Final Report of Nushu

Economic Analysis

Economics Analysis o0f Bangladesh is essential part of our report. Because it gives us the basis for economic soundness of Bangladesh. This section will cover: general economic data , and information on channel of distribution and media availability that is adopted to our Pleasure Scooty.

1.Population:

A.Total :

Bangladesh is densely populated country in the world. According to national census 2011 the

total population of Bangladesh was 152,518,015 which rank Bangladesh 8 th in the world. But at

present the total population according to CIA World fact book is 166,280,712.

I. Population Growth

Average annual growth rate is displayed in Fig. 2.4. At the beginning of 20th century, the annual

average growth of Bangladesh was below 1.0. After a small decrease in the 2nd decade, the

population growth rate gradually increases until 4th decade. We then observe a sharp decrease in

5th decade, which is the lowest growth rate of this century. In next two decades the annual

average growth increases sharply and stood up to the highest growth in the 7 th decade.

Bangladesh experiences a slowly decreasing population growth rate in the last four decades and

in beginning of 21st century. The annual average growth rate is 1.47 in 2011.

2.Birth and death rate:

According to Bangladesh bureau of statistics current birthrate (census 2011) is 17.88/per 1000.that was 28.5 in 1991.And death rate 4.8/per 1000 in 2011.tht was 9.7 in 1991.

Table:Birth and Death rate of Bangladesh.

Year Birth rate per 1000 Death rate per 1000

2011 17.88 9.72004 20.8 6..1

1991 28.5 9.7

Source:Bangladesh Bureau of Statistics.

B.Distibution of population

By Broad Age Group(%)

Key indicator 2011 2001 1991 19810-4 Years 10.46 12.87 16.45 16.985-9 Years 12.62 13.43 16.55 16.2510-14 Years 11.56 12.75 12.15 13.3715-24 Years 18.18 18367 16.70 17.1325-59 Years 39.73 36.06 32.79 30.6460+ Years 7.48 6.22 5.36 5.63

Source:National census 2011.

By the above table we can see that 25-29 years people leads the highest percentage in 2011 that is 39.73%.And the lowest prercet is 60+ peoples group.they hold 74.48% of total population.

Distribution by Division,Sex and Residence

Population distribution by division, sex and residence is shown in Table . 76.7% population of

Bangladesh lives in rural area out of which 49.4% male and 50.6% female. Out of 23.3% urban

population 52.2% are male and 47.8% are female. Proportion of urban population is the

maximum in Dhaka division 32.9%. In Dhaka, urban male population is 53.6% and female is

46.4% and rural male population is 49.7% and female is 50.3%. Proportion of urban population

is the minimum in Rangpur division 13.4%. In Rangpur, urban male population is 50.7% and

female is 49.3% and rural male population is 49.8% and female is 50.2%. In general the

proportion of male is higher than female in urban area while the reverse is true in rural area.

Table :Distribution of Population by Division,Sex and Residence

Source:BBS

Migration rate:

Internal Migration: Distribution of Population in-migrants by division is presented in

Table 3.2. First column of the table indicates that 75.06% of those people who live in

Barisal division (5.85%, see Table 3.1) is native born and the remaining people migrated

from other divisions (11.41% from Khulna and 7.58% from Dhaka). Third column of the

table indicates that 57.51% people of Dhaka native born and the remaining people

migrated from other divisions (13.13% from Khulna, 9.29% from Rajshahi, 8.09% from

Rangpur and 5.04% from Chittagong). In-migration of Chittagong division is maximum

and minimum in Khulna division and the proportion of migrants is less than 50.0% in the

remaining divisions.

Table: Internal Migration rate

International Migration rate: In 2011 were 3.46 according to census 2011.

Ethnic Group:

Bangladesh is largely ethnically homogeneous, and its name derives from the Bengali ethno-

linguistic group which comprises 98% of the population . The Chittagong Hill Tracts ,

Sylhet, Mymensingh and North Bengal divisions are home to diverse indigenous peoples .

There are many dialects of Bengali spoken throughout the region. The dialect spoken by

those in Chittagong and Sylhet are particularly distinctive. In 2013 the population was

estimated at 160 million. About 87% of Bangladeshis are Muslims, followed by Hindus

(12%), Buddhists (1%) and Christians (0.5%).

2. Economic Statistics and Activity:

In this section we will try to uncover specific economics performance of Bangladesh. This

part include GDP, Personal income, Communication system, Foreign Investment etc

A. Gross Domestic Product:

Gross domestic product is the monetary value of all finished goods and services produced

within a country’s border in a specific time period. In this report this section n will cover

total GDP of Bangladesh and rate of growth.

Table-1: Sectorial Growth Rate of GDP at Current Prices, 2010-11 to 2014-15

Source: Bangladesh Bureau of Statistics/GDP 2014-2015

Table-2: Per capita GDP, GNI and NNI at Current Prices, 2010-11 to 2014-15


Table-3: Per Capita Real GDP, GNI and NNI, 2010-11 to 2014-15


Table-4: GDP at Current Prices by Broad Industry Sector, 2010-11 to 2014-15


Table-5: Gross Domestic Product by Expenditure Categories at Current Prices, 2011-12 to 2014-

15


b. Per capita income of Bangladesh

The per capita income in Bangladesh is $1314 now. It has risen from $1190 to $1314 in fiscal year 2014-15 according to the Bangladesh Bureau of Statistics.

C .Household income of Bangladesh

According to Household Income and Expenditure Survey 2010 Income per household was 11479

taka per month.

d. Income distribution

Income share held by second 20%

The value for Income share held by second 20% in Bangladesh was 12.37 as of 2010. As the

graph below shows, over the past 26 years this indicator reached a maximum value of 14.29 in

1984 and a minimum value of 12.00 in 1995.

Definition: Percentage share of income or consumption is the share that accrues to subgroups of

population indicated by quintiles. Percentage shares by quintile may not sum to 100 because of

rounding.

Source: World Bank, Development Research Group. Data are based on primary household

survey data obtained from government statistical agencies and World Bank country departments.

(http://iresearch.worldbank.org/PovcalNet/index.htm).

http://iresearch.worldbank.org/PovcalNet/index.htm

Year Value

1984 14.29

1985 13.82

1988 13.36

1991 13.64

1995 12.00

2000 12.00

2005 12.07

2010 12.37

Income share held by third 20%

The value for Income share held by third 20% in Bangladesh was 16.07 as of 2010. As the graph

below shows, over the past 26 years this indicator reached a maximum value of 17.90 in 1984

and a minimum value of 15.70 in 1995.




Year Value

1984 17.90

1985 17.25

1988 16.96

1991 17.31

1995 15.70

2000 15.70

2005 15.71

2010 16.07

Income share held by fourth 20%

The value for Income share held by fourth 20% in Bangladesh was 21.27 as of 2010. As the






Year Value

http://iresearch.worldbank.org/PovcalNet/index.htm

1984 22.25

1985 21.65

1988 21.63

1991 22.12

1995 21.07

2000 21.07

2005 20.97

2010 21.27

Income share held by highest 20%

The value for Income share held by highest 20% in Bangladesh was 41.41 as of 2010. As the






Year Value

1984 35.84

1985 37.24

1988 38.60

1991 37.31

1995 42.57

2000 42.57

2005 42.46

2010 41.41

Income share held by highest 10%

The value for Income share held by highest 10% in Bangladesh was 27.03 as of 2010. As the






Year Value

1984 21.87

1985 23.41

1988 24.58

1991 23.20

1995 28.11

2000 28.11

2005 28.12

2010 27.03

Income share held by lowest 10%

The value for Income share held by lowest 10% in Bangladesh was 3.99 as of 2010. As the graph

below shows, over the past 26 years this indicator reached a maximum value of 4.47 in 1985 and

a minimum value of 3.91 in 1995.




Year Value

1984 4.13

1985 4.47

1988 4.16

1991 4.13

1995 3.91

2000 3.91

2005 3.98

2010 3.99

Income share held by lowest 20%

The value for Income share held by lowest 20% in Bangladesh was 8.88 as of 2010. As the graph

below shows, over the past 26 years this indicator reached a maximum value of 10.04 in 1985

and a minimum value of 8.66 in 1995.




Year Value

1984 9.72

1985 10.04

1988 9.45

1991 9.62

1995 8.66

2000 8.66

2005 8.79

2010 8.88

E. Minerals and resources:

Geologically, Bangladesh occupies a greater part of the Bengal basin and the country is covered

by Tertiary folded sedimentary rocks (12%) in the north, north eastern and eastern parts; uplifted

Pleistocene residuum (8%) in the north western, mid northern and eastern parts; and Holocene

deposits (80%) consisting of unconsolidated sand, silt and clay.

Because of a different geological environment, important mineral deposits of Bangladesh are

natural gas, coal, limestone, hard rock, gravel, boulder, glass sand, construction sand, white clay,

brick clay, peat, and beach sand heavy minerals.

Map: Distribution of Minerals and Resources.

http://en.banglapedia.org/index.php?title=Clay

http://en.banglapedia.org/index.php?title=Silt

http://en.banglapedia.org/index.php?title=Sand

http://en.banglapedia.org/index.php?title=Bengal_Basin

F. Transportation: Since the liberation of the country, the development of infrastructure

within the country has progressed at a rapid pace, and today there is a wide variety of modes of

transport by land, water and air. However, there is significant progress still to be made to ensure

uniform access to all available transport.

Availability: Bangladesh, a densely populated country with an estimated population of 978

persons/sq. km, has an extensive and diversified transport system comprising 1,03,536 km roads

(20,948 km highways and 82,588 km rural roads), 2834 route km railways, 24,000 km inland

waterways, 2 seaports, maritime shipping, and civil aviation etc.. Of multiple modes of

transportation the road transport by an order of magnitude in carriage of goods and passengers

has apparently been playing the most dominant role.

Bangladesh, as a riverine country with 24,000 km waterways, has a navigable network varying

from 5968 km during the monsoon to 3865 km during the dry season. Its inland water transport

(IWT) continues to be an important mode of transport not only in the inland movement of freight

and passengers but also in the transportation of import and export items through the ports of

Chittagong and Mongla.

Bangladesh Inland Water Transport Authority(BIWTA) gives pilotage facilities to about 7,000

inland water vessels. It regulates the movement of about 2000 passenger launches and maintains

21 inland ports along with about 800 launch ghats including terminals.

Usage rates:An efficient transportation system is essential to facilitate economic growth in

Bangladesh. The country’s economy needs to grow at a sustained 8 percent per year to achieve

the first goal of the MDGs: that of halving the proportion of people living under a dollar a day by

2015. To achieve this growth, the transport sector will need to reduce costs and allocate

resources among different modes of transport in a more balanced manner.

Roads: Roads carry over 80 percent of national passenger traffic, providing the backbone of the

transport sector in this country of approximately 160 million people.

Railways: Bangladesh Railways, primarily a passenger railway, handles approximately 7 percent

of the national passenger and freight traffic. It carries its maximum number of passengers

between Chittagong and Dhaka, the nation’s most important transport corridor.

Inland waterways: With some 700 rivers and tributaries crisscrossing the country, Bangladesh

has one of the largest inland waterway networks in the world. Inland ports handle about 40

percent of the nation’s foreign trade. The network, which shrinks during the dry season, connects

almost all the country’s major cities, towns, and commercial centers. Moreover, being cheap,

safe, and environment friendly, inland water transportation is often the only mode that serves the

poor, proving especially useful during periods of widespread flooding.

Pipelines

As of 2013 Bangladesh has approximately 2,950 km of natural gas pipelines.

Ports and harbours

Chittagong; Port of Chittagong; Chittagong Port Authority - east coast

Dhaka - River port

Mongla Port

Sonadia - proposed

Payra U/C

Narayanganj-River port

Baghabari- River port

Ashuganj- River port

G.Communication systems

Communication systems are an integral part of any country's infrastructure. When traveling to

another country tourists need to know how they can communicate with family and friends back

home. Whilst Bangladesh's communication systems are somewhat underdeveloped, they are

being improved. Internet access in Bangladesh is available in the larger cities. While there are a

variety of methods of communication in Bangladesh's cities, visitors may find it difficult to find

similar forms of communication in rural areas.

Types:

Telephones: Bangladesh's landline telecommunications system is owned by the state. The

Bangladesh Telephone and Telegraph Board is the organization that controls telecommunications

in the country. Besides BTTB, which operates in all urban areas, there are two private operators.

Bangladesh Rural Telecom Authority and Sheba Telecommunications provide telephone services

to rural areas. Digital telephone systems are being introduced into Bangladesh. If you would like

to phone someone in another country from Bangladesh you need to dial the following: dial 00;

dial country code; dial city code; dial telephone number. The international code for Bangladesh

is +880. Mobile telephone coverage is somewhat limited.

Internet Access: Several Internet cafés are scattered through the main cities of Bangladesh.

Certain hotels may also offer Internet access to their guests. VSAT is used to connect to the

Internet in Bangladesh. Some 54 Internet Service Providers operate in the country. Satellite

Internet in Bangladesh enables individuals in areas where it is not possible to access the Internet

via terrestrial means to connect to the Internet. The Internet is somewhat underutilized in

Bangladesh due to high charges, underdeveloped telecommunications, a lack of support, poor

awareness of this service and so on. However, extensive efforts are being made to increase the

population's access to the

Mass Media: Mass media is an important method of transmitting information and current news

to the population.

Post/Mail: The Post Office in Bangladesh is a government department that provides the

community with a variety of postal products and services. Post is one of the cheapest methods of

communication and Bangladesh's service is quite efficient. Services offered by the post office

include the mailing of letters, handling parcels, track and trace, courier delivery, foreign money

order, e-Post, financial services, post boxes and more. Airmail to Europe takes between three and

four days.

Availability and usage rates:

Radio broadcast stations:AM 12, FM 12, shortwave 2, community radio 1, internet radios.

Radios: 6.15 million (1997)

The government owned Betar-Radio Bangladesh operates from Dhaka and other local districts.

Currently, the private FM radio channels are very popular. They are trying to attract young

people by broadcasting music and news. The operating private radio channels include:

DhakaFM 90.4 FM

Radio Today 89.6FM

Radio Foorti 88.0FM

Radio Amar 88.4FM

Radio Metrowave

ABC Radio

Television: As of 2012 there are 23 broadcast television stations in Bangladesh, including the

state-run BTV and BTV World, with 20 million television sets in the country.

The number of private satellite channels is growing. The first private channel in Bangladesh was

ATN Bangla. There are 5 full-fledged news channels (Somoy TV, ATN News, Independent

Television, Ekattor and Jamuna TV). Gaan Bangla, the first full-time music channel in

Bangladesh, commenced operations by October 2013.

Internet: The first connectivity in Bangladesh with the internet was in 1996. Though it was

somewhat late, over the past few years growth has been rapid. The government's high internet

tariff is impeding the growth of this sector.[citation needed] Recently the government has

decided to reduce the tariff 50%.

As of 2005 more than 180 Internet Service Providers are operating in the country. ISP's are

regulated by the Bangladesh telecommunication regulatory commission (BTRC).

The number of internet users in Bangladesh as of March 2009 is over 600,000, compared to

100,000 in 2000. However, only 0.3% of the population uses the internet, thus making

Bangladesh the lowest usage percentage per population of the internet in the world with the

exception of North Korea, Myanmar and Sierra Leone.

Internet Usage and Population Statistics:

Note: Per Capita GDP in US dollars, source: International Monetary Fund.

A 2009 study by the Boston Consulting Group found that the number of Internet subscribers in

Bangladesh is likely to reach 18.3 million by the year 2020, equivalent to a 32 percent household

Internet penetration, which will result in a 2.6 per cent contribution to the country’s GDP while

creating 129,000 more jobs.

Broadband Internet access: Though broadband internet access is available, the cost of high

speed connection is higher than in other south Asian countries. Broadband internet and e-

commerce in Bangladesh is slowly progressing. WiMAX service is now available from some

internet service providers. In Bangladesh broadband is legally defined as 128/128 kbit/s, which is

not in line with ITU standards. The ISPs currently providing broadband services in Bangladesh

are:

Banglalion

Metro Net Bangladesh Ltd

Infocom Limited.

International: There are 6 satellite earth stations. Talimabad, Betbunia are two of them. Some

info shows that the number is now 7. Bangladesh will send its first ever satellite Bangabandhu-1

into space in 2015.

Submarine cables: Bangladesh is connected to SEA-ME-WE 4 or South-East Asia – Middle

East – Western Europe 4. The landing site of the Bangladesh branch is located at Cox's Bazaar.

Bangladesh is also a member of the proposed SEA-ME-WE 5, which will provide another

submarine cable connectivity for the country when its submarine cable is implemented within a

couple of years. The company, BSCCL is the only submarine cable operator in Bangladesh.

J. Inflow of FDI in Bangladesh

There are no reliable estimates in Bangladesh relating to FDI performance. A debate on differing

accounting practices observed by the BOI, the investment promotion agency of the country and

the Bangladesh Bank continues in the country. On the one hand, there is a systematic tendency

by the BOI to inflate investment figure; on the other hand, FDI flow remains underreported in

the BOP statement of the Bangladesh Bank, which often does not fully record capital

machinery brought in, reinvested earnings or inter-company loans under appropriate heads.

Curiously, the current BOP accounts also do not include foreign investments in EPZs. However,

the central bank still remains the final authority for confirming FDI estimates using the IMF

methodology.

The figures show Bangladesh has had fluctuating fortunes regarding FDI and portfolio

investment flows. Its extreme dip, a net outflow of more than $62 million in 1996-97,followed

the crash of the capital market. Conversely, in 1997-98, the economy registered its highest

inflow (about $132 million), caused by major international oil companies investments

following the discovery of new natural gas wells. Since then, foreign investment has stabilized

at a low level. Following the drop from the peak in FY 98, the decline was reversed in FY 03,

and indications are that a further rise in FY 04 is likely. However, the FY 03 figure is still far

below the historic high of FY 98. Estimates on the basis of BOP data on FDI and portfolio

investment as well as foreign investments in EPZs indicate that a net total of $196.63 million

in foreign investment came to Bangladesh during FY’03. Of the total inflows, almost 47 percent

came as FDI in the Domestic Tariff Area (DTA), and another 53 percent in the EPZs. Portfolio

investment remained marginal. Net inflow of FDI saw robust growth of about 42 percent in FY

03, while foreign investment in EPZ recorded an impressive 85 percent increase, continuing the

recovery since the drop in FY 00. The observed trend reveals that the share of EPZ in annual

inflow is growing, whereas the share of portfolio investment is still marginal. However, it is well

accepted that FDI in the domestic tariff area is usually the best-quality foreign investment. FDI

in the EPZs is mainly motivated by financial incentives conceded by the government, and

focuses on import and re-export of technically low-level products with marginal added

value for Bangladesh. Therefore, if any foreign investment in Bangladesh has a potential

for offering the potential benefits often attributed to FDI, such as technical upgrading or

improving the quality of locally produced goods and services, then it is foreign investment in

non-EPZ areas.

FDI Inflows by sectors

Sector- wise analysis of FDI reveals the fact that a shift has been made by the foreign

investors in their investment in Bangladesh . The table shows the trend of FDI towards power

and energy, manufacturing and telecommunications, whereas the neglected sectors were

agricultural, Services and trade and commerce. In 2005, the main focus of investment

was in the manufacturing sector. The success in textiles through the ready - made garments

(RMG) industry was a vital part of this investment. The pie chart shows the shift of FDI in

the sectors in Bangladesh. The pie chart draws a clear picture how the dimensions of FDI inflows

have changed in recent years. The reduction in FDI shares of manufacturing demonstrates that its

stronghold position for foreign investment is in declining state. On the other hand, telecom sector

is gaining prominence during present years. In 2008 the telecommunications sector overtook

manufacturing sector as the leading recipient of FDI. Due to increased privatization efforts by

the government, telecom has emerged as one of the fastest growing sectors in the Bangladesh

economy. Much of this can be explained by the increased competition between large private

corporations that have magnified efforts to attract FDI and attain better and latest technology

to optimize the profits. In addition to that, the energy sector draws lower amount of FDI, which

is explained by the country’s natural gas reserves. Another factor is the country’s difficulty in

electricity generation. The lack of production capacity forces the government to frequently

‘load shedding’ power. It imposes blackouts in areas of low power usage to meet the needs of

areas of higher power usage. The government’s lacking of the capital and liquidity of building

power-grids and expanding the country’s electric capacity opens the door of much scope for

foreign investment.

Figure.1: FDI Inflows (i n million USD) by sectors in Bangladesh during 1996-2010.

Source: Survey Report, Statistics Department of Bangladesh Bank and Foreign Direct Investment in

Bangladesh (1971- 2010), Board of Investment.

Figure 2: FDI Inflows (in million USD) by sectors in Bangladesh during 1996-2000.

Source: Survey Report, Statistics Department of Bangladesh Bank and Foreign Direct Investment in

Bangladesh (1971- 2010), Board of Investment.

Figure3: FDI Inflows (in million USD) by sectors in Bangladesh during 2001-2005.

Source: Survey Report, Statistics Department of Bangladesh Bank and Foreign Direct Investment in Bangladesh (1971- 2010), Board of Investment.

Figure 4: FDI Inflows (in million USD) by sectors in Bangladesh during 2006-2010.

Source: Survey Report, Statistics Department of Bangladesh Bank and Foreign Direct Investment in Bangladesh (1971- 2010), Board of Investment.

In the figure 3 and 4, it is clearly shown that the percentage of investment in various sectors has changed quite a lot. The percentage of telecommunication investment was 2% in 1996- 2000 was only 2%, which increases to 21% during 2001- 2005 and finally it topped to 43% during 2006- 2010. On the other hand, the portion of investment in the gas & petroleum Sector has declined

gradually during the year of 1996 to 2010. It was 28% in 1996 - 2000, 18% in 2001- 2005 and only 13% in 2006- 2010. It is also a matter of great concern that the Investment in energy sector has decreased from 12% to only 3%, which is very alarming. The Government should take a close look in this matter and take necessary steps to identify the Causing factors and to rectify those to improve our present energy sector conditions.

K. International Trade Statistics

1.Total Figure of Import and Exports and Trade deficits.

2.Balance of payment situation:Balance of payments [Monthly Data]

(In million US$)

Items

2014-15

July-Jan

2015-16RJuly-Dec

2015-16P

July-Jan

% Changes4 over 2

1 2 3 4 5 Trade balance -3579 -3501 -3753 Export f.o.b.(including EPZ) 17540 15729 18787 7.11 Of which : Readymade garments 14444 13136 15761 9.12 Import f.o.b (including EPZ) 21119 19230 22540 6.73 Services -2008 -1191 -1493 Credit 1787 1780 2038 14.05 Debit 3795 2971 3531 -6.96 Primary income -1684 -1226 -1400 Credit 45 37 48 6.67 Debit 1729 1263 1448 -16.25 Of which: Official interest payments 231 206 242 Secondary income 9114 7726 8914 Official transfers 33 33 36 Private transfers 9081 7693 8878 -2.24 Of which : Workers' remittances(current a/c portion) 8659 7376 8523 -1.57

Current Account Balance 1843 1808 2268 Capital account 279 266 306 Capital transfers 279 266 306 Financial account 310 868 753 Foreign direct investment (net) 938 1111 1225 30.6 Portfolio investment (net) 316 -24 8 Of which : Workers' remittances(financial a/c portion) 72 112 132

Other investment (net) -944 -219 -480 Medium and long-term (MLT) loans 1406 1294 1505 7.04 MLT amortization payments 616 435 517 -16.07 Other long term loans (net) 49 -101 -39 Other short term loans (net) -45 -137 -180 Trade credit (net) -2111 -553 -996

DMBs and NBDCs (net) 373 -287 -253 Assets 67 75 163 Liabilities 440 -212 -90 Errors and omissions -726 -503 -651 Overall Balance 1706 2439 2676 Reserve Assets -1706 -2439 -2676 Bangladesh Bank (net) -1706 -2439 -2676 Assets* 1222 2709 2410 Liabilities -484 270 -266 Memorandum Items : Gross reserves (before valuation adjustments)

22730 27734 27435

Valuation Adjustment During the Period -688 -241 -296 Gross reserves (after valuation adjustments) 22042 27493 27139

In months of imports of goods and services 6.76 7.94 7.8

* Note: Exports and Imports both are compiled on the basis of shipment dataR:Revised, P : Provisional, RP: Revised but still Provisional Source:Bangladesh Bank

3.Current rate of exchange: Exchange rates of Taka for inter-bank and customer

transactions are set by the dealer banks, based on demand-supply interaction. Bangladesh

Bank (BB) is not in the market on a day-to-day basis, and undertakes USD purchase or sale

transactions with dealer banks at prevailing inter-bank exchange rates only as needed to

maintain orderly market conditions.

Inter-bank exchange rates are also used by BB for purchase and sale transactions with the

Government and different International Organizations. The USD/BDT buying and selling rates

below are highest and lowest inter-bank exchange rates at Dhaka. The cross rates of BDT with

other foreign currencies are based on NY and Dhaka closing exchange rates

.

A. Inter-bank exchange rates as on Mar 23, 2016:

Currency Day´s lowest Day´s highest

USD 78.4000 78.4000

Source:www.bb.org.bd/econdata/exchangerate

B. Cross rates as on Mar 23, 2016:

Currency Buying Selling

EUR 87.6277 87.6904

GBP 110.6616 110.6930

AUD 58.9960 59.0274

JPY 0.6974 0.6976

CAD 59.3310 59.3490

SEK 9.4830 9.4888

SGD 57.2681 57.3183

CNH 12.0317 12.0340

INR 1.1726 1.1730

Source: www.bb.org.bd/econdata/exchangerate

L. Trade restriction: A trade restriction is an artificial restriction on the trade of goods

and/or services between two countries. It is the byproduct of protectionism. However, the term

is controversial because what one part may see as a trade restriction another may see as a way

to protect consumers from inferior, harmful or dangerous products. For instance Germany

required the production of beer to adhere to its purity law.

General import regulations and requirements

Most goods imported into Bangladesh, regardless of entered value, are required to submit to a

Pre-Shipment Inspection. For further details see field for "Pre-Shipment Inspection/Other Pre-

Shipment Requirements”. Bangladesh observes a boycott of Israel. Imports may not ship on

Israeli flag vessels. No vessel or aircraft used for shipments to Bangladesh may call on any

port in Israel.

http://www.bb.org.bd/econdata/exchangerate

http://www.bb.org.bd/econdata/exchangerate

Import customs tariff

Bangladesh uses the Harmonized Tariff System for tariff classification. Tariff rates are set at

10, 15, 20, and 25 %. Certain products are exempt from duties. Additional taxes/charges which

may apply:

15 % value-added tax

Supplemental tax on certain goods

Landing fee

Insurance charge

Customs valuation basis

Specific duty rates are based on net weight. Ad valorem duties are based on value assessed as

follows: CFR value, plus insurance fee (1%) and landing charge (1%). Bangladesh also applies

the WTO Customs Valuation agreement. According to this agreement, there are six acceptable

methods of determining customs value. Typically the first method is used (unless the buyer

and seller are related parties). When the value cannot be obtained this way, or is rejected by

customs, one of the other methods is to be used, in descending order:

Transaction value (the price actually paid or payable by the importer, plus certain costs

and expenses)

Transaction value of identical goods

Transaction value of similar goods

Deductive value (the sale or resale value, reduced by certain costs such as customs

duties, taxes, and commissions)

Computed value (calculated by adding together certain costs/values for production,

materials, profit and other expenses)

Fall-back method

General import license/permit requirements

Most goods do not require an import license. The Ministry of Commerce requires registration

of each importer. Prior approval is required to import goods on the restricted list. Certain

restricted goods may be imported only by authorized users. There are no tariff quotas on

imports.

Prohibited or highly restricted imports

All goods from Israel, Serbia and/or Montenegro are prohibited.

Prohibited articles may include the following: artificial mustard oil, eggs (except hatching

eggs), fishing nets (gillnets), grass, horror comics, lard and tallow oil, lard, live pigs,

motorbikes more than three years old, nylon and polyethylene ropes, obscene and subversive

literature or similar types of materials; opium, pig and poultry fat, pig hair, poppy seeds and

dried postodana, raw sugar, selected insecticides, selected petroleum products, single phase

electricity meters solid or semi-solid palm oil, some kinds of cloth, tendu leaves, un-denatured

ethyl alcohol (80% or higher) and other denatured spirits of any strength, used or new rags,

vessels more than 15 years old, wine, woven fabrics of silk or silk waste. Restricted articles

may include the following, in alphabetical order: goods bearing pictures or writing which is

obscene or of a religious connotation which may injure the religious feelings of any class of

Bangladeshi citizens; printed material, posters, video tapes, etc. containing matters likely to

outrage the religious feelings and beliefs of any class of Bangladeshi citizens; unless otherwise

specified, old, second-hand and reconditioned goods; unless otherwise specified, all kinds of

waste; reconditioned office equipment (i.e., photocopier, typewriter, telex, computer, phone,

fax machine).

Standards

Product standards are regulated by the Bangladesh Standards and Testing Institution (BSTI).

Certain products are subject to standards requirements.

n.Current inflation rates:

Rate of Inflation January 2016 December 2015 January 2015

(as measured by CPI, base 2005-06)Point to point 6.07% 6.10% 6.04%

Monthly average (12 month)

6.20% 6.19% 6.87%

Source: BBS (Bangladesh Bureau of Statistics)

Labor force:

Table:Total; Labor force by age group and sex area.

Source: Bangladesh labor force survey 2013

Source: Bangladesh labor force survey 2013.

Media:

This section reports cover all the data about media available within the country that will help us to select specific media as part of the promotional mix and strategy.

Availability of media:

Media of Bangladesh:

The media of Bangladesh refers to the print, broadcast and online mass media available in Bangladesh . The Bangladeshi media is ranked 146 out of 180 countries on the Reporters Without Borders Press Freedom Index for 2015.The media in Bangladesh is a mix of government-owned and private media.

News agencies :

The new agencies were present in Bangladesh prior to its independence from Pakistan in 1971. The state-owned Associated Press of Pakistan (AAP) had branches in Dhaka and Chittagong from 1949. After independence, the AAP was replaced by the Bangladesh state-owned agency Bangladesh Sangbad Sangstha .

The second news agency to be established, and the first to be privately owned was Eastern News Agency (ENA). It was founded in Dhaka in the years immediately prior to the Bangladesh Liberation War by a consortium of six shareholders which included its founding editor Golam Rasul Mallick. However, financial problems caused its demise in the 1990s. United News of Bangladesh , founded in 1988 was the country's first fully computerized privately owned agency. Other private news agencies include News Network of Bangladesh (NNB) and BD News 24 which also launched the country's first photo agency, Focus Bangla.

Newspapers:

The print media is private and consists of hundreds of weekly publications, presenting a vast array of viewpoints, though some outspoken papers have faced pressure in the past. English language papers appeal to an educated urban readership. Some of the popular newspapers in Bangladesh are Prothom Alo, Daily Ittefaq, Daily Star, The New Nation, Bangladesh Protidin etc.

Television and Radio :

There were 15 television stations in 1999. In 2006, there were 15AM and 13FM radio stations available. The BBC World Service broadcasts in the country, and Indian and other foreign television broadcasts are picked up in the country. Currently there are more than 100 TV Channels in Bangladesh. Bangladesh NGOs Network for Radio and Communication (BNNRC), NGO Network in Consultative Status with UN ECOSOC in considers community radio a special area for intervention. BNNRC has been promoting advocacy with the government in relation to community radio with other organizations since its emergence from 2000. The objective of BNNRC's Community Radio intervention is to address crucial social issues at community level, such as poverty and social exclusion, empower marginalized rural groups and catalyze

democratic processes and ongoing development efforts. The prime role of community radio is giving voice to the voiceless people who do not have access to the mainstream media to express their ideas and views regarding community development.

Internet media :

There are an estimated 11.4 million internet users in Bangladesh and use is unrestricted by the government, however some journalist's emails have been monitored. People also using online newspaper and news portal. There are huge online newspaper and news portal in Bangladesh. But all the news portal are not listed by Bangladesh government. Now Bangladesh government tries to create memorandum for online news portal.

Ad agency:

Bangladesh advertising Agency is playing a vital role for promoting products. They help to introduce the products of a company to the customer or end users. Advertising company helps to create a good image about the company and their products. Advertising agencies are trying best to give an attractive advertisement. The market situation of agencies is very strong nowadays. They get lots of opportunity and done them very well. Work of advertising agency make a plan to promote product or service and choose the media and book an ads space or time also make design for billboard, outdoor advertisement, newspaper, Television, Radio and internet advertisement.

Some of the popular Ad agencies in Bangladesh:

Grey advertising Bangladesh ltd. Asiatic advertising agency Bangladesh. Adcomm ltd. Matra advertising agency Bangladesh. Bitopi advertising. Expression ltd. Neptune advertising Step Media Ltd Unitrend Ltd etc.

Cost:

Ad rate for local newspaper:

Ad rate for electronic media:

Documents

Final Report of Nushu