
Since independence in 1971, Bangladesh has received more than $30 billion in grant aid and loan
commitments from foreign donors, about $15 billion of which has been disbursed. Major donors
include the World Bank, the Asian Development Bank, the UN Development Program, the
United States, Japan, Saudi Arabia, and west European countries. Bangladesh historically has run
a large trade deficit, financed largely through aid receipts and remittances from workers
overseas. Foreign reserves dropped markedly in 2001 but stabilized in the $3 to $4 billion range
(or about 3 months' import cover). In January 2007, reserves stood at $3.74 billion, and they
increased to $5.39 billion by January 2008, according to the Bank of Bangladesh, the central
bank.
The growth rate of Bangladesh
The growth rate of domestic product is increase day by day in Bangladesh. If Bangladesh
Continue this progress, it can reach the stage of rich country one day. The chart of GDP rate:-
Year GDP - real growth rate
1974 -4.09
1975 5.66
1976 2.67
1977 7.07
1978 4.80
1979 0.82
1980 3.39
1981 1.23
1982 4.89
1983 5.43
1984 3.01
1985 4.34
1986 4.16
1987 2.89
1988 2.52
1989 6.63
1990 3.40
1991 4.23
1992 4.20
1993 4.50
1994 4.60
1995 4.90
1996 4.60
1997 5.40
1998 5.20
1999 4.90
2000 5.90
2001 5.30
2002 5.10
2003 4.40
2004 5.30
2005 4.90
2006 6.40
2007 6.60
2008 6.30
Chart of Bangladesh GDP(1974-08)
Source:Based on BBS(1993,pp66-67;2003,p.489)ADB(various issuses)
Bangladesh GDP - composition by sector(2008)
Agriculture:19%
Industry:28.7%
Services: 52.3%
The Sectors Bangladesh Economic
There are different type of sectors contributes Bangladesh economic. In the below, I discuss
these sectors briefly
Agriculture
Most Bangladeshis earn their living from agriculture. Although rice and jute are the primary
crops, maize and vegetables are assuming greater importance. Due to the expansion of irrigation
networks, some wheat producers have switched to cultivation of maize which is used mostly as
poultry feed. Tea is grown in the northeast. Because of Bangladesh's fertile soil and normally
ample water supply, rice can be grown and harvested three times a year in many areas. Due to a
number of factors, Bangladesh's labor-intensive agriculture has achieved steady increases in food
grain production despite the often unfavorable weather conditions. These include better flood
control and irrigation, a generally more efficient use of fertilizers, and the establishment of better
distribution and rural credit networks. With 28.8 million metric tons produced in 2005-2006
(July-June), rice is Bangladesh's principal crop. By comparison, wheat output in 2005-2006 was9
million metric tons. Population pressure continues to place a severe burden on productive
capacity, creating a food deficit, especially of wheat. Foreign assistance and commercial imports
fill the gap. Underemployment remains a serious problem, and a growing concern for
Bangladesh's agricultural sector will be its ability to absorb additional manpower. Finding
alternative sources of employment will continue to be a daunting problem for future
governments, particularly with the increasing numbers of landless peasants who already account
for about half the rural labor force.
Agriculture accounts for 24.6% of GDP and employs over 62.3% of the work force. So
Government should give the sector’s more importance because agricultural goods contribute the
second earning sectors of Bangladesh. The Government continues to support the agricultural
sector through a number of policy intervention with the ultimate view to achieving food self
sufficiency. The Fishery, Livestock and Poultry sectors have grown rapidly during the 1990.The
mean growth rate of agriculture of Bangladesh:-
Year Growth Rate
1974-90 1.99
1991-2001 3.21
Manufacturing& IndustryMany new jobs - mostly for women - have been made garment industry, which grew at double-
digit rates through most of the 1990. By the late created by the country's dynamic private ready-
1990, about 1.5 million people, mostly women, were employed in the garments sector.
During2001-2002, export earnings from ready-made garments reached $3,125 million,
representing52% of Bangladesh's total exports
The Government is keen to expand the industrial base of the economy and encourage both
domestic and foreign investment in the sector. Based on the philosophy of market economy,
since 1999, the Government has pursuing an industrial strategy, which has been defined in the
Industrial Policy 1999.
Year Industrial production
growth rate
Rank Percent Change Date of
Information
2003 1.80% 110 2002est.
2004 1.90% 111 5.6% 2003 est.
2005 6.50% 55 242.11% 2004 est.
2006 6.70% 55 3.08% 2005 est.
