Economic Review English Version 2021

BANGLADESH
ECONOMIC REVIEW
2021
Finance Division, Ministry of Finance

Government of the People's Republic of Bangladesh
August 2021
www.mof.gov.bd
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Tfr Minister
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Government of the People's
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Preface
'Bangladesh Economic Review' is an annual publication of the government. The Review has been
published during the budget session along with other budget documents. However, as a result of
changed situation due to the outbreak of COVID-19 pandemic, there has been some delay in publishing
the Review. The Review focuses on trends of the macroeconomy, various policies and strategies
adopted by the government and sector-based development and progress of the economy. ln addition,
time series data on the key macroeconomic and social indicators have been incorporated in the Review.
2. After achieving above 7 percent growth since FY 2015-16 to three consecutive years, GDP
growth in Bangladesh has reached 8.15 percent in FY 2018-19. This feat of achieving continued growth
in Bangladesh's GDP has been praised worldwide. However, the Coronavirus pandemic that poses a
major risk to the global economy has also had negative effects on the Bangladesh economy. According
to the estimates of Bangladesh Bureau of Statistics (BBS), GDP growth has been decelerated to 3.51
percent in FY 201-9-20, which has been estimated 1o5.47 percent inFY 2020-21. During FY 2O2O-21,lhe
per capita national income stood at USS 2,227, from USS 2,024 compared to the previous fiscal year.
3. The Hon'ble Prime Minister announced incentive packages of about Tk 1,,28,4t1crore to address
the global crisis and keep the country's economy moving and bring it back on track. These incentive
progarmmes, which is4.4 percent of GDP and are being implemented through 23 packages. Some of the
notable activities of this package are-to provide special funds for export oriented industries, provide
working capital to affected industries and services sector enterprises and micro (including cottage
industries), small and medium enterprises, increase the benefits of Export Development Fund, increase
the coverage of social safety net, direct cash transfer to targeted people and creation of various funds
for the agricultural sector. ln addition to financial incentives, various measures have been taken to
reduce import duty on COVID-19 related health and medical products and provide policy assistance to
increase liquidity in the banking sector. Through implementation of this attractive and timely stimulus
package, the government has been able to play a highly effective role in employment creation and
safeguarding employment, stimulating domestic demand and keeping economic activities moving. As a
result, the trend in the Bangladesh economy has started a turnaround towards the high growth
tra jectory.
4, Moreover, to address the impact of COVID-19, funds have been allocated in the budget to meet
the targets of each ministry and division. The revised budget outlay for FY 201.9-20 was Tk. 5,01,577
crore, which increased by7.46 percent to Tk. 5,38,983 crore in FY 2020-21. The government is cautious
of limiting the budget deficit to 5 percent by increasing efficiency in revenue management. However,
due to the increase in government expenditure against COVID-19 pandemic, the actual budget deficit for
FY 201,9-20 stood at 5.4 percent. The budget deficit has been estimated around 6.L percent of GDP in FY
2O2O-?l,.lnitiatives have been taken to further automate and digitize income tax, value added tax and
customs departmentsto bringtransparency in tax management. Online lT based value added tax system
has already been introduced. lt is expected that the implementation of the ongoing reform
programmes, help keeping the budget deficit within the limit of 5 percent in the coming years.
5. There has been a negative growth in import and export in FY 20L9-20. l.lowever, both export
and import showed a positive move during tY 2O2O-21,. Notable progress has been made in the area of
remittances due to the provision of incentives at the rate of 2 percent on remittances sent by non-
resident Bangladeshis through the banking channel and the easing of the process for sending
remittances. The inflow of remittances for FY 2020-2L stood at USS 24.78 billion, up by 36.10 percent
Bangladesh Seeretariat, Dhaka-1000, Bangladesh

Phone: +88-02-95 14477, 9139754, Fax: +88-02-9514404, www. mof.gov. bd
qt q q TgTt IFIT|{, ,sefre, e{PI A H M Mustafa Kamal;rca, nne
qfif Minister
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Republic of Bangladesh
compared to the previous fiscal year. lt is expected that this high growth trend of remittance inflows will
continue in the coming days. ln addition, various initiatives and diplomatic activities by the government
have been continueri, inclucling those for the expansion of the foreign labor market, skills development
and safe migration. As a result of the increase in remittances, the deficit in the current account balance
has improved during FY 2O2O-21, compared to the previous fiscal year. At the same time, due to the US$
9.3 billion surplus in the overall balance of payment, foreign exchange reserve increased significantly to
reach at USS 46.39 billion on 30 June 202L.
6. The monetary policy for FY 2020-2L has been framed with the dual objectives of supporting
domestic demand to stimulate economic growth in coordination with the government's sustainable
development goals, and maintaining price level and achleving macroeconomic and financial stability. To
ensure adequate liquidity in the financial system to tackle the financialcrisis stemming from the COVID-
19 pandemic, the policy interest rate and the Cash Reserve Requirement (CRR) have been reduced more
than once. At present, both the repo rate and CRR are at 4 percent. Furthermore, the interest rate on
bank loans has been brought down to a single digit or 9 percent with the aim of creating an industrial
and business-friendly environment for the industries, businesses and service sector organisations and
enabling them to achieve financial viability in local and international markets.
7. Apart from economic development, Bangladesh has also rnade significant strides in the social
sector. Bangladesh has been able to achieve the targets ahead of schedule related to hunger, poverty
and health in the Millennium Development Goals (MDGs) of the United Nations. The government has
adopted'Vision 2041' after the implementation of 'Vision 2021' and formulated the Second Perspective
Plan (2021,-2041) as the strategic policy document for the vision. lmplementation of the Seventh Five
Year Plan (2015-2020) has been successfully completed. The implementation of the Eighth Five Year Plan
(2021,-2025) has started. The government has set its sights to become a higher middle income by 2031
and a happy and prosperous developed country by 204I. The government is working tirelessly to tackle
the Coronavirus pandemic, implement pledges made under the Election Manifesto of 20L8, implement
the Second Perspective Plan (2021-2041) and achieve the Sustainable Development Goals (SDGs). lt is
hoped that through the implementation of the initiatives taken by the government, the expected
growth targets will be achieved and the country will move towards the continued development.
8. I extend my sincere gratitude to all official of the Economic Adviser Wing of the Finance
Division for publishing the Review despite various limitations during the COVID-19 pandemic. At the
same time, lextend my sincere thanks to all the concerned ministries/divisions/agencies for providing
all the necessary information and data for the preparation of the Review. I hope that the Review will
meet the expectations of researchers, planners, students and readers who are curious about the nature
and progress ofthe economy.
4^aa anu f-"."..-*
(A H M Mustafa Kamal FCA, MP)

Minister
Ministry of Finance
Bangladesh Secretariat, Dhaka-1000, Bangladesh

Phone: +88-02-951 4477, 9739754, Fax: +88-02-9514404, www. mof.gov.bd
CONTENTS
Chapter No. Page No. Chapter
Preface
Introduction
xi-xiv List of Tables
xv-xvi List of Figures
xvi List of Annexure
xvii-xx List of Statistical Appendices
xxi-xxxii List of Abbreviations and Acronyms

xxxiii Socio-Economic Indicators of Bangladesh
xxxv-xxxix Executive Summary
Macro Section
1. 1-10 Macroeconomic Situation
2. 11-20 GDP, Savings and Investment
3. 21-34 Prices, Wages and Employment
4. 35-54 Fiscal Policy and Fiscal Management
5. 55-74 Monetary Management and Financial Market Development

6. 75-90 External Sector
Sectoral Section
7. 91-106
Agriculture
8. 107-128
Industry
9. 129-134
State Owned Enterprises
10. 135-152
Power and Energy
11. 153-184 Transport and Communication
Thrust Area Section
12. 185-208
Human Resource Development
13. 209-230
Poverty Alleviation
14. 231-250
Private Sector Development
15. 251-266
Environment, Climate Change and Development
267-362
Statistical Appendices
ix
x
LIST OF TABLES
Table Title Page
1.1 Overview of the World Output Growth Projections 2

1.2 Medium Term Macroeconomic Framework: Key Indicators 10
2.1 GDP, GNI, Per Capita GDP and GNI at Current Market Prices 12
2.2 Gross Domestic Product (GDP) at Current Market Prices 12
2.3 Sectoral Growth Rate of GDP at Constant Prices (Base Year: 2005-06) 13
2.4 Sectoral Share of GDP at Constant Prices (Base Year: 2005-06) 16
2.5 Trend of Structural Transformation of Broad Sectoral Shares in GDP and Growth Rate at 17
Constant Prices
2.6 Expenditure Based Gross Domestic Product at Current Prices 18
2.7 Consumption, Savings and Investment (As percent of GDP)(Base Year:2005-06) 18
3.1 Consumer Price Index and Inflation (Base year 2005-06) 22

3.2 Monthly Rate of Inflation (Point to point) during FY 2019-20 (Base Year 2005-06=100) 23
3.3 Wage Rate Index and Growth Rate (Base year 2010-11=100) 23
3.4 Share of Employed Labour Force Above 15 Years by Sector 24
3.5 Number of Expatriate Employees and Amount of Remittance 27
3.6 Remittance as Percent of GDP and Export Earnings 28
3.7 Number of Expatriates Classified by Skill 30
3.8 Number of Expatriate Bangladeshi Workers by Country 31
3.9 Country wise Remittances 32
4.1 Revenue Mobilisation Target 36

4.2 Item-wise Revenue Mobilisation by NBR 36
4.3 Public Expenditure 38
4.4 ADP Allocation, RADP Allocation and Expenditure 39
4.5 Sector wise Allocation of RADP 40
4.6 Domestic Resources in Financing ADP 41
4.7 Overall Budget Balance and Financing 43
4.8 Actual Budget Deficit 43
4.9 Government Borrowing (net) from Domestic Sources 44
4.10 Government Borrowing (net) from Domestic Sources 45
5.1 Growth Trends of Monetary Aggregates 57

5.2 Movement and Growth of the Components of M2 and Domestic Credit 58
5.3 Components of Reserve Money and their Changes 59
5.4 Sources of Reserve Money and their Changes 60
5.5 Income Velocity of Money 60
5.6 Structure of the Banking System in Bangladesh 62
5.7 Securities Trading Information of Dhaka Stock Exchange 70
5.8 Securities Trading Information of Chittagong Stock Exchange 71
6.1 World Trade Volume 76

6.2 Balance of Payments 77
6.3 Commodity-wise Share and Growth of Export Earnings 78
6.4 Country-wise Export Earnings 79
6.5 Commodity-wise Import Payment 80
xi
Table Title Page
6.6 Country-wise Import Payments 81

6.7 Foreign Exchange Reserve 81
6.8 Weighted Average Exchange Rate (Taka per USD) 82
6.9 Tariff Structure from FY2000-01 to FY 2020-21 82
6.10 MFN Unweighted Import Average 83
7.1 Food Grains Production 92

7.2 Seed Production and Distribution 95
7.3 Use of Chemical Fertiliser 95
7.4 Area Under Irrigation 97
7.5 Year-wise Disbursement and Recovery of Agricultural Credit 98
7.6 Fish Production Trends in Different Resources 100
7.7 Production Statistics of Carp Spawn/ Fingerlings from Hatcheries 101
7.8 Number of Livestock and Poultry Population in Bangladesh. 103
7.9 Production of Milk, Meat and Eggs 103
8.1 Volume and Growth Rate of Manufacturing Sector (At constant prices of 2005-06) 107
8.2 Quantum Index of Production for Medium to Large Scale Manufacturing Industries (Base 2005- 108
06)
8.3 Disbursement of SME Credit by Banks and NBFIs 109
8.4 Summary Information of SME Refinance Schemes 110
8.5 Investment, Production and Employment of BSCIC Industrial Estates 111
8.6 Yearly Investment, Production and Employment of BSCIC Industrial Estates 112
8.7 Delivery of Services of BSCIC 112
8.8 The Production, Demand, Sales and Import Statistics of Urea Fertiliser 113
8.9 Net Profit/Loss of BSEC Enterprises 114
8.10 Statement of Revenue Deposited by BSEC. 114
8.11 The amount of Revenue Deposited in the Government Treasury in the last 10 years 115
8.12 Year-wise Yarn Production 116
8.13 Production of Disease Free Laying (DFLs) Cocoon, Silk Yarn and Microcredit Disbursement 117
8.14 Zone wise Statistics of Industries Investment Export and Employment of EPZs 120
8.15 Product wise Enterprises Investment and Employment in EPZs 120
8.16 EPZ wise Investment and Export 121
8.17 Export of Drugs and Raw Materials 122
8.18 Disbursement and Recovery of Industrial Loans 123
9.1 Non-Financial Public Enterprises 129

9.2 Growth Rate of Revenue, Value Addition and Production Income of Non-Financial SOEs 131
9.3 Government Grant/Subsidy 132
9.4 Profit Earned by the SOEs 133
10.1 Installed Capacity and Maximum Generation 137

10.2 Fuel Consumption by Public Sector Power Plants 137
10.3 Power Sector Development and Future Plan 138
10.4 Power Generation Projects(Under construction) 138
10.5 Transmission System and Substation Infrastructure by PGCB 139
10.6 Year-wise System Loss Statistics 140
10.7 Year wise Accounts Receivable 141
10.8 Installation of Prepaid Meters 142
xii
Table Title Page
10.9 Physical Target and Achievement of BREB 142

10.10 Status of Gas Production and Reserve 145
10.11 Production of Natural Gas and its Consumption by Sector 146
10.12 Sector wise Average Gas Demand Forecast 147
10.13 Import of Crude Oil 148
10.14 Import of Refined Petroleum Products 148
10.15 Amount of Subsidy Given to BPC by the Government 149
11.1 Various Categories of Roads under Roads and Highways Department 154
11.2 Achievement in Transport Infrastructure Development under LGED 156
11.3 Revenue Target and Collection of BRTA 157
11.4 Revenue Target and Collection of BRTC 158
11.5 Time Bound Action Plan, 2030 of DMTCL 160
11.6 Description of the toll Collected from Bangabandhu Bridge 162
11.7 Overall Performance of Bangladesh Railway 165
11.8 Income and Expenditure of BIWTA 166
11.9 Development and Maintenance Works of BIWTA 166
11.10 Year wise Hydragrafic Survey 167
11.11 Income and Expenditure Statement of BIWTC 167
11.12 Income and Expenditure of CPA 168
11.13 Income, Expenditure and Profit/Loss of Mongla Port 169
11.14 Income and Expenditure of Bangladesh Land Port Authority 170
11.15 Income and Expenditure of the Department of Shipping 171
11.16 Statement of Income-Expenditure and Profit-Loss of BSC 172
11.17 Financial Position of CAAB 173
11.18 Income and Expenditure of 174
11.19 Subscriber Number, Growth and Tele Density of Mobile and Fixed Phone 175
11.20 Number of Subscribers of Different Mobile Operators (up to February 2021) 175
11.21 Year wise Income and Expenditure of BTCL 176
11.22 Income and Expenditure of Bangladesh Submarine Cable Company Limited 177
12.1 HDI Position of Bangladesh 186

12.2 Allocation (Operating and Development) of Selected Ministries 187
12.3 Boys- Girls Enrolment at Primary Level 188
12.4 Year wise Dropout Rate at Primary Level 188
12.5 Recent Trends in Health Indicators 195
12.6 Vaccination under EPI Program 196
12.7 Nutrition Status of Bangladesh 198
13.1 Trend of Income Poverty 210

13.2 Monthly Household Nominal Income, Expenditure and Consumption Expenditure by Residence 211
13.3 Percentage Distribution of Income Accruing to Households in Groups (Deciles) at National 211
Level and Gini Co-Efficient
13.4 Decile Distribution of Consumption by Residence HIES 2016 and 2010 212
13.5 Division wise Incidence of Poverty (HCR) by CBN Method (in percentage) 212
13.6 Projection of Poverty Alleviation during 8th Five Year Plan 213
13.7 Allocation Pattern of Social-Safety-net Programs and Social Empowerment 214
13.8 Disbursement of Loan by Karmasangsthan Bank 223
xiii
Table Title Page
13.9 Status of Micro-Credit Programs of Major NGO 226

13.10 Microcredit Programs of Grameen Bank 227
13.11 Status of Micro-Credit disbursement of SOCBs and Public Specialised Bank 227
13.12 Microcredit Programs of other commercial and Specialized Banks 228
13.13 Status of Microcredit of different Ministry/Division/Department 229
14.1 FDI Inflow to Bangladesh by Components 233

14.2 Private Investment Proposals Registered with BIDA 234
14.3 Sector wise Distribution of Local Investment Projects 235
14.4 Registration of Foreign and Joint Venture Investment Projects 236
14.5 Foreign Loan Approval from FY 2009-10 to FY 2020-21 (July-February) 237
14.6 Recent Trend in Approval of Branch, Liaison and Representative Office 238
14.7 Premium Income from Non-life Insurance Sector 243
14.8 Premium Income from Life Insurance Sector 244
15.1 Top Ten Greenhouse Gas Emitting Countries in the World 252
xiv
LIST OF FIGURES
Figure Title Page
2.1 Broad Sectoral GDP Growth at Constant Prices 14
2.2 Share of Three Major Sectors in the last more than three Decades at constant prices 17
2.3 Trend of Investment, Domestic Savings and National Savings as percent of GDP 19
3.1 Rate of Inflation at National Level 22

3.2 Manpower Export and Remittance Inflow 27
3.3 Remittances as Percent of GDP and Export Earnings 28
3.4 (a) Category wise Migration: 2009 30
3.4 (b) Category wise Migration: 2020 30
3.5 (a) Overseas Employment by Country in 2009 31
3.5 (b) Overseas Employment by Country in 2020 31
3.6 (a) Country wise Remittance Inflow in FY2009-10 32
3.6 (b) Country wise remittance Inflow in FY2020-21 32
4.1 Comparative Statement of Item wise Revenue Mobilisation 37

4.2 Comparative Statement of Operating Expenditure 38
4.3 Sector-wise ADP Allocation (Allocation of Highest 7 Sectors) 40
4.4 Government’s Borrowing (Net) from Domestic Sources 44
4.5 Flow of External Resources 45
5.1 Composition of Broad Money (Year-on-Year Percentage Change) 57

5.2 Percentage Share of the Compositions of Broad Money 58
5.3 Movement of M2 as Percent of GDP 61
5.4 Weighted Average Deposit and Lending Interest Rate 62
5.5 DSE Market Capitilisation and Indices 70
5.6 CSE Market Capitilisation and All Share Price Index 71
6.1 Trade Balance 76

6.2 Balance of Payments (BOP) 77
6.3 Foreign Exchange Reserves and Month of Import Coverage 81
6.4 Weighted Average Exchange Rate (Annual) 82
7.1 Food Grains Production 93

7.2 Fish Production Trends in Different Resources 100
9.1 Financial Performance of SoEs 133
10.1 Installed Capacity (By Fuel Type) 136

10.2 Installed Capacity (By Sector ) 136
10.3 Energy Generation (National) by Fuel 136
10.4 Energy Generation (National) by Sector 136
10.5 Inter Utility Energy Import FY (2019-20) 140
10.6 Inter Utility Energy Import FY (2020-21) 140
10.7 Year wise System Loss Statistics 141
10.8 Year wise Accounts Receivable 141
10.9 Category-Wise Gas Consumption FY-2018-19 147
10.10 Category-Wise Gas Consumption FY-2019-20 147
xv
12.1 Trend of Government Allocation in the social Sector of Selected Ministries 186
14.1 Trend in FDI Inflow in Bangladesh (In million US$) 233

14.2 Trend in Capital Machinery Import (In million US$) 234
14.3 Sector wise Local Investment Projects Registered with BIDA in FY 2020-21 235
14.4 Sector-wise Distribution of Foreign and Joint Venture Projects in FY2020-21 236
14.5 Employment Opportunities by the BIDA-Registered Project 237
LIST OF ANNEXURE
Annex Title Page

4.1 Steps Taken for Realisation of Tax Regime 46
4.2 Stimulus Package to Address COVID-19 and Economic Recovery 52
4.3 Budget at a Glance (with Actual) 53
5.1 Reforms in the Bangladesh Bank 72

5.2 Implementation of Basel III 74
6.1 Summary of major changes in foreign exchange regulations during FY2020- 88

21
8.1 Steps Taken for the Development of SMEs 127

8.2 Some key activities of SMEF 128
14.1 Sources of the Foreign and Joint Venture Projects 245

14.2 List of PPP Funded Projects 247
15.1 Ministry/Division wise Projects and Allocation from BCCTF 261

15.2 Division-wise Projects and Allocation from BCCTF 263
15.3 BCCSAP Thematic Area-wise Projects and Allocation from BCCTF 263
15.4 Green Banking and Sustainable Finance 264
15.5 Government's Plan to Control Air Pollution 265
xvi
xvii
LIST OF STATISTICAL APPENDICES
Appendix Title Page
1.1 Macroeconomic Indicator: 2005-06 to 2011-12 267
1.2 Macroeconomic Indicator: 2012-13 to 2020-21 268
1.3 Macroeconomic Indicator as Percent of GDP: 2005-06 to 2010-11 269
1.4 Macroeconomic Indicator as Percent of GDP: 2011-12 to 2020-21 270
2.1 Gross Domestic Product (GDP) at Current Prices 271
2.2 Gross Domestic Product (GDP) at Current Prices 272
3.1 Gross Domestic Product at Constant Prices (Base Year: 2005-06) 273
3.2 Gross Domestic Product at Constant Prices (Base Year: 2005-06) 274
4.1 Sectoral Growth Rate of GDP at constant prices (Base Year: 2005-06) 275
4.2 Sectoral Growth Rate of GDP at constant prices (Base Year: 2005-06) 276
5.1 Sectoral Share of GDP (%) at Constant Prices (Base Year: 2005-06) 277
5.2 Sectoral Share of GDP (%) at Constant Prices (Base Year: 2005-06) 278
6.1 Consumer Price Indices and Inflation (National) (Base Year: 1995-96=100) 279
6.2 Consumer Price Indices (All Urban) (Base Year: 1995-96=100) 279
6.3 Consumer Price Indices (All Rural) (Base Year: 1995-96=100) 279
7.1 Consumer Price Indices (National) (Base Year: 2005-06=100) 280
7.2 Consumer Price Indices (All Urban) (Base Year: 2005-06=100) 280
7.3 Consumer Price Indices (All Rural) (Base Year: 2005-06=100) 281
8 Consumer Price Indices (CPI) for Middle Class Families of Dhaka City (Base 281
year: 1973-74=100)
9 Wholesale Price Indices of Agricultural and Industrial Products 282
10 Cost of Living Index of Industrial Workers of Narayanganj, Chattogram and 282
Khulna (Base: 1973-74=100)
11.1 Wage Rate Indices by Major Sectors (Base: 1969-70=100) 283
11.2 Wage Rate Indices and Growth Rate (Base: 2010-11=100) 283
12.1 Production of Major Agricultural Crops and Acreage 284
12.2 Production of Major Agricultural Crops and Acreage 285
13.1 Area Under Irrigation (FY2004-05 to FY 2010-11) 286
13.2 Area Under Irrigation (FY20011-12 to FY 2019-20) 286
14.1 Use of Chemical Fertiliser (FY2004-05 to FY 2010-11) 287
14.2 Use of Chemical Fertiliser (FY20011-12 to FY 2020-21) 287
15 Import of Food Grains (FY1985-86 to FY 2020-21) 288
16 Year wise Disbursement and Recovery of Industrial Credit 289
17 Agricultural Credit Disbursement, Recovery and Outstanding 289
18.1 Quantum Index of Industrial Production (Base: 2005-06=100) 290
18.2 Quantum Index of Industrial Production (Base: 2005-06=100) 291
19.1 Production of Major Industrial Goods 292
19.2 Production of Major Industrial Goods 293
20.1 Production of State-owned Enterprises and their Financial Performance 294
20.2 Production of State-owned Enterprises and their Financial Performance 295
21.1 Net Profit/Loss of State-owned Enterprises 296
21.2 Net Profit/Loss of State-owned Enterprises 297
xviii
Appendix Title Page
22.1 Dividend Contribution of State-owned Enterprises to National Exchequer 298
22.2 Dividend Contribution of State-owned Enterprises to National Exchequer 299
23 Debt Service Liabilities (DSL) outstanding position at a glance on 30 June 2018 301
24 Amount of Outstanding and Classified Loans for SOEs (As on 31 January 2019) 303
25 Installed Capacity and Maximum Generation 304
26 Production of Natural Gas and its Consumption by Sector 305
27 Route Kilometerage, Number of Engines and Coaches of Bangladesh Railway 306
28 Passenger and Freight Carried by Bangladesh Railway 307
29 Different Types of Roads under Roads & Highways Department 308
30.1 Number of Primary Schools, Student Enrolment and Number of Teachers in Govt. 309
Primary Schools
30.2 Number of Primary Schools, Student Enrolment and Number of Teachers in Govt. 309
Primary Schools
31.1 (a) Number of Secondary and Higher Secondary, Technical and Vocational and 310
Religious Education Institution
31.1 (b) Number of Secondary and Higher Secondary, Technical and Vocational and 311
Religious Education Institution
31.2 (a) Number of Student at Secondary and Higher Secondary, Technical and Vocational 312
and Religious Education Institutions
31.2 (b) Number of Teachers at Secondary and Higher Secondary, Technical and 313
Vocational and Religious Education Institutions
31.3 (a) Number of Student at Secondary and Higher Secondary, Technical and Vocational 314
31.3 (b) Number of Student at Secondary and Higher Secondary, Technical and Vocational 315
32.1 Number of Educational Institutions at Higher Education Level 316
32.2(a) Number of Teachers at Higher Education Level Institutions 317
32.2(b) Number of Teachers at Higher Education Level Institutions 318
32.3(a) Number of Students at Higher Education Level Institutions 319
32.3(b) Number of Students at Higher Education Level Institutions 320
33 Number of Government Hospitals, Dispensaries, Doctors, Nurses and Beds 321
34 Demographic Statistics 322
35.1 Revenue Budget (Revenue Receipts: 1987-88 to 1996-97) 323
35.5 Revenue Budget (Revenue Expenditure: 1987-88 to 1996-97) 327
35.6 Revenue Budget (Non-development Expenditure: 1997-98 to 2004-05) 328
36 Revised Annual Development Program (Allocation and Expenditure) 331
37.1 Sector wise Revised ADP Allocation (FY1998-99 to FY2004-05) 332
38.1 Sector wise Revised ADP Expenditure (FY1998-99 to FY2004-05) 333
xix
Appendix Title Page
39.1 Economic Classification of Revenue Expenditure (1989-90 to 1996-97) 335
39.2 Economic Classification of Non-Development Expenditure (1997-98 to 2002-03) 336
40 Money Supply and its Components 339
41.1 Bank Advances Classified by Economic Purposes (June 2005 to June 2012) 340
41.2 Bank Advances Classified by Economic Purposes (June 2013 to December 2018) 340
42.1 Bank Advances Classified by Sectors (June 2005 to June 2012) 341
42.2 Bank Advances Classified by Sectors (June 2013 to December 2020) 341
43 Domestic Credit through Banking System 342
44.1 Bank Deposits 343
44.2 Bank Deposits 343
45 Monetary Survey 344
46 Terms of Trade 345
47 Average Nominal Exchange Rate 345
48.1 Real Effective Exchange Rate-REER Index, 1994-95=100 (11 Currency Basket) 346
49.1 Value of Exports by Major Commodities 347
49.2 Value of Exports by Major Commodities 348
50 Country wise Export 349
51.1 Value of Imports by Major Commodities (FY2005-06 to FY2011-12) 350
51.2 Value of Imports by Major Commodities (FY2012-13 to FY2019-20) 350
52 Country wise Import 351
53 Overseas Employment and Remittances 352
54 Country wise Remittances 353
55.1 Balance of Payments (FY2002-03 to FY2009-10) 354
55.2 Balance of Payments (FY2010-11 to FY2019-20) 355
56 Foreign Exchange Reserves 356
57 Commitment and Disbursement of Foreign Economic Assistance 356
58 Foreign Debt Service Payment 357
59 External Debt Outstanding 358
60.1 Foreign Assistance by Source 359
60.2 Foreign Assistance by Source 360
61.1 Foreign Assistance Disbursement by Economic Sector 361
61.2 Foreign Assistance Disbursement by Economic Sector 361
62 Size, Actual Expenditure and Growth Rate of GDP of Past Plan (Respective Base 362
Year Price)
xx
LIST OF ABBREVIATIONS AND ACCRONYMS
ACU Asian Clearing Union

ADB Asian Development Bank
ADP Annual Development Program
ADs Authorised Dealers
ADR Alternative Dispute Resolution
ADSL Asymmetric Digital Subscriber Line
AH Asian Highway
AI Artificial Insemination
AICC Agriculture Information and Communication Centre
AIDS Acquired Immune Deficiency syndrome
AIS Agriculture Information Service
ALM Asset-Liability Management
AML Anti-Money Laundering
APA Annual Performance Agreement
API Active Pharmaceutical Ingredient
APO Asian Productivity Organisation
APG Asia Pacific Group
APTA Asia Pacific Trade Agreement
AQI Air Quality Index
ARI Accident Research Institue
ASEAN Association of Southeast Asian Nations
ASA Association for Social Advancement
ATM Automated Teller Machine
BAB Bangladesh Accreditation Board
BACH Bangladesh Automated Clearing House
BAPARD Bangabandhu Academy for Poverty Alleviation and Rural Development
BADC Bangladesh Agricultural Development Corporation
BAERA Bangladesh Atomic Energy Regulatory Authority
BAEC Bangladesh Atomic Energy Commission
BANBEIS Bangladesh Bureau of Educational Information and Statistics
BAPEX Bangladesh Petroleum Exploration and Production Company Ltd
BARD Bangladesh Rural Development Board
BB Bangladesh Bank
BBA Bangladesh Bridges Authority
BBS Bangladesh Bureau of Statistics
BCBS Basel Committee on Banking Supervision
BCC Bangladesh Computer Council
BCCRF Bangladesh Climate Change Resilience Fund
BCCSAP Bangladesh Climate Change Strategy and Action Plan
BCCTF Bangladesh Climate Change Trust Fund
Bcf Billion Cubic Feet
BCIC Bangladesh Chemical Industries Corporation
BDBL Bangladesh Development Bank Limited
BDHS Bangladesh Demographic and Health Survey
xxi
BdREN Bangladesh Research and Education Network
BDS Bachelor of Dental Surgery
BDT Bangladesh Taka
BEmOC Basic Emergency Obstetric Care
BEPZ Bangladesh Export Promotion Zone
BEPZA Bangladesh Export Processing Zones Authority
BERC Bangladesh Energy Regulatory Commission
BEZA Bangladesh Economic Zone Authority
BFDC Bangladesh Film Development Corporation
BFIDC Bangladesh Forest Industries Development Corporation
BFIU Bangladesh Financial Intelligence Unit
BFSA Bangladesh Food Safety Authority
BJC Bangladesh jute Corporation
BREN Bangladesh Research and Education Network.
BGMEA Bangladesh Garments Manufactures and Exporters Association
BHB Bangladesh Handloom Board
BHTPA Bangladesh Hi-tech Park Authority
BIDA Bangladesh Investment Development Authority
BIM Bangladesh Institute of Management
BIMSTEC Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation
BIRTAN Bangladesh Institute of Research and Training on Applied Nutrition
BITAC Bangladesh Industrial Technical Assistance Centre
BIWTA Bangladesh Inland Water Transport Authority
BIWTC Bangladesh Inland Water Transport Corporation
BJC Bangladesh Jute Corporation
BJMC Bangladesh Jute Mills Corporation
BLPA Bangladesh Land Port Authority
BMD Bureau of Mineral Development
BoPV Bivalent Oral Polio Vaccine
BMET Bangladesh Manpower Employment and Training
BMDA Barind Multipurpose Development Authority
BPDB Bangladesh Power Development Board
BPL Broncho Pulmonary Lavage
BMKT Bangladesh Muktijoddha Kalyan Trust
BMS Bachelor of Maritime Science
BNEA Bangladesh National Enterprise Architecture
BNH Bangladesh National Herbarium
BOD Biochemical Oxygen Demand
BOSEL Bangladesh Overseas Employment and Service Limited
BOGMC Bangladesh Oil, Gas & Mineral Resources Corporation
BOI Board of Investment
BoP Balance of Payments
BOT Build Operate Transfer
BPC Bangladesh Petroleum Corporation
BPC Bangladesh Parjatan Corporation
BPD Bangladesh Postal Department
xxii
BPO Bangladesh Post Office
BPDB Bangladesh Power Development Board
BRAC Bangladesh Rural Advancement Committee
BRDB Bangladesh Rural Development Board
BREB Bangladesh Rural Electrification Board
BRT Bus Rapid Transit
BRTA Bangladesh Road Transport Authority
BRTC Bangladesh Road Transport Corporation
BDREN Bangladesh Research and Education Network
BSB Bangladesh Sericulture Board
BSC Bangladesh Shipping Corporation
BSCCL Bangladesh Submarine Cable Company Limited
BSCIC Bangladesh Small and Cottage Industries Corporation
BSEC Bangladesh Steel and Engineering Corporation
BSEC Bangladesh Securities and Exchange Commission
BSFIC Bangladesh Sugar and Food Industries Corporation
BSIC Bangladesh Standard Industrial Classification
BSMRMU Bangabandhu Sheik Mujibur Rahman Maritime University
BSRTI Bangladesh Sericulture Research and Training Institute
BSTI Bangladesh Standards and Testing Institution
BTB Bangladesh Tea Board
BTCL Bangladesh Telecommunication Company Limited
BTMC Bangladesh Textile Mills Corporation.
BTRC Bangladesh Telecommunication Regulatory Commission
BUET Bangladesh University of Engineering and Technology
BUGC Bangladesh University Grants Comission
BVRO Basic Unit for Resources and Opportunities of Bangladesh
BWDB Bangladesh Water Development Board
c&f cost and freight
CAAB Civil Aviation Authority of Bangladesh
CAB Current Account Balance
CABs Conformity Assessment Bodies
CAP Country Action Plan
CAMS Continuous Air Monitoring Stations
CASE Clean Air Sustainable Environment
CBD Convention on Biological Diversity
CBHE Cross Border Higher Education
CBN Community Based Nutrition
CBN Cost of Basic Needs
CC Community Clinic
CCA Controller of Certifying Authority
CCCP Community Climate Change Program
CCPP Combind Cycle Power Plant
CDA Chattogram Development Authority
CET Common Equity Tier
CETP Central Effluent Treatment Plants
CFT Combating Financing of Terrorism
xxiii
CIB Credit Information Bureau
CIF Climate Investment Fund
CIWM Centre for Irrigation and Water Management
CMSMEs Cottage, Micro, Small and Medium Enterprises
CNG Compressed Natural Gas
COD Chemical Oxygen Demand
Cox DA Cox’s Bazar Development Authority
CPA Chattogram Port Authority
CPI Consumer Price Index
CPTU Central Procurment Technical Unit
CRAR Capital to Risk Weighted Asset Ration
CRR Cash Reserve Requirement
CSBA Community based Skilled Birth Attendant
CSE Chattogram Stock Exchange
CTCN Climate Technology Centre and Network
DAE Department of Agriculture Extension
DAP Di-Ammonium Phosphate
DCI Direct Calorie Intake
DEMRS Digital Evidence Management and Reporting System
DEMU Diesel Electric Multiple Unit
DESCO Dhaka Electric Supply Company
DFLs Disease-Free Laying’s
DFQF Duty Free and Quota Free
DGEN DSE General Index
DGFI Directorate General of Forces Intelligence
DHSE Directorate of Secondary and Higher Education
DIFE Department of Inspection for Factory and Inspection
DLS Department of Livestock Services
DMBs Deposit Money Banks
DMF Disaster Management Fund
DMTCL Dhaka Mass Transit Company Limited
DNA Deoxyribonucleic Acid
DoE Department of Environment
DoE Department of Explosives
DoF Directorate of Fisheries
DOICT Department of Information and Communication Technology
DoF Department of Forest
DoS Department of Shipping
DOTS Directly Observed Treatment Short-Course
D-8 Developing – 8
DPs Development Partners
DPA Domestic Processing Area
DPDC Dhaka Power Distribution Company
DPDT Department of Patents, Designs & Trademarks
DRC Digital Registration Certificate
DSE Dhaka Stock Exchange
DSA Digital Security Agency
xxiv
DSEx DSE Broad Index
DSL Debt Service Liabilities
DTCA Dhaka Transport Coordination Authority
DTCB Dhaka Transport Coordination Board
DTW Deep Tube well
DYD Department of Youth Development
EC Electrical Conductivity
EC Energy Conservation
ECA Ecologically Critical Area
ECNEC Executive Committee for National Economic Council
EDCF Economic Development Cooperation Fund
EDF Export Development Fund
EE Energy Efficiency
EEBL Exelerate Energy Bangladesh Ltd
EECR Enabling Environment for Child Rights
EFT Electronic Fund Transfer
EGBMP Enterprise Growth & Bank Modernisation Project
e-GP Electronic Government Procurement
EIF Enhanced Integrated Framework
ELCD Early Learning for Child Development
EmOC Emergency Obstetric Care
EP Essential Priority
EPB Export Promotion Bureau
EPI Extended Program on Immunisation
EPZ Export Processing Zone
ERL Estern Refining Limited
ERP Enterprise Resources Planning
e-SIF Electronic Students Information Form
EU European Union
EZs Economic Zones
FAO Food and Agriculture Organisation
FATF Financial Action Task Force
FC Foreign Currency
FCBs Foreign Commercial Banks
FDI Foreign Direct Investment
FDMN Forcibly Displaced Mayanmar Nationals
FEI Food Energy Intake
FFW Food for Work
FIU Financial Intelligence Unit
FLTC Foreign Language Training Centre
FPC Fair Price Card
FSMF Fish Seed Multiplication Farm
FSPDSME Financial Sector Project for the Development of SME
FSRU Floating Storage and Regasification Unit
FSSP Financial Sector Support Project
xxv
FTAs Free Trade Area
FWV Family Welfare Visitors
FY Fiscal Year
FYP Five Year Plan
GAP Good Aquaculture Practice
Gbps Gigabits Per Second
G to G Government to Government
GCNEP Global Center for Nuclear Energy Partnership
GDP Gross Domestic Product
GED General Economic Division
GeoUPAC Geo-Information for Urban Planning and Adaptation to Climate Change
GI Galvanized Iron
GI Geographical Indications
GIIP Gas Initially in Place
GIS Geographical Information System
GNI Gross National Income
GoB Government of Bangladesh
GPON Gigabit Passive Optical Network
GR Gratuitous Relief
GSB Geological Survey of Bangladesh
HACCP Hazard Analysis and Critical Control Point
HBFC House Building Finance Corporation
HCR Head Count Ratio
HDI Human Development Index
HEC Higher Education Commission
HEMIS Higher Education Management Information System
HEQEP Higher Education Quality Enhancement Project
HES Household Expenditure Survey
HIES Household Income and Expenditure Survey
HIV Human Immunodeficiency Virus
HNP Health Nutrition and Population
HPNSP Health, Population and Nutrition Sector Program
HRD Human Resource Development
HSD High Speed Diesel
HVDC High Voltage Direct Current
HYV High Yielding Variety
IAEA International Atomic Energy Agency
iBAS Integrated Budget and Accounting System
IBFCR Inclusive Budgeting and Financing for Climate Resilience
IBRD International Bank for Reconstruction and Development
ICAAP Internal Capital Adequacy Assessment Process
ICAO International Civil Aviation Organisation
ICB Investment Corporation of Bangladesh
ICC Internal Control and Compliance
ICS Improved Cook Stove
ICT Information and Communication Technology
xxvi
ICT Inland Container Terminal
ID Identity
IDA International Development Association
IDR Issuer Default Rating
IFC International Finance Corporation
Infrastructure Investment Facilition Company
IGA Inter Government Agreement
ILO International Labour Organisation
IMCI Integrated Management of Childhood Illness
IMED Implementation Monitoring and Evaluation Division
IMF International Monetary Fund
IMO International Maritime Organisation
IORA Indian Ocean Rim-Association
IMSO International Mobile Satellite organization
IOSCO International Organisation of Securities Commission
IOTC Indian Ocean Tuna Commission
IPM Integrated Pest Management
IPO Initial Public Offering
ISPS International Ship and Port Facility Security
IT Information Technology
ITES Information Technology Enabled Service
ITLOS International Tribunal for the Law of the Seas
ITS Intelligent Traffic System
JBC Jiban Bima Corporation
JCM Joint Credit Machanism
JDPC Jute Diversification Promotion Centre
JICA Japan International Cooperation Agency
JPY Japanese Yen
KBPS Kelobits Per Second
KDA Khulna Development Authority
kV Kilovolt
KVA Kilovolt Ampere
Kw Kilowatt
KWh Kilowatt hour
KWp Kilowatt Peak
KYC Know Your Customer
LDC Least Developed Countries
LDCF Leat Development Country Fund
LDO Light Diesel Oil
LCR Liquidity Coverage Ratio
LEDs Light Emitting Diodes
LE Large Employee
LFS Labour Force Survey
LGED Local Government Engineering Department
LLP Low Lift Pump
LNG Liquefied Natural Gas
LOC Line of Credit
xxvii
LPG Liquid Petroleum Gas
LRL Livelihood Restoration Loan
MA Marine Academy
MASW Multi Channel Analysis of Surface Wave
MBBS Bachelor of Medicine, Bachelor of Surgery
Mbps Megabits Per Second
MCHTI Maternal and Child Health Training Institute
MCWCs Mother and Child Welfare Centers
MDG Millennium Development Goal
MEMIS Madrasah Education Management Information System
MEPhI Moscow Engineering Physics Institute
MFN Most Favoured Nation
MoFL Ministry of Fisheries & Livestock
ML Money Laundering
MMR Maternal Mortality Rate
MLT Medium and Long Term
MNCH Maternal, Neonatal and Child Health
MoA Memorandum of Assistance
MoP Margin of Preference
MoR Ministry of Railways
MoSW Ministry of Social Walfare
MoU Memorandum of Understanding
MPA Marine Protected Area
MPA Mongla Port Authority
MPO Monthly Payment Order
MRA Microcredit Regulatory Authority
MR Mitral Regurgitation
MRT Mass Rapid Transit
MSC Management System Certificate
MT Metric Tonne
MW Megawatt
Mwp Mega Watt Peak
MVA Mega Volt Ampere
MVAR Mega Volt Amps Reactive
NAAND National Academy for Autism and Nero-Development Disabilities
NABL National Accreditation Board for Testing Laboratories
NAEM National Academy for Educational Management
NAMA National Appropriate Mitigation Action
NAMA Non-Agricultural Market Access
NAP National Adaptation Plan
NAPA National Adaptation Program of Action
NBDCs Non-Bank Depository Corporations
NBFIs Non-bank Financial Institutions
NBR National Board of Revenue
NCTB National Curriculum and Text Book Board
NCERT National Computer Emergency Response Centre
NDA Net Domestic Assets
NDC Nationally Determined Contribution
NEC National Economic Council
xxviii
NESCO Northern Electricity Supply Company
NFA Net Foreign Assets
NGO Non-Government Organisation
NHA National Housing Authority
NIKDU National Institute of Kidney Disease and Urology
NIS National Integrity Strategy
NITAG National Immunisation Technical Advisory Group
NLDC National Load Dispatch Centre
NMI National Maritime Institute
NMR Neo-natal Mortality Rate
NNGPS Newly Nationalised Government Primary School
NNS National Nutrition Services
NOC Network Operation Centre
NPCBL Nuclear Power Plant Company Bangladesh Ltd
NPCIL Nuclear Power Plant Company India Ltd
NPO National Productivity Organisation
NPP National Priority Project
NRCC National River Conservation Commission
NRCP National Residue Control Plan
NSDA National Skills Development Authority
NSDC National Skill Development Council
NSFR Net Stable Funding Ratio
NSI National Security Intelligence
NSO National Statistical Organisation
NSPC Nuclear Security and Physical Protection System Cell
NSSS National Social Security Strategy
NTCB National Curriculum and Textbook Board
NTPC National Thermal Power company
NTVQF National Technical and Vocational Qualification Framework
NWRI Nominal Wage Rate Index
OCV Oral Cholera Vaccine
OMS Open Market Sale
Ops Operational Plans
OPGW Optical Ground Wire
PACE Promotion Agricultural Commercialization and Enterprises
PCBs Private Commercial Banks
PCV Packed Cell Volume
PDBF Palli Darido Bimochon Foundation
PDPP Preliminary Development Project Proposal
PEDP Primary Education Development Program
PF Proliferation Financing
PFDS Public Food Distribution System
PFI Plants Forever Inc
PFIs Participating Financial Institutions
PGCB Power Grid Company of Bangladesh Limited
PKI Public Key Infrastructure
PKSF Palli Karma Sahayak Foundation
xxix
PMO Prime Minister’s Office
PMT Proxy Means Testing
POS Partners Organisations
PPE Pre-Primary Education
PPA Public Procurement Act
PPA Payra Port Authority
PPCR Pilot Program for Climate Resilience
PPP Public Private Partnership
PRF Project Redyness Financing
PSMP Power System Master Plan
PSB Palli Shanchoy Bank
PTAs Preferential Trade Agreements
PTI Primary Training Institute
PTS Primary Textile Sector
PWD Public Works Department
PWDs Persons with Disabilities
QIIP Quantum Index of Industrial Production
QLFS Quarterly Labour Force Survey
RAB Rapid Action Battalion
RADP Revised Annual Development Program
RAJUK Rajdhani Unnayan Kartripakkha
RCC Remediation Coordination Cell
RDCD Rural Development and Cooperation Division
RDA Rajshahi Development Authority
RDA Rural Development Academy
REB Rural Electrification Board
RFID Radio Frequency Identification
RHD Roads and Highways Department
RM Reserve Money
RMG Ready-Made Garments
RNPP Rooppur Nuclear Power Plant
ROSC Reaching Out of School Children
RTAs Regional Trade Agreements
RTGS Real Time Gross Settlement
SAARC South Asian Association for Regional Cooperation
SAFTA South Asian Free Trade Area
SAM Severe Acute Malnutrition
SARS Severe Acute Respiratory Syndrome
SATIS SAARC Agreement on Trade in Services
SASEC South Asia Subregional Economic Cooperation
SBC Shadharan Bima Corporation
SBs Scheduled Banks/State Owned Specialised Banks
SCBs State-owned Commercial Banks
SCF Strategic Climate Funds
SDF Social Development Foundation
SDGs Sustainable Development Goals
SECAEP Secondary Education and Access Enhancement Project
xxx
SEIP Skills for Employment and Investment Program
SEQAEP Secondary Education Quality and Access Enhancement Project
SESDP Secondary Education Sector Development Program
SESIP Secondary Education Sector Investment Program
SESP Secondary Education Stipend Project
SFDF Small Farmers Development Foundation
SHSs Solar Home Systems
SIDS Small Island Developing States
SIM Subscriber Identification Module
SKO Superior Kerosene Oil
SKT Shishu Kallyan Trust
SLIP School Level Improvement Plan
SMEs Small and Medium Enterprises
SMEDP Small and Medium Sized Enterprise Development Project
SOCBs State Owned Commercial Banks
SOEs State Owned Enterprises
SPM Single Point Mooring
SREDA Sustainable and Renewable Energy Development Authority
SREP Supervision Review Evaluation Process
SS Suspended Solid
SSS Society for Social Services
STCW International Convention on Standards of Training, Certification and Watchkeeping
STD Standard Tender Document
STOL Short Take-Off and Landing
STP Strategic Transport Plan
TA Tariff Area
TB Tuberculosis
TBM Tunnel Boring Machine
TCB Trading Corporation of Bangladesh
TCF Trillion Cubic Feet
TD Adult Diphtheria and Tetanus Toxoids
T&D Transmission and Distribution
TDS Total Dissolved Solid
TES Technical Expert Service
TEU Twenty foot Equivalent Unit
TF Terrorist Financing
TFR Total Fertility Rate
TICFA Trade and Investment Cooperation Forum Agreement
TIN Tax Identification Number
TLP Trade Liberalisation Program
TMSS Thengamara Mohila Sabuj Songha
TNC Trade Negotiation Committee
TPS-OIC Trade Preferential System among OIC Countries
TR Test Relief
TRIPS Trade Related Intellectual Property Rights
TRP Tariff Reduction Program
TSC Teachers Students Centre
TSP Triple Super Phosphate
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TTC Technical Training Centre
TVET Technical and Vocational Education and Training
UAE United Arab Emirates
UBSP Urban Building Safety Project
UDL UGC Digital Library
UHC Universal Health Coverage
UITRCE Upazila ICT Training and Resource Center for Education
UK United Kingdom
ULDC Upazila Livestock Development Centre
UN United Nations
UNCCD United Convention to Combat Desertification
UNCCC United Nations Climate Change Conference
UNCBD United Nations Convention on Biological Diversity
UNCTAD Uinited Nations Conference On Trade and Development
UNDP United Nations Development Program
UNEP United Nations Environment Program
UN-ESCAP United Nations Economic and Social Commission for Asia and the Pacific
UNFCCC United Nations Framework Convention on Climate Change
UNODC United Nations Office on Drugs and Crime
UPEP Upazila Primary Education Plan
US$ United States Dollar
USA United States of America
VAT Value Added Tax
VCG Village Conservation Groups
VDO Village Development Organisations
VDP Village Defense Party
VGD Vulnerable Group Development
VGF Vulnerable Group Feeding
VHF Very High Frequency
VPN Virtual Private Network
VTMIS Vessel Traffic Management Information System
WASA Water Supply and Sewerage Authority
WB World Bank
WMU World Maritime University
WRI Wage Rate Index
WTO World Trade Organisation
WZPDC West Zone Power Distribution Company
ZDP Zero Discharge Plan
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Socio-Economic Indicators of Bangladesh
General Geographical Location/Characteristics Gross Domestic Product (GDP), 2020-21 (Prov.)

Location 20 0 34' & 260 38' North Latitude GDP at Current Price (In Cr. Tk.) 30,11,065
880 01' & 920 41' East Longitude GDP at Constant Price (In Cr. Tk.) 12,07,246
Area (Sq. Km) 1,47,570 GDP Growth at Constant Price (%) 5.47
Standard Time GMT+6 Per Capita National Income (In Tk.) 1,88,873
Hours Per Capita National Income (In US$ ) 2,227
Population (in million) 2001 (Census) 130.0 Per Capita GDP (In Tk.) 1,77,843
2011 (Census) 151.7 Per Capita GDP (In US$) 2,097
Estimated 2016 (1 July) 160.8 Savings and Investment (% GDP) 2020-21 (Prov.)
Estimated 2020 (1 July) 168.2 Domestic savings 24.17
Population Growth Rate (Percentage), 2020 1.37 National savings 30.39
Male-Female Ratio, 2020 100.2 Total investment 29.92
Population Density/Sq. Km, 2020 1,140 Public 8.67
Basic Vital Statistics Private 21.25
Crude Birth Rate (Per 1000 Population), 2020 18.1 Balance of Payments, 2020-21 (In Million US$) (Prov.)
Crude Death Rate (Per 1000 Population), 2020 5.1 Export Earning , fob 37,882
Infant Mortality Rate (Per 1000 Live Birth), 21 Import Payments, fob 60,681
(Below 1 Year of Age), 2020 Current Account Balance (-) 3,808
Total Fertility Rate (per woman aged 15-49), 2020 2.04 Overall Balance 9,274
Contraceptive Prevalence Rate (%), 2020 63.9 Workers’ Remittances 24,778
Life Expectancy at Birth (Years), 2020, Total 72.8 Foreign Exchange Reserves (30 June 2021) 46,391
Male 71.2 Budget 2020-21 (Revised)
Female 74.5 Total Revenue (In Crore Taka) 3,51,532
Mean Age at Marriage, 2020, Male 25.2 Total Expenditure (In Crore Taka) 5,38,983
Female 19.1 Total Revenue (As Percentage of GDP) 11.39
Health and Social Services Total Expenditure (As Percentage of GDP) 17.46
Persons Per Registered Physician, 2018 1 :1724 Budget Deficit (Including Foreign Grants, % GDP) 5.9
Access to Water, Drinking (Tap & Tube well (%), 20 98.3 Budget Deficit (Excluding Foreign Grants, % GDP) 6.1
Improved Sanitation Facility (%), 2020 81.5 Financial Statistics Year (Up to February, 2021)
Literacy Rate of Population 7 +yrs (%), 2020 75.2 Total Banks 61
Male 77.4 State Owned Commercial Banks 6
Female 73 State-owned Specialised Banks 3
Labour Force and Employment Private Commercial Banks 43
Labour Force Survey, 2016-17 Foreign Bank 9
Total Labour Force (15 +yrs), (Crore) 6.35 Non-Bank Financial Institution 34
Male 4.35 Money Supply (In crore Tk.) (End May, 2021)
Female 2.00 Narrow Money (M1) 3,53,509
Percentage of Total Labour Force by Broad Sectors Reserve Money 3,27,853
Agriculture Sector 40.6 Broad Money (M2) 15,26,275
Industry Service 20.4 Capital Market (Share Price Index, as on June 2021)
Service 39.0 DSE Broad Index (Base=100) 6,150.48
Poverty Situation (Estimated), 2018-19 Chattogram Stock Exchange (Base=1000) 17,795.04
Incidence of Poverty (%) 20.5 Inflation (%)
Incidence of Extreme Poverty (%) 10.5 General 5.56
Transportation (Km.), Up to February, 2021 Food 5.73
National Highway 3,944 Non-Food 5.29
Regional Highway 4,883 Exchange Rate Average (2020-21)
Feeder Road/Zila Road 13,592 Taka/US$ 84.81
Total Road 22,419
Railway 3,019
Sources: Bangladesh Bureau of Statistics, Finance Division, Bangladesh Bank, Health Services Division, Security and Exchange Commission,
Ministry of Primary and Mass Education, Road Transport and Highway Division, Ministry of Railways
xxxiii
Bangladesh Economic Review 2021
EXECUTIVE SUMMARY
Global Economy
The global economy is recuperating invincibly from the COVID-19 outbreak, but the recovery process is
very different and uneven among countries. In the World Bank published report titled „Global Economic
Prospect, June 2021‟, the economic growth is projected at 5.6 percent in 2021which was contracted to 3.5
percent in 2020. Substantial fiscal support for the economy, policy support and vaccine access are the
major determinants of this unstable growth. Global growth is set to reach 4.3 percent and 3.1 percent
respectively in 2022, and 2023 in that report.
The report also foresees that the growth of developed economies will reach 5.4 percent in 2021, with 6.8
percent potential economic growth in the United States. More contagious strains of coronavirus which
have recently spread to countries with emerging markets and developing economies, along with vaccine
availability are expected to hamper the country‟s recovery process. Growth in emerging markets and
developing economies is projected at 6.0 percent in 2021, with China growing at 8.5 percent and India at
8.3 percent.
In the World Economic Outlook (WEO) April 2021, International Monetary Fund (IMF) projected that
the global economy to grow at 6.0 percent in 2021 which is 0.8 percent higher than the estimate of
October 2020 WEO. For advanced economies, expected growth rate is 5.1 percent and for emerging
markets and developing economies growth is projected at 6.7 percent in 2021. Initially the report made
conservative prediction. After analyzing the recent resilient trend of global economic growth, the revised
forecast has been made with higher projection.
Macroeconomic Situation: Bangladesh, 2020-21
Bangladesh economy has been consistently performing well with above 6 percent of GDP growth since
FY 2010-11 to up until COVID-19 outbreak. The growth rate was elevated to 8.15 percent in FY 2018-
19. Unfortunately, country‟s economic growth was slowed due to the negative impact of COVID-19
pandemic. According to the provisional estimates of BBS, growth rate achieved in FY 2019-20 is 3.51
percent. In FY 2020-21, the estimated GDP growth target is 5.47 percent.
According to provisional estimate of BBS, per capita GDP and per capita national income stood
respectively at US$ 2,097 and US$ 2,227 in FY 2020-21. The domestic savings stood 24.17 percent of
GDP, and national savings stood at 30.39 percent of GDP for the same period. The gross investment
stood at 29.92 percent of GDP in FY 2019-20 where public investment and private investment accounted
for 8.67 percent and 21.25 percent of GDP, respectively.
In FY 2019-20, the inflation rate was 5.65 percent. Of this, the food inflation was 5.56 percent and
nonfood inflation stood at 5.85 percent. The inflation rate for FY 2020-21 was 5.4 percent. But the actual
inflation rate reached at 5.56 percent which was slightly higher than the estimate. The food inflation
was 5.73 percent and nonfood inflation reached at 5.29 percent. Yet the Government‟s continuous efforts
to keep up the food supply chain uninterrupted during COVID-19 pandemic worked well and helped to
keep the inflation under control.
Executive Summary | xxxv

The stagnant situation of the world economy as well as the pressure for increased public expenditure to
face the ongoing COVID-19 pandemic, have constituted challenges on the revenue mobilisation system of
Bangladesh. The revenue mobilisation revised target of NBR was set at Tk. 3,00,500 crore in FY 2019-
20. Against that target, the revenue receipt from NBR sources was marked at Tk. 217,794 crore which is
72.48 percent of the revised target and 2.73 percent lower than the achievement of previous fiscal year.
Nonetheless, overall, revenue collection was increased by 5.53 percent. This has happened due to the
increase of non-tax revenue. The revenue mobilisation revised target is set at Tk. 3,51,532 crore in FY
2020-21 which is 11.39 percent of GDP. The revenue target from NBR sources is Tk. 3,01,000 crore
(9.75 percent of GDP), non-NBR sources is Tk. 15,000 crore (0.49 of GDP) and non-tax revenue is Tk.
33,002 crore (1.15 percent of GDP).
With an indication of positive growth, NBR revenue collection of the first 10 months (July to April 2021)
was reached at Tk. 1,97,583.43 crore which was 12.87 percent higher than the previous year. To maintain
a business friendly atmosphere as well as to improve the governance of the revenue system, NBR has
been implementing several programs. The implantation of the VAT law and relevant rules through
automation is one of the mentionable strategy in this regard.
As per provisional data of Integrated Budget and Accounting System (iBAS++) of Finance Division, total
revenue mobilisation of non-NBR sources stood at Tk. 5,944 crore in FY 2019-20, which is 19.04
percent less than the revenue of mobilisation of the previous fiscal year. In FY 2019-20, of non-tax
revenue collection was Tk. 43,927 crore which is 125.50 percent higher than the target and 69.46 percent
higher than the previous year„s collection. The rise of this amount occurred as the surplus money from
autonomous, semi-autonomous and semi-autonomous, state-owned and public non-financial corporation
was deposited to government treasury. In FY 2020-21, in first 11 months, non-tax revenue collection is
Tk. 45,856 crore which is 129.06 percent higher of the same period of the previous fiscal year.
The GOB had to undertake new expenditure and resource allocation plan by setting new priorities in FY
2019-20 to deal COVID-19 pandemic situation. The major objective was to minimise the impairment of
the pandemic by providing financial incentives. In the revised budget of FY 2020-21, sectors those are
directly involved with minimising COVID-19 outbreak, such as: health, agriculture, social welfare, food,
disaster management, employment creation etc. received increased resource allocation. The size of the
revised ADP was Tk. 1,97,643 crore which was 2.25 percent higher than the previous year. The highest
allocation, Tk. 49,212.86 crore was given to transportation sector which was 24.90 percent of the total
revised ADP. The investment in education and religion sector was Tk. 24,571.96 crore which was 12.43
percent of the revised ADP. Parallel to this, health, nutrition, population and family welfare sectors also
received allocation of Tk. 14,921.9 crore which is 7.55 percent of the revised ADP.
The monetary policy of the country including financial as well as credit programme have been embarked
on aligning with the fiscal policy which in fact aimed to regain the productivity of the economy also to
capture the qualitative growth plus tackling inflation. The growth of broad money at the end of February
2021 stood at 13.4 percent and the growth of credit to the government increased by 8.3 percent which was
69.7 percent in February 2020. Predominantly, the large volume of saving certificate sale contributed to
this growth. At the end of February 2021, the growth of private sector credit stood at 8.9 percent which is
almost static compared to previous fiscal year due to continuous pandemic situation.
Different steps were implemented under an expanded monetary policy during FY 2020-21. Bangladesh
Bank reduced the repo rate from 5.25 percent to 4.75 and reverse repo rate from 4.75 to 4 percent. The
Executive Summary | xxxvi

bank rate was revised and reset by reducing 100 basis point to 4 percent to align it with the recently
declared interest rationalization policy. Besides, The Cash Reserve Requirement (CRR) was reduced from
5.5 percent to 4.0 percent for internal banking and from 5.5 percent to 2.0 percent for off-shore banking.
The downwards trend of interest rate for both deposit and credit trend remains static. At the end of
February 2021, the weighted average interest rate stood at 7.48 percent for credit and 4.46 percent for
deposit. The gap between weighted average interest rate of credit and deposit (spread) at that time reached
at 4.02 percent. To attain a sustainable economic structure, the government has kept its constant efforts to
creating access opportunities of financial services for all its grass root level citizens, especially those who
are yet to financially include. The capital market situation was found positively working in FY 2020-21
though both Dhaka and Chattrogram Stock Exchange were volatile for a while. Overall, there was a
mentionable growth both in the capital and value index. The growth of broad index for Dhaka Stock
exchange was 37.37 percent and for Chattrogram Stock exchange was 39.84 percent.
The export sector has resumed back to a positive trend after overcoming the COVID-19 shock with the
support of all the interventions of the GOB. The export earnings growth was 15.1 percent in FY 2020-21
than FY 2019-20. The amount was US$ 38,758.31 million, which was US$ 33,674.21 million in FY
2019-20. The import payment was also recommenced back in FY 2020-21 with 19.73 percent growth
than the previous year. And the amount was US$ 65,564.7 million. Alike FY 2019-20, remittance inflow
was also high in FY 2020-21. Due to this high inflow, during July-April of FY 2020-21, the current
account balance deficit was US$ 47 million which was US$ 3,772 million in FY 2019-20. The total
amount of remittance in FY 2020-21 was US$ 24,777.71 million which was 36.10 percent higher (18,205
million) than the previous year. Foreign reserve amount in this period stood at US$ 46.39 billion. The
exchange rate between Taka and US dollar remained static.
Sector-wise Economic Progress
Managing the challenges of COVID-19 and keeping aligned with the success achieved up until now in the
agriculture sector, GOB has adopted short, medium and long term work plan to maintain the food
sustainability of the country. The target of food production was 466.35 lakh metric tonne in 2020-21
which was 453.44 lakh metric tonne in FY 2019-20. Revised budget target for food collection from
internal market was 15.68 lakh metric tonne. By February 2021, 3.12 lakh metric tonne food grain was
imported through government channel and 35 lakh metric tonne through private channel. In order to
increase productivity in response to the effects of Coronavirus, subsidies on agricultural inputs have been
increased. Tk. 9,500 crore was allotted in FY 2020-21 for agriculture subsidy. The fish production (inland
water resources and sea resources) was 45.52 lakh metric tonne in FY 2020-21 which was 45.03 lakh
metric tonne in FY 2019-20. Up to February 2021, the doses of produced vaccine for live stocks was 1.04
crore and for poultry, 26.71 doses.
To overcome the shock of COVID-19 as well to revitalise, GOB has provided different supports under
incentives packages to its industry sector. Special fund for export oriented industries, working capital for
the affected industries and service sector institutions, working capital to SMEs, credit guarantee skims for
SMEs are mentionable programmes of the GOB.
Power generation or producing electricity is one of the key drivers of growth and development. The
capacity of power generation reached at 21,778 megawatts in February 2021. The volume is 24,982
megawatts including renewable energy and captive. The maximum generation level 12,892 MW were
achieved in 05 September 2020. Total net electricity production was 71,419 million kilowatt-hours (kWh)
Executive Summary | xxxvii

in FY 2019-20 and in the first seven months of FY 2020-21 (up to January 2021) total net electricity
production stood at 44,439 million kWh. Out of total net generation, 38.69 percent power was generated
by the public sector, 4.90 percent by joint venture, 45.76 percent power from the private sector and 10.59
percent from power import from India. At present, the total distribution line is 6.03 lakh kilometer and
total consumer is 3.96 crore. The construction of Ruppur Atomic power plant unit is ongoing.
Natural gas met almost 63 percent of the country's total commercial use of energy. A total of 27 gas fields
have been discovered from which about 18.24 trillion cubic feet gas has been produced cumulatively (up
to December 2020). 10.63 trillion cubic feet of recoverable gas by January 2021. Besides, the country has
about 13.60 lakh metric tonne of reserve fuel oil. In order to meet the growing demands for natural gas
and fuel oil and to secure energy supply of the country in the long term, the highest emphasis is given on
the diversification of energy sources, particularly on the efficient and optimum use of energy,
construction of power plant which be based on coal, duel fuel, atomic renewable energy.
The development efforts to build communication and transport infrastructure is going on. At present, the
total length of road in the country is 22,418.95 km as of February 2021. Of this, 3,943.69 km length
covers national Highway (17.59 percent), 4882.94 km regional (21.78 percent), 13,592.32 km (60.63
percent) district roads. Parallel to the roads, development projects like and highway development, Padma
Bridge, Metro-rail, BRT, Dhaka Elevated Express way and some other mega-projects are being
implemented. At present, the total length of railway is 30,019 km. Several measures have already been
undertaken for the development and maintenance of navigability of different river routes, ensuring safe
movement of water crafts, development of inland river ports, creating infrastructure facilities to carry
container goods in inland waterways etc. As the national flagship carrier Biman Bangladesh Airlines
Limited is operating 7 national and 19 international flights in different routes. the government has
undertaken various initiatives to expand and modernize telecommunication system. The total number of
mobile phone subscribers was 17.33 crore in February 2021 and the number of internet users was 11.27
crore.
During this crisis period of pandemic, the government has strengthened the health population and
nutrition sector to provide easy and quality services to its citizens. The country prepared a COVID-19
response plan at the very outset of the pandemic in March 2020. Accordingly, effort has been made to
prevent and control the spread of Coronavirus (COVID-19) as well as to provide health care to infected
people. The government is working hard to vaccinate its citizens.
Bangladesh has achieved an outstanding development in poverty alleviation during the last decade
because of successive nonstop endeavours of the government. According to Household Income and
Expenditure Survey (HIES), the poverty rate declined to 23.3 percent in 2016 from 40 percent in 2005.
The incidence of poverty was reduced to 20.5 percent in FY 2018-19. COVID -19 has forced a threat to
the ongoing economic growth as well as fight against poverty alleviation worldwide. Bangladesh‟s
situation is not an exception. Low income group people and people, those live on their labour, people
engaged in non- formal sector largely lost their jobs due to pandemic. In order to support them, the
government provided incentives, cash support, expanded social safety net programmes. As a result,
poverty situation of the country was not that much devastated.
According to “doing business 2020” report published by the World Bank and International Finance
Corporation (IFC), Bangladesh is one of the top 20 countries among those have taken highest reform
initiatives with a view to improve the standards of the business environment. In addition, it has moved its
Executive Summary | xxxviii

position 8 steps forward among 190 countries from 176 to 168 within one year. Bangladesh Investment
Development Authority (BIDA) has started online based one stop service which is featured with
international standard. It has signed MOU with 25 organisations which is allowing 41 services of 11
organisations including BIDA.
In 2020, the amount of FDI was US$ 2,563.58 million. A total 805 projects were registered in FY 2020-
21 (July-February period) under joint venture investment (local and foreign) and the amount involved
with the proposal was Tk. 4,49,381 million. Total 463 business institutions are ongoing with production
in the existing 8 EPZs of the country. Additional 68 industries are in to the process of operation. Up until
now, the total investment amount in the EPZs is USD 5,516.45 million. Total number of employment
generation is 4,23,501 up to February 2021 in the EPZs where 66 percent workers are female. By this
time, the location and the land for 97 economic zones have been approved, 68 will be public and 29 will
be private. Under public–private partnership modality, 79 projects are approved in principle covering 12
sectors.
By giving importance parallel to economic activities, programs and strategies have been advanced to
achieve SDGs and environment related targets. From FY 2009-10 to FY 2020-21, Tk. 3,900 crore have
been allocated in the Climate Change Trust Fund. 789 projects have been approved. 728 projects have
been implemented under different ministries/divisions and 61 projects have been implemented through
NGOs. Besides, the government is aiming to strengthen its efforts to get allocation from the largest
climate related source „Green Climate Fund‟ (GCF) and also to utilise the allocation. Bangladesh has
already taken 5 projects until March 2021 involving US$ 351.1 million using GCF. National
Environmental Policy was approved in 2018 and published in 2019. Different Miniseries, divisions and
organisations are responsible for the implementation of the policy. A masterplan for coming 20 years with
the objectives of maintaining environmental sustainability and achieving self-sufficiency in forest
resource is under preparation.
Executive Summary | xxxix

CHAPTER ONE
MACROECONOMIC SITUATION
Before the COVID-19 pandemic, Bangladesh exhibited a steady and high GDP growth, averaging 7.4
percent per year during FY 2015-16 to FY 2018-19, and reached a record 8.15 percent growth rate in
FY 2018-19. The global economy has come to a standstill due to the COVID-19 pandemic which has also
had a huge negative impact on the economy of Bangladesh. According to the final estimations of BBS, the
GDP growth in FY 2019-20 has slowed to 3.51 percent. Bangladesh's economy is turning around in the
context of tackling the coronavirus of the world economy. According to the provisional estimates of BBS,
the GDP growth in FY 2020-21 stood at 5.47 percent. Despite the stagnation in the economy caused by
the coronavirus, food production and supply chains remained unaffected, leading to inflation at 5.56
percent in FY 2020-21, slightly higher than the target (5.4%). Both export and import in Bangladesh
have showed a sign of recovery after a sharp decline in FY 2019-20. In FY 2020-21, Bangladeshi
expatriates remittance stood at US$ 24,777.72 million which was significantly higher (36.10%) than the
previous fiscal year. In FY 2020-21, current account balance deficit stood at US$ 3,808 million on the
back of robust remittance inflows compared to a US$ 4,724 million deficit in the previous year.
Financial account and capital account showed surplus during this time. Therefore, the overall balance
recorded the surplus of US$ 9,274 million in FY 2020-21 compared to US$ 3,169 million surplus in the
previous year. As a result, the foreign exchange reserves increased to a record US$ 46.39 billion at 30
June 2021. During this period, a marginal (0.05%) depreciation in exchange rate of Taka with the US
dollar is being observed. As per the directives of Honorable Prime Minister, activities are carried out
under 21 stimulus packages of Tk. 1,20,153 crore in FY 2019-20 for additional expenditure in healthcare
sector, emergency humanitarian assistance and economic recovery to address the COVID-19 pandemic.
The number of the stimulus packages has further been increased to 23 in FY 2020-21 and the amount of
fiscal and stimulus packages till April 2021 is Tk. 1,28,441 crore, which is 4.2 percent of GDP. As a
result of these actions taken by the government, the economy is expected to turn around.
Global Economy Economic recoveries are diverging across

countries and sectors, reflecting variation in
The global economy is recovering strongly from
pandemic-induced disruptions and extent of
the COVID-19 outbreak, but the recovery process
policy support. While advanced economies are re-
is very unequal among countries. The recently
bounding, many of world’s poorest countries are
published World Bank’s Global Economic
being left behind. The report predicts that the
Prospect, June 2021, the economic growth is
growth of developed economies will reach 5.4
projected at 5.6 percent in 2021, while growth
percent in 2021, with 6.8 percent potential
was contracted to 3.5 percent in 2020. This
economic growth in the United States. More
recovery is uneven and largely reflects sharp
contagious strains of coronavirus which have
rebounds in some major economies owing to
recently spread to countries with emerging
substantial fiscal support and highly unequal
markets and developing economies, along with
vaccine access. Global growth is set to reach 4.3
vaccine availability are expected to hamper the
percent and 3.1 percent respectively in 2022, and
country’s recovery process. Growth in emerging
2023.
markets and developing economies is projected at
Chapter 1: Macroeconomic Situation | 1

6.0 percent in 2021, with China growing at 8.5 pandemic. In addition, consistent with the
percent and India at 8.3 percent. projected global recovery, oil prices are projected
to grow in 2021 from their low base in 2020, in
In the World Economic Outlook (WEO) April
part reflecting the OPEC+ (Organisation of the
2021, International Monetary Fund (IMF)
Petroleum Exporting Countries, including Russia
projected that the global economy to grow at 6
and other non-OPEC oil exporters). Average
percent in 2021 and moderating to 4.4 percent in
petroleum spot prices per barrel are projected at
2022. The projections for 2021 and 2022 are 0.8
US$ 58.52 in 2021 and US$ 54.83 in 2022. Metal
percentage point and 0.2 percentage point
prices are projected to accelerate strongly in 2021,
stronger than in the October 2020 WEO.
largely reflecting the rebound in China. Food
In advanced economies, growth is expected to prices are also expected to pick up in 2021.
grow to 5.1 percent in 2021. Amid continued
The global outlook remains subject to high
vaccination, economic activity is firming across
uncertainty. Future developments will depend on
major advanced economies. The economic growth
the path of the pandemic, policy actions, the
of almost all countries of advanced economies
evolution of financial conditions and commodity
will be positive, most notably: The United States
prices, and the capacity of the economy to adjust
(6.4%), Germany (3.6%), France (5.8%), Italy
to health-related impediments to activity. The ebb
(4.2%), and Spain (6.4%), Japan (3.3%) and the
and flow of these drivers and their interaction
United Kingdom (5.3%). Projections for 2021
with country-specific characteristics will
have been revised down in Europe and up in
determine the pace of the recovery and the extent
Japan and the United States than in the projection
of scarring. Table 1.1 highlights the growth
made by October 2020 WEO.
scenario of the world.
Overall, the group of emerging market and
Table 1.1: Overview of World Output Growth
developing economies, growth is forecast at 6.7
Projections
percent in 2021, 0.7 percentage points stronger (Percent Changes)
than in the projection made by October 2020 Economic Actual Projection Difference from
Area Outlook, Outlook,
WEO. Prospects for China are much stronger than April, 2021 October, 2020
for most other countries in this group, with the 2020 2021 2022 2021 2022
economy projected to grow by about 8.4 percent World Output -3.3 6.0 4.4 0.8 0.2
Advanced -4.7 5.1 3.6 1.2 0.7
in 2021. The recovery in all emerging markets Economies
and developing economies regions is expected to USA -3.5 6.4 3.5 3.3 0.6
Euro Area -6.6 4.4 3.8 -0.8 0.7
be insufficient to reverse the damage from the
Germany -4.9 3.6 3.4 -0.6 0.3
pandemic. The recovery in small, tourism- France -8.2 5.8 4.2 -0.2 1.3
dependent economies is expected to be Japan -4.8 3.3 2.5 1.0 0.8
Emerging -2.2 6.7 5.0 0.7 -0.1
particularly weak as some travel restrictions will Market and
remain in place until the pandemic is brought Developing
Economics
under control. The pace of vaccine rollout varies Emerging and -1.0 8.6 6.0 0.6 -0.3
across countries, with low-income countries Developing
Asia
lagging considerably. The recovery is expected to
China 2.3 8.4 5.6 0.2 -0.2
be stronger in East Asia and the Pacific, primarily India -8.0 12.5 6.9 3.7 -1.1
due to strength in China. In South Asia, India’s ASEAN-5 -3.4 4.9 6.1 -1.3 0.4
Source: World Economic Outlook, April 2021.IMF.
recovery is being hampered by the largest Note: ASEAN-5: Indonesia, Malaysia, Philippines, Thailand and
outbreak of any country since the beginning of the Vietnams.

Macroeconomic Situation: Bangladesh, FY compared to 4.16 percent in the previous fiscal
2020-21 year.
Economic Growth Within the broad agriculture sector, the growth
Following the trend of achieving economic rate of agriculture and forestry sector decelerated
growth, the growth exceeded 7 percent in FY from 4.10 percent to 2.65 percent in FY 2021-21.
2015-16 and 8 percent in FY 2018-19. In FY In addition, growth in fishing sector slowed
2018-19, the growth stood at 8.15 percent. The slightly to 5.74 percent from 6.02 percent of
global economy has come to a standstill due to the previous fiscal year. The contribution of the broad
COVID-19 pandemic which has also had a huge agricultural sector to the GDP stood at 13.47
negative impact on the economy of Bangladesh. percent in FY 2020-21 against 13.74 percent in
According to the final calculations of BBS, the the previous fiscal year.
GDP growth in FY 2019-20 has slowed to 3.51 Of the 4 sectors of the broad industrial sector,
percent. Bangladesh's economy is turning around growth in the manufacturing (large and medium
in the context of tackling the coronavirus of the scale and small scale) has increased significantly.
world economy. According to the provisional According to provisional estimate, the growth of
estimates of BBS, the GDP growth in FY 2020-21 large and medium enterprises and small scale
stood at 5.47 percent. industries in GDP stood at 6.56 and 1.73 percent
Per capita GDP and GNI respectively in FY 2020-21, compared to 1.39
percent and 3.96 percent in the previous fiscal
According to the provisional estimate, the volume
year. The growth of the construction sector stood
of GDP at current market prices reached Tk.
at 8.68 percent as compared to 8.66 percent over
30,11,065 crore in FY 2020-21, which was Tk.
the previous fiscal year. Overall, the contribution
27,39,332 crore in FY 2019-20. In nominal term
of the broad industry sector stood at 34.99 percent
GDP growth is 9.92 percent. As per the final
in FY 2020-21, as compared to 34.74 percent in
estimate, per capita GDP in FY 2019-20 was US$
the previous fiscal year.
1,930 up by US$ 102 from the previous fiscal
year. Likewise, per capita national income Among the broad service sector, health and social
increased to US$ 2,024 in FY 2019-20, up by works have decelerated slightly compared to FY
US$ 115 from FY 2018-19. The per capita GDP 2019-20. Wholesale and retail trade; hotels and
stands US$ 2,097 in FY 2020-21, up by US$ 167 restaurants; transport, storage and
from the previous fiscal year, while the per capita communication; financial intermediations; real
national income stood at US$ 2,227 up by US$ estate and renting and business activities etc. have
203 in the previous fiscal year. increased significantly compared to FY 2019-20.
The contribution of broad service sector to the
Sectoral Growth
GDP stood at 51.53 percent in FY 2020-21, which
According to the provisional estimate of BBS, the was 51.48 percent in the previous fiscal year.
growth of agriculture sector has slowed to 3.45
Consumption Expenditure
percent in the FY 2020-21, from 4.59 percent in
FY 2019-20. During the same period, industry Over more than a decade, consumption as
sector grew by 6.12 percent, which was 3.25 domestic demand has been around 74-81 percent
percent in the previous fiscal year. The service of GDP. In FY 2007-08, consumption expenditure
sector grew by 5.61 percent in FY 2020-21 was 80.8 percent of GDP, of which government
expenditure was 5.2 percent and private sector

expenditure was 75.6 percent. This rate has been receipt from NBR sources was marked at
declining since the following year and in FY Tk.3,01,000 crore (9.75% of GDP), tax revenue
2019-20, consumption stood at 76.23 percent of from non-NBR sources at Tk. 15,000 crore
GDP. Consumption for FY 2020-21 has been (0.49% of GDP) and non-tax revenue at Tk.
estimated to 75.83 percent of GDP. 35,532 crore (1.15% of GDP).
Savings and Investment Revenue received during July-April of FY 2020-
21 was provisionally estimated to Tk.1,97,583.43
During FY 2020-21, domestic savings increased
crore or 12.87 percent higher than previous fiscal
to 24.17 percent of GDP, which was 23.77 percent
year achieving 65.64 percent of revised target. Of
in the previous year. Likewise, national savings as
this, import duty increased by 21.18 percent, VAT
percent of GDP increased to 30.39 percent in FY
by 12.47 percent and supplementary duty by
2020-21 percent from 28.67 percent of the
17.92 percent. In addition, the growth in the
previous fiscal year.
income and profit tax has been 9.37 percent.
The investment has increased to 7.95 percent in
Up to May 2021 of FY 2020-21, revenue
FY 2020-21 as compared to 3.98 percent in the
collected from Non-NBR source stood at Tk.
previous fiscal year due to COVID-19 pandemic.
5,333 crore achieving 35.55 percent of the target.
However, public investment as a percentage of
Non-tax revenue earnings during the first 11
GDP has slightly accelerated and private
months of FY 2020-21 (July-May, 2021) stood at
investment as a percentage of GDP has slightly
Tk. 45,856 crore, which is 40.24 percent higher
decelerated compared to the previous fiscal year.
than the same period of previous fiscal year
Gross investment stood at 29.92 percent in FY
achieving 129.05 percent of the target.
2020-21, which was 30.47 percent of the previous
fiscal year. Of this, public investment and private In order to augment revenue mobilisation as well
investment accounted for 8.67 percent and 21.25 as to create a comfortable trade environment
percent of GDP, respectively, which was 8.41 along with transparency and accountability, NBR
percent of GDP and 22.06 percent of GDP in the has been implementing a wide range of reform
previous fiscal year, respectively. initiatives. Included among are:
Inflation  The VAT Act and its rules have been
simplified for automated and transparent
In FY 2019-20, the inflation rate stood at 5.65
environment
percent, which is slightly higher than the target
 Online VAT registration, online return
(5.50%). In this case, food inflation increased to
submission and online e-payment systems
5.56 percent and non-food inflation stood at 5.85
have already been implemented.
percent. Despite the stagnation in the economy
 Use of Electronic Fiscal Device (EFD)/Sales
due to the coronavirus, inflation in FY2020-21 is
Data Controller (SDC) for some business
slightly high (5.56%) than the target (5.4%) as a
entities has been made mandatory. Installation
result of uninterrupted food production and of EFD/SDC has already been started.
supply chains.
 NBR approved software use has been made
Revenue Mobilisation mandatory for companies with annual
The revised revenue mobilisation target was set at turnover of more than Tk. 5 crore.
Tk.3,51,532 in FY2020-21, which is 11.39
percent of the estimated GDP. Of them, revenue

Government Expenditure budget of FY 2020-21, due to ‘COVID-19’
pandemic budget deficit crossed 5 percent of
According to the revised budget, the total
GDP. In the revised budget of FY 2020-21, budget
expenditure target for FY 2020-21 has been set at
deficit has been estimated at Tk. 1,83,466 crore
Tk. 5,38,983 crore, which is 17.46 percent of
(Including Grant) which is 5.9 percent of GDP. Of
GDP. Of this, operating expenditure is Tk.
this deficit, Tk. 68,414 crore (2.22% of GDP) will
3,23,688 crore (10.48% of GDP), food account is
be financed from external sources (including
Tk. 2,553 crore, loans and advances are Tk. 4,717
foreign grant) and Tk. 1,15,052 crore (3.73% of
crore and development expenditure is Tk.
GDP) will be backed by domestic sources. To
2,08,025 crore (6.74% of GDP). Annual
finance the deficit in the domestic sector, there is
Development Plan (ADP) allocation is Tk.
a plan to get Tk. 79,749 crore from the bank
1,97,643 crore (6.40% of GDP) of the
system and the remaining Tk.35,303crorefrom the
development budget.
non-bank sector. As per iBAS++ provisional
As per the provisional estimates of iBAS++, the estimate the budget deficit excluding grants stand
total expenditure up to May 2021 in FY 2020-21 at Tk. 1,87,451 crore, which is 6.1 percent of
was Tk. 3,12,289 crore, of which operating GDP.
expenditure was Tk. 2,20,783 crore and
Prioritise the Allocation of Revised ADP, FY
development expenditure was Tk. 82,392 crore.
2020-21.
The operating and development expenditures are
68.21 percent and 39.61 percent of the target The sectoral allocations of the RADP of FY 2020-
respectively. As per the IMED sources, ADP 21 reveal that among the 17 sectors such as
expenditure in FY 2020-21 was Tk. 1,72,050.01 transport, power, physical planning, water supply
crore, achieving 82.21 percent of revised ADP and housing, education and religious affairs, rural
target. development and institution, science and
technology, health, population and family
A new Budget and Accounting Classification
welfare, agriculture and water resources have
System (BACS) has been introduced from FY
been given priority. In FY 2020-21, the highest
2018-19 with a view to upgrading government
allocation was given in transport sector, which is
financial management to an international
24.90 percent of the revised ADP, followed by
standard. In addition to civil administration,
physical planning, water supply and housing
defense and railway budget and accounting
sector (13.4%), education and religious affairs
process have been brought under the iBAS ++
(12.43%), power (11.10%) and rural development
software developed by local experts. In order to
and institution sector (9.25%). The allocation of
make this system more dynamic, activities will be
health, population and family welfare reached
undertaken for consolidation and integration
7.55 percent, up from 6.47 percent in FY 2019-
among them. To simplify the development project
20.
fund release process, project directors have been
given the full authority in FY 2019-20 to utilise Stimulus Packages
project fund without seeking approval from any To address the crisis resulting from the outbreak
authority. of COVID-19 and overcome its potential adverse
Budget Balance and Financing effects on the economy, Hon’ble Prime Minister
Sheikh Hasina has guided the formulation of an
Government is conscious to keep the budget
overall programme with short, medium, and long-
deficit within 5 percent of GDP. But in revised

term targets. This programme has four main essentially expansionary and accommodative for
strategic aspects. all growth support
1. The first strategy is to increase government The FY 2020-21 monetary programme primarily
spending. In this respect, priority will be set to support 8.2 percent real GDP growth and
given to creating jobs and discouraging containment of CPI based average inflation at 5.4
luxury spending. percent. Bangladesh Bank has reviewed the FY
2. The second strategy is to provide low-interest 2020-21 monetary programmes in January 2021
credit facilities through the banking system to and decided to revise the targets of some
industries and business enterprises to revive monetary aggregates including M2 and net foreign
economic activities and increase the asset (NFA) growth. In the revised programme,
competitiveness of entrepreneurs at home and the broad money growth target has been reduced
abroad. to 15.0 percent which was 15.6 percent
3. The third strategy is to increase the scope of previously, mainly to cope up with the recent
the government's social security programmes slash down of GDP growth target (from 8.2% to
to protect the ultra-poor and the low-income 7.4%).
groups that have suddenly become
To ensure the availability of less costly funds for
unemployed as well as the people engaged in
banks and rationalising the policy rates’ corridor
informal sectors.
(the gap between the repo and reverse repo rates),
4. The fourth and last strategy is to increase
the repo and reverse repo interest rates have
money supply in the market. However, this
slashed down by 50 basis points and 75 basis
strategy is being implemented with utmost
points to 4.75 percent and 4.00 percent
caution so that the negative effects of
respectively with effect from 30 July 2020.
inflation can be controlled.
However, 360-day repo facility with effect from
The government has already announced fiscal and
13 May 2020 is also introduced. The Bank Rate
stimulus packages of Tk. 1,28,441crore (Up to
which remained unchanged for the last 17 years
April, 2021), which is 4.2 percent of GDP, to
(since 2003) has also been slashed down by 100
facilitate additional expenditure in the healthcare
basis points to 4.00 percent to rationalise it with
sector, emergency humanitarian assistance, and
the current interest rate regime. CRR has been
the overall economic recovery programme.
reduced from 5.5 percent to 4.0 percent for
Monetary Policy and Monetary Management domestic banking operations, from 5.5 percent to
2.0 percent for offshore banking operations, and
Monetary policy stance and the monetary and
from 2.5 percent to 1.5 percent for financial
credit programmes have been announced for FY
institutions (FIs).
2020-21 with prime objectives of recovering the
economy from the adversity of the COVID-19 Money and Credit
pandemic and rehabilitation of the production
At the end of February of FY 2020-21, the year-
capacity of the economy including restoration of
on-year growth of reserve money, broad money
the normal livelihoods of the people along with
(M2) and narrow money (M1) are 19.72 percent,
maintaining dual goals of price stability and
13.35 percent and 19.19 percent respectively.
quality growth. Based on these considerations,
During the time period, 30.36 percent growth of
Bangladesh Bank’s monetary policy stance and
net foreign assets has contributed in the year-on-
monetary programmes for FY 2020-21 are
year growth of M2.

The growth of domestic credit stood at 14.02 Capital Market
percent in FY 2019-20 compared to 12.26 percent
In DSE total number of listed securities has
in FY 2018-19. Domestic credit increased (year-
increased from 589 in June 2020 to 600 in
on-year) by 9.06 percent up to February 2021 of
February 28, 2021. Total Market Capitalisation of
FY 2020-21, which is lower than 15.09 percent
all listed securities was Tk. 3,11,966.98 crore in
growth in the same period of the previous fiscal
June 2020, which stands at Tk. 4,65,736.60 crore
year. Of which private sector credit growth stood
in February 2021, representing 49.29 percent
at 8.93 percent at the end of February 2021
increased. DSE Broad Index has increased from
against 9.13 percent in the same period of the
3,989.09 points in June 2020 to 5,404.80 points in
previous fiscal year. The net credit to the
February 2021, representing 35.49 percent
government increased by 10.64 percent at the end
increase.
of February 2021 which was increased by 74.55
percent in same period of the previous year. At At the end of February 2021, the total number of
the end of February 2021, the share of listed securities in Chattogram Stock Exchange is
government (excluding others public sector) to 341. Towards the end of 28th February 2021,
total domestic credit stood at 13.16 percent. Market Capitalisation of CSE was Tk. 3,91,944.48
Private sector credit to total domestic credit stood crore which was increased 60 percent from the
at 84.54 percent which was 83.91 percent at the last fiscal year. CSE All Share Price Index was
end June 2020. 15,603.80 point at the end of 28th February 2021
which was 11,332.58 point in the end of June
Interest Rate
2020.
In order to rationalise the rate of interest in other
Export
sectors including productive sector, banks are
advised to limit the difference between lending Foreign tread of Bangladesh has started to return
and deposit rates or spread within lower single to a positive trend after confronting the adverse
digit except high-risk consumer credit (including effect of COVID-19 pandemic. In FY 2019-20
credit card). Besides, the maximum rate of total export earnings decreased by 16.93 percent
interest/profit on unclassified loans/investment is to US$ 33,647.09 million compared to the
set at single digit except credit card. previous fiscal year. Export earnings stood at US$
38,758.31 million in FY 2020-21, which is 15.10
The recent trends in weighted average lending and
percent higher than the export earnings in the
deposit rates show downward movement. The
previous fiscal year. During this period,
weighted average lending rate of commercial
commodity-wise growth of export earning shows
banks decreased continuously and stood at 7.48
that, export earnings from almost all the products
percent at the end of February 2021 from 9.62
have increased compare to the last fiscal year. The
percent of end February 2020. Similarly, the
government has taken several steps as an
deposit rate continuously decreased to 4.46
incentive in the export sector. In order to
percent in February 2021 from 5.53 percent in the
encourage exports and export of commodities
same period of previous year. The interest rate
cash incentive is being provided to the exporters.
spread was 4.09 percent in February 2020. After
This facility is being extended to new products as
that, the spread declined a little and then increased
well.
time to time and stood at 3.02 percent at the end
of February 2021.

Import growth than export earnings. During the time,
current account balance deficit stood at US$
The total import payments (c&f) for FY 2019-20
3,808 million on the back of robust remittance
stood at US$ 54,784.7 million, which was 8.56
inflows compared to a US$ 4,724 million deficit
percent lower than the previous fiscal year.
in the previous year. Due to increase of foreign
Country's total import payments (c&f) stood at
direct investment along with healthy inflows of
US$ 65,594.7 million in FY 2020-21, which was
medium and long-term loans and other short-term
19.73 percent higher than the import payments of
loans (net) except the portfolio investment,
the preceding fiscal year. Up to February of FY
financial account showed surplus. Therefore, the
2020-21, 25.91 percent of the total imported
overall balance recorded a surplus of US$ 9,274
commodities came from China. India was the
million in FY 2020-21 compared to US$ 3,169
second largest source of import while Japan held
million surplus in the previous fiscal year.
the third position.
Foreign Exchange Reserve
Overseas Employment and Remittance
The surplus in the overall balance helped to
Due to COVID-19 pandemic, the global labour
maintain the foreign exchange reserve up. On 30
market has drastically affected because of low-
June 2020, the foreign exchange reserves reached
skilled workers who do not have the option to
US$ 36.04 billion. On 30 June 2019, the foreign
work from home. During the first eight months of
exchange reserve was US$ 32.72 billion. The
FY 2020-21 (July-February), labour export stood
foreign exchange reserves increased to a record
at 1.22 lakhs amid COVID-19 pandemic.
US$ 46.39 billion at 30 June 2021.
In FY 2019-20, remittance inflows increased by
Exchange Rate
10.87 percent over the previous fiscal year to US$
18,205.01 million. In FY 2020-21, Bangladeshi Bangladesh observed overall 0.05 percent
expatriates’ remittance stood at US$ 24,777.72 depreciation of Taka against US dollar in July-
million which was significantly higher (36.10%) April FY 2020-21 compare to that of the FY
than the previous fiscal year. 2019-20. The weighted average inter-bank rate
stood at Taka 84.81 per US$ on 30 June 2021,
The major portion of remittance has been received
which was Taka 84.85 per US$ on 30 June, 2020.
from Middle East countries. In FY 2020-21 (July-
February) the highest share of remittance remitted Short and Medium Term Prospect of
from KSA which was 23.56 percent of total Bangladesh Economy
remittances followed by UAE (10.24%), Kuwait
The Medium Term Macroeconomic Framework
(7.50%) and Oman (6.38%). The USA (13.13%)
(MTMF), 2021-22 to 2023-24, has been
obtained the top position among the Western and
formulated taking into account the recent
European countries. Recently, remittance inflow
dynamics of the global economy and the impacts
has increased from UK, Malaysia, Singapore and
on the domestic sector. The global economy is at
some other countries.
great risk due to COVID-19, the impact of which
Balance of Payments (BoP) is expected to be even greater than the 2008-09
recession. Countries are implementing incentive
Trade deficit widened at US$ 22,799 million in
packages to address the unintended effects of the
FY 2020-21 compared to US$ 17,858 million in
coronavirus on global growth and commodity
FY 2019-20. Trade deficit rose by 27.67 percent
markets. The Government of Bangladesh has also
in FY 2020-21, due to the higher import payment
announced various policy assistance including
incentives to combat the impact of the COVID-19 Investment is expected to be between 33-36
pandemic and its long term impacts. Keeping in percent of GDP in the next three fiscal years. Of
mind that the poorer section of people is the worst this, investment in the public sector will be
victim of COVID-19 pandemic, the government, between 8-9 percent of GDP and investment in the
under the directives and guidelines of Honorable private sector will be between 25-27 percent.
Prime Minister, declared 21 stimulus packages in
In the MTMF, the projected revenue mobilisation
FY 2019-20 to facilitate economic recovery from
for FY 2021-22 could reach 11.3 percent of GDP
COVID-19 fallout, bolstered social safety net
to 11.5 percent of GDP in FY 2023-24. Public
programmes and enhanced relief activities
expenditure was only 14.9 percent of GDP in FY
through the country to protect the vulnerable
2019-20, while it stands at 17.5 percent in the
people from crises. The number of the stimulus
revised budget for FY 2020-21, which is targeted
packages has further been increased to 23 in
to be around 17.0 percent of GDP over the
FY2020-21 considering prolonged sufferings of
medium term.
the poor. In the medium term, the government
will put emphasis on economic recovery from the In FY 2020-21, the revised budget deficit stood at
fallout of COVID-19 and on implementing 8th Five 6.1 percent of GDP. The budget deficit could
Year Plan, SDGs, Second perspective plan, ‘Delta reach 6.2 percent of GDP in FY 2021-22 due to
Plan 2100’, and ‘Blue Economy’ strategies. increased government spending aimed at restoring
the economy overcoming the effects of COVID-
Before the COVID-19 pandemic, Bangladesh
19, which will fall within the range of 5 percent of
exhibited a steady and high GDP growth,
GDP in the following years. The target is to keep
averaging 7.4 percent per year during FY2015-16
the private sector credit flow at 14.8 percent in
to FY 2018-19, and reached a record 8.15 percent
FY 2020-21, which is expected to increase to
growth rate in FY 2018-19. However, the
15.0 percent in the next three fiscal years.
provisional estimate shows that the GDP growth
decelerated significantly in FY 2019-20, down to Growth in remittances is projected at 35.0 percent
5.2 percent as a result of the outbreak of the in FY 2020-21, which is projected to be 15
pandemic. The GDP growth target for FY 2020- percent on average in the next three fiscal years.
21 was set at 8.2 percent which was revised at 6.1 The possibility of a return to a strong position in
percent in the MTMF due to the prolonged the export sector has been considered in the
COVID-19 pandemic. GDP growth has been medium term macroeconomic framework.
projected to gradually rise to 7.2, 7.6, and 8.0 Besides, there is a domestic demand in the
percent respectively in FY 2021-22, FY 2022-23 economy of Bangladesh. So, it is expected that
and FY 2023-24. Inflation is projected at 5.4 the development pace of the economy will be
percent in FY 2020-21, which is expected to continued. Table 1.2 highlights the projection of
gradually decrease in the next three fiscal years key macroeconomic indicators during FY 2017-
and stood at 5.1 percent in FY 2023-24. 18 to FY 2023-24.

Table 1.2: Medium Term Macroeconomic Framework: Key Indicators
Indicators 2017-18 2018-19 2019-20 2020-21 2020-21 2021-22 2022-23 2023-24
Actual Budget Revised Projection
Budget
Real Sector
Real GDP growth (%) 9.7 8.2 5.2 8.2 6.1 7.2 7.6 8.0
CPI Inflation (%) 5.8 5.5 5.7 5.4 5.4 5.3 5.2 5.1
Investment (% GDP) 31.2 31.6 31.8 33.5 32.3 33.1 34.2 36.0
Private 23.3 23.5 23.6 25.3 24.2 25.0 25.9 26.8
Public 8.0 8.0 8.1 8.1 8.2 8.1 8.3 9.2
Fiscal Sector (% of GDP)
Total Revenue 9.6 9.9 9.5 11.9 11.4 11.3 11.3 11.5
Tax Revenue 8.6 8.9 7.9 10.9 10.2 10.0 10.1 10.3
Of which NBR Tax 8.3 8.6 7.7 10.4 9.7 9.5 9.6 9.7
Revenue
Non-Tax Revenue 1.0 1.0 1.6 1.0 1.2 1.2 1.2 1.2
Public Expenditure 14.3 15.4 14.9 17.9 17.5 17.5 17.0 17.0
Of which ADP 5.3 5.8 5.4 6.5 6.4 6.5 6.5 6.5
Overall Balance -4.7 -5.5 -5.4 -6.0 -6.1 -6.2 -5.75 -5.5
Financing 4.7 5.5 5.4 6.0 6.1 6.2 5.8 5.5
Domestic Financing 3.5 3.9 3.7 3.5 3.7 3.3 3.5 3.5
External 1.2 1.3 1.6 2.5 2.3 2.9 2.3 2.1
Financing(net)
Money and Credit (Year-on-year % change)
Domestic Credit 14.7 12.3 13.7 17.6 17.4 16.0 16.0 16.0
Credit to the Private 16.9 11.3 8.6 16.7 14.8 15.0 15.0 15.0
sector
Broad Money 9.2 9.9 12.7 12.5 15.0 15.1 15.2 15.3
External Sector (% Change)
Export, f.o.b 4.7 9.1 -17.1 15.0 12.0 15.0 13.0 12.0
Import, f.o.b 25.2 1.8 -8.6 10.0 11.0 14.0 13.0 11.0
Remittance 15.1 10.2 11.2 15.0 35.0 20.0 15.0 10.0
CurrentAccount -3.49 -1.69 -1.47 0.09 -0.05 0.01 0.05 0.07
Balance(% GDP)
Gross Foreign 32.86 32.72 36.04 40.20 44.00 51.02 53.66 55.40
Exchange Reserves
(Billion US$)
Forex. Reserve in the 6.2 6.0 7.2 8.7 7.8 7.8 7.2 6.6
month of Import
Memorandum Item
GDP at current market
prices (Billion Tk.) 22505 25425 27964 31718 30873 34560 38777 43642
Source: Finance Division, Ministry of Finance.

CHAPTER TWO
GDP, SAVINGS AND INVESTMENT
GDP growth in Bangladesh is accelerating gradually. But the COVID-19 pandemic severely
affected the economy. According to the provisional estimate of BBS, the GDP growth stood at 5.47
percent in FY 2020-21, which was 3.51 percent in previous fiscal year. Among the 3 broad
sectors, growth of agriculture sector decreased to 3.45 percent, which was 4.59 percent in
previous fiscal year. According to the provisional data, growth of broad industry sector increased
to 6.12 percent in FY 2020-21; which was 3.25 percent in preceding fiscal year. The growth rate
of broad service sector has increased from 4.16 percent in previous fiscal year to 5.61 percent in
FY 2020-21. According to the provisional data sectoral share of broad agriculture, industry and
service stood at 13.47 percent, 34.99 percent and 51.53 percent respectively; which were 13.74
percent, 34.78 percent and 51.48 percent respectively in previous fiscal year. In demand side, the
consumption expenditure stood at 75.83 percent in FY 2020-21. Gross domestic savings increased
to 24.17 percent of GDP in FY 2020-21, from 23.77 percent a year earlier. However, national
savings as percent of GDP increased to 30.39 percent in FY 2020-21 from 28.67 percent in FY
2019-20. On the other hand, investment-GDP ratio decreased to 29.92 percent in FY 2020-21,
from 30.47 percent in previous fiscal year.
FY 2020-21, up by 9.91 percent of the previous

Economic Growth
fiscal year.
Bangladesh has achieved GDP growth at more
The per capita GDP increased to Tk. 1,77,843 in
than 6 percent on an average during the last
FY 2020-21 which was Tk. 1,63,611 in previous
decade. According to Bangladesh Bureau of
fiscal year. On the other hand, per capita national
Statistics (BBS), the GDP growth in FY 2016-17,
income in FY 2020-21 stood at Tk. 1,88,873 up
FY 2017-18 and FY 2018-19 stood at 7.28
from Tk. 1,71,608 in the previous fiscal year. In
percent, 7.86 percent and 8.15 percent. In FY
US dollar, per capita GNI and GDP stood at US$
2019-20 the GDP growth stood at 3.51 percent.
2,227 and US$ 2,097 respectively in FY 2020-21
As per provisional estimate of BBS, the GDP
compared to US$ 2,024 and US$ 1,930
growth is 5.47 percent in FY 2020-21 which is
respectively in FY 2019-20. On the basis of
the lowest since FY 2008-09, this situation has
Purchasing Power Parity (PPP)-2020, calculated
been created mainly because of the outbreak of
by UNDP, the per capita GNI stood at US$
COVID-19 pandemic.
4,976. GDP, GNI, per capita GDP and national
Gross Domestic Product (GDP) at Current income during the period from FY2012-13 to FY
Prices 2020-21 are shown in Table 2.1 and sector-wise
According to the provisional data of BBS, GDP GDP at current market prices are shown in Table
at current market prices is Tk. 30,11,065 crore in 2.2.
Chapter 2-GDP, Savings and Investment | 11

Table 2.1: GDP, GNI, Per Capita GDP and GNI at Current Market Prices
Item 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
GDP (In Crore Tk.) 1198923 1343674 1515802 1732864 1975815 2250479 2542483 2739332 3011065
GNI (In Crore Tk.) 1295352 1433224 1614204 1832675 2060716 2353108 2656092 2873230 3197811
Population (In crore) 15.37 15.58 15.79 15.99 16.18 16.37 16.56 16.74 16.93
Per Capita GDP (In Tk.) 78009 86266 96004 108378 122152 137518 15358 163611 177843
Per Capita GNI (In Tk.) 84283 92015 102236 114621 127401 143789 16044 171608 188873
Per Capita GDP (In US$) 976 1110 1236 1385 1544 1675 1828 1930 2097
Per Capita GNI (In US$) 1054 1184 1316 1465 1610 1751 1909 2024 2227
Source: Bangladesh Bureau of Statistics (BBS) *Provisional
Table 2.2: Gross Domestic Product (GDP) at Current Market Prices
(In Crore Taka)
Sector/Sub-sector 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
1. Agriculture and 138879 148758 163968 176500 190315 205398 227353 248119 270750 292221
a) Crops &
Forestry 100899 106794 117903 126121 134322 143704 159171 172330 187241 200677
horticulture
b) Animal Farmings 22999 25359 27667 29885 33165 36026 39625 43215 46690 50301
c) Forest and related 14981 16605 18398 20494 22827 25668 28557 32574 36819 41243
services
2. Fishing 31827 36995 42308 47581 53076 59627 66882 74275 83091 92389
3. Mining and 16650 19461 21080 23876 28578 34127 38884 43964 46548 48718
a) Natural gas and
Quarrying 7366 7953 8156 9188 10706 12003 13300 14039 13604 13117
crude petroleum
b) Other mining & 9284 11508 12924 14688 17872 22124 25584 29925 32945 35600
coal
4. Manufacturing 167927 197127 223221 254483 295111 341829 404144 481359 507100 559627
a) Large & medium 134397 158448 180382 205992 240164 279217 332594 396176 412954 459182
scale scale
b) Small 33530 38679 42839 48491 54947 62612 71551 85183 94146 10045
5. Electricity, Gas and 14189 16381 18401 19868 23829 26244 29336 32087 33010 34921
a) Electricity
Water Supply 10189 12168 13834 15061 18447 20370 22728 25216 25840 27836
b) Gas 3300 3448 3676 3787 4279 4579 5196 5255 5430 5220
c) Water 701 766 891 1020 1103 1295 1412 1616 1740 1865
6. Construction 68304 82432 90834 108484 126353 146107 169855 196403 222537 251150
7. Wholesale and Retail 137396 154579 172575 192585 214257 243958 279823 322722 349066 387606
Tradeand
8. Hotel 9755 11263 13035 14928 17058 19318 22123 25234 27261 30910
Restaurants
9. Transport, Storage
112702 124281 134317 150025 169145 187076 204630 226025 241277 265227
& Communication
a) Land transport 83345 92183 99311 112096 127895 142808 157038 174624 187022 206774
b) Water transport 7089 7649 8064 8967 10207 10996 11698 12461 12840 14034
c) Air transport 1022 1047 1116 1269 1352 1399 1476 1585 1636 1704
d) Support transport 5391 6001 6672 7427 8031 8707 9706 10650 11115 11767
services,
e) Post storage
and Tele
15854 17400 19154 20267 21681 23166 24713 26705 28664 30947
storage
communications
10. Financial 36316 42237 48563 55761 63601 73205 83728 94202 99809 10701
Intermediations
a) Monetary
29351 34727 40390 46644 53790 62389 71754 81106 85567 91144
intermediation
b) Insurance
(Banks) 4584 4920 5364 5938 6327 6808 7341 8113 8650 9589
c) Other financial 2381 2590 2810 3180 3485 4008 4633 4983 5592 6280
auxiliaries
11. Real Estate,
68715 78820 91229 106061 123740 144539 166419 190487 212524 236065
Renting and
12. Public
Business Activities 33499 37678 44728 50674 66711 78441 90228 98957 106897 117378
Administration and
13. Defence
Education 25048 28429 32767 37624 46512 56856 64478 73091 81095 90419
14. Health and Social 20133 23868 26924 30135 34758 38987 44064 52006 58777 66427
15.Works
Community, Social
117293 138952 156552 176402 194248 214213 236378 260961 286167 313313
and Personal
TaxServices
less subsidy 56569 57662 63174 70815 85552 105892 2128324 122592 113422 117680
GDP at current market 1055204 1198923 1343674 1515802 1732864 1975815 2250479 2542483 2739332 3011065
pricerate
Growth 15.22 13.62 12.07 12.81 14.32 14.02 13.90 12.98 7.74 9.92
Source: Bangladesh Bureau of Statistics (BBS) *Provisional.

Growth of GDP by Sectors includes the collective outputs of the, (i)

wholesale and retail trade; repair of motor
Production based estimate of GDP encompasses
vehicles, motor cycles and personal and
3 broad sectors which are agriculture, industry
household goods, (ii) hotels and restaurants, (iii)
and service. Moreover, overall GDP consists of
transport, storage and communication, (iv)
15 sectors. Among these 15 sectors, 6 sectors are
financial intermediations, (v) real estate, renting
divided into different sub sectors. The broad
and business activities, (vi) public administration
agriculture sector consists of two sectors namely,
and defense, (vii) education, (viii) health and
(i) agriculture and forestry and (ii) fishing.
social work and (ix) community, social and
Similarly, the broad industry sector comprises (i)
personal services. The growth rates of GDP by
mining and quarrying, (ii) manufacturing, (iii)
sectors at constant prices have been shown in
electricity, gas and water supply and (iv)
Table 2.3 and Broad sectoral GDP Figure 2.1.
construction sector. The broad service sector
Table 2.3: Sectoral Growth Rate of GDP at Constant Prices
(Base Year: 2005-06) (In Percentage)
1.Agriculture and 2.41 1.47 3.81 2.45 1.79 1.96 3.47 3.15 4.10 2.65
Forestry& horticulture
a.Crops 1.75 0.59 3.78 1.83 0.88 0.96 3.06 1.96 3.47 1.59
b.Animal Farming 2.68 2.74 2.83 3.08 3.19 3.31 3.40 3.54 3.56 33
3.80
c.Forest and related 5.96 5.04 5.01 5.08 5.12 5.60 5.51 8.34 7.36 6.12
2.Fishing
services 5.32 6.18 6.36 6.38 6.11 6.23 6.37 6.21 6.02 5.74
3.Mining and Quarrying 6.93 9.35 4.68 9.60 12.84 8.89 7.00 5.88 0.97 0.29
a.Natural gas and crude 3.78 7.55 2.47 8.73 11.77 0.34 2.25 -0.79 -3.44 -3.74
petroleum
b.Other mining & coal 12.58 12.34 8.20 10.90 14.42 21.19 12.66 13.08 5.15 3.79
4.Manufacturing 9.96 10.31 8.77 10.31 11.69 10.97 13.40 14.20 1.80 5.77
a.Large & medium scale 10.76 10.65 9.32 10.70 12.26 11.20 14.26 14.84 1.39 6.56
b.Small scale 6.58 8.81 6.33 8.54 9.06 9.82 9.25 10.95 3.96 1.73
5.Electricity, Gas and 10.58 8.99 4.54 6.22 13.33 8.46 9.19 9.58 1.69 4.74
a.,Electricity
Water Supply 10.97 9.69 1.69 6.09 14.20 9.22 10.19 10.33 1.91 5.45
b.Gas 7.45 5.91 10.93 5.16 9.91 0.28 2.20 0.57 -3.37 -3.97
c.Water 10.91 4.75 8.08 9.62 7.40 11.09 5.66 11.57 5.00 5.21
6.Construction 8.42 8.04 8.08 8.60 8.56 8.77 9.92 10.25 8.66 8.68
7.Wholesale and Retail 6.70 6.18 6.73 6.35 6.50 7.37 7.45 8.14 4.03 6.54
8.Hotel
Trade and Restaurants 6.39 6.49 6.70 6.83 6.98 7.13 7.28 7.57 1.75 6.85
9.Transport, Storage &
Communication 9.15 6.27 6.05 5.96 6.08 6.76 6.58 7.19
9.63 3.67 6.07
a.Land Transport 6.83 5.91 5.56 6.18 6.28 7.06 6.72 7.06
7.70 2.47 5.99
b.Water transport 3.10 3.21 3.15 3.62 3.20 4.10 3.50 3.63
7.43 1.47 5.46
c.Air transport 5.76 -1.64 0.61 8.71 1.48 2.79 2.74 6.37 1.45 2.97
d.Support transport 17.60 3.36 2.59 5.37 5.19 6.40 9.58 8.94 2.17 4.01
services, storage
e.Post and Tele 16.92 9.67 9.56 6.11 6.81 6.98 6.53 8.12 7.99 7.02
communications
10.Financial 14.76 9.11 7.27 7.78 7.74 9.12 7.90 7.38 3.09 4.31
Intermediations
a.Monetary intermediation 17.61 10.87 8.33 8.49 8.85 9.95 8.51 7.38 2.65 3.63
b.Insurance
(Banks) 4.41 0.61 1.55 3.95 0.54 2.05 1.63 4.96 3.76 7.86
c.Other financial 2.33 3.14 3.63 4.68 4.54 9.06 9.05 11.55 9.20 9.27
auxiliaries
11.Real Estate, Renting 3.92 4.04 4.25 4.40 4.47 4.80 4.98 5.23 4.83 4.90
and Business Activities
12.Public 7.53 6.53 6.89 9.82 11.43 9.15 8.47 6.40 5.44 6.16
Administration and
13.Education 7.75 6.30 7.26 8.01 11.71 11.35 7.01 7.66 5.06 5.56
Defence
14.Health and Social 3.81 4.76 5.06 5.18 7.54 7.63 7.02 11.79 9.97 9.94
Works
15.Community, Social 3.25 3.25 3.27 3.28 3.30 3.62 3.65 3.72 3.01 3.05
At
andConstant
PersonalPrice GDP
Services 6.52 6.01 6.06 6.55 7.11 7.28 7.86 8.15 3.51 5.47
Growth
Source: Rate
Bangladesh Bureau of Statistics (BBS) *Provisional

Figure 2.1: Broad Sectoral GDP Growth at Constant Prices
14
12
10
8 7.86 8.15
6
5.47
4
3.51
2
0
2017-18 2018-19 2019-20 2020-21*
Agriculture Industry Service GDP Growth
*Provisional.
Department of Fisheries (DoF), the total fish
Agriculture Sector
production in FY 2020-21 is expected to be 45.52
At constant prices growth of agriculture and lakh MT (inland fish production 38.77 lakh MT
forestry sector under broad agriculture sector and marine fish production 6.75 lakh MT), which
stood at 2.65 percent in FY 2020-21, which was was 45.03 lakh MT (inland fish production 38.3
4.10 percent in previous fiscal year. During this lakh MT and marine fish production 6.71 lakh
period among the 3 sub-sectors of broad MT) in previous fiscal year.
agriculture sector the growth rate of crops &
Industry Sector
horticulture and Forest and related services sector
has decreased compared to previous fiscal year. Among the 4 sectors of broad industry sector, the
The growth of agriculture and forestry sector i.e. growth rate of manufacturing and Electricity, Gas
crops and horticulture; animal farming; forest and ang Water supply and construction sector has
related services reached 1.59 percent, 3.80 increased comparatively. On the other hand,
percent and 6.12 percent respectively in FY growth rate of Mining and quarrying sector has
2020-21, which were 3.47 percent, 3.56 percent slowed down significantly compared to the
and 7.36 percent respectively in previous fiscal previous fiscal year. Growth in natural gas and
year. The growth rate of the fisheries sector has crude petroleum sub-sector was (-)3.74 percent in
slightly decreased compared to previous fiscal FY 2020-21, from (-)3.44 percent in previous
year namely 5.74 percent. fiscal year. In addition, growth rate of Gas sub-
sector under Electricity, Gas and Water supply
The food-grain production target (rice, wheat and
sector is (-) 3.97 percent in FY 2021 from (-)3.37
maize) in FY 2020-21 has been set at 466.35 lakh
percent in previous fiscal year. Besides, growth
metric tonnes (MT), which was 453.44 lakh MT
of other mining and coal sub-sector declined to
in previous fiscal year. Rice production target in
0.29 percent, from 0.97 percent in previous fiscal
FY 2020-21 is 396.43 (Aus 34.52 Aman 156.11
year. In FY 2020-21, growth of large and
and Boro 205.81) lakh MT. Besides, wheat
medium scale manufacturing sub-sector
production and maize production target in FY
increased by 5.17 percent from the previous
2020-21 has been set at 12.99 lakh MT and 56.93
fiscal year to 6.56 percent. Likewise, growth of
lakh MT. According to the estimate of the

small scale manufacturing sub-sectors Sectoral Shares in GDP at Constant Prices

decelerated to 1.73 percent from 3.96 percent of
Table 2.4 shows the sectoral share of GDP at
previous fiscal year. Moreover, growth of 2 sub-
constant prices during FY 2011-12 to FY 2020-
sectors of Electricity and water supply i.e.
21. According to data, the share of the agriculture
Electricity and water stood at 5.45 percent and
and forestry sector in GDP at constant prices
5.21 percent respectively, compared to 1.91
stood at 9.90 percent in FY 2020-21, from 10.17
percent and 5.00 percent in previous fiscal year.
percent in FY 2019-20. The sectoral share of 3
On the other hand, growth in construction sector
sub-sectors i.e. ‘crops and horticulture’, ‘animal
slightly increased to 8.68 percent in FY 2020-21
farming’ and ‘forest and related services’ under
from 8.66 percent in the previous fiscal year.
agriculture and forestry sector decreased
According to the ‘Quantum Index of Industrial comparatively to some extent in FY 2020-21
Production (QIIP)’ (Base Year: 2005-06), Index from preceding fiscal year. Moreover, share of
of Industrial Production of ‘large and medium GDP in fishing sector slightly increased to 3.57
scale manufacturing’ sub-sector in the first ten percent in FY 2020-21 from 3.56 percent in FY
months (July-april 2021) of current FY 2020-21 2019-20. The contribution of broad agriculture
stood at 462.74 increasing by 14.91 percent from sector of GDP stood at 9.90 percent in FY 2020-
402.71 during the same period in the previous 21, which was 10.17 percent in previous fiscal
fiscal year. year.
Service Sector During FY 2020-21, within the broad industry
sector, contribution of ‘mining and quarrying’
According to the provisional data, In FY 2020-21
sector slightly decreased to 1.61 percent from
growth rate in broad service sector is increased
1.69 percent in FY 2019-20. Similarly,
by 1.45 percent to 5.61 percent as compared to
contribution of ‘manufacturing’ and
4.18 percent in the previous fiscal year. The
‘construction’ sectors expanded to 23.66 percent
output of the ‘wholesale and retail trade’, ‘hotel
and 8.22 percent of GDP respectively in FY
and restaurants’ and ‘transport, storage and
2020-21 compared to the previous fiscal year.
communication’ sector under broad service
The share of broad industry sector reached 34.99
sector registered growth to 6.54 percent, 6.85
percent in FY 2020-21 from 34.78 percent in FY
percent and 6.07 percent respectively in FY
2019-20.
2020-21; which were 4.03 percent, 1.75 percent
and 3.67 percent respectively in the preceding In FY 2020-21, the share of broad service sector
fiscal year. The growth of ‘Financial in GDP stood at 51.53 percent, from 51.48
intermediations’ sector increased to 4.31 percent percent in previous year. Within the broad
in FY 2020-21 from 3.09 percent in the previous service sector, the contribution of wholesale and
fiscal year. However, the growth of ‘public retail trade sector (14.08%) was the highest. Also
administration and defense’, ‘education’, ‘health transport, storage and communication sector was
and social works’ and ‘community, social and second highest (11.04%). Next positions are
personal services’ sectors has largely increased community, social and personal services
compared to the growth in previous fiscal year. (7.90%); real estate, renting and business
On the other hand the growth rate in the health activities (6.15%); public administration and
and social works sector slightly reduced to 9.94 defense (3.73%); financial intermediations
percent compared to previous fiscal year. (3.36%); education (2.47%); health and social
works (2.09%) and hotel and restaurants (0.73%)

Table 2.4: Sectoral Share of GDP at Constant Prices

(Base Year: 2005-06) (In percentage)
1. Agriculture And Forestry 13.70 13.09 12.81 12.32 11.70 11.12 10.67 10.15 10.17 9.90
a) Crops & horticulture 10.01 9.49 9.28 8.87 8.35 7.86 7.51 7.06 7.03 6.77
b) Animal Farmings 1.90 1.84 1.78 1.73 1.66 1.60 1.53 1.47 1.46 1.44
c) Forest and related services 1.78 1.76 1.74 1.72 1.69 1.66 1.62 1.62 1.68 1.69
2. Fishing 3.68 3.68 3.69 3.69 3.65 3.61 3.56 3.49 3.56 3.57
3. Mining And Quarrying 1.61 1.65 1.63 1.68 1.77 1.80 1.78 1.74 1.69 1.61
a) Natural gas and crude petroleum 1.00 1.01 0.98 1.00 1.04 0.98 0.92 0.85 0.79 0.72
b) Other mining & coal 0.61 0.64 0.65 0.68 0.73 0.82 0.86 0.89 0.90 0.89
4. Manufacturing 18.28 19.00 19.47 20.16 21.01 21.74 22.85 24.08 23.59 23.66
a) Large & medium scale 14.86 15.49 15.95 16.58 17.37 18.01 19.07 20.21 19.72 19.92
b) Small scale 3.42 3.51 3.51 3.58 3.64 3.73 3.78 3.87 3.87 3.73
5. Electricity, Gas And Water
1.41 1.45 1.42 1.42 1.50 1.52 1.54 1.55 1.52 1.51
Supply
a) Electricity 1.17 1.21 1.19 1.19 1.26 1.29 1.32 1.34 1.31 1.31
b) Gas 0.15 0.15 0.15 0.14 0.15 0.14 0.13 0.12 0.11 0.10
c) Water 0.09 0.08 0.09 0.09 0.09 0.09 0.09 0.09 0.10 0.10
6. Construction 6.78 6.90 7.03 7.16 7.26 7.36 7.50 7.63 7.98 8.22
7. Wholesale And Retail Trade 14.02 14.03 14.10 14.08 13.99 14.01 13.95 13.92 13.94 14.08
8. Hotel And Restaurants 0.74 0.75 0.75 0.75 0.75 0.75 0.75 0.74 0.72 0.73
9. Transport, Storage &
11.49 11.50 11.49 11.43 11.31 11.26 11.13 11.01 10.98 11.04
Communication
a) Land Transport 7.32 7.31 7.27 7.24 7.18 7.17 7.09 7.01 6.91 6.94
b) Water transport 0.86 0.84 0.81 0.79 0.76 0.74 0.71 0.68 0.66 0.66
c) Air transport 0.14 0.13 0.12 0.12 0.12 0.11 0.11 0.10 0.10 0.10
d) Support transport services,
0.69 0.67 0.65 0.64 0.63 0.63 0.64 0.64 0.63 0.62
storage
e) Post and Tele communications 2.48 2.56 2.64 2.63 2.65 2.61 2.58 2.58 2.68 2.72
10. Financial Intermediations 3.21 3.30 3.34 3.38 3.39 3.45 3.45 3.42 3.40 3.36
a) Monetary intermediation
2.62 2.73 2.79 2.84 2.88 2.96 2.97 2.95 2.91 2.86
(Banks)
b) Insurance 0.41 0.39 0.37 0.36 0.34 0.32 0.30 0.29 0.29 0.30
c) Other financial auxiliaries 0.19 0.18 0.18 0.18 0.17 0.17 0.18 0.18 0.19 0.20
11. Real Estate, Renting and
7.22 7.07 6.95 6.81 6.64 6.49 6.31 6.13 6.18 6.15
Business Activities
12. Public Administration and
3.35 3.36 3.39 3.49 3.63 3.70 3.71 3.65 3.70 3.73
Defence
13. Education 2.23 2.24 2.26 2.29 2.39 2.48 2.46 2.44 2.47 2.47
14. Health and Social Works 1.90 1.88 1.86 1.83 1.84 1.85 1.83 1.89 2.00 2.09
15. Community, Social and
10.38 10.09 9.82 9.52 9.18 8.87 8.52 8.15 8.08 7.90
Personal Services
Total
100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
agriculture sector to industry sector in GDP
The structural changes of contribution of broad
continues in FY 2020-21. Figure 2.2 shows that
sectors in GDP are shown in the Table 2.5 and
contribution of service sector was nearly 50
Figure 2.2. Table 2.5 indicates that the structural
percent of GDP before FY 2005-06. Contribution
change of agriculture sector to industry sector in
of this sector rose at 55.59 percent in FY 2005-
GDP continues in FY 2020-21. The table that the
06. In recent time this contribution is near about
trend of structural change in the contribution of
51.53 percent.

Table 2.5: Trend of Structural Transformation of Broad Sectoral Shares in GDP and Growth Rate
at Constant Prices
Share (in percent)
Sector 1985-86 1990-91 1995-96 2000-01 2005-06 2010-11 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Agriculture 31.15 29.23 25.68 25.03 19.01 18.01 16.50 16.00 15.35 14.74 14.23 13.65 13.74 13.47
Industry 19.13 21.04 24.87 26.20 25.40 27.38 29.55 30.42 31.54 32.42 33.66 35.00 34.78 34.99
Service 49.73 49.73 49.45 48.77 55.59 54.61 53.15 53.58 53.12 52.85 52.11 51.35 51.48 51.53
Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Agriculture 3.31 2.23 3.10 3.14 5.50 4.46 4.37 3.33 2.79 2.97 4.19 3.92 4.59 3.45
Industry 6.72 4.57 6.98 7.45 9.80 9.02 8.16 9.67 11.09 10.22 12.06 12.67 3.25 6.12
Service 4.10 3.28 3.96 5.53 6.60 6.22 5.62 5.80 6.25 6.69 6.39 6.78 4.16 5.61
GDP 3.34 3.24 4.47 5.41 7.18 6.64 6.15 6.54 7.11 7.28 7.86 8.15 3.51 5.47
(At
producer
prices)
Source: Bangladesh Bureau of Statistics (BBS) *Provisional
Note: up to FY2000-01, data used based on FY1995-96 and others are based on 2005-06.
Figure 2.2: Share of three Major Sectors in the Last More than three Decades at Constant Prices
110
100
90
80
49.45 48.77 53.12 52.85 52.11 51.35 51.48 51.53
55.59 54.61 53.58
70
60
50
4024.87 26.2
30 25.4 27.38 30.42 31.54 32.42 33.66 35 34.78 34.99
20
25.68 25.03
10 19.01 18.01 16 15.35 14.74 14.23 13.65 13.74 13.47
0
1995-96 2000-01 2005-06 2010-11 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Agriculture Industry Services
*Provisional.
On the other hand, domestic saving increased to
Expenditure Based GDP
24.17 percent of GDP in FY 2020-21; which was
The scenario of consumption, savings and 23.77 percent in preceding fiscal year. Moreover
expenditure is presented in Table 2.6 and Table national saving also increased to 30.39 percent in
2.7. According to the provisional data on the FY 2020-21 from 28.67 percent in FY 2019-20.
expenditure side, consumption decreased from
76.23 percent of GDP in FY 2019-20 to 75.83
percent in FY 2020-21.

Table: 2.6: Expenditure Based Gross Domestic Product at Current Prices

(In crore Taka.)
Item 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
1. Domestic
Demand 1129475 1275097 1430851 1617789 1813872 2078186 2439522 2708936 2922711 3184290
[(2)+(3)]
2. Consumption 831250 934727 1046858 1179924 1300034 1475356 1736587 1906266 2088080 2283288
i. Public 53175 61339 71719 81918 102109 118467 143056 159441 171814 186125
ii. Private 778075 873389 975139 1098006 1197925 1356889 1593531 1746825 1916267 2097162
3. Investment 298225 340370 383994 437865 513839 602830 702936 802670 834631 901003
i. Public 60802 79621 87991 103393 115492 146472 179417 204087 230426 261119
ii. Private 237423 260749 296003 334472 398347 456358 523518 598586 604205 639884
4. Net Export -82177 -86570 -87806 -112361 -80663 -103370 -194508 -155417 -179150 -152699
5. Gross
Domestic 1047299 1188527 1343045 1505428 1733210 1974816 2245014 2553519 3031591
2743561
Expenditure
6. Gross
Domestic 1055204 1198923 1343674 1515802 1732864 1975815 2250479 2542483 2739332 3011065
Product
7. Statistical
7905 10396 6292 10375 -346 1000 5465 -11036 -4229 -20527
Discrepancy
Which were 8.41 percent and 22.06 percent of
Gross investment decreased in FY 2020-21
GDP respectively in preceding fiscal year. In
compared to previous fiscal year. The total
absolute term, amount of investment stood at Tk.
investment rose to 29.92 percent in FY 2020-21,
901003 crore in FY 2020-21, increasing by 7.95
which was 30.47 percent in FY 2019-20. Public
percent from Tk. 834631 crore in the previous
sector investment increased to 8.67 percent and
fiscal year.
private sector investment decreased to 21.25
percent of GDP in FY 2020-21.
Table: 2.7: Consumption, Savings and Investment (As percent of GDP)
(Base Year: 2005-06)
Item 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
1. Consumption 77.96 77.91 77.84 75.02 74.67 77.17 74.98 76.23 75.83
i. Public 5.12 5.34 5.40 5.89 6.00 6.36 6.27 6.27 6.18
ii. Private 72.85 72.57 72.44 69.13 68.67 70.81 68.71 69.95 69.95
2. Investment 28.39 28.58 28.89 29.65 30.51 31.23 31.57 30.47 29.92
i. Public 6.64 6.55 6.82 6.66 7.41 7.97 8.03 8.41 8.67
ii. Private 21.75 22.03 22.07 22.99 23.10 23.26 23.54 22.06 21.25
3. Domestic 22.04 22.09 22.16 24.98 25.33 22.83 25.02 23.77 24.17
Savings
4. National 30.53 29.23 29.02 30.77 29.64 27.42 29.50 28.67 30.39
Savings

Figure 2.3: Trend of Investment, Domestic Savings and National Savings as percent of GDP
35
30
25
20
15
10
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Investment Domestic Saving National Saving
*Provisional.
will be accelerated as some comprehensive plans
In order to increase domestic and foreign
and programmes under Annual Development
investment, the government of Bangladesh is
Programme (ADP) and Public Private
formulating investment friendly policies, acts and
Partnership (PPP) on structural development,
laws. Bangladesh Economic Zone Authority
rapid electrification, energy diversification,
(BEZA) has taken an initiative to create
developed communication system and
employment of around 1 crore people by
communication technology have been
establishing 100 Economic Zones (EZs)
undertaken.
throughout the country by 2030. Approval has
already been issued for the establishment of 97 Bangladesh Investment Development Authority
Economic Zones. Production has already been (BIDA) is relentlessly working with new
begun in 9 Economic Zones and the development initiatives to attain overall economic growth
work in 28 Economic Zones is in progress, which through encouraging local and foreign
have provided employment opportunity for investment in private sector, providing facilities
around 40,000 employment seekers. In addition, and assistance to establish industries and
employment opportunities for another 8 lakh providing administrative coordination and better
people will be created. Till date, investment service to utilize government industries and
proposal worth US$ 27.07 billion from a total of commercial institutions and unutilized land and
210 investors has been received in these establishments into more suitable economic
Economic Zones, of which about US$ 1.60 activities. BIDA is working to improve the
billion is foreign investment. The largest ratings of Bangladesh which is currently 168th
Economic Zone in the public sector out of the 190 economies mentioned in the ‘Ease
'Bangabandhu Sheikh Mujib Industrial City' is of Doing Business-2020’ report. The full
being developed in Mirsarai, Sonagazi and international standard online One Stop Service
Sitakunda Upazilas on 30,000 acres of land as a was launched on February 2019 in pilot basis.
planned and modern industrial zone. Currently 41 on-line based business processes are
being offered through this one stop service portal.
At present about 125 types of services are being
A new horizon for the investment environment is
provided from BEZA one stop service center.
going to be opened by full-fledged One Stop
Moreover, it is expected that the investment in
Service.
the country will be increased and GDP growth

CHAPTER THREE
PRICES, WAGES AND EMPLOYMENT
The Consumer Price Index (CPI) inflation rate in FY2020-21 was 5.56 percent at national level,
which was 5.65 percent in the previous fiscal year. It may be mentioned that the average inflation
rate in the country is set at 5.4 percent in the FY2020-21. The government has taken necessary
steps, including keeping the supply chain intact and seamless, keeping the prices of daily
necessities within the purchasing power of the people to control inflation and ease growth. The
average inflation stood at 5.56 percent during July-June of FY2020-21. According to the last
Quarterly Labour Force Survey (QLFS) 2016-17 conducted by BBS, the number of economically
active population (above 15 years) in the country is 6.35 crore (male 4.35 crore and female 2.00
crore), out of which, a labour force of 6.08 crore is engaged in a number of professions.
According to the survey, total labour force employed in agriculture stood at 40.60 percent which
is 2.10 percentage points less compared to the previous Labour Force Survey (LFS) 2015-16. On
the other hand, the total workforce employed in the services sector increased by 2.10 percentage
points to 39.0 percent. According to the Bangladesh Wage Rate Index (Base Year 2010-11), the
Nominal Wage Rate Index has increased to 180.83 points in FY2020-21 from FY2013-14.
Overseas employment and remittances from expatriates are contributing immensely to the
country's economic development, including increasing employment in the country, as well as
reducing unemployment, poverty alleviation, and increasing foreign exchange reserves. In the last
FY2019-20, a total of 5.31 lakh people went abroad with employment. As many as 1.22 lakh
workers have gone abroad till July-February of FY2020-21. In the FY2019-20, expatriate workers
sent a total of US$18,205.01 million in remittance. During July-June of FY2020-21 expatriate
workers sent a total of US$24,771.71 million in remittance, which is 36.10 percent higher than the
previous fiscal year. The Coronavirus pandemic has caused a multi-dimensional crisis in
Bangladesh's manpower export sector due to lockdowns and stagnation around the world. Various
steps have been taken to keep the remittance flow smooth. The government is incentivising
remittances at the rate of 2 percent to reduce the increased cost of sending remittances legally and
to encourage remittances through legal channels. An incentive of Tk.5,000 crore has been
provided to save workers of the export oriented industries from the economic impact of
Coronavirus infection. This money is being spent to pay the wages of the export-oriented workers.
Consumer Price Index and Inflation Survey (HIES). All rural and urban price indices
are compiled using the lists of consumer goods of
As the country's national statistics agency, the
rural and urban households based on the survey
Bangladesh Bureau of Statistics (BBS)
and finally, the national price index is calculated
formulates the National Consumer Price Index
by combining the weighted average of
(CPI). CPI is calculated by using food and non-
consumption expenditures of the two areas. All
food commodities basket and services consumed
indices are computed separately in food and non-
by the consumers in their day-to-day life. CPI is
food groups which are again divided into a
published counting 2005-06 as the base year. The
number of sub groups. Consumer Price Index and
commodities and their weights, used for the
inflation during FY2010-11 to FY2020-21 are
computation of the index, are determined based
shown in Table 3.1 and Figure 3.1.
on the Household Income and Expenditure
Chapter 3-Prices, Wages and Employment | 21

Table 3.1: Consumer Price Index and Inflation

(Base Year 2005-2006)
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
General
156.59 170.19 181.73 195.08 207.58 219.86 231.82 245.22 258.65 273.26 288.44
index
(10.91) (8.69) (6.78) (7.35) (6.41) (5.92) (5.44) (5.78) (5.48) (5.65) (5.56)
Inflation
Food
170.48 183.65 193.24 209.79 223.80 234.77 248.90 266.64 281.33 296.96 313.86
index
(14.11) (7.72) (5.22) (8.56) (6.68) (4.90) (6.02) (7.13) (5.51) (5.56) (5.73)
Inflation
Non-
food 138.77 152.94 166.97 176.23 186.79 200.66 209.92 217.76 229.58 243.00 255.85
index (6.21) (10.21) (9.17) (5.55) (5.99) (7.43) (4.61) (3.74) (5.43) (5.85) (5.29)
Inflation
Source: Bangladesh Bureau of Statistics (BBS).
Figure 3.1: Rate of Inflation at National Level
16
14
12
10
0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
General index Food index Non-food index
Table 3.1 and Figure 3.1 show that during the last Against the backdrop of the outbreak of the
10 years, national level of inflation stood highest Coronavirus pandemic, the government has taken
in FY2010-11 at 10.91 percent and lowest in necessary steps, including keeping the supply
FY2016-17 at 5.44 percent. Inflation rate stood at chain intact and seamless, to alleviate the
5.56 percent in FY2020-21, which was 5.65 pressure of inflation by keeping the prices of
percent in FY2019-20. In the FY2020-21, the daily necessities within the purchasing power of
rate of food inflation was 5.73 percent and non- the people. In this context, a prudent monetary
food inflation was 5.29 percent. policy has been adopted that is conducive to
growth and employment, inclusive,
Table 3.2 shows that from July 2020 to June
environmentally and investment-friendly. In
2021, the average inflation rate stood at 5.56
Medium Term Macroeconomic Framework,
percent. During this period, food inflation
average inflation has been estimated to be 5.4
decreased from 5.70 percent in July 2020 to 5.45
percent during FY2020-21. The monthly inflation
percent in June 2021. At the same time, non-food
rate for FY2020-21 calculated on a point-to-point
inflation increased minutely to 5.94 percent in
basis is presented in Table 3.2.
June 2021 which was 5.28 percent in July 2020.

Table 3.2: Monthly Rate of inflation Point to Point during FY2020-21

(Base Year 2005-06=100)
Average
Type of 2019- July Aug Sep Oct Nov Dec Jan Feb Mar April May June
Level (July’20-
Inflation 20 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2021
June’21)
General 5.65 5.53 5.68 5.97 6.44 5.52 5.29 5.02 5.32 5.47 5.56 5.26 5.64 5.56
National Food 5.56 5.70 6.08 6.50 7.34 5.73 5.34 5.23 5.42 5.51 5.57 4.87 5.45 5.73
Non-food 5.85 5.28 5.05 5.12 5.00 5.19 5.21 4.69 5.17 5.39 5.55 5.86 5.94 5.29
General 5.63 5.43 5.60 5.96 6.67 5.55 5.28 5.00 5.33 5.55 5.66 5.28 5.84 5.60
Rural Food 5.68 5.67 6.09 6.61 7.73 6.01 5.60 5.46 5.72 5.83 5.88 5.25 6.04 6.00
Non-food 5.53 4.98 4.70 4.71 4.62 4.65 4.67 4.15 4.61 5.03 5.25 5.33 5.46 4.85
General 5.68 5.72 5.81 5.98 6.03 5.47 5.31 5.05 5.30 5.31 5.39 3.24 5.29 5.33
Urban Food 5.17 5.76 6.06 6.26 6.48 5.11 4.77 4.72 4.76 4.80 4.87 4.03 4.14 5.15
Non-food 6.26 5.68 5.51 5.65 5.51 5.90 5.93 5.41 5.92 5.87 5.96 6.56 6.59 5.87
Wages Rate Index using base year FY2010-11 has been initiated.
The WRI from FY2013-14 to FY2020-21,
Previously BBS had been constructing Wage
calculated with the new base year, is presented in
Rate Index (WRI) using FY1969-70 as the base
Table 3.3.
year since 1974. Meanwhile, constructing WRI
Table 3.3: Wage Rate Index and Growth Rate
(Base Year 2010-11=100)
Nominal Wage Rate Index Growth Rate ( Point to Point)
Year General Agriculture Industry Service General Agriculture Industry Service
2013-14 118.82 118.44 119.07 120.16 5.50 5.68 4.97 5.75
2014-15 124.69 124.51 124.38 126.15 4.94 5.12 4.47 4.98
2015-16 132.81 132.48 132.02 136.03 6.52 6.41 6.16 7.86
2016-17 141.46 141.22 140.27 145.01 6.50 6.59 6.24 6.60
2017-18 150.59 150.27 149.23 154.44 6.46 6.40 6.55 6.51
2018-19 160.23 159.92 158.74 164.78 6.40 6.42 6.22 6.69
2019-20 170.39 170.28 168.28 175.33 6.35 6.48 5.99 6.41
2020-21 180.83 181.16 177.52 185.99 6.12 6.39 5.51 6.07
It is observed from the above table that Nominal Labour Force and Employment
Wage Rate Index (NWRI) has been increased by
BBS conducts the Labour Force Survey (LFS) to
an average of about 6.0 percent from FY2013-14
assess the overall situation of employment.
to FY2020-21. The index for the FY2020-21 has
According to the latest survey in FY2016-17, the
increased to 180.83 points as compared to the
number of economically active population above
previous fiscal year.
15 years is 6.35 crore. Out of this, males are 4.35
The sector-wise analysis shows that sector-based crore and female 2 crore. As many as 6.08 crore
wage rate has increased to 181.16, 177.52 and people are engaged in a number of professions.
185.99 points respectively in agriculture, industry Agriculture employed 40.6 percent of the
and service sectors in FY2020-21 compared to employed person, followed by service at 39.0
the previous fiscal year and the growth rate is percent with the smallest proportion in the
6.39. 5.51 and 6.07 percent respectively. industry sector at 20.4 percent.
According to the LFS2016-17, the largest share
of the employed population 44.3 percent worked

as own-account workers, followed by 39.1 (17 lakh). The share of employed labour force
percent as employees and 11.5 percent above 15 years by different sectors of the
contributing as family workers. Between the economy according to the Labour Force Surveys
sexes by largest share, there were more males in 1995-96, 1999-00, 2002-03, 2005-06, 2010,
all categories except among contributing family 2013, 2015-16 and 2016-17 is shown in Table
workers, where there were more than three times 3.4.
employed females (53 lakh) than employed males
Table 3.4: Share of Employed Labour Force above 15 Years by Sector
Sector LFS LFS LFS LFS LFS LFS LFS LFS
1995-96 1999-00 2002-03 2005-06 2010 2013 2015-16 2016-17
Agriculture, forestry and fishery 48.85 50.77 51.69 48.10 47.33 45.10 42.70 40.62
Mining & quarrying - 0.51 0.23 0.21 0.18 0.40 0.20 0.20
Manufacturing 10.06 9.49 9.71 10.97 12.34 16.40 14.40 14.43
Power, gas & water 0.29 0.26 0.23 0.21 0.18 0.20 0.30 0.20
Construction 2.87 2.82 3.39 3.16 4.79 3.70 5.60 5.58
Trade, hotel & restaurant 17.24 15.64 15.34 16.45 15.47 14.50 13.40 14.34
Transport, maintenance & 6.32 6.41 6.77 8.44 7.37 6.40 9.40 10.50
communication
Finance, business & services 0.57 1.03 0.68 1.48 1.84 1.30 1.60 1.97
Commodities & personal services 13.80 13.07 5.64 5.49 6.26 6.20 6.20 6.08
Public administration and defense - - 6.32 5.49 4.24 5.80 6.20 6.08
Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Source: BBS, Labour Force Survey, 1995-96, 1999-00, 2002-03, 2005-06 , 2010 , 2013, 2015-16& 2016-17.
Steps Taken to Improve Employment ensuring decent work environment and equal pay
Situation for equal work. Under this purview the
government has undertaken some pragmatic steps
Ministry of Labour and Employment plays an
in order to ensure the welfare of workers which
effective role to establish labour rights
are stated below:
particularly fixing fair wage, ensuing safe work
placed environment occupational safety and (a) Regular Activities
health as well as enhancing productivity and
 Inspection: The objective of the Department
economic development through maintaining
of Inspection for Factories and
peace and stability in the industries. Besides this
Establishments (DIFE) is to create an
ministry works for enforcement of Labour Laws
investment-friendly environment by ensuring
and amendment of labour Laws in line with
a decent, safe and healthy workplace and
changed situation, formulation and
establishing the workers’ safety and rights.
implementation of National Labour Policy,
Inspection is one of the fundamental tasks of
generation of employment and skilled manpower,
DIFE. To implement the Bangladesh Labour
and fixation of minimum wages. Moreover, the
Law and Bangladesh Labour Rules by
Ministry of Labour and Employment leads to
inspecting factories and establishments is a
achieve the sustainable development goals
vital job of DIFE. In FY2019-20, a total of
(SDGs) such as elimination of child labour
37,327 inspections were completed in the

factories and establishments and a total of up in factories and establishments under the
26,408 inspections were completed till direct supervision of DIFE. In FY2019-20
January of FY2020-21. DIFE set up 367 child care centres and a total
 Complaints Received and Disposal of of 243 children's rooms till January of
Complaints: Complaints are disposed within FY2020-21.
the fastest time after receiving complaints  Issuance and Renewal of License: In
from the workers regarding violations of FY2019-20, DIFE issued licenses to 8,544
Bangladesh labour law and Bangladesh factories and renewed 25,176 others. In
labour rules in the workplace. In FY2019-20, addition, until January of FY2020-21, DIFE
DIFE received a total of 3,164 complaints issued licenses to 4,980 factories and
and a total of 2,902 complaints were renewed 23,650 others.
disposed of in relevant consideration. In  Increase Compliance Factory: A factory
addition, until January of FY2020-21, DIFE considered as a compliance factory when that
received a total of 3,805 complaints and a factory is included in the 'A' category in
total of 3,530 complaints were disposed of in performing the provisions of the inspection
relevant consideration. checklist. Compliance factories comply with
 Cases Filed at Labour Courts: To create a the occupational health and safety-related
decent workplace in the factories and provisions of the Bangladesh labour law and
establishments, DIFE implements Bangladesh labour rules. DIFE ensured such
Bangladesh Labour Law and Bangladesh compliance in 1,660 factories and
Labour Rules. In FY2019-20, a total of 1,667 establishments in FY2019-20 and in 746
cases were filed and of which 260 cases were factories and establishments until January in
disposed. In addition, total 348 cases were FY2020-21.
filed and of which 333 cases were disposed  Compensation for Deaths and other
as of January in FY2020-21. Accidents: Except regular inspections,
 Ensuring Maternity Welfare Benefits: Inspectors also inspect an area in case of an
According to the labour law, DIFE ensures accident at any workplace. Through
maternity benefits for female workers in the inspection proper advice is given to the
factories and establishments. In FY2019-20 factory owners and find out probable causes
maternal welfare benefits have been ensured of the accident. In addition, the Special
for a total of 10,961 workers. For this, the Investigation Committee is constituted to
amount of financial benefit provided to the investigate any particular accident. Necessary
workers by the employer is Tk.36.79 crore. steps are taken reviewing the investigation
In FY2020-21 maternal welfare benefits have report of accident. DIFE arranged to give Tk.
been ensured for a total of 8,584 workers till 87.20 lakh to the 47 injured and 99 dead
January, 2020 and the amount of financial workers or their families in FY2019-20. In
benefits provided to the workers by the addition, until January of FY2020-21 DIFE
employer is Tk.29.24 crore. arranged to give Tk. 12.00 lakh to the 139
 Establishment of Child Care Centres: To injured and 27 dead workers or their families
empower women and enhance women's  Formation of Safety Committee: Safety
participation in the workplace, DIFE has committee formation activities are going on
been playing a vital role. The Department has to ensure safe working conditions in the
been working for ensuring women-friendly factory. DIFE formed 902 safety committees
workplaces. Child care centres are being set in different factories and establishments in

the FY2019-20. As of December 2020 in health and safety at all workplaces across the
FY2020-21, a total of 3,435 safety country. The award was given to 10 factories
committees were established in different on the National Occupational Safety and
factories and establishments under the Health Day-2018 and 24 factories on OSH
supervision of DIFE. Day 2019. In 2020, the award will be given
as 'Bangabandhu Green Factory Award' to
(b) Special Activities offer tribute to the Father of the Nation
 Digital Inspection System: The introduction Bangabandhu Sheikh Mujibur Rahman and
of digital inspection is a major initiative to to commemorate the Mujib year.
bring more transparency, accountability and  Women Development and Training: The
dynamism in factory and establishment construction work of 2 dormitories having
inspection activities. For this, an app called 960 seats in Kalurghat, Chattogram and 620
Labor Inspection Management Application seats in Bandor Narayanganj has been
(LIMA) has been created on 6 March 2018. It running to introduce safe secure housing
is simultaneously a mobile and website based facilities for female workers in garments and
application, through which all the important other industries.
activities of the department are performed.  Innovative and Digital Activities:
The International Labour Organization (ILO) Moreover, to make the services easier and
is providing assistance in this initiative. more available to the labourers a mobile
 Remediation of Factories: Remediation application name ‘Sramiker Shastho Kotha’
Coordination Cell (RCC) was launched on 14 has been launched. Besides, hot-line service
May 2017. The Bangladesh Government and has been launched to provide quick
the International Labour Organization (ILO) resolution of any complain related to labour
have jointly working to ensure a safe and labourers and anti-union discrimination.
working environment, including structural In line with Government’s Digital
safety, electrical safety and fire safety of the Bangladesh campaign, the department of
factory building. Currently, renovation of the Labour has launched online Trade Union
defective garment factories is underway Registration Service and the ‘Publicly
through RCC. Accessible Database’ an online database, to
 National Occupational Health and Safety make easy access of major services imparted
Research and Training Institute: The by the department of labour. Introduction of
National Occupational Health and Safety digital inspection system is a major step
Research and Training Institute (NOHSRTI) taken by DIFE to enhance transparency,
is under construction under DIFE. This accountability and dynamism in its activities.
institute will conduct research and training Therefore, an application named Labour
on occupational health and safety issues. Inspection Management Application (LIMA)
Construction work for this institute is has been developed. In addition, cash grants
expected to be completed by the end of 2022. from Bangladesh Labour Welfare Foundation
 Helpline for Workers: DIFE introduced a and Central Fund of Ministry of Labour and
toll-free helpline (16357) service for workers Employment are being disbursed through
at their own building on 3 January 2021. mobile banking to the beneficiary labours
 Occupational Health and Safety Good and their families.
Practice Award: The Ministry of Labour  Reform Activities for Labour Welfare:
and Employment has introduced the Primary health service with free medication
'Occupational Health and Safety Good family planning and recreational services are
Practice Award' to promote occupational being provided to the labourers and their

family members through 32 labour welfare remittances from Bangladeshi expatriates

centers under the Department of Labour increased by 36.10 percent to US$24,777.71
across the country. Construction of a 10- million during the July-June period of FY2020-
beded Labour Welfare Complex at Ghagra, 21 compared to the same period last year. In
Rangamati equipped with facilities to FY2019-20, the manpower export from
provide clinical services and training for Bangladesh was 5.31 lakh which is 23.37 percent
skills development of labours in hill tracts lower than the previous fiscal year. On the
areas will be completed by December 2021. contrary, Bangladesh earned remittances of
Overseas Employment and Remittances US$18,205.01 million in FY2019-20 which was
10.87 percent higher than the previous fiscal
Despite the decline in Bangladesh’s labour export
year. Year-wise data of inward remittances sent
and the return of a large number of expatriate
by Bangladeshi expatriates is shown in Table 3.5
workers due to the outbreak of COVID-19,
and Figure 3.2.
Table 3.5: Number of Expatriate Employees and Amount of Remittance

Amount of remittance
No. of Employment
FY Percentage Percentage
Abroad’000 In Million US$ Tk. In Crore
Change % Change %
2009-10 427 10987.40 13.40 76109.60 14.15
2010-11 439 11650.32 6.03 82992.90 9.04
2011-12 691 12843.40 10.24 101882.78 22.76
2012-13 441 14461.15 12.60 115646.16 13.51
2013-14 409 14228.30 -1.61 110582.37 -4.38
2014-15 462 15316.91 7.65 118982.32 7.60
2015-16 685 14931.14 -2.52 116856.72 -1.79
2016-17 905 12769.45 -14.48 101099.62 -13.48
2017-18 880 14981.69 17.32 123156.01 21.82
2018-19 693 16419.63 9.60 138007.00 12.06
2019-20 531 18205.01 10.87 154352.00 11.84
2020-21* 122 16687.94 - 141521.00 -
Source: BMET, Bangladesh Bank.* July-February.
Figure 3.2 Manpower Export and Remittance Inflow
1000 905 20000.00

878
900 18000.00
800 16000.00
691 685 693
700 14000.00
Million US$
Thousand
600 531 12000.00

500 439 441 462 10000.00
409
400 8000.00
300 6000.00
200 122 4000.00
100 2000.00
0 0.00
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Number of Employment Abroad Amount of Remittance
Source: BMET, Bangladesh Bank.

The remittance sent by Bangladeshi expatriates In FY2020-21, remittances accounted for about
was 9.05 percent of GDP and 50.82 percent of 6.97 percent of GDP and 63.92 percent of total
total export earnings during FY2010-11. But this exports which was 5.52 percent of GDP and
ratios had declined and stood at 5.43 percent of 54.06 percent of total export earnings
GDP and 40.51 percent of total export earnings respectively in FY2019-20. Remittances as
respectively in FY2018-19. In the FY2020-21, percent of GDP and as percent of total export
the ratios of remittances to GDP and remittances earnings are shown in Table 3.6 and Figure 3.3.
to export earning has increased as compared to
the previous financial year.
Table 3.6: Remittance as Percent of GDP and Export Earnings
FY 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
As
percent 9.05 9.63 9.64 8.23 7.86 6.76 5.11 5.47 5.43 5.52 6.97
of GDP
As
percent
of 50.82 52.92 53.52 47.15 49.78 43.58 36.85 40.86 40.51 54.06 63.92
Export
Earnings
Source: Bangladesh Bank, BBS.
Figure 3.3: Remittances as percent of GDP and Export Earnings

70 63.92
60 52.92 53.52 54.06

50.82 49.78
47.15
50 43.58
40.86 40.51
36.85
40
30
20
9.05 9.63 9.64 8.23 7.86 6.76 5.11 5.47 5.43 5.52 6.97
10
0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
As percent of GDP As percent of Export Earnings
Key measures taken by Bangladesh Bank for Cash incentive for remittance through legal
accelerating remittance inflows for FY2020-21 channels: As per policy regarding incentives/
cash assistance against remittance sending
During the COVID-19 pandemic, with a view to
through legal channel, it is mandatory to send
simplifying remittance sending through legal
documents of remitters from overseas exchange
channel and encourage remittance inflows,
house for 2 percent of incentives/ cash assistance
several accommodative measures taken by the
for USD 5000 or more than Tk. 5 lakh
Government. and the Bangladesh Bank help to
remittance. To this end procedure of submitting
remit more remittance.
/scrutinizing remitters’ documents has been made
simplified.

Transactions relating to foreign direct Repatriation of royalty, technical know-how

investment in Bangladesh: To bring smooth and technical assistance of industrial
operations relating to foreign investment in enterprises in Domestic Processing Areas
Bangladesh, it has been decided that dividend (DPAs) of Economic Zones (Ezs): Authorized
payable to foreign shareholders may be credited Dealers may, on behalf of industrial enterprises
to their FC accounts maintained in Bangladesh, in DPAs of EZs, effect outward remittance on
subject to observance of several instructions. account of royalty, technical know-how and
While crediting FC accounts, the transactions technical assistance fees from taka account.
shall be treated as outward remittances and
Remittance against current account
accordingly TM Form procedures need to be
transactions: It has been decided to include
followed. Encashment of balances held in FC
legitimate other current account payments like
accounts shall be treated as inward remittances
audit fee, certification fee, commissioning fee,
for bonafide local disbursements, subject to
testing fee, valuation fee etc. within the purview
Form-C procedures. Dividend may be used as
of Para 27, Chapter 10 of GFET-2018. These
inward remittances for reinvestment in
facilities shall equally applicable to industrial
Bangladesh through purchase of shares in
enterprises operating in domestic processing
existing companies and/or other companies
areas of EZs.
Remittances of dividend to non-resident
Outward remittances on account of software
shareholders: As a part of ongoing liberalization
maintenance/support fees: ADs accorded
to bring uniformity between regulations for
general authorization to effect remittance on
enterprises of specialized zones and those of non-
account of software maintenance/support fees.
specialized zones regarding remittances on
Accordingly, ADs shall, no longer need to seek a
account of dividend, it has now been decided that
first time approval from Bangladesh Bank.
ADs shall no longer be required to forward
documents to Bangladesh Bank. Concerned AD Remittance against current account
bank will preserve related necessary documents. transaction: It has been decided that Authorized
Dealers (ADs) may remit admissible expenses up
Deposit products for Non-Resident
to 1 (one) percent of annual sales as declared in
Bangladeshis (NRBs) working abroad: To
the previous year’s income tax return of the
encourage NRBs in saving their hard earned
concerned remitter-companies or USD 1,00,000
income in Bangladesh, it has been decided that
whichever is higher.
ADs can introduce deposit products in taka for
NRBs. Expatriates Classified by Skills
Investment in ‘Open-End Mutual Fund’ by Analysing the expatriates by their category or by

Non-resident Investors (Foreigners and NRBs) skills it is observed that during the last 11 years
through NITAs: To enhance the scope for proportion of less skilled overseas workers is
foreign portfolio investment in stock market, it about 46.2 percent of all overseas workers. On
has been decided that balances held in Non the contrary, proportion of skilled overseas
Resident Investor’s Taka Accounts (NITAs) of workers is about 38.64 percent of all overseas
non-residents may be used to purchase units of workers. The number of expatriates classified by
open end mutual funds as ‘over the counter skills is presented in Table 3.7. From the Table, it
(OTC) products’ subject to compliance with the is observed that number of expatriates in all
instructions. categories has been declined significantly in 2020
compared to that of 2019 due to pandemic caused
by COVID-19.

Table 3.7: Number of Expatriates Classified by Skill

Calendar Year Professional Skilled Semi-skilled Less-skilled Others Total
2009 1426 134265 74604 255070 8485 475278
2010 387 90621 12469 287225 7560 390702
2011 1192 229149 28729 308992 7440 568062
2012 812 209368 20498 377120 9509 607798
2013 689 133754 62528 212282 9224 409253
2014 1730 148766 70095 193403 11690 425684
2015 1828 214328 91099 243929 4697 555881
2016 4638 318851 119946 303706 10590 757731
2017 4507 434344 155569 401796 12302 1008518
2018 2673 317528 117734 283002 13244 734181
2019 1914 304921 142536 197102 53686 700159
2020 378 61719 9412 139640 6520 217669
Source: Bureau of Manpower, Employment and Training.
Table 3.7 and Figure 3.4 (a) and 3.4 (b) show that In addition, analyzing Table 3.7 and Figures 3.4
in 2009, the share of skilled and professional (a) & 3.4 (b) it has been observed that not only
expatriates was about 28.25 percent and 0.30 export of semi skilled labours have been
percent respectively of the total manpower decreased but also export of skilled labours have
export, which stood at 28.35 percent and 0.17 been increased in the long run.
percent in 2020.
Figure 3.4 (a) Category wise Migration: 2009 Figure 3.4(b) Category-wise Migration:2020
Professio Professio
Others Others
nal nal
1.8% 3.0%
0.3% 0.2%
Skilled Skilled
28.3% 28.4%
Less-
skilled Semi- Less-
53.8% skilled skilled Semi-
15.7% 64.2% skilled
4.3%
Source: BMET, MoEWOE, Bangladesh Bank.
Country wise Manpower Export and workers. In 2020, 1,61,715 workers went to
Remittances Saudi Arabia, which is 74.29 pecent of the total
number of migrant workers. Oman (21,165) and
Reviewing the trend of country-based worker
Singapore (10,085) are among other top
export, it is observed that Saudi Arabia is the key
destination countries of our migrant workers.
destination country of Bangladeshi migrant
Besides, 65,046 expatriate labours went to KSA

from Bangladesh until February 2021 of number of Bangladeshi expatriates by country

FY2020-21 which is 76.30 percent of total since 2009 is shown in Table 3.8 and Figure
number went abroad in the same period. The 3.5(a )and 3.5(b).
Table 3.8 Number of Expatriate Bangladeshi Workers by Country
Calendar Saudi
UAE Malaysia Qatar Oman Singapore Kuwait Jordan Lebanon Bahrain Other Total
Year Arabia
2009 14666 258348 12402 11672 41704 39581 10 1691 13941 28426 52837 475278
2010 7069 203308 919 12085 42641 39053 48 2235 17208 21824 44312 390702
2011 15039 282739 742 13111 135265 48667 29 4387 19166 13996 34952 568062
2012 21232 215452 804 28801 180326 58657 2 11726 14864 21777 61836 607789
2013 12654 14241 3853 57584 134028 60057 6 21383 15098 25155 65194 409253
2014 10657 24232 5134 87575 105748 54750 3094 20338 16640 23378 74001 425684
2015 58270 25271 30483 123965 129859 55523 17472 22093 19113 20720 53132 555881
2016 143913 8131 40126 120382 188247 54730 39188 23017 15095 72167 52735 757731
2017 551308 4135 99787 82012 89074 40401 49604 20449 8327 19318 44110 1008525
2018 257317 3235 175927 76560 72504 41393 27637 9724 5991 731 63082 734181
2019 399000 3318 545 50292 72654 49829 12299 20347 4863 133 86879 700159
2020 161715 1083 125 3607 21165 10085 1743 3769 488 3 13886 217669
2021* 65046 511 4 512 7328 6776 1 1883 - 2 3179 85242
Source: Bureau of Manpower, Employment and Training.*up to February 2021.
The overseas labour market of Bangladesh is manpower export in 2009 which is declined to
continuously changing. In last decades manpower almost zero percent in 2020. Manpower exports
export shows a significant change. In 2009, 54 to Oman increased in 2020 compared to 2009,
percent of total overseas employment was in while manpower exports to Singapore declined to
United Arab Emirates (UAE) which decreased to 5 percent in 2020 compared to 2009,
0.50 percent in 2020. On the other hand, respectively. However, due to pandemic situation
manpower exports to Saudi Arabia in 2009 were arisen worldwide from Covid-19, employment
only 3 percent of the total manpower exports, but has been declined in almost every countries in the
in 2020 it increased to 74 percent. Manpower world.
exported in Bahrain was 6 percent of total
Figure 3.5 (a): Overseas Employment by Countries in Figure 3.5 (b): Overseas Employment by Countries in
2009 2020
Jordan, 0% Lebanon,
3%
Bahrain, Other, 11% Saudi Malaysia
UAE
Kuwait, 0% 6% Saudi Arabia 0.1%
0.5%
Singapore, Arabia, 3% 74.3% Qatar
8% 1.7%
Oman
9.7%
Singapore
4.6%
Kuwait
0.8%
Jordan
Oman, 9% 1.7%
Qatar, 2% Lebanon
0.2%
Malaysia, UAE, 54% Bahrain
3% Other
0.0%
6.4%
Source:BMET, MoEWOE, Bangladesh Bank.

Among the western and European countries

Despite worldwide travel restrictions due to
the United States (13%) topped the list. At
Covid-19 pandemic, most of the migrant
the same time remittance inflow increased
workers went to KSA for their employment.
from United Kingdom, Malaysia, Singapore
The major share of remittance came from the
and some other countries. Country-wise
Middle-East countries. Of which the highest
remittances sent by Bangladeshi expatriates
amount of remittance (24%) has been
from FY2009-10 to FY2020-21 are shown in
received from Saudi Arabia during July-
Table 3.9 and Figure 3.6(a) and 3.6 (b).
February of FY2020-21; Followed by the
UAE (10%), Kuwait (8%) and Oman (6%).
Table 3.9: Country wise Remittances
(In million US$)
KSA UAE USA Kuwait UK Oman Malaysia Qatar
FY Italy Singapore Others Total
2009-10 3427.05 1890.31 1451.89 1019.18 827.51 349.08 587.09 360.11 - 193.5 881.68 10987.4
2010-11 3290 2002.6 1848.51 1075.8 889.6 334.3 703.7 319.4 - 202.3 984.09 11650.3
2011-12 3684.37 2404.78 1498.45 1190.13 987.45 400.93 847.49 335.25 - 311.5 1183.05 12843.4
2012-13 3829.5 2829.4 1859.8 1186.9 991.6 610.1 997.4 286.9 - 498.8 1370.7 14461.1
2013-14 3118.9 2684.9 2323.3 1106.9 901.3 701.1 1064.7 257.5 - 429.1 1640.6 14228.3
2014-15 3345.23 2823.77 2380.19 1077.78 812.34 915.26 1381.53 310.15 260.16 443.4 1567.1 15316.91
2015-16 2955.55 2711.74 2424.32 1039.95 863.28 909.65 1337.14 435.61 351.31 387.2 1515.39 14931.14
2016-17 2267.22 2093.5 1688.9 1033.3 808.16 897.71 1103.62 576.02 510.78 301 1489.24 12769.45
2017-18 2591.58 2429.96 1997.49 1199.70 1106.01 958.19 1107.21 844.06 662.22 330.2 1755.07 14981.69
2018-19 3110.40 2540.41 1842.86 1463.35 1175.63 1066.06 1197.63 1023.91 757.88 368.3 1873.2 16419.63
2019-20 4015.16 2472.56 2403.40 1372.24 1364.89 1240.54 1231.30 1019.60 699.15 457.40 1928.77 18205.01
2020-21* 3931.11 1709.09 2190.59 1251.70 1334.86 1064.62 1429.72 898.10 544.95 438.73 1894.47 16687.94
Source: BMET, MoEWOE. Bangladesh Bank. *Upto February 2021.
Figure 3.6 (a): Countrywise remittance inflow in FY2009-10 Figure 3.6 (b): Country wise remittance inflow in FY 2020-21
Singapor Qatar Singapor

e 3% Italy e
KSA Others KSA
3% Others 24% 0% 2% 8%
Malaysia 31%
Italy 11%
6%
Qatar 3%
5% Oman
3%
UK
8%
UAE
Oman 10%
6% USA Kuwait
UK Kuwait 13% 9% USA UAE
8% 8% 13% 17%
Malaysia
9%
Source:BMET, MoEWOE, Bangladesh Bank.

Steps Taken to Boost up Foreign Employment language-based training facilities have enhanced
and Remittances skilled worker’s migration. The government has
emphasized on safe and orderly migration.
The Coronavirus pandemic has caused a multi-
Besides, a market research has been done on 53
dimensional crisis in Bangladesh's manpower
potential countries. Another research has been
export sector due to lockdowns and stagnation
organized targeting the markets of Tajikistan.
around the world. The government is working to
Guyana and Kenya in FY2019-20.These surveys
ensure the overall welfare for expatriates, to
would contribute to the expansion of worldwide
create new labor markets through diplomatic
Bangladeshi labour market.
efforts and to create skilled manpower through
training in line with the needs of those b) Control of Immigration Cost
markets.The following steps have been
The government is trying to keep the migration
undertaken in order to enhance both foreign
cost at a minimum level. Some of these
employment and remittances:
initiatives are mentioned below:
a) Expansion of Labor Market
 Bangladesh Overseas Employment and
The Middle-East is one of the principal Services Ltd (BOESL) is engaged in sending
destinations of manpower export from manpower to South Korea at the minimum
Bangladesh. The government has taken initiatives migration cost. The government has also
to contain the existing labor markets and explore fixed Country specific maximum migration
new destinations for Bangladeshi workers in cost.
different regions of the world. Data has been  A strong database has been developed in
collected from missions abroad to get a pen- BMET for aspirant migrant workers. If
picture of the overall situation of the overseas arrangements are made to recruit workers
labor market in the COVID-19 situation. By from this database, activities of fraudulent
analyzing the labor market data of a total of 25 middlemen would curb and migration cost
countries including Saudi Arabia, United Arab would be minimal.
Emirates, Bahrain, Malaysia and Singapore, an  Since demand and salary of skilled workers
idea has been generated about the demand and are high in overseas employment and their
opportunities of the changed employment in migration cost is low, government has taken
those countries. Accordingly, an action plan is initiatives to address this through establishing
being adopted to create skilled workers by new technical training centres and training
providing trade-based training. In addition to the more skilled workers.
existing labor market, new targets have been set  Earlier, all migration related services were
for Cambodia, Seychelles, Bosnia and provided solely from Dhaka and aspirant
Herzegovina, Romania, Hungary, Poland, migrant workers would have to come to
Uzbekistan, and China. Building construction, Dhaka. This contributed to high migration
hospitality/ caregiver, agriculture, etc. have been cost. The ministry has decentralised this
identified as potential trades for sending workers. service to district level and migration cost
Recently overseas employments have extended to has gone down considerably.
new European countries such as Croatia, Albania,  Female workers are being employed in Saudi
Bosnia and Herzegovina, Poland and Romania. Arabia, Lebanon, Jordan without zero
Signing of MoU/BLA with such as Japan, migration cost. Mandatory one-month house-
Cambodia and Seychelles has opened significant keeping course has been introduced for
outflow of workers in these markets in the last female migrant workers.
one year. Special initiatives on skill and

c) Training and Skill Development e) New Law, Rules and Policies for
Migration Governance
As demand of skilled labour is higher than
To ensure transparency and accountability in
unskilled labour in different countries, the
migration governance, government has adopted
government gives emphasis on the training for
Expatriates' Welfare and Overseas Employment
the workers who are seeking job in
Policy, 2016 and enacted Overseas Employment
abroad.Regular training is being provided
and Migrant Act, 2013. To implement the
through 6 Institutes of Marine Technology and
Overseas employment and Migrant Act, 2013,
64 Technical Training Centres. Taking into
several rules and regulations are also initiated.
consideration the importance of skill training, the
Overseas Employment and Migration
government has targeted to establish at least one
Management Rule, 2017, Overseas Employment
vocational training centre in every upazilla.
and Migration (Recruiting Agent License and
Establishment of 41 centres is ongoing. Another
Conduct) Rule, 2019 and Overseas Employment
project to establish 60 TTC's is under approval
and Migration (Recruiting Agent Classification)
process. 357 trainers of the training centres under
Rule, 2020 are few of them. As per direction of
BMET were trained in abroad to upgrade the
the National Steering Committee on Overseas
standard of technical training to international
Employment and Expatriates' Welfare, the
level of this centres.They are now delivering
government has introduced compulsory insurance
training following City and Guilds (UK)
program for the migrant workers.
Curriculum. Training arrangements have been
Significant activities to deal with the ongoing
launched in partnership with Saudi Arabia and
COVID-19 pandemic
Hong Kong so that female workers are trained
and employed directly in overseas employment. The WEWB has set up a fund of TK. 200 crore to
support the Corona-driven returnee migrant
d) Digitisation of Emigration Process
victims and the family members of the deceased
To reduce the fraudulent activities of the migrant workers. Under a policy, Prabashi
recruiting agencies and brokers, a database of Kalyan Bank has started providing soft loans at
migrant workers with digitised fingerprints has only 4% simple interest and easy terms from 15th
been developed. Emigration clearance is being July 2020. The government has approved an
provided with a smart card by using database allocation of TK. 500 crore in favor of Prabashi
network. The hassles of the aspirant migrant Kalyan Bank to provide soft loans to returnee
workers and deception have been reduced at the migrant workers. This has created an opportunity
airports due to workers' information recorded in to provide loans at 9% interest for male workers
the smart card. Besides this, to make easier and 7% interest for female workers. Returnee
service for foreign job seeking workers pre- migrant workers and their families are also
departure and finger print training program has targeted as part of the social security program
been decentralized. Workers selection is going adopted by the Ministry of Disaster Management
through online registration, safe migration is and Relief. The WEWB has formulated a project
ensured with this process as well as regional for the reintegration of returning workers. This
balance is also ensured. It has been possible to project aiming at enhancing the skills of returnee
reduce the risk of intermediary brokers in the workers and strengthening the welfare services of
remittance process overseas and to bring greater expatriate workers will be implemented
mobility and transparency than ever before and to expeditiously using funds from the World Bank.
reduce immigration costs.

CHAPTER FOUR
FISCAL POLICY AND FISCAL MANAGEMENT
The stagnation of global economic activity due to the COVID-19 pandemic has so far entailed adverse
impact in fiscal management of the country. The slow pace of revenue mobilisation and the increase in
government expenditure in response to the pandemic has created challenge in fiscal sector. In FY 2019-20
revenue mobilisation from National Board of Revenue (NBR) stood at Tk. 2,17,794 crore, which is 2.73
percent lower than the previous fiscal year. However, the total revenue mobilisation in FY 2019-20 has
increased by 5.53 percent as compared to the previous fiscal year mainly due to an unprecedented
63.77percent increase in non-tax revenue. The revised revenue mobilisation target for FY 2020-21 was set
at Tk. 3,51,532 crore which is 11.39 percent of the GDP. As per provisional data from iBAS, total revenue
mobilisation up to May 2021 stood at Tk. 2,75,478 crore, up by 19.82 percent of the same period of previous
fiscal year, achieving 78.37percent of the target. According to the revised budget, the total expenditure
target for FY 2020-21 has been set at Tk. 5,38,983 crore (17.46% of GDP), which is 7.46 percent higher
compared to FY 2019-20. The government has so far (April 2021) announced fiscal and stimulus packages
of Tk.1,28,441 crore for additional expenditure in the healthcare sector, emergency humanitarian assistance
and economic recovery to keep the country's economic activities afloat in the face of the COVID-19
pandemic. It is being implemented under 23 packages. Significant progress has been made in the
implementation of the Annual Development Programme (ADP) in the past years with the increase in budget
allocation and increase in the number of projects. The revised ADP size for FY 2020-21 stood at Tk.
1,97,643 crore (excluding autonomous agencies/corporations' own funded projects), which is 2.45 percent
higher than the previous fiscal year. The government is highly concerned of maintaining the budget deficit
within 5 percent of GDP by increasing efficiency in revenue management. However, due to the increase in
government expenditure for COVID-19 pandemic, the actual budget deficit for FY 2019-20 stood at 5.5
percent of GDP. The budget deficit for FY 2020-21 has been set of Tk. 1,87,451 crore, which is about 6.1
percent of GDP. Net inflow of foreign grants and loans has increased in FY 2019-20. The inflow of foreign
grants and loans in the first eight months of FY 2020-21 (up to February 2021) amounted to US$ 3,717
million, up by 6.63 percent from the same period of the previous fiscal year. The country's external debt
outstanding at the end of February 2021 was US$ 46,836 million or 12.52 percent of GDP.
The stagnation of global economic activity due to mandatory. In addition, various measures are also
the ongoing Coronavirus pandemic has adversely being taken for non-NBR tax and non-tax
affected the fiscal management of the country. In revenue generation.
order to contain and mitigate the impact of the
Revenue Mobilisation Target
pandemic, the government has introduced various
reform programmes and incentive packages. The revised revenue mobilisation target was set
With a view to augment revenue mobilisation as at Tk. 3,51,532 in FY 2020-21, which is 11.39
well as to create a comfortable trade environment percent of the estimated GDP. Of them, revenue
along with transparency and accountability, NBR receipt from NBR sources was marked at Tk.
has been implementing a wide range of reform 3,01,000 crore (9.75% of GDP), tax revenue
from non-NBR sources at Tk. 15,000 crore
initiatives. Meanwhile, following the automated
(0.49% of GDP) and non-tax revenue at Tk.
system and by creating favourable environment,
35,532 crore (1.15% of GDP). The revised target
the implementation of Value Added Tax law and
for revenue mobilisation from FY 2014-15 to FY
rules made under it has been going on. Online
2020-21 are shown in Table 4.1.
value added tax registration has been made
Chapter 4: Fiscal Policy and Fiscal Management | 35

Table 4.1 Revenue Mobilisation Target

Particular 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
In Crore Tk.
Total Revenue 163371 177400 201210 259454 316599 348069 351532
Tax Revenue 140676 155400 178075 232202 289599 313068 316000
Non-tax Revenue 22695 22000 23135 27252 27000 35002 35532
As percent of GDP
Total Revenue 10.78 10.24 10.18 11.53 12.45 12.45 11.39
Tax Revenue 9.28 8.97 9.01 10.32 11.39 11.20 10.24
Non-tax Revenue 1.50 1.27 1.17 1.21 1.06 1.25 1.15
Source: Finance Division. Note: Figures are based on revised budget
Revenue Mobilisation from NBR Sources 11.24 percent respectively compared to the
The tax revenue mobilisation target from NBR previous fiscal year.
sources was set at Tk. 3,25,600 crore in FY 2019- Revenue received during July-April of FY 2020-
20. However, the revised target has been set at 21 was provisionally estimated to Tk.1,97,583.43
Tk. 3,00,500 crore. Tax revenues received from crore or 12.87 percent higher than previous fiscal
NBR sources was Tk. 2,17,794 crore or 2.73 year achieving 65.64 percent of revised target. Of
percent lower than the previous fiscal year this, import duty increased by 21.18 percent,
achieving 72.48 percent of revised target. During VAT by 12.47 percent and supplementary duty
the period, revenue on taxes from income and by 17.92 percent. In addition, the growth in the
profit witnessed the growth at 0.54 percent income and profit tax has been 9.37 percent.
compared to the previous fiscal year. The Value Table 4.2 and Figure 4.1 show the sector-wise
Added Tax (VAT), import duty/custom duty revenue mobilisation from FY 2014-15 to FY
(CD) and supplementary duties (SD) are 2020-21.
contracted to 1.52 percent, 2.61 percent and
Table 4.2: Item-wise Revenue Mobilisation by NBR
(In Crore Tk.)
Items of Revenue Mobilisation 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Import Duty 15349.85 18016.58 21069.19 24502.12 24277.40 23643.58 24280.47
VAT (at import level) 17690.47 20583.86 25561.09 29367.76 31398.55 29932.28 30084.81
Supplementary Duty (import level) 5252.42 6560.20 7628.89 7912.23 7664.04 6975.30 6766.35
Export Duty 40.63 32.75 22.70 35.77 42.17 1.08 0.00
Sub Total: 38333.37 45193.39 54281.87 61817.88 63382.16 60552.24 61131.63
Excise Duty 960.38 1582.03 1790.51 2080.34 2373.33 2279.48 2275.31
VAT (Local) 32290.13 34862.82 38287.76 47171.80 56323.02 56458.17 48900.37
Supplementary Duty (Local) 15758.31 19630.96 23481.70 29639.15 28891.02 25471.34 25001.51
Turn Over Tax 4.71 4.85 2.45 2.89 2.47 1.16 1.31
Others (Local) - - - - 20.52 642.35 603.09
Sub Total: 49013.53 56080.66 63562.42 78894.18 87617.84 84238.15 76781.59
(A) Total of Indirect Tax 87346.9 101274.05 117844.29 140712.06 151000 144790.39 137913.22
Income Tax 47477.4 51328.92 52754.93 64548.26 71795.5 72179.79 59396.26
Travel taxes and duties 876.4 1018.37 1057.22 1146.93 1104.4 824.42 273.95
(B) Total of Direct Tax 48353.8 52347.29 53812.15 65695.19 72899.9 73004.21 59670.21
Grand Total (A+B) 135700.7 153621.34 171656.44 206407.25 223899.9 217794.6 197583.43
Share of Direct Tax (%) 35.63 34.08 31.35 31.83 32.56 33.52 30.20
Share of Indirect Tax (%) 64.37 65.92 68.65 68.17 67.44 66.48 69.80
Source: National Board of Revenue (NBR), * Up to April, 2021

Figure 4.1: Comparative Statement of Item wise Revenue Mobilisation (%)
CD VAT SD IT Others
2020-21* 12.29 39.98 16.08 30.06 1.60
2019-20 10.83 39.55 14.86 33.05 1.72
2018-19 10.84 39.18 16.33 32.07 1.58
2017-18 11.87 37.08 18.19 31.27 1.58
2016-17 12.27 37.20 18.12 30.73 1.67
2015-16 11.73 36.09 17.05 33.41 1.72
2014-15 11.31 36.83 15.48 34.99 1.39
0.00 20.00 40.00 60.00 80.00 100.00
* July- April, 2021
The major steps taken by the government during achieving 125.50 percent of the revised budget
FY 2020-21 for enhancing collection of taxes are target. Non-tax revenue increased sharply as per
shown in Annex 4.1. the decision to deposit surplus money of
Revenue Mobilisation from Non-NBR Sources autonomous, semi-autonomous, state-owned and
public non-financial corporation to government
The tax revenue receipt from Non-NBR sources
treasury. Non-tax revenue earnings during the
include narcotics and liquor duty, taxes on
first 11 months of FY 2020-21 (July-May, 2021)
vehicles, land revenue, stamp duty (non-Judicial)
stood at Tk. 45,856 crore, which is 40.24 percent
and surcharge. Tax revenue receipt form non-
higher than the same period of previous fiscal
NBR sources in FY 2019-20 was Tk. 5,944 crore, year achieving 129.06 percent of the target.
which is 19.04 percent lower the revenue earning
of previous fiscal year. During FY 2020-21, the Public Expenditure Management
target set for revenue earnings from Non-NBR In FY 2019-20 considering the responses and
sources is Tk. 15,000 crore. Up to May 2021 of initiatives to fight ‘COVID-19’ pandemic
FY 2020-21, revenue collected from this source Government has set priority areas of different
stood at Tk. 5333 crore achieving 35.55 percent sectors and allocation of resources.
of the target. Government’s development priorities continue
towards providing fiscal stimulus to overcome
Revenue Mobilisation from Non-Tax Sources
the losses caused by ‘COVID-19’. In the FY
The major items of non-tax revenue include 2019-20 revised budget, allocation has been
dividend and profit, interest, administrative fees increased or additional allocation has been made
and charges, receipts for services rendered, non- to the sectors which have been directly involved
commercial sales and other non-tax revenue and with the response to ‘COVID-19’ such as health,
receipts. In FY 2019-20, the revised target for agriculture, social welfare, food, disaster
non-tax revenue receipt was set at Tk. 35,002 management, employment generation etc.
crore. Against this target, revenue mobilisation Allocation to these sectors on priority basis will
from non-tax sources stood at Tk. 43,927 crore, be continued in the FY 2020-21.Table 4.3 shows
up by 69.46 percent over the previous fiscal year public expenditure target.

.Table 4.3 Public Expenditure
Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

In Crore Tk.
(a) Operating expenditure 149399 156592 175849 210578 266926 295280 323725
(b) Development expenditure 80476 81407 88090 153688 173449 202349 207988
(c) Other expenditure 9793 217 5560 7229 2166 3948 7270
Total Public Expenditure 239668 264564 269499 371495 442541 501577 538983
As percent of GDP
(a) Operating expenditure 9.86 9.04 8.9 9.36 10.5 10.56 10.48
(b) Development expenditure 5.31 4.7 4.46 6.83 6.82 7.24 6.74
(c) Other expenditure 0.65 0.01 0.28 0.32 0.09 0.14 0.24
Total Public Expenditure 15.81 15.3 13.56 16.61 18.3 17.87 17.46
Source: Finance Division
Note: Data are based on revised budget.‘ Development Expenditure’ includes ADP, Non-ADP, FFW and Projects and
Development Programme under Revenue Budget, Other Expenditure ’includes net outlay for food account operation, loans and
advances.
Operating Expenditure The total operating expenditure in the revised
budget for FY 2020-21 is Tk. 3,23,688 crore,
In FY 2019-20, an amount of Tk. 2,95,280 crore
which is 9.63 percent higher than the revised
was allocated for operating expenditure. Of this,
allocation of the previous fiscal year.
recurrent expenditure was Tk 2,74,908 crore
Allocations of some important sectors of
(93.1%) and capital expenditure was Tk 20,373
operating expenditure were- pay and allowances:
crore (6.9%). Allocations in a few notable
20.27 percent, goods and services: 10.43
sectors included in the operating expenditure
percent, interest payments: 19.72 percent, of
were- pay and allowances: 20.70 percent, goods
which foreign interest payments: 1.64 percent
and services: 10.97 percent, interest payments:
and subsidies and incentives and current
19.53 percent (including interest on foreign
transfers: 42.26 percent. Figure 4.2 shows a
loans 1.25 percent) and subsidies and incentives
comparative allocation of operating expenditure
and current transfers: 41.35 percent.
for the last 3 fiscal years.
Figure: 4.2: Comparative Statement of Operating Expenditure (In crore Tk.)
2020-21 2019-20 2018-19
65617
Pay and allounces 61109
57994
33772
Goods and services 32435
31632
63823
Interest payments 57663
48742
136797
Subsidy, incentive and Current Transfer 122084
107242
23608
Others 21990
21118
0 20000 40000 60000 80000 100000 120000 140000
Note: Others expenditures include block allocations, acquisition of assets and works, investment in shares and equity and foreign financial assets.

Annual Development Programme (ADP) Allocation and Expenditure of ADP

In FY 2019-20, the volume of the Revised ADP The implementation status of ADP/RADP
(RADP) was Tk. 2,01,199 crore, of which Tk. (excluding self-financed projects of autonomous
130,921 crore (65.07%) was from GOB, Tk. bodies) during FY 2014-15 to FY 2020-21 has
62,000 crore (30.10%) from project aid and Tk. been shown in Table 4.4. The revised allocation
8,278 crore (4.11%) from the own resources of for FY 2014-15 was Tk. 75,000 crore, which
autonomous body/corporation. A total of 1,908 reached Tk. 1,97,643 crore in FY 2020-21.
projects were included in the Revised ADP. In Although the ADP’s absolute size has been
FY 2020-21, the volume of RADP stood at Tk. increasing along with the number of projects,
2,09,272 crore, which is 4.01 percent higher than there has been a marked improvement in the
the previous fiscal year. Of them, allocation from ADP implementation. From FY 2014-15, the
GOB is Tk. 1,34,643 crore (64.34%), Tk.63,000 RDP implementation was above 90 percent,
crore (30.10%) as project aid and the rest Tk. whereas in FY 2019-20, the implementation
11,629 crore (5.56%) is the self-finance project slowed down to 80 percent. During current fiscal
of autonomous body/corporation. The number of year, the implementation of RADP allocation is
projects included in this fiscal year is 1,943 50.6 percent up to April 2021 of FY 2020-21,
(main projects: 1,885, sub-projects:49, which was 49.13 percent of the same period of
development assistance:9). previous fiscal year.
Table 4.4: ADP Allocation, RADP Allocation and Expenditure
(In Crore Tk)
Fiscal ADP Allocation RADP Allocation Expenditure
Year (as % of RADP)
No. of Total Taka PA No. of Total Taka PA Total Taka PA
Project Project
2014-15 1187 80315 52615 27770 1204 75000 50100 24900 68524 46080 22444
(91.4%) (92.0%) (90.1%)
2015-16 1124 97000 62500 34500 1315 91000 61840 29160 83581 58357 25224
(91.8%) (94.4%) (86.5%)
2016-17 1123 110700 70700 40000 1415 110700 77700 33000 100840 72410 28430
(91.1%) (93.2%) (86.2%)
2017-18 1192 153331 96331 57000 1551 148381 96331 52050 141492 89155 52337
(95.4%) (92.6%) (100.6%)
2018-19 1451 173000 113000 60000 1785 167000 116000 51000 158269 111165 47104
(94.8%) (95.8%) (92.4%)
2019-20 1564 202721 130921 71800 1748 192921 130921 62000 155698 108172 47526
(80.7%) (82.6%) (76.7%)
2020-21* 1584 205145 134643 70502 1635 197643 134643 63000 99972 66455 33517
(50.6%) (49.4) (53.2%)
Source: Programming Division, Planning Commission; IMED, Ministry of Planning.
Note: Excluding own funded projects. *Up to April 2021
welfare, agriculture and water resources have
Sector-wise Allocation of ADP
been given priority. In FY 2020-21, the highest
The sectoral allocations of the RADP from FY allocation was given in transport sector, which is
2016-17 to FY 2020-21 are shown in Table 4.5 24.90 percent of the revised ADP, followed by
reveal that among the 17 sectors such as physical planning, water supply and housing
transport, electricity, physical planning, water sector (13.4%), education and religious affairs
supply and housing, education and religious (12.43%), power (11.10%) and rural
affairs, rural development and institution, science development and institution sector (9.25%). The
and technology, health, population and family allocation of health, population and family

welfare reached 7.55 percent, up from 6.47 revised allocations for the highest allocation
percent in FY 2019-20. Figure 4.3 shows the received by 7 sectors in RADP, 2020-21.
Table 4.5: Sector-wise Allocation of RADP

(In Crore Tk.)
FY 2016-17 2017-18 2018-19 2019-20 2020-21
Sector Allocation % Allocation % Allocation % Allocation % Allocation %
1. Agriculture 5741.6 5.19 5283.52 3.56 6918.24 3.92 6623.53 3.43 7734.29 3.91
2. Rural Development and
Institution 10761.43 9.72 16722 11.27 15154.25 8.58 15777.91 8.18 18289.7 9.25
3. Water Resources 3342.11 3.02 4147.31 2.8 5000.87 2.83 6552.79 3.40 6708.93 3.39
4. Industry 974.12 0.88 1563.55 1.05 2176.01 1.23 3238.10 1.68 3500.09 1.77
5. Power 13447.57 12.15 22340.32 15.06 25819.17 14.62 23631.78 12.25 21945.17 11.1
6. Gas, Oil and Natural Resource. 1067.87 0.96 1346.48 0.91 5737.06 3.25 2417.07 1.25 1748.79 0.88
7. Transport 27360.23 24.72 37513.22 25.28 39531.17 22.38 47431.92 24.59 49212.86 24.9
8.Communinication 1915.79 1.73 937.44 0.63 2221.01 1.26 1739.64 0.90 1537.33 0.78
9. Physical Planning, Water Supply
and Housing 14391.17 13 15146.83 10.21 21956.51 12.43 26839.25 13.91 26491.96 13.4
10. Education and Religion 12845.97 11.6 14186.56 9.56 15510.84 8.78 20429.10 10.59 24571.96 12.43
11. Sports and Culture 214.19 0.28 318.61 0.21 653.66 0.37 587.93 0.30 484.5 0.25
12. Health, Population and Family
Welfare 5655.33 5.11 9607.51 6.47 10902.07 6.17 10108.49 5.24 14921.9 7.55
13.Mass Communication 176 0.16 219.65 0.15 250.39 0.14 171.25 0.09 248.25 0.13
14. Social Welfare, and Youth
Development 347.19 0.31 431.86 0.29 649.71 0.37 798.06 0.41 875.29 0.44
15. Public Administration 2361.15 2.12 2118.91 1.43 4974.07 2.82 5137.49 2.66 3377.52 1.71
16. Information and
Communication Technology (ICT) 5472.04 4.94 12593.18 8.49 13453.63 7.62 16790.43 8.70 11575.66 5.86
17.Labour and Employment 450.77 0.41 356.25 0.24 464.30 0.26 544.27 0.28 537.72 0.27
Block/Others 4092.07 3.7 3547.8 2.39 5246.75 3.14 4101.56 2.13 3881.24 1.96
Grand Total 110700 100 148381 100 167000 100 192921.00 100.00 197643 100
Source: Programming Division, Planning Commission. Note: Data according to RADP.
Figure 4.3: Sector-wise ADP Allocation

(Allocation of Highest 7 sectors)
2020-21 2019-20 2018-19
5.86
Information and Communication Technology (ICT) 8.70
7.62
7.55
Health, Population and Family Welfare 5.24
6.17
12.43
Education and Religion 10.59
8.78
13.40
Physical Planning, Water Supply and Housing 13.91
12.43
24.90
Transport 24.59
22.38
11.10
Power 12.25
14.62
9.15
Rural Development and Institution 8.18
8.58
0.00 5.00 10.00 15.00 20.00 25.00 30.00
Percent (%) ADP

Domestic Resources for ADP domestic sources during last few years. The
contribution of domestic resources to ADP was
Domestic resources contribution towards
66.80 percent in FY2014-15. It increased in next
financing of ADP shows an ups and downs trend
2 fiscal years but decreased to 64.92 percent in
during FY 2014-15 to FY2020-21. The average
FY2017-18. Again the percentage of domestic
contribution of domestic resources towards ADP
resources started to increase and stood at 69.46
stood at around 65 percent to 70 percent.
percent in FY2018-19 and 67.86 percent in FY
Contribution of domestic resources increasing in
2019-20. However, in FY 2020-21 the share
ADP is an indicator of positive progress. Table
decreased to 59.36 percent due to receive of
4.6 shows the financing of revised ADP from
special support/credit for development.
Table 4.6: Domestic Resources in Financing ADP
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Total ADP 75000 91000 110700 148381 167000 192921 197643
Total Domestic Resource 50100 61840 77700 96331 113900 130920 134643
Domestic Resource as % of ADP 66.80 67.96 70.19 64.92 69.46 67.86 59.36
Source: Programming Division, Planning Commission. Data: According to RADP.
Stimulus Package for COVID-19 Pandemic caution so that the negative effects of
inflation can be controlled.
To address the crisis resulting from the outbreak
of COVID-19 and overcome its potential adverse The government has already announced fiscal
effects on the economy, Hon’ble Prime Minister and stimulus packages of Tk. 1, 28,441crore (Up
Sheikh Hasina has guided the formulation of an to April, 2021), which is 4.4 percent of GDP, to
overall programme with short, medium, and facilitate additional expenditure in the healthcare
long-term targets. This programme has four main sector, emergency humanitarian assistance, and
strategic aspects. the overall economic recovery program. Some of
the key features of the programme is highlighted
a. The first strategy is to increase government
below:
spending. In this respect, priority will be
given to creating jobs and discouraging  A fund of Tk. 5,000 crore was provided for
luxury spending. the purpose of ensuring continuation of
b. The second strategy is to provide low-interest payments of salaries and allowances of the
credit facilities through the banking system workers of export-oriented industries at a
to industries and business enterprises to service charge of only 2 percent. This
revive economic activities and increase the initiative helped protect jobs of a large
competitiveness of entrepreneurs at home number of workers in this sector.
and abroad.
 The working capital loan facility of Tk.
c. The third strategy is to increase the scope of
33,000 crore is being given at an interest rate
the government's social security programmes
of 9 percent to the affected industries and
to protect the ultra-poor and the low-income
service sector companies to continue their
groups that have suddenly become
business operation. Of this 9 percent, 4.5
unemployed as well as the people engaged in
percent will be paid by the borrowers and the
informal sectors.
remaining 4.5 percent by the government. As
d. The fourth and last strategy is to increase
a result, large industrial and service sectors
money supply in the market. However, this
strategy is being implemented with utmost

have been able to continue their business to cent percent. As a result, the total number
activities during COVID-19. of beneficiaries under these two allowances,
including that under the disability allowance,
 The working capital loan facility of Tk.
has been increased by a total of 11 lakh, and
20,000 crore is being given at an interest rate
their livelihood has become easier during the
of 9 percent to the affected micro, small and
COVID-19 outbreak.
medium enterprises including the cottage
industries to continue their business  Initiatives have been taken to build houses
operation. Of this 9 percent, 5 percent will be for all the homeless people on the occasion
paid by the government as subsidy and the of the birth centenary of the Father of the
remaining 4 percent by the borrowers. As a Nation Bangabandhu Sheikh Mujibur
result, micro, small and medium enterprises Rahman. As a result, the poor will no longer
including the cottage industries and service have to be homeless.
sector have been able to continue their
 Of the activities undertaken to recover the
business activities during COVID-19.
economy in the aftermath of the coronavirus
 The government has increased facilities outbreak, the most prioritised one is to ensure
under the Export Development Fun (EDF) continuation of agricultural production. To
and Pre-Shipment Credit Refinance Scheme ensure food security for the people of the
of Bangladesh Bank. country, several important initiatives have
been taken to maintain agricultural
 A total of 5 lakh metric tonnes of rice and 1
production at the usual level. In order to
lakh metric tonnes of wheat have been
ensure that the farmers get fair price of their
distributed free of cost across the country as
produce (paddy) and keep the price of rice
humanitarian aid for the poor people who
stable in the market, the target of procuring
have suddenly become jobless due to the
rice in the current Irri-Boro season has been
coronavirus outbreak. Again, rice is being
expanded by 2 lakh metric tons. An amount
sold among the low-income people at Tk. 10
of Tk. 3,200 crore are being allocated as an
per kg. As a result of all these measures,
incentive to promote farm mechanisation.
marginalised people did not face any food
The amount of agricultural subsidy has been
shortage and the chances of their falling
increased to Tk. 9,500 crore. An agricultural
below the poverty line were reduced.
refinance scheme of Tk. 5,000 crore is being
 Initiatives have been taken to increase the formulated to ensure easy loans of affected
coverage of social safety net programmes to farmers. In addition, a refinancing scheme of
protect the ultra-poor in the country from Tk. 3,000 crore has been created for low-
being jobless and prevent their loss of income professional farmers/ small traders.
income due to the coronavirus outbreak. An All these initiatives will be helpful for
amount of Tk. 2,500 in cash each is being agriculture in the country and will assist our
disbursed directly to 50 lakh selected farmers.
beneficiary families from the treasury to their
 Allocation has been made to
bank or mobile accounts across the country.
Karmasangsthan Bank, Prabasikallyan
 Under the social safety net programmes, the Bank, Palli Sanchay Bank and Palli
coverage of old age allowances and the Karmasahayak Foundation for the purpose of
widow and divorcee women allowances in providing loans at a low interest rate to
100-ultra-poor Upazilas has been increased expatriate workers, trained youth and

unemployed youth for starting business and  To encourage banks to disburse loans to
self-employment. For this purpose, the micro, cottage and small enterprises,
government will provide a capital of Tk. 500 Bangladesh Bank has introduced a credit risk
crore to each of these four institutions so that guarantee scheme of Tk. 2000 crore.
they can disburse low-interest loans to
Budget Balance and Financing
suitable entrepreneurs under specific
programs. As a result, self-employment To keep the budget deficit to a sustainable level
opportunities have been created for poor rural there is a clear guideline in ‘Public Money and
farmers, expatriate workers, trained youth Budget Management Act 2009’. Therefore,
and unemployed youth in the agriculture government is conscious to keep the budget
sector and in agro-related production and deficit within 5 percent of GDP. But in revised
services, small business, small and cottage budget of FY 2019-20, due to ‘COVID-19’
industries, etc. pandemic budget deficit crossed 5 percent of
GDP. Table 4.7 shows the data of overall budget
 The interest collection against disbursed
balance and financing of last few years. In
loans by all commercial banks for the month
addition, Table 4.8 shows the actual budget
of April and May has been postponed.
deficit based on iBAS++ data system’.
Table 4.7: Overall Budget Balance and Financing*

(As % of GDP)
Budget balance/ financing 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Overall budget balance -5.03 -5.03 -4.99 -4.98 -4.95 -5.49 -6.10
(excluding foreign grants)
Overall budget balance -4.66 -4.74 -4.76 -4.78 -4.80 -5.37 -5.60
(including foreign grants)
Net domestic financing 3.61 3.59 3.54 2.93 3.1 3.48 3.73
Net foreign financing 1.05 1.15 1.22 1.85 1.71 1.88 2.37
(excluding grants)
Net foreign 1.42 1.44 1.46 2.05 1.86 2.01 2.17
financing(including grants)
Note: Figures are based on Revised Budget.
Table 4.8: Actual Budget Deficit

(As % of GDP)
FY 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Budget Deficit 4.1 3.9 3.4 4.7 5.4 5.5 6.1
(Excluding grants)
Source: iBAS ++, Finance Division, * Target
Budget Deficit Financing GDP. During this period, the government

Government’s budget deficit is finance by two borrowed Tk. 70,714.9 crore from banking
major sources-domestic sources and external system and from other than banks (including
sources. Domestic sources include borrowing scheme of national savings certificate) was Tk.
from banking system and non-band borrowing 22,902.2 crore. In FY 2020-21 (up to February,
outside bank particularly, borrowing from saving 2021) total government domestic borrowing (net)
certificates. External sources include foreign has stood at Tk.22,731.5 crore. Sector-wise
loans and grants. In FY 2019-20, total government domestic borrowing from FY 2014-
government domestic borrowing (net) stood at 15 to FY 2020-21 (up to February, 2021) is
Tk. 93,617.1 crore which was 3.ercent of the shown in Table4.8 and Figure 4.4 below:

Table 4.9: Government Borrowing (net) from Domestic Sources

(In crore Tk.)
Fiscal Year Net Government borrowing from the banking system Government Total Percent of
Bangladesh Scheduled Total borrowing from borrowing from government GDP
Bank Banks banking system other than banks borrowing
2014-15 -1821.9 -6839.4 -8661.4 34680.3 26018.9 1.7
2015-16 12548.7 -9733.9 2814.8 34206.0 37020.8 2.0
2016-17 -520.2 -17884.8 -18405.0 53689.2 35284.2 1.8
2017-18 9619.3 -12485.7 -2866.4 47490.7 44624.3 2.0
2018-19 9293.0 10499.5 19792.5 53900.2 73692.7 2.9
2019-20 6592.1 64122.8 70714.9 22902.2 93617.1 3.3
2020-21* -51910.8 43012.5 -8898.3 31629.8 22731.5 -
Source: Bangladesh Bank, * Up to February, 2021
Figure 4.4: Government’s Borrowing (Net) from Domestic Sources
Non-Bank sources Schedule Banks Bangldesh Bank
31630
2020-21* 43013
-51911
22902
2019-20 64123
6592
53900
2018-19 10500
9293
47491
-12486 2017-18
9619
53689
-17885 2016-17
-520
34206
-97342015-16
12549
34680
2014-15
-6839
-1822
-60000 -40000 -20000 0 20000 40000 60000 80000

(In Crore Tk.)
Data source: Table 4.9, * Up to February, 2021
Government Borrowing from External the net eternal assistance flow (after deducting
Sources principal and interest payment expenditure) in
In FY 2019-20, disbursement of external FY 2019-20 has increased by 14.12 percent
assistance has been recorded the highest since compared to the previous fiscal year.
independence. During the fiscal year, the Up to February, 2021, the disbursement of
disbursement amount has surpassed the landmark foreign assistance stood at US$ 3,717 million,
of seven billion US dollar (US$ 7.38 billion), which is 6.63 percent higher than the same period
which is 12.83 percent higher than the of previous fiscal year. Table 4.10 and Figure 4.5
disbursement of previous fiscal year. On the show the government borrowing from the
other hand, total debt servicing expenditure of external sector during FY 2014-15 to FY 2020-
FY 2019-20 has increased by US 141 million 21 (up to February, 2021) below:
compared to the previous fiscal year. As a result,

Table 4.10: Government Borrowing from External Resources

(Million US$)
Fiscal External Loan and Grant Principal and Interest Payment Net Foreign Aid Flow
Year Grant Loan Total Interest Principal Total After After Principal
Principal and Interest
Payment Payment
2014-15 571 2472 3043 188 909 1097 2134 1946
2015-16 531 3033 3564 202 849 1051 2715 2513
2016-17 459 3218 3677 229 894 1123 2783 2554
2017-18 383 5987 6370 299 1110 1409 5260 4961
2018-19 279 6263 6542 391 1202 1593 5340 4949
2019-20 196 7074 7382 477 1257 1734 6125 5648
2020-21* 109 3608 3717 320 867 1187 2250 1930
Source: ERD, Ministry of Finance *February 2021
Figure 4.5: Flow of External Resources
Grant Loan Total
8000
7074
7000 6370 6542
6263
5987
6000
(Million US$)
5000
3564 3677 3782 3608 3717

4000
3043 3033 3218
3000 2472
2000
1000 571 531 459 383 279 196 109

0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Data Source: Table 4.9, * Up to February, 2021
Information regarding commitment and outstanding stood at US$ 46,836 million at the
disbursement of external assistant, external debt end of February 2021 which is 12.52 percent of
service, external debt outstanding and country GDP indicating comfortable position in terms of
and sector wise external assistance are given in debt sustainability.
Appendix 57-Appendix 62. The external debt

Annexure
Annexure 1
Steps Taken for Realisation of Tax Regime
Income Tax
 Rationalizing Tax-free Ceiling of Income and Tax Rate of All Classes of Taxpayers except
Company and Association of Persons (AOP)
 The ceiling of tax-free income for all classes of taxpayers except companies and AOPs has
been increased from Tk. 2, 50,000 to Tk. 3, 00,000. A new initial taxable income ceiling of
Tk. 1, 00,000 (for which tax is applicable at the rate of 5%) has been inserted splitting the
previous initial taxable income ceiling of Tk. 4, 00,000 (for which tax was applicable at the
rate of 10%). The ceilings of taxable income next following and the applicable rate of tax
thereon have also been further rationalized, and the rate of tax for the last ceiling of taxable
income has been reduced to 25% from 30%. Female, senior citizens of 65 years and above,
physically challenged persons, wounded freedom fighters included in the gazette, and other
special types of individual taxpayers will enjoy an additional tax-free income ceiling to the
tune of Tk. 50,000.
 A provision that if any taxpayer submitting return on income for the first time chooses to
submit it online, s/he will be entitled to getting an additional tax rebate to the tune of Tk.
2000has also been newly inserted.
 Rationalising Tax Rate of Company and AOPs
 The rate of tax for mobile operators, all types of tobacco product manufacturing companies
including cigarette, biri, chewing tobacco manufacturers, merchant banks, banks, insurance
and financial institutions, local authorities and non-publicly traded companies has been
rationalized. At the same time, the tax rate for AOPs, which were previously treated as
individual taxpayers in terms of tax rate, has been fixed at 32.5%.
 Expanding Tax Net
 A simple one-page return of income namely IT 11 KHA 2020 has been introduced to
facilitate return submission of the marginal taxpayers.
 TIN registration and submission of return of income have been made a mandatory provision
for individuals and organizations receiving income from shared economic activities.
 TIN registration and submission of return of income have been made a mandatory provision
for individuals owning a licensed weapon, and/or taking part in Zilla Parishad election.
 With a few exceptions, filing of return of income has been made a mandatory provision for
all individuals and entities legally bound to register for a TIN.
 Collecting Advance Tax and Tax at Source
 Necessary amendments have been made to collect advance tax at an increased amount on
private vehicles not plying commercially.
 Rate of tax at source has been fixed at 2% on purchase of rice, wheat, potato, onion, garlic,
peas, chickpeas, lentils, ginger, turmeric, dried chili, pulse, maize, coarse flour, flour, salt,
edible oil, sugar, black pepper, cinnamon, cardamom, clove, date, cassia leaf, computer or
computer accessories, jute, cotton, yarn and all kinds of fruits through local letter of credit
(LC).

 With a view to expanding tax net on digital economy, provision for tax deduction at source
has been introduced at the time of paying bills for receivers of service through sharing
economic platform including ride sharing, co-working, space providing and accommodation
providing service.
 Section 52Q of the Income Tax Ordinance, 1984 has been rewritten to include the taxable
income remitted to Bangladesh on shared economic activities and digital advertisement under
the purview of source tax deduction.
 Like other similar cases, tax at the applicable rate has been collected at source on commission
received by Bangladesh Telecommunication Regulatory Commission (BTRC) on
international phone calls.
 Rate of tax to be collected at source on compensation against acquisition of any immovable
property within the jurisdiction of any city corporation, pourashava or cantonment board has
been raised to 6%, and rate of tax to be collected at source on compensation against
acquisition of any immovable property outside the jurisdiction of any city corporation,
pourashava or cantonment board has been raised to 3%.
 Incentives for Export including the Readymade Garments Sector (RMG)
 As a priority sector, the preferential existing tax rate for RMG (10% for green RMG factories
and 12% for all other RMG factories) has been extended for another two year term.
 Tax to be collected at source as advance tax on proceeds of export value has been fixed at
0.50%.
 Incentives for Stock Market
 Against the backdrop of global crisis emanating from the outbreak of the Corona virus, a
special provision, stipulating payment of tax at the rate of 10% and retaining the investment
for a minimum period of one year, has been inserted with regard to investment in the stock
market within this fiscal to ensue increased fund flows in the stock market as well as to make
it more thriving and functional. No other authority in Bangladesh will raise any question
regarding the source of such investment.
 Forming Bond Market for Long-term Supply of Capital
 With a view to ensuring long-term flow of fund in the bond and stock market, facilitating
transaction of bond and sukuk, as well as letting the bond and stock market grow in a
sustainable way, provision for tax deduction at source has been made on each transaction
made in these markets at a rate fixed by the Bangladesh Stock Exchange Commission in
place of deducting tax at source on the total value of transaction.
 Facilitating Increased Money Flow in Post-Corona Economy
 A special facility has been offered regarding disclosure of undisclosed assets of all sorts to
channel money from informal to formal economy. Under this scheme, following some
conditions, undisclosed cash/liquid assets can be disclosed by paying taxes at the rate of 10%.
Similarly, undisclosed fixed assets can be disclosed by paying taxes on square meter at a rate
fixed for different localities. No authority in Bangladesh can raise any question regarding the
source of such disclosures made.
 Guarding against Money Laundering
 In order to guard against tax evasion and money laundering under the guise of over or under
invoicing in export-import or through declaration of fake investment, in addition to the

existing ones, a new provision has been introduced that stipulates imposition of 50% tax on
the sum unearthed as fake investment or laundered asset.
 Tax Holiday: Employment and Investment in the Hi-tech Sector
 In order to smoothen the ongoing developmental journey of Bangladesh and to maintain the
growth in employment and investment, seven new industrial sectors, in addition to the
existing ones, and depending on geographical location, have been granted tax holiday facility
at a regressive rate for different terms.
 Simplifying Tax System, Interconnectivity and Enforcement
 Allowable expense on foreign travels for companies has been reduced to 0.50% of the annual
turnover in place of the previous rate of 1.25%.
 Previously there was no ceiling for claiming promotional expense by businesses, which
resulted in claiming of staggering sums as promotional expenses under the heads mostly
unrelated to the operation of businesses. Hence a ceiling for claiming promotional expense
has been fixed at 0.50% of the reported annual turnover.
 Against the backdrop of changing business process, pattern and business model, the
definition of payment has been expanded by including any order or instruction of making
payment under the purview of payment.
 Necessary amendments have been brought in Section 80 of the Income Tax Ordinance, 1984
with regard to raising the ceiling of gross value of assets in possession of any individual
taxpayer from Tk. 25, 00,000 to Tk. 40, 00,000 for making him legally obliged to submit a
wealth statement. Also, the ceiling of income for any individual taxpayer has been raised
from Tk. 3, 00,000 lac to Tk. 4, 00,000 in order to make him liable to submit the lifestyle
expenditure statement with a return of income.
 In additional to the existing provision for paying turnover tax by companies and also by
partnership farms having annual business turnover exceeding Tk. 50,00,000, individual
taxpayers having annual business turnover exceeding Tk. 3,00,00,000 have been brought
under the purview of paying minimum turnover tax at the rate of 0.50% on the value of the
turnover.
 A new Section 184G has been inserted into the Income Tax Ordinance, 1984 which entitles
National Board of Revenue to extend the time limit stipulated in the Ordinance in carrying
out functions under certain sections, to granting condo nation or to exclude something from
the business process in the face of any natural calamity, pandemic, emergency situation and
an Act of God.
Value Added Tax (VAT)
Following measures have been taken to realize VAT in FY 2020-21:
 Reform of VAT law and Rules
 The Value Added Tax Act and its rules have been simplified to facilitate for Automated &
Transparent Environment;
 Online VAT registration, online return submission and online e-payment systems have
already been implemented;
 Use of Electronic Fiscal Device (EFD)/Sales Data Controller (SDC) for some business
entities has been made mandatory. Installation of EFD/SDC has already been started;

 NBR approved software use has been made mandatory for companies with annual turnover of
more than Tk 5 crore.
 Policy Adopted Recently

 Restructuring of the Supplementary Duty (SD) rate for some goods:
H.S. Code/ Description Existing SD Revised SD
Service Code Rate Rate
3304.99.00 Others (Except Petroleum Jelly & Baby Lotion) 5% 10%
Services provided through the use of SIM / RIM
S012.10 10% 15%
card on mobile phones
Provide Bangladesh Road Transport Authority
S044.00 10% 15%
Services against the registration of vehicles
Helicopter Services (Except Air Ambulance)
S058.00 25% 30%
 Increase of value and duty rate for tobacco products considering the health risk it imposes on
people:
 Cigarette
Past Price Past Total Tax Present Price Present Total Tax
( for 10 sticks) in Tk Incidence ( for 10 sticks) in Tk Incidence
37 and above 55% 39 and above 57%
 Bidi
Sticks Present Supplementary Supplementary

Description of Tariff Value
(Per Tariff Value Duty Rate Duty Rate
Goods (2019-20)
Pack) (2020-21) (2019-20) (2020-21)
8 Sticks Tk. 4.48 30 Tk. 6.00 30
handmade Bidi
12
without help of Tk. 6.72 30 Tk. 9.00 30
Sticks
machine
25
(without filter) Tk. 14.00 30 Tk. 18.00 30
Sticks
handmade Bidi 10 40 40
Tk. 8.50 Tk. 10.00
without help of Sticks
machine 20
Tk. 17.00 40 Tk. 19.00 40
(with filter) Sticks
 Activities taken for the development and expansion of information technology:

 Exemption on computer & computer parts, Computer Modem, Software (in production
and Trading stage);
 VAT Rate reduced against ‘Internet Service Provider’ from 15% to 5%;
 VAT Rate reduced against NTTN, ITC, IIG related Service from 15% to 5%;
 VAT Rate reduced against Router, PCB from 15% to 5% (Manufacturing Stage).
 Changes brought in some other cases:

 VAT exemption facilities for the Local API Industries have been continuing;
 VAT exemption facilities for the Local polystyrene staple fiber industries have been
continuing;
 VAT exemption facilities for the Local refrigerator, freezer and air-conditioner
manufacturing industries have been continuing;
 Exemption facility for Automobiles industries for production have been continuing;
 Exemption facility for Mobile Manufacturing & Assembling industries for production
have been continuing;
 Exemption for Locally produced & supply of agricultural machinery, like: power ripper,
power tiller operated cedar, combined harvester, low-lift pump, rotary tiller, etc.;
 Exemption of VAT on the show room rented by a female entrepreneur (Service Stage);
 VAT exemption has been given on selling books, newspapers, magazines;
 Shares purchase and selling settlement activity has been exempted from VAT;
 Air ambulance services have been exempted from VAT.
Customs Duty
 The existing tariff rates on essential commodities, fertilisers, seeds, life-saving medicines and raw
cotton including raw materials for some other industries have been kept unchanged.
 Facilities for import of agricultural machinery and equipment at concessional tariff rates have
been expanded.
 Import duties have been imposed on onion imports to ensure fair price for domestic onion
farmers, encourage onion cultivation and reduce the dependence on imports.
 The existing tariff on import of industrial salt (sodium sulphate/ disodium sulphate) has been
increased to ensure fair price of salt produced in the country and to protect salt farmers and
reduce public health risks.
 In order to consolidate the health sector, the existing concessional facilities for import of raw
materials required for local production of autoclave machines for disinfection of medical
equipