a

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