2007 7.20% 46 7.46% 2006 est.
2008 8.40% 35 16.67% 2007 est.
This sector will contribute our country more future. So Particular attention is given on the
following categories of industries:
Set up in Export Processing Zones
High Technology export-oriented or import substitution products
Industries based on indigenous resources or raw materials
Quality enhancement, marketing and capacity building of existing industries
Labor-intensive, technology-oriented, capital-intensive industries
Ready Made Garments Sectors of Bangladesh
The Fastest Growing Export Sector of The Country. Starting in late seventies, the apparel industry of
Bangladesh now accounts for over 64% of the country's total export earnings. Country's apparel
export rose to US$2628 million in 1996 from a mere US$6 million in 1981.
To about 30 countries around the world, Bangladesh presently exports ready-made garments, with
over 45% to USA, 50% to the countries in EU and 3% to Canada and rest to the other countries of
the world. Country's apparel export has been growing on an average at the rate of 25% for last
several years. The country, last year ranked 6th largest apparel exporter to the USA the EU.
Bangladesh Garment Export
There are about 2500 export oriented ready-made garment industry in Bangladesh those are clustered
over mainly Dhaka and Chittagong. Such distribution offers buyers advantage to choose the right
manufacturers and exporters, throughout the year, with minimum effort.
Garments Factory in Bangladesh
Development of Knitwear of Bangladesh
The RMG business started in Bangladesh in the 70s but it was then merely a casual effort. The first
consignment of knitwear export was made in 1973 and the first consignment of woven garments was
made in 1977. Though started later, but it was the woven sector that first dint a spot in the export pie
of Bangladesh. In 1981-82 the contribution of woven garments in the total export was 1.10%.
Afterwards it is a story of sustained success for the Bangladesh RMG sector. Within a decade the
contribution of woven to the export basket became 42.83% (1990-91) and the knitwear sector's
contribution was 7.64% (1990-91)
The entrepreneurs of the knit sector stepped forward with their expertise in the late 80's. With their
earnest efforts they were able to export US$ 14.84 million in 1989-90. Out of this US$ 12.22 million
was exported to EU and US$ 2.02 million was exported to US. The trend continued in the knit sector
because of the market access opportunity provided to the LDCs under the Generalized Systems of
Preference (GSP) benefit.
This is the rejuvenated beginning of the epic story of Bangladeshi knitwear sector RMG sector that
in true sense has been able to massive industrialization in a sustainable way with effect on all
probable human development aspects which is the encouraging part of the story.
The growth of knitwear sector is increasing at an increasing rate. The cumulative average growth
rate of the sector is 27%. And it is continuously grabbing a more portion in the export pie of
Bangladesh. This is mainly attributed to the facilities provided under the EC GSP and ROO. The
knitwear sector is heavily driven by these favorable policies and took the opportunity to develop a
strong backward linkage for the sector.
Comparative Statistics of Knit Wear & Woven Wear:-
Strength of Knitwear Sector of Bangladesh
Competitive wage rate together with easily trainable workforce, entrepreneurial skill, expanding
supply side capacity, and government policy support helped to translate the comparative advantages
into competitive advantages. The core strength of the knitwear sector is its backward linkage. The
entrepreneurs of the sector not only increased their stitching capacity overtime but also invested in
the allied industry to augment the overall capacity of the total sector with the same pace. Over the
period of time knitwear sector gradually became almost self sufficient in fabric and yarn. This
improvement has become possible because of the integrated growth of spinning factories in line of
the growth of country's stitching capacity and increased need of the yarn and fabric.
As the export increased in the knitwear sector, the capacity of backward linkage also gradually
increased accordingly. The result is local suppliers can provide 90% of the total fabric requirement
of the sector. The growth of spinning mills also stepped with the growth of knitwear exports. In
1993-94 total number of spindles was 1.38 million that supplied 10.70 million KG yarn. In 2003-04
the number almost tripled and it became 3.77 million that supplies 239.00 million KG yarn. As of
now the total investment in the backward linkage industry is more than US$ 2.00 billion.
Graph of Comparative Consumption & Local Supply of Fabric & Yarn:-
Power and Energy
The energy sector is the largest recipient of all foreign investment in Bangladesh. The Government is
concerned about creating an appropriate enabling environment for improved public sector
performance, attracting multilateral investment on a sustainable basis, rationalizing tariff rates and
improving tariff collectors’ performance. The private sector power generation policy has been
brought into operation. In order to achieve the vision of electricity to all by 2020, the Government
adopted the National Energy Policy in 1996. The Policy Guideline for Small Power Plant (SPP) has
also been formulated to promote small-scale power generation in the private sector. The Government
has set the target of 6,716 MW power generations by 2007, 9,840 MW by 2012, and 17,500 MW by
2020. To this end, the projected investment will be US$3.6 billion in 2004-2007, US$4.5 billion in
2008-2012 and US$7 billion in 2013 2020.
The main energy resource of Bangladesh is gas. The Government is encouraging joint-venture power
projects between the private sector, both foreign and domestic, and the Bangladesh Power
Development Board.
An essential precondition for industrial development is uninterrupted supply of energy. Although the
installed capacity for generation of electricity in the country is 2908 megawatt, the actual production
does not exceed 2160 megawatt as against the peak demand of 2200 megawatt. The average level of
system loss is still as high as 33.3%. The demand for power will increase by 300 MW annually and
an investment of about To 110 billion up to the turn of the century will be needed to meet it.
The government has embarked on a well-planned policy to generate more energy through higher
public and private investment, reduce system loss to the minimum and harness natural gas, solar
power, atomic power and hydroelectric resources. As per private sector power generation policy
formulated by the govt. in October 1996, three barge-mounted power generating units with capacity
of 100 MW each would be set up by private sector entrepreneurs at Khulna, Haripur and Shikalbaha.
Other power projects in the pipeline at Meghnaghat, Haripur, Mymensingh and Baghabari will help
Bangladesh attain self-sufficiency in power generation in near future.
The private power generation policy offers attractive incentives including tax holidays for 15 years
and one-win-dow service. The reserve of recoverable natural gas has been estimated at 12.4 trillion
cubic feet. After years of commercial exploitation, a reserve of 9.8 trillion cubic feet is still available.
Production-sharing contracts have been signed with local and foreign firms for oil and gas
exploration in 8 blocs out of a total 23 in the country.
Currently about 88 percent of power generation is based on natural gas. About 55% of the country's
energy supply is based on traditional fuels (crop residues, animal dung and fuel wood), 24% on
natural gas, 19% on imported oil and coal and the remaining 2% is hydroelectricity. Natural gas has
also contributed to the rapid growth of the chemical fertilizer industry. The recent discovery of
sizable coal deposits in the northwestern part of the country is of significance. Agreements have been
signed with some Chinese companies for their extraction. A coal-based power plant is also proposed
to be set up in the area. Abundant supply of coal at home will greatly reduce pressure on imported
oil.
Textile sector
Bangladesh's textile industry, which includes knitwear and ready-made garments along with
specialized textile products, is the nation's number one export earner. The sector, which
employs2.2 million workers, accounted for 75 per cent of Bangladesh's total exports of
US$10.53 billion in FY2005-06, in the process logging a record growth rate of 24.44 per cent.
However, since May 2006 the industry has been plagued by on are among some of the most
lowly paid in the world, have staged regular violent demonstrations -going industrial unrest, as
textile workers, who are among some of the most lowly paid in the world, have staged regular
violent demonstrations in a bid to achieve a higher minimum wage, regular rest days and safer
working conditions.
Following the worst of the unrest in late May, which saw at least one worker killed as police shot
live rounds at protesters, the government formed a Wage Commission, ordering it to report on a
suitable new minimum wage in three months. The Commission, which included business and
worker representatives finally released its conclusions on October 9, recommending the wage be
set at Tk1, 662.50, up from the current level of Tk950, but far below initial worker demands for
Tk3, 000.
After initially condemning the unrest as the work of outsiders attempting to capture the nation's
share of global markets, Bangladesh Garment Manufacturers and Exporters
Association(BGMEA) leaders appear to have finally accepted the need to raise wages The
government also seems to believe some change is necessary. On September 21, 2006 then Ex-
Prime Minister Khaleda Zia called on textile firms to ensure the safety of workers by complying
with international labor law at a speech inaugurating the Bangladesh Apparel & Textile
Exposition
Tourism in Bangladesh Economic Development
Tourism is a small but rapidly growing sector of Bangladeshi economy. According to the
International Labor Organization, together with the wholesale and retail sector it provides
employment for almost 6.0 million people (1996), or around 10.8 percent of the labor force.
Government statistics state that 171,000 tourists visited the country in 1998, contributing Tk2.4
billion to the national economy. Most visitors were from India, Australia, Germany, the United
Kingdom, and the United States.
Despite its poor-country status, increasing numbers of tourists have visited Bangladesh, a new
but minor source of foreign exchange earnings. Tourism in the early 1980s amounted to some
49,000 visitors per year, but by 1986 more than 129,000 tourists--mostly from India, the United
States, Britain, and Japan--visited Bangladesh. According to the Bangladesh Parjaton
Corporation (Bangladesh Tourism Corporation), some Tk44.6 million in foreign exchange was
earned in 1986 from the tourism industry.
Bangladesh Parjatan Corporation (BPC) statistics show that a little over 11 thousand people
came to Bangladesh for various reasons, tourism being one of them, in the year 1992. But by the
year 2000, approximately 210 thousand people were coming to Bangladesh, accounting for about
Tk 2.65 billion ($ 46 million) in foreign exchange ("Going to Bangladesh," thingsasian.com,
2003). In the year 2007, the government of Bangladesh promised to spend around Tk. 5.7 billion
($ 81.1 million) for the tourism sector, which is 2.1% of the total government expenditure.
Tourist comes to our country. He/she spend his/her money to live in the hotels, to travel in the
sport by vehicles, spend money for shopping etc. So a tourist when come to our country, he/she
spend a large amount of money. So tourism creates great economic development. It also create
employment opportunity which is a good sign of economic development.
Tourist coming rate of past few years:
Year Number of tourist Decision
2003 244,000 Increased by 12.5 per cent
2004 271,000 Fell by about 15 per cent
2005 208,000 Remained below the 2004.
2006 255,000 Rose slightly by 4.5 per cent.
2007 289,110 Increased by 13.5 per cent
Now a day, this rate is increasing day by day. So it is too good for our economy. Many countries
are developing only with from its tourism sector. If we keep our attention on this sector, it will be
major sector of our economy.
Let us be more practical about the development of tourism in the country; let us develop it in the
true sense, so that it contributes valuable foreign exchange to our state coffer, and help to
develop the economy of the country.
Pharmaceutical sector of Bangladesh
In Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors which is
contributing in the country's economy. After the promulgation of Drug Control Ordinance -
1982, the development of this sector was accelerated. The professional knowledge, thoughts and
innovative ideas of the pharmacists working in this sector are the key factors for these
developments. Due to recent development of this sector it is exporting medicines to global
market including European market. This sector is also providing 97% of the total medicine
requirement of the local market. Leading pharmaceutical companies are expanding their business
with the aim to expand export market. Recently few new industries have been established with
high tech equipments and professionals which will enhance the strength of this sector.
Regulatory authorities of Pharmaceutical sector
Two organizations, one government (Directorate of Drug Administration) and one semi-
government (Pharmacy Council of Bangladesh), control pharmacy practice in Bangladesh. The
Bangladesh Pharmaceutical Society is affiliated with international organizations International
Pharmaceutical Federation and Common wealth Pharmaceutical Association.
The top Pharmaceutical Companies of Bangladesh:-
Advanced Chemical Industries (ACI) Limited
Aristopharma Ltd
Amico Laboratories
The ACME Laboratories Ltd
Beximco Pharmaceuticals Ltd
Eskayef Bangladesh Limited
Novo Healthcare & Pharma Limited
Incepta Pharmaceuticals Limited
Square Pharmaceuticals Ltd. Bangladesh
Transport and Communication
Almost all parts of Bangladesh, even the remote areas, are today connected by a road
network
Bangladesh has the best water transport system in the region, which accounts for two-
thirds of cargo transport within the country
Bangladesh Telecommunication Regulatory Commission has been formed to enhance
telecommunication services
The Government has opened up the telecommunication sector to private participation.
Telecommunication
The telecom sector in Bangladesh is rapidly emerging. In very short time, mobile phone
companies spread their service all over the country.In the below. I discuss the mobile company
and PST of bangladesh.
PSTN
The PSTN operators in Bangladesh are:
BTCL Former BTTB
Ranks Telecom Ltd.
Tele Barta Ltd. - branded under the nameJubok phone.
Jalalabad Telecom Ltd. - branded under the name Bijoy Phone.
Onetel Communication Ltd.
National Telecom Ltd.
Peoples Telecom Ltd.
Westec Ltd.
Dhaka Telephone Co. Ltd.
Integrated Services Limited (ISL) - branded under the name Sheba Phone
S.A Telecom System Ltd.
Banglaphone Ltd.
The number of PSTN subscribers in Bangladesh as of February 2009 was 1.372 million
Mobile phone
There are 6 mobile phone operators in Bangladesh. These are:
1. Grameenphone Ltd.(GP)
2. TMIB (Aktel)
3. Sheba Telecom Ltd.(Banglalink)
4. PBTL (Citycell)
5. Teletalk Bangladesh Ltd.(Teletalk)
6. Warid Telecom Int.(Warid Telecom (Bangladesh))
The number of mobile phone subscribers in Bangladesh as of February 2009 was 45.21 million.
The growth rate phone subscribers are increasing rapidly in our country. On the other hand,
mobile phone companies also increase their service and network system.
Crocodile Industry of Bangladesh
Mushtaq Ahmed and Mesbahul Huq set up the crocodile farm, the Reptiles Farm Limited (RFL),
at Hatiber village under Bhaluka upazila in Mymensingh district on a land of 15 acres. While the
project is Mushtaq's brainchild, it was Huq's investment that helped turn the dream into a reality.
The two entrepreneurs were aided in their maiden venture with technical assistance from
SouthAsian Enterprise Development Facility (SEDF) and with financial support from the equity
and entrepreneur fund (EEF) unit of Bangladesh Bank. The RFL also got assistance from
Southeast Bank Limited.
The duo brought 75 reptiles ranging from seven to 12 feet from Malaysia for commercial
breeding of crocodiles for Tk 12.5 million (1.25 crore). Of them, eight died on way to the farm
established in October 2004.
They will export over 5,000 pieces of crocodile skin annually and create a base for earning up to
US$ 5.0 million by 2015.Different countries, including France, Germany, Italy and Spain, have
shown keen interest in importing crocodiles from their farm, he said, adding the farm is likely to
export skins, meat and bones of 140 saltwater crocodiles next year. They are very much hopeful
of exporting skins, meat and bones of at least 140 crocodiles from Bangladesh by December,
2009, They hope that the number would go up to 500 within the next two to three years.
This is the condition of crocodile industry in our country. There is a huge demand for crocodile
skins, meat and bones in Europe, America and other developed countries like Australia, Japan,
Singapore and China, and charcoal made from crocodile bones is indispensable for the global
perfume industry. Government should take some steps about this sector, so that we export lot of
crocodile skins, meat and earn foreign money. Some proposals of our government are:-
More invest this sector.
Do seminar or advertisement about known the people, the advantages this sector.
Formulate an exotic wildlife farming policy to facilitate exploration of this field.
Recommendations
The economic condition of Bangladesh increases day by day. If government takes some effective
steps, country will progress more firstly. So some suggestions of Bangladesh government are
No ceiling on investment.
100 percent foreign equity participation allowed.
Tax-holiday from five to 12 years.
Tax-exemption and duty free importation of capital machinery and spare parts for 100
percent export-oriented industries.
Residency permits for foreign nationals.
Capital, profit and dividend repatriation facilities.
Exemption of income tax up to three years for expatriate employees.
Term loans and working capital loans from local banks.
Reinvestment of reportable dividends treated as new investment.
Avoidance of double-taxation.
Tax exemption on the interest payable to foreign loans and on royalties and technical
open exchange control.
Multiple-entry visas for investors.
Convertibility of the taka (Bangladesh) for current account transactions.
Protection of foreign investment through law and international agreements. .
61 industrial units are available and ready for disinvestment.
Establishment of Export Processing Zones (EPZs).
Setting up of a Law Reforms Commission to ensure greater transparency and
accountability in business.
Setting up of a permanent Administrative Reforms Commission to rationalize existing
rules, regulations and procedures to ensure a conducive atmosphere for investment.
Agreement with reputable foreign companies for power generation in the private sector.
Permission to operate cellular telephones in the private sector.
Formulation of policy for privatizing road, rail and infrastructure and services.
Conclusion
The economy has grown 5-6% over the past few years despite inefficient state-owned
enterprises, delays in exploiting natural gas resources, insufficient power supplies, and slow
implementation of economic reforms. Bangladesh remains a poor, overpopulated, least
developed and inefficiently-governed nation. Although more than half of GDP is generated
through the service sector, nearly two-thirds of Bangladeshis are employed in the agriculture
sector, with rice as the single-most-important product. Garment exports and remittances from
Bangladeshis working overseas, mainly in the Middle East and East Asia, fuel economic growth.
All over the economic condition of Bangladesh is blooming day by day.If government take
proper step right time, private and public sector work together , I hope Bangladesh will reach the
stage of develop country one day.
REFERENCES
www.cpd-bd.com .
www.shamunnay.com .
www.ids-bd.com .
www.wb.org .
www.google.com .
www.dailystar.com.bd