[In FY 2010-11, the contribution of the broad industry sector to real GDP stood at 30.38 percent which increased to 31.26 percent in FY 2011-12 (BBS provisional estimate). Among the fifteen sectors identified for computing national income, the broad industry sector includes four sub-sectors such as mining & quarrying; manufacturing; construction; electricity & gas and water supply. Among these sub-sectors, the contribution of the manufacturing sector is the highest. According to the provisional GDP data of BBS, in FY 2011-12, the contribution of the manufacturing sector to GDP at the constant price is 19.01 percent. It is widely held that industrialisation is the prerequisite for rapid and sustainable economic development and achievement of social progress in a developing country. Therefore, the government pledges to take initiatives aiming at accelerating the environment-friendly growth and development of all important industrial sectors such as energy and fuel, agriculture and forestry, acquiring and processing of minerals, tourism and hospitality, construction, information and communications technology by mobilising capital and manpower.In order to accelerate the pace of industrialisation in the country, the government has announced the National Industrial Policy 2010. The important and underlying objectives of the Industrial Policy 2010 include generation of productive employment, mainstreaming women in the industrialisation process and poverty alleviation. To this end, consistent with the imperative that labour-intensive industries are more suited than capital-intensive ones, the policy document spells out measures for the promotion of cottage, small and medium industries (SMEs). In line with the provisions of the SME policy, special measures will be taken to develop women entrepreneurship ensuring access to land and finance and business support services. In order to ensure rapid industrialisation, the Government aims to promote the SMEs alongside the large-scale industries. The Government is continuing its efforts to achieve this goal by providing loans and other ancillary supports through banks and other financial institutions. As a result, the volume of both distribution and recovery of industrial loan is on the increase. The EPZs are playing special role in the process of promoting rapid industrialisation and attracting foreign investment. Both investment and exports in the EPZs are increasing gradually. In order to ensure employment of farmers and labourers involved in jute cultivation and jute industry, the Government has taken initiatives to re-start the closed jute mills. The People’s Jute Mills Limited in Khulna and the Qoumi Jute Mills Limited in Sirajgonj have already been restarted after being renamed as ‘Khalishpur Jute Mill Limited’ and ‘National Jute Mill Limited’ respectively.]

The contribution of industry sector to Bangladesh economy has been on the increase substantially. According to BBS estimate in FY 2010-11, the contribution of this sector to GDP was 30.38 percent. Such contribution to GDP has been estimated at 31.26 percent (BBS provisional estimate) in FY 2011-12. Among the fifteen sectors identified for computing national 116

income, the broad industry sector includes four sub-sectors such as mining and quarrying; manufacturing; construction; electricity and gas and water supply. Among these sub-sectors, the contribution of the manufacturing sector is the highest. According to the provisional estimate of BBS, the contribution of manufacturing sector to GDP has been estimated at 19.01 percent in FY 2011-12 which is 0.59 percent higher than that (18.42 percent) in FY 2010-11. According to BBS provisional data, the growth rate of the manufacturing sector is 9.76 percent in FY 201112 which is 0.31 percent higher than what stood at (9.45 percent) in FY 2010-11. The size and growth performance of the manufacturing sector from FY 2004-05 to FY 2011-12 is shown in Table 8.1 below: Table 8.1: Size and Growth Rate of Manufacturing Sector (At constant prices of 1995-96) (Taka in crore)
Type of Industry Small & Cottage 12408.5 (7.93) Medium-Large 29860.5 (8.30) Total 42269.0 (8.19) 13551.5 (9.21) 33268.2 (11.41) 46819.7 (10.77) 14865.1 (9.69) 36507.1 (9.74) 51372.2 (9.72) 15920.0 (7.10) 39157.2 (7.26) 55077.2 (7.21) 17018.9 (6.90) 41735.0 (6.58) 58753.9 (6.68) 18340.9 (7.77) 44229.8 (5.98) 62570.7 (6.50) 19411.9 (5.84) 49069.9 (10.94) 68481.8 (9.45) 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 (Provisional) 20805.5 (7.18) 54359.0 (10.78) 75164.5 (9.76)

Source: Bangladesh Bureau of Statistics. Note: Figures in parentheses indicate rate of growth.

National Industrial Policy Infrastructural transformation, diversification of the economic base, accelerated economic growth, employment generation, increase of income and development of livelihood of the people among others, are the universally recognised dynamic determinants of industrialisation. In order to accelerate the pace of industrialisation in the country, the Government announced the National Industrial Policy 2010. The important and underlying objectives of the policy include generation of productive employment, mainstreaming women in the industrialisation process and poverty alleviation. Proper strategies have been set out in the industrial policy to implement all these aims and objectives. Combined efforts are being put in to implement the policy and necessary steps are being taken to preserve consumer’s interest in consultation with concerned ministries and other stakeholders. In the “Sixth Five Year Plan (SFYP): 2011-2015” and “Outline Perspective Plan of Bangladesh (2010-2021) : Making Vision 2021 A Reality” pledges have been made to build a modern and vibrant industrial sector with the aim of reducing unemployment, hunger and poverty. 117

In FY 2010-11 and FY 2011-12. 2. the QIP stood at 580. Table 8. Currently.735.73 crore respectively while that of Bangladesh bank was Tk. This sector is a potential sector in terms of local value additions and creation of employment opportunities. Out of this.1. Detailed refinancing of SME sector under 118 .44 Industries Source: Bangladesh Bureau of Statistics/Bangladesh Bank. These refinancing facilities will strengthen the development programme of SMEs and resulting employment generation and enhancement of purchasing power of the poor and low income people.61 crore and Tk.29 crore has been provided as working capital.42 in FY2008-09 from 254.35 360.72 328.24 570. Tk. rose to 413.470.620.48 crore as long-term loan. Out of the total loan. IDA Fund and ADB Fund for refinancing the scheduled banks and financial institutions against the disbursed loans.312.33 386. Quantum Index of Production of Manufacturing Industries The Quantum Index of Production (QIP) is an important tool for measuring the production performance of manufacturing industries. medium and long term programmes to accelerate economic growth. banks and financial institutions are also coming forward to provide finance to this sector alongside traditional financing from personal and family savings.40 crore as medium term loan and Tk.01 crore has been placed at the disposal of Bangladesh Bank to refinance as many as 21 banks and 24 NBFIs for providing loans to 33. a range of initiatives are there for channeling loans to SMEs. A total amount of Tk.624.48 413. Bangladesh Bank is operating three funds such as Bangladesh Bank Fund.12 580.45 in FY2002-03.67 crore. Table 8.797. Data available from Bangladesh Bureau of Statistics (BBS) shows that QIP (1988-89=100).544.44 respectively. Small and Medium Enterprises (SMEs) Small and Medium Enterprises (SMEs). Tk. the contribution of IDA and ADB were Tk.24 and 570.1. These funds are being used as revolving fund.42 442.2: Quantum Index of Production for Medium to Large Scale Manufacturing Industries FY 2004-05 to FY 2011-12 (up to June 2012) (1988-89=100) Medium to 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Large Scale 294.456 enterprises up to June 2012.Indications have been made in these documents to undertake short.2 shows the index during FY2004-05 to FY2011-12 (up to June 2012). As the large potential of employment generation by SMEs has attracted attention of the policy makers and observers. representing medium to large-scale industries. by producing exportable surpluses of commodities together with fulfilling local demands are making significant contribution to the economy of the country.

3(c) Summary information on SME Refinancing from IDA (Up to June 2012) Banks/ Financial Institutions Banks (17) Non-Bank Financial Institutions(15) Total Working Capital 73.61 Industrial Loan 973 395 1368 No.27 226.28 337.41 132.47 1470.41 50.07 755.3(a). Table 8.59 Amount Refinanced (in Crore) Mid Term Long Term Loan Loan 408.47 28.3.25 381.67 591.48 334.29 132.33 544.31 31.19 63.34 No.70 100.71 347. IDA and ADB funds to various banks and financial institutions are shown in Table 8.43 49. of Beneficiary Enterprises Industrial Commercial Service Loan Loan 4713 1784 1368 Total 15850 5262 3160 755.3(b) Summary information on SME refinancing from Women Entrepreneur Fund (Up to June 2012) Banks/ Financial Institutions Banks (20) Non-Bank Financial Institutions (19) Total Working Capital 49. of Beneficiary Enterprises Industrial Service Commercial Loan Loan 1149 635 1784 2204 537 2741 504 233 737 Total 3857 1405 5262 Table 8.3(d) and Table 8.3 Summary information on SME refinancing (up to June 2012) Name of Banks/FIs Refinanced (a) Bangladesh Bank (BB) (b) BB-(Women Entrepreneur Fund) (c) IDA (d) ADB-1 (e) ADB-2 Total Amount Refinanced (In crore Taka) Working Mid Term Long Term Total Capital Loan Loan Loan 337.94 289.83 100.23 322.the Bangladesh Bank.3(c).78 109.67 223.58 1416.47 322.07 7.74 68.30 99.48 620.30 312.13 Total Loan 255.88 Amount Refinanced (in Crore) Mid Term Long Term Loan Loan 154.01 800 1527 10192 2096 3461 18300 368 942 4974 3264 5920 33456 Table 8. Table 8.4 58.78 223.65 213.34 Amount Refinanced (in Crore) Mid-Term Long-Term Loan Loan 75.25 No.3(a) Summary information on SME refinancing from Bangladesh Bank (Up to June 2012) Banks/ Financial Institutions Banks (21) Non-Bank Financial Institutions (22) Total Working Capital 306.31 135.80.98 7.73 56.42 No.15 126. of Beneficiary Enterprises Industrial Service Commercial Loan Loan 2857 1856 4713 6823 1873 8696 1230 1211 2441 Total 10910 4940 15850 Table 8.88 80.3(b).61 8696 2741 1306 2441 737 486 144.26 80.74 132. Table 8. Total Loan 177. Table 8.42 312.59 57. Table 8.90 57.83 Total Loan 824.80.51 71. 1416.79 2735. of Beneficiary Enterprises Commercial Service Total Loan 1167 139 1306 79 407 486 2219 941 3160 119 .3(e).13 99.27 381.

1. of Beneficiary Enterprises Commercial Service Loan 2427 1024 3461 478 464 942 Total 3817 1556 5920 Source: Bangladesh Bank.0 billion from November 2001 out of its own fund. usually left out by the formal sector financing. 2011 after its term expired.32 0. The scheme demonstrated a high market demand.3(e) Summary information on SME refinancing from ADB-2 Fund (Up to June 2012) Banks/ Financial Institutions Banks (17) Non-Bank Financial Institutions (10) Total Amount Refinanced (in Crore) Mid Term Long Term Total Loan Loan Loan 130. An amount of Tk.58 226. 14.Table 8. Recovery against refinanced loan is being used as a revolving fund for financing SME sector.59 billion has 120 .89 95.94 No.16 144. * Disbursements have been stopped from ADB Fund – 1 since June. 6.17 24.27 34.50 334.83 63.32 132.47 30.02 58. Refinancing facilities are provided to banks and financial institutions at the bank rate under the scheme.48 Amount Refinanced (in Crore) Mid-Term Long-Term Loan Loan 90. Bangladesh Bank launched a scheme of Tk.1.38 128. Refinance for Small Enterprises: 46 banks and non-bank financial institutions have signed Participation Agreement with Bangladesh Bank for financing SME sector under the following schemes:  Bangladesh Bank Fund (BB Fund): Bangladesh Bank introduced a refinancing scheme named Small Enterprise Fund (SEF) of Tk.79 Industrial Loan 912 615 1527 No. An amount of Tk.3(d) Summary information on SME refinancing from ADB-1 Fund (Up to June 2012) Banks/ Financial Institutions ShortTerm Loan 144.0 billion out of its own fund for supporting the development of small enterprises in the country. of Beneficiary Enterprises Industria Commercial Service Total l Loan Loan 657 143 800 1893 203 2096 155 213 368 2705 559 3264 Banks(9) Non-Bank Financial Institutions(7) Total Table 8.54 billion has been disbursed under this scheme till end June 2012.19 Total Loan 269.41 289.49 32.95 41. Refinancing facilities under the scheme were extended to the banks and financial institutions at bank rate against their financing to the small entrepreneurs.33 161. Bangladesh Bank's refinancing facilities to Banks and NBFIs for promoting small and medium scale industrial enterprises under some special schemes and programmes are outlined below:  Refinance Scheme for Agro-based Product Processing: Agro product-processing industries in the areas outside Divisional Headquarters and Narayanganj town.44 65.

35 billion has been provided to Banks and NBFIs under the first ADB fund up to end June 2012 against 3264 enterprises. 2009. ADB and GoB jointly provided an additional amount of US$0. Asian Development Bank initially provided an amount of US$0. ADB Fund-2: A similar fund called ADB Fund-2 was established in October.000 million Japanese Yen including a technical assistance component.81 billion has been refinanced to women entrepreneurs up to end June 2012 against as many as 5. BB and all the Banks and NBFIs have been asked to establish the same facility. Fund for Women Entrepreneurs: Bangladesh Bank is encouraging all Banks and NBFIs to provide loan to women entrepreneurs at 10 percent interest rate.1.787. JICA Two Step Loan Fund: A loan agreement was signed between JICA. ADB Fund-1: A fund called ADB Fund-1 to finance a scheme titled Small and Medium Enterprise Sector Development Project was launched in 2005.850 enterprises.5 million. Enterprise Growth and Bank Modernisation Programme (EGBMP) Fund: In 2004. an amount of Tk.13 billion has been provided to 32 banks and non-bank financial institutions up to end June 2012 against 3160 enterprises. 21 Banks and 18 NBFIs signed Participating Agreements with Bangladesh Bank on 11 June 2012. The Fund size is 5. This fund completed its disbursement in June2011.3. In addition. Bangladesh Bank is implementing the “Financial Sector Project for the Development of Small and Medium-Sized Enterprise (FSPDSME)-BD-P67” project. As per loan agreement. Out of this fund. An amount of Tk. the IDA Wing of the World Bank provided an additional amount of US$ 0. A total amount of Tk.95 billion to further broadening the SME refinancing facility. The principal component of the fund is Two Step Loan of JPY amounting 4.     been refinanced to 43 banks and non-bank financial institutions under this fund up to end June 2012 against 15.262 enterprises.0. Refinancing or pre-financing facilities are being provided to Participating Financial Institutions (PFIs) at the bank rate for on lending to SME sub-projects of productive investment for medium to 121 .03 billion for financing the scheme under a loan agreement with the Government of Bangladesh to strengthen the SME sector in Bangladesh.01 billion to EGBMP fund to reinforce this scheme under a Development Credit Agreement signed with the Government of Bangladesh for financing the development of small enterprise sector of the country. A separate Project Implementation Unit (PIU) has been established under SME&SPD to implement this project. 2009.58 billion under the said agreement. Japan and the Government of Bangladesh (BFID.3. A Dedicated Women Entrepreneurs Desk has been established in the SME and SPD. MOF as the representative) in 2011 for SME development and financing. An amount of Tk. the Government of Bangladesh also allocated an amount of Tk. This fund completed its disbursement in September. As much as 15 percent of all SME funds are exclusively reserved for women entrepreneurs.18 billion has been received combining the IDA credit fund and Government of Bangladesh fund for refinancing.3.

090 and 4. the number of small and cottage industrial units established under direct and indirect assistance from BSCIC stood at 5. a total of 9. 201 industrial plots have been allotted in favour of 126 industrial units and during the same period 252 industrial units have been implemented.24 crore.18.771. BSCIC provides necessary services and facilities to the private entrepreneurs. skill development centres. as many as 4. a total of Tk. During FY 2011-12.1 shows the annual investment and employment target together with the achievements against it.69 crore have been exported. and design centres under the institutional framework of BSCIC.869 persons got employment.019 units are under production.009. export and employment in these industrial estates have increased in comparison to those of the previous financial year.14 crore has been approved as refinances to 38 enterprises of which 21 are manufacturing concerns and 17 are service concerns. BSCIC and other financial institutions. The investment. Up to June 2012.97 crore has been paid as revenue to the government by these industrial units of BSCIC’s industrial estates. 448. Most of the export proceeds came from hosiery and knitwear products.60 crore in FY 2011-12. industrial estates.685 industrial units in 74 industrial estates of BSCIC throughout the country. as many as 60. Of this investment. Various programs have been implemented intended to provide support in the form of industry facilitating centres.3. With the above investment. Table 8. The total amount of investment in these industrial units was Tk. small and cottage industries training industries (SCITI).1. 312.96 crore. 15. an amount of Tk. Small and cottage industries play an important role in augmenting investment. An amount of Tk. During FY 2011-12. production. which has increased by 34 percent in comparison to that of the previous financial year.555. Tk.31 crore was financed as loan assistance by banks.760. At present.202. 248. With this aim. production and employment generation in the non-agricultural sector.long-term duration at the market rate.362 respectively.747 industrial plots have been allotted in favour of 5.95 crore came as entrepreneurs' equity and the rest Tk. So far.2. Bangladesh Small and Cottage Industries Corporation (BSCIC) Bangladesh Small and Cottage Industries Corporation (BSCIC) has been playing the role for development and promotion of small industries in the private sector. The total investment in these 74 industrial estates up to June 2012 is Tk. These units have produced goods worth Tk 32. 122 . out of which product worth Tk. and women got a large part of it.70 crore was invested entirely by the entrepreneurs from their own fund.

800 1. During this period. 54.00 75. 233.41 12. water supply line.95 1.35 10.234 449.07 28.200 6. as many as 205 of plots have been completed and by this time these plots have been allotted in favour of 155 industrial units.000 salt growers produced 11.04. As many as 42 plots and 42 pharmaceutical ingredients manufacturing units will be established there and this will create employment opportunities for 25.18. implementation work of central water refinery and supply is nearing completion by RDA. In FY 2011-12.500 1.00 lakh is being developed at the adjoining Savar and Keranigonj upazilas. Besides this.090 432.69 5. around 70.79 15.00 29.174 6.115. BSCIC undertook a project for implementation at a cost of Tk.86 43.10 17.Table 8.869 Small Industry New Existing Total Cottage New Industry Existing Total Total Industries Source: Bangladesh Small and Cottage Industries Corporation.700 18. In order to accelerate and to revitalise the rural economy through industrialisation. of Total Employment unit Investment 2.582 salt growers got themselves engaged in salt production. During this period.637 acres of land of coastal area of Cox's Bazar.200 875.200 3. In order to shift the tannery industrial units of Hazaribagh in Dhaka Metropolitan City.133.240 9.60 3.892.500 10. Construction work of Central Effluent Treatment Plant and Dumping Yard intended to control environment pollution has already begun.600 4.500 Achievement during 2011-12 No. In this estate. as much as 9. By this time.324 881.96 60.600 240.64 lakh metric tonnes of salt was produced.465 4. 37. During this period. a tannery industrial estate with area of 200 acres at a cost of Tk. as many as 45. This is the first specialised industrial estate in the country being established at a land area of 20 acres with an estimated outlay of Tk.1 Annual investment and Employment Target and Achievement of BSCIC (Taka in crore) Type of Industry Target during 2011-12 No.300 14. culverts and electricity line.000 people. Chittagong.95 14. Around 55.225 4. infrastructure including internal roads.061 1. fire service shed.00 1. Bogra.375 45.00 lakh at Saidabad and Kalia 123 .800 4.009. in the same locations.50 lakh.230 2. pump driver quarters and administrative building have been completed. police sub-station.536.3.362 82. Active Pharmaceutical Ingredients (API) Industrial Park is being implemented with modern facilities at Baushia area of Gazaria upazila under the district Munshigonj.100 14.69 lakh metric tonnes of salt with the direct and indirect assistance from BSCIC.000 1. Khulna and Satkhira districts were brought under salt cultivation in FY 2010-11.737 128. drains.404 16. as many as 38. of Total Employment unit Investment 5. Ministry of Industries.000 acres of land were brought under salt cultivation.

glass sheet. BCIC also paid Tk. 14.33. Eighty percent goods produced by the enterprises of BCIC are chemical fertilizers out of which seventy percent is urea fertilizer. 65.712. 48.000 people will be created there.42 lakh sqm of glass sheet.64 lakh. cottage and medium scale entrepreneurs of textile sector.047 metric tonnes of TSP.19 million of Government of Bangladesh) equivalent to Tk. During the same period. In order to increase the production of urea fertilizer.19 million (Concessional Loan of the Government of China of US$ 235 million. a project has been approved by ECNEC with an estimated cost of US$ of 580. 2. paper and hardboard.31 crore to the national exchequer in the form of duties and taxes in FY 2011-12.409. State Owned Enterprises (SOEs) (A) Bangladesh Chemical Industries Corporation (BCIC): Bangladesh Chemical Industries Corporation (BCIC) is currently managing 13 enterprises (medium and large) under its control. insulator. sft of hard board. Preferential Buyer’s Credit of Exim Bank of China of US$325 million and US$ 20. 5. 124 . sanitary-ware etc. the sales revenue stood at Tk. The project will also create employment opportunities for around 1.00 lakh people.765 metric tonnes of paper. During FY 2011-12.686 metric tonnes of urea.899 metric tonnes of cement.29 crore which is 84 percent of sales target. 1.Horipur area of Sirajgonj Sadar Upazila. 1. steps have been taken to set-up Shahjalal Fertilizer Factory (SFF) with a capacity of 5. As many as 30-35 small and medium textile industrial units will be established in 68 industrial plots and an employment opportunity for around about 2. The project is expected to be completed by June 2014. BSCIC is implementing a project titled “Special Economic Zone (Textile)” at Kumarkhali of Kushtia district to create infrastructural facilities for the small.130 metric tonnes of DAP. BSFIC has under its control a number enterprises that include sugar mills.80 lakh metric tonnes of urea fertilizer annually. signing of the credit agreement between two governments and commercial agreement between BCIC and the general contractor of the project has been completed. Urea and TSP fertilizer.49 crore which is 81 percent of the target.103 metric tonnes of insulator and 2. (B) Bangladesh Sugar and Food Industries Corporation (BSFIC) BSFIC is helping to maintain market equilibrium by marketing sugar and other products to the ordinary consumers. Meanwhile.00 crore.18 crore against the production target of Tk. Once the project is completed. are produced in the factories of BCIC. BCIC produced products worth Tk. cement.530 metric tons of sanitary ware. In FY 2011-12. 2. 2.00 lakh with a project area of 10. it will accommodate as many as 801 industrial plots and attract both local and foreign investment. the running factories under BCIC produced 9. To this end.265. This project has been taken up with an estimated cost of Tk. 820.201. 137.00 acres. 20. 94.

communication and infrastructural development of the country. In FY 201011. jeep against a total target of 900 units. Goods worth Tk. The present annual demand for sugar in the country is about 14. truck. assembles bus. 69. (C) Bangladesh Steel and Engineering Corporation (BSEC) Presently 9 industrial units are in operation under the control of Bangladesh BSEC. products worth Tk. In FY 2010-11.distillery units and engineering workshops. 125 . Production of sugar was less than the target due to high price of molasses and other competitive by-products of sugarcane. Progoti Industries Ltd. Products and services of BSEC enterprises mainly include motor cycle. Compared to the actual demand of sugar in the country. Construction/establishment of facilities to build seagoing vessels and balancing. It may be mentioned that the BSEC enterprises paid Tk.00 crore to the national exchequer as duty and taxes in FY2011-12. The annual production capacity of 15 sugar mills of BSFIC is 2. had been off-loaded to private shareholders. Of the nine industrial units. Progoti commercially assembled 192 Pajero Sports Jeep of Mitsubishi Company of Japan and marketed 130 of them in the same period. truck.55 crore. Progoti Industries Ltd. 36. The entity also plans to start assembling of Sedan Car locally. assembled 844 units of bus. A production target of 1. transformers and other electrical items.72 crore was earned against the target of Tk. for sale.46 crore have been produced during FY 2011-12 in the enterprises of BSEC.046. The overall production and sales of commodities may increase by about 14 percent and 12 percent respectively compared to those of the previous year.11 crore to the national exchequer as duties and taxes in FY 2011-12. 990. BSEC earned a net profit of Tk.80 metric tonnes of sugar against the target were produced. electric cables. The corporation has contributed Tk. which is 85 percent of the target. jeep etc. Enterprises under the control of BSEC are playing a vital role delivering products required for electrification. mishuk (three wheeler).84 crore to the national exchequer as duties and taxes in FY 2010-11. 82. GI/MS/API pipe. razor blades. National Tubes Ltd. Chittagong Dry-dock Ltd. ship repair. The entity also paid Tk. assembling of bus.00 lakh metric tonnes. 472.03 crore as duties and taxes to the exchequer in FY 2011-12. (CDDL) earned a profit of Tk. jeep etc. the shortage of sugar is met by the sugar refineries established in the private sector and by import. 77. actual overall net profit of Tk. 49 percent shares of 3 three units such as Atlas Bangladesh Ltd. Generally. and Eastern Cables Ltd.35.95 crore were produced in the above enterprises.50 crore in FY 2011-12 by repairing water vessels. super enameled copper wires.14 crore. 1.376 metric tonnes of sugar was set in FY 2011-12 and 69. truck. tube light. Progoti Industries Ltd and Chittagong Dry Dock Ltd. (CDDL) are the two prominent enterprises of BSEC. 162. 493.346. During FY 2010-11. As a result. the production of sugar in sugarcane-based sugar mills under government supervision is insufficient. During FY 2011-12.. In FY 2011-12. The enterprises under the corporation paid a total amount of Tk. 91.10 lakh metric tonnes.

The total yarn produced from FY 1996-97 up to 2011-12 is 126. are being converted into Textile Polli to accommodate handloom and textile related industries. BTMC mills are now producing yarns of different counts under Service Charge contract concluded with the private parties. a total of 0.82 14. and Chittaranjan Cotton Mills Ltd.194 8.10 9.93 0.17 million kg. A contract has already been signed with IIFC to formulate project and other documents and finding entrepreneurs. In FY 2011-12. The weaving units of composite mills have been closed down and at present fabrics are not produced in these mills.3.modernizing.93 million kg of yarn was produced in the mills under Service Charge System. In FY 2011-12. Due to unwillingness of the parties.2 : Production of BTMC Mills under Service Charge System Financial Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 Installed Capacity Spindles Looms 2337 604020 562 445640 455876 331328 339680 356384 304296 199840 199840 Production Yarn (million kg) Cloth (million metre) 0.48 126 .36 9.865 6.43 9. the contracted yarn dealers / parties supply required raw materials to the mills for producing yarn and payment is made to BTMC on the basis of certain service charge rate per unit. there were 18 mills under BTMC.3. Thus. Necessary accessories and machinery for the factory to produce Energy Saving CFL (Compact Florescent Lamp) bulbs in Eastern Tubes Ltd (ETL) of BSEC are being mobilised. the remaining 14 mills were temporarily out of operation. The responsibility of marketing of yarn lies on the service charge parties. two mills were in operation on rental basis.2: Table 8.40 12. Manufacturing of T-8 tube lights will soon begin in the factory of ETL. The comparative production levels of yarn and fabrics from 1996-97 to 2011-12 after the introduction of Service Charge System up to June 2012 is shown in Table 8.30 14.71 9. which were either closed or laid off. Two mills namely. After the introduction of Service Charge System. two mills were in operation under Service Charge. (D) Bangladesh Textiles Mills Corporation (BTMC) Currently only a few textile mills under BTMC are in operation under “Service Charge System”. In the “Service Charge System”. rehabilitation and expansion (BMRE) of existing facilities to repair seagoing vessels is under way based on Public Private Partnership (PPP). BTMC has discontinued producing fabrics since FY 1997-98 and closed down all the weaving units since then. mostly to meet the domestic demand. Khulna Textiles Mills Ltd.

which will create new employment and the older mills will be put again into operation and make the organisation profitable in a short period. a couple of mills around Dhaka will be revitalised with comparatively modern machinery. 2003. raw materials and organisational assistance.10 million up to FY 2011-12.9 million people indirectly and 0.15 2. To make some of the selected mills profitable under PPP.99 8.34 1.93 0.20 million are closed due to non. Bangladesh Handloom and Sericulture Industry Handloom industry used to occupy the second position after agriculture in respect of generating rural employment.51 million handlooms in the country out of which 0.60 million in FY 2011-12. Value addition of handloom industry is about Tk.1059 126. the production capacity as well as the quality of yarn produced in these mills will increase.31 million looms are in operation and the remaining 0. Ministry of Textiles and Jute With a view to achieving optimum production capacity together with enhancing the technical capability of the BTMC mills under Service Charge System. recovery and recovery percentage: 127 .95 2. 518.3 below shows the distribution of loan. The board has provided a cumulative micro-credit of Tk. Bangladesh Handloom Board provided working capital to the poor weavers under a micro-credit programme amounting to Tk.3. This industry employ about 0. The Public Private Partnership (PPP) policy initiative of the present Government is being contemplated for implementation.availability of working capital.87 7.6 million people directly.17 Source: Bangladesh Handloom Board. some of the machinery / spares of the relatively older mills are being transferred to the newer mills in operation. 7. The handloom industry can meet around 40 percent of the domestic fabric requirements.41 0.00 million per annum.being of weavers by providing working capital. Table 8. There are about 0.Financial Year 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Installed Capacity Spindles Looms 199840 195088 195088 176512 176512 176512 176512 Total = Production Yarn (million kg) Cloth (million metre) 7. According to Handloom Census. the handloom industry can produce 830 million metres of fabrics per year. 150. The handloom industry has been revitalised for overall development and well. As a result.

cocoons.6 19.443 Cocoon (million kg.590 0. activities like production of disease.050 0. Under these projects.00 23.4 below: Table 8.092 0.163 0.00 2009-10 15.Table 8. silk yarn and silk fabrics. The production statistics of DFL’s.05 0.067 2.239 0.66 355.373 0. recovery and recovery percentage by Bangladesh Handloom Board FY Distribution Recovery % of recovery Cumulative upto (June.342 0. Cocoons.80 70.122 0.365 0. 2003) 215.550 0.68 Source: Bangladesh Handloom Board.10 40.80 36.09 0.147 layings (DFLs).00 2010-11 13.66 - 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Source: Ministry of Textiles and Jute.95 2005-06 46.14 2.3. Silk Yarn and Silk Fabrics from FY 2000-01 to FY 2011.83 131.40 60.05 Cumulative 518. silk yarn and fabrics from FY 2000-01 to FY 2011-12 are shown in Table 8.60 144.36 0.40 390.00 76.) 0.3 : Distribution of loan.) (million metre) 1.40 2003-04 80.07 1.176 0. At the initiative of both public and private sectors. 128 .90 31.29 2.3.92 20.121 0.322 0.342 0.75 1.467 0.4: Production of DFLs.90 2006-07 33.60 21.30 1.3.082 0.24 0.346 0.03 0.20 44.160 0. different projects are being implemented for expansion and development of sericulture and silk in the country.80 100. Ministry of Textiles and Jute For the overall development of sericulture and silk industry.10 314.23 2007-08 6. setting up of sericulture garden and villages.015 0. various development programmes are being implemented independently or jointly by Bangladesh Sericulture Board (BSB).70 36.304 0.366 0. Bangladesh Silk Foundation (BSF) and Bangladesh Sericulture Research and Training Institute (BSRTI).144 0.00 2008-09 6.2012 Financial Year DFL’s (million number) 0.10 32.180 Silk yarn Silk fabrics (“000” kg.00 2011-12 7.20 33. cocoon.85 2004-05 91.60 1.08 0. providing training to the people involved in silk and sericulture industry are being carried out.95 24.101 0.

233 dyeing.9 7128.910. and 55.48 450.82 228.386 7038.34 million kg. there are 743 weaving mills and 1.Production of Yarn and Fabrics The industries under textile sector are basically managed and operated under private sector of the country.14 1000.46 265.93 million kg.100.748.00 2. During the same period.84 243. of which the share of public sector mills was only 0.4 0.00 7.00 6.150 million metres of fabric.380.3.00 2.01 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Total : Source: Ministry of Textiles and Jute.751.00 4.00 2.000 knitting and knit dyeing units (out of which 1.93 89.200.00 2.00 5.00 538. The year-wise production of yarn and fabrics are shown in Table 8.00 million metres.00 1050.00 7875.500.00 349.00 546.00 4.500. there are about 3.750.050.00 7.71 380.380.065 specialised textile and power loom units having annual production capacity of 2.86 617.5: Year-wise Production of Yarn and Fabrics in Public and Private Sectors Financial Year Yarn production (million kg.845. Aside from these.3. which was produced entirely in the private sector.01 3.14 2.10.43 251.00 2.74 379.845.98 2.00 1107.300.00 7875.500.95 710.000 handlooms having annual production capacity of 837 million metres of fabrics are in operation.336 340.00 3.72 7.00 6.89 9.00 7.00 2.93 1050.910.200. The annual production capacity of the spinning mills is 2.33 376. In addition.100.050.34 Fabric production (million metre) Public sector Private sector 1.128. and 400 million metres of fabric respectively. In FY 2011-12.36 9.090.800.93 million kg..00 389.000 million kg.66 14.00 717.01 million metres respectively. Currently.050.400 units are export-oriented).00 7.200.00 4.00 55.00 55.800. the total production of yarn stood at 1. Production of yarn and fabrics during the period from FY 2000-01 to FY 2011-12 was 7.00 1001.5 below: Table 8.200.86 608.00 5.00 8.00 4. 129 . the total production of fabrics was 5.200 million metres of fabrics.) Public Private Total sector sector 14. of yarn.71 9.090. as many as 3. printing and finishing units having annual production capacity of 2.40 1105.300.07 1.00 459.48 8.01 Total 1. There are only 22 spinning mills under public sector whereas the private sector owns as many as 407 spinning mills.

and put them into operation. geo-jute. The net value of foreign exchange earnings on the basis of repatriation from the export of jute and jute products is 100%. 172. as many as 1. On the other hand. 3. It also oversees the standard of weight and measurements on the basis of “One stop service.60 million during FY 2011-12. 2003" in FY 2011-12 by conducting 1.(E) Bangladesh Jute Mills Corporation Jute mills are operated with the local raw materials and spare parts. cotton bagging. Moreover.49 lakh metric tonnes..304 mobile courts and a total of Tk.. The present government wants to keep the mills in operation instead of closing down on the plea of losses and therefore. BJMC at present has 27 jute mills of which 18 jute mills are in operation. sacking and carpet backing cloth etc. sale and distribution of illegal and sub-standard products.39 crore and 66 persons were imprisoned. Some of the jute mills produce high quality jute twine / yarn.56 core was realised from the offenders as fines. in order to minimise the production losses.10 million in FY 2011-12. file cover etc. the Government in the meanwhile opened the Peoples Jute Mills Ltd. Khalishpur Jute Mills Ltd. BJMC plays a vital role in export of jute goods to many countries and it exported jute products valuing Tk. BSTI tests. nursery pot. the amount of fines realised stood at around Tk. analyses and validates the quality and content of goods. the machinery of closed Adamjee Jute Mills are being used by transferring them to the other selected jute mills. which are exported to many countries of the world. several effective measures have been taken up for implementation. One fourth of the country’s population is directly or indirectly involved in different activities of jute sector. 9. proper maintenance of the machinery and training of the workers which will help enhance the productivity and quality of products. 4.1 million and deposited them to the exchequer. On the basis of set standard. In FY 2010-11. BJMC incurred a net loss of Tk 681.92 lakh metric tonnes. The targeted production of these mills was 2. such as. Quality Control of Industrial Goods In order to stay competitive in the world market.557 cases were filed under "The Bangladesh Standards and Testing Institution (Amendment) Act. it is important to assure the quality of goods produced in the country. out of which the actual production was 0.” BSTI carries out these activities through six regional offices located at six divisional headquarters. The public sector jute mills purchase raw jute from the farmers at fair prices to incentivise the growers of raw jute. the jute mills under BJMC have collected sales tax and various types of taxes and fees amounting to Tk. However. Bangladesh Standards and Testing Institution (BSTI) is the lone national standard setting body of the country that certifies the quality of products. and the Qawmi Jute Mills Ltd. 130 . The jute mills under BJMC generally produce hessian.197. In order to stop production. A sizeable quantity of locally produced raw jute is used in the local jute industry.

2001” to ensure proper weight in petrol pumps and other commercial entities. the organisation revenues to the tune of Tk. 9. as many as 2.769 mobile courts and the surveillance teams engaged for the purpose and the amount of fine stood at Tk. Designs and Trademarks (DPDT) is a specialised organisation engaged in dealing with the issues associated with Intellectual Property. In FY 2011-12. Ongoing Reform Programmes in State Owned Industrial Sector The basic features of reforms in SoEs include (a) competition in the product market. Designs and Trademarks) in Industry Sector The Department of Patents.05 crore in FY 2011-12.559 cases were filed by 1.36 crore in FY 2010-11. (c) performance-oriented accountability.07 crore.304 mobile courts to prosecute the offenders under metrology activities under "The Weights and Measures Ordinance 1982” and "The Weights and Measures (Amendment) Act.00 lakh was realised from the offenders.In January. (b) autonomy to respond to market signals.53. Intellectual Property (Patents. the National Accreditation Board for Testing and Calibration Laboratories (NABL). (e) market.oriented enterprise. Trademarks activities are carried out under Trademarks Acts. A total of fines worth Tk. Such assistance helps local industries to continue their operation unabated and add value. It is expected that the accreditations will soon come by. Testing and inspection scheme of certain commodities have been upgraded and being implemented under the Product Certification of BSTI according to ISO Guidelines.During FY 2011-12 as many as 1. which was 7. India has accorded accreditation of 5 voluntary products Technical Assistance in Industrial Sector Bangladesh Industrial Technical Assistance Centre (BITAC) assists in advancing the process of industrialisation of the country by way of providing technical advice to the industries and by manufacturing/repairing (local and import substitute) and designing machinery and accessories for the industries. BITAC generated revenues to the tune of Tk. In FY 2010-11. 2012. By granting patents for new inventions and innovations and registering new and basic industrial designs and trademarks.18. 131 . Necessary surveillance audit and pre-assessment as part of the formalities have been done in this regard.706 cases were filed by 1. Steps were taken to earn accreditation from the National Accreditation Board for Testing and Calibration Laboratories (NABL).oriented financing and (f) profit. DPDT is entrusted with granting patents for new inventions and innovations. (d) competitive wage and employment. food and microbiological substances and textile testing laboratories of BSTI. India for cement. register new and basic industrial designs and trademarks. 46.92 lakh.

00 18189.37 64214.27 19633.15 6374.45 25379. the amount of credit disbursement and recovery stood at Tk.52 9650.47 9638.82 19972.55 111953.96 8853.10 1627.4: Year wise Disbursement and Recovery of Industrial Loans (Tk.20 16302.46 17270.70 5409.33 20398.46 18703.10 3212.03 7905. For this purpose.70 25015.89 45231.11.31 1653.66 32163.89 30236.01 Source : Bangladesh Bank.13 9777. The table below shows year-wise disbursement and recovery of loans during FY1995-96 to FY2011-12. the volume of industrial loan disbursement and recovery is increasing gradually.34 12283.47 32858.57 6579.48 18982.95 23790.57 12851.95 71300.47 12572. the Government continued to provide loans and other ancillary supports through banks and financial institutions in FY 2011-12.99 64400.09 30880.99 42473.52 9068.44 8546.99 8704.72 5281.98 6759.08 Working Capital 3402.44 26736.74 Total 3922.69 887. In Crore) Fiscal Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Working Capital 3675.55 44046.99 6675.37 9235. As a result.53 31651. Support to promote SMEs alongside the large-scale industries is the goal of the Government.31 16118.28 59171. Analysing the credit disbursement and recovery trends during the period from FY 1997-98 to FY 2011-12 it is observed that credit disbursement and recovery in the industrial sector increased gradually over this period.39 13765.69 6979.In order to bring about improvement in the management system of state-owned industrial sector.10 Total 4906.65 22975.32 39963.98 Disbursement Term Loan 1230.60 36577.21 15435.59 12309.49 45028.80 52900. Industrial Investment Status Industrial Loan Rapid industrialisation is a sine qua non for achieving desired level of economic development of an agro-based developing country.34 2795.48 10681.07 3505. Table: 8.01 crore respectively which were 44.31 65000.35 76674.13 8179.88 5692.12 4963.88 94637.19 859. 94.78 20150.00 1120.44 1200.74 13682.45 81710.637.89 6269.05 percent and 132 .08 crore and Tk. the following programmes have been undertaken:    Reduction of losses through reduction of manpower and curtailment of non-essential expenditure Ensuring record keeping of assets and liabilities and annual audit Enhancement of reward/punishment scheme for ensuring accountability at every stage.26 3057.75 7711.02 12394.65 7200.00 16439.15 3961.63 29735.61 103463.27 Recovery Term Loan 519.10 60114. In FY 2011-12.54 28849.953.10 22175.45 13624.34 1330. 1.75 56694.75 6591.97 85047.69 25875.30 38098.97 3835.43 1093.20 35278.12 15671.78 28448.

64 712. 2012 stood at at US$ 2.03 percent and 44.95 million.6 below. During FY 2011-2012. 03.274 Dhaka 102 09 863.245 17.021 Bangladeshi citizens were employed in EPZs till that time. 2012) are shown in Table 8. Dhaka. 2012.23 million in FY 2010-11. the disbursement of working capital and term loans increased by 44. Product Garments Garments accessories Knit & other textile Textile Elec & electronics Unit 101 70 44 41 17 Investment.017 Comilla 32 29 156. Investment and Employment in EPZs (up to June 2012) Sl 01.456. Product wise enterprises.69 3. 05.830 Ishwardi 11 15 67. Table 8. employment and exports till June.5 Number of Industries.) In Under operation Implementation Chittagong 167 12 960. Table 8.70 22. Mongla.76.76 1. 02.80 million was exported from the EPZs.300 90. 2012.645.23 15.490 Adamjee 36 31 164. it was US$ 339. as many as 406 industries are in operation in the EPZs under BEPZA.73 82.22 128. In FY 2011-12.30 12. Export and Employment of EPZs Zone Wise Statistics of industries.08 percent and 56. Recovery of working capital and term loan also increased by 54.88 7. The cumulative investment in eight EPZs (Chittagong.021 Source : BEPZA.510 Total 406 137 2. employment and exports (upto June -2012) Name of EPZs Industry Investment Export Employment (US$ in M) (US$ in M) (No.590 221.456. 04. As on June.26 million as compared to US$ 313.93.88 percent higher as compared to those of the previous fiscal year.95 29.805 133 .23 560. (in million us$) 807.6 Product wise Enterprises.57 21. A total of 3.5 below shows EPZ wise statistics of industries.653 Mongla 11 15 5.062.901 22.40. investment. It is expected that this will contribute significantly towards maintaining the growth of the industrial sector of the country.584. Uttara of Nilphamari.355 4.627 293.776 Karnaphuli 38 16 217. Adamjee and Karnafuli) up to June.529 479.06 percent respectively as compared to the those of the previous fiscal year.60 1. 40.70 8.762 Employment opprtunities (nos. goods worth US$ 4210.09 12. During FY 2011-12. Iswardi.471 Uttara 09 10 22. Comilla. Table 8. Investment status in the Export Processing Zones Bangladesh Export Processing Zones Authority (BEPZA) is providing all out supports for rapid development of industrial sector in the country by attracting local and foreign investments.01 26. investment and employment in EPZs (up to June.12 489.63 percent respectively as compared to those of the previous fiscal year. Investment.44 85.107 37.54.) 1. investment.

90 1836.414 6.90 39.96 million.43 1.476 32.05 164.84 1666.909 50.79 42. 21.44 95.Sl 06.7 2005-06 61.17 2.13 27.21 9.58 56.69 1.81 0.021 Source : BEPZA.57 918.68 47.183 2.17 1614.58 2008-09 30.00 115.10 0.60 55.77 27.66 0.39 1190.38 1521.47 1.13 149.00 0.08 54.00 152.53 34.14 641.55 2010-11 72.62 million were exported from the EPZs.71 2009-10 64.50 126.36 667.39 1.24 14.24 20.59 9.95 873. 2002-03 59. 14.51 1548. Product Footware & leather Caps Tent Terry towel Metal product Plastic goods Paper product Fishing reel & golf Rope Service oriented industries Agro product Furniture Power industry Chemical Sports goods Miscellaneous Grand Total Unit 25 5 8 18 12 11 2 1 2 6 7 3 2 5 1 25 406 Investment.97 16. Adamjee EPZ US$ 164.83 19.88 0.864 1.73 45.03 32.860 8.45 101.09 10.74 1883.86 302.96 37.40 25.95 2581.46 11.28 0.54 0.62 2011-12 77.43 1.36 2063. 08.23 112.18 2429.07 148.16 313.wise contribution to exports are: Chittagong EPZ US$ 1.355 1.03 8.67 2007-08 110. 17.05 1.228 62.00 0.01 0.40.76 2.77 million and Karnaphuli EPZ US$ 138.68 million.26 145.85 41.50 - 2003-04 49. 15.17 0.7 shows EPZ wise investment and exports during the period from FY 2002-03 to FY 2011-12 Table 8.62 971. 18.53 0.38 1216.22 1188.78 85.00 1.04 0.09 118.14 554.96 7.06 8. 19.00 0.24 0.17 103. Comilla EPZ US$ 145.15 0.666.863 1.21 7.548 28.46 1033.05 1.724 2.34 1146. Mongla EPZ US$ 27. 2011) goods worth US$ 3.04 1353.29 20. Uttara EPZ US$ 6.68 million. Zone.98 6.602 28.07 60.18 2006-07 87.20 0.01 1.03 17.83 245.79 21.022 3.7 EPZ wise Investment and Export Name of EPZ DEPZ CEPZ MEPZ Com EPZ UEPZ IEPZ AEPZ KEPZ Total Invest.) 20.81 222.521.91 0.20 95.10 18.68 9.99 0.260 45. (in million us$) 140.72 0.15 0. 09.77 21.00 2822.15 0.90 12.56 138.573 97 71 319 12.71 15. Dhaka EPZ US$ 1. 20.54 26.01 7.34 1.52 1333.02 46.11 3.78 million.32 81.861 99 580 575 888 286 1.62 34.456.93 million. In FY 2010-11 (up to June.03 0 7.95 Employment opprtunities (nos.30 35.23 7.72 131.095 1.486 6.85 0.49 57. 10.36 5.42 0.35 757.16 million.38 0. 07. 12.80 3.503 2.316 32.67.309 3.462 49.92 2004-05 51. 16.03 4.31 772.36 47.49 7.05 134 .54 4.384 26./ Export Investment Export Investment Export Investment Export Investment Export Investment Export Investment Export Investment Export Investment Export Investment Export Source: BEPZA.43 679.65 39.93 36. 13.00 2.46 1117.24 3697. Table 8.55 207.21 33. Ishwardi EPZ US$ 25.017 7.520 62.08 0.46 million. 11.34 9.26 9.31 21.

exports and employment generation. with better facilities. 135 . EPZs of BEPZA have also been playing a special role in ensuring the welfare of their workers that include education. Up to June 2012.K and Italy have invested in the EPZs of Bangladesh.A. raw materials are being procured from the industries located outside the EPZs and also 100 percent export oriented enterprises in local market to supply their products to EPZ enterprises. Malaysia. China. two daycare centres have been in operation in CEPZ and DEPZ to ensure safety and proper care for the children of female workers. Besides these.S. For this . The Authority has already taken steps to introduce five Central Effluent Treatment Plants (CETP) in five EPZs in order to ensure maximum protection for the environment. U. U. Moreover.In addition to promotion of FDI . Apart from industrialisation. Implementation of the CETP projects in Dhaka EPZ and Chittagong EPZ are under way. Korea. working conditions are improving and the workers are being benefited. export earnings and employment generation. As a result. approval of setting up 03 (Three) Central Effluent Treatment Plants (CETP) is under process. EPZs are encouraging its investors to comply with the code of conduct. Now-a-days buyers are increasingly attaching importance to social compliance issues. Japan. EPZs have been making special contribution to the development of backward linkage and supportive industries of the country. 37 countries including S. medical service and security. Majority of the industrial plants of EPZs under BEPZA have Effluent Treatment Plants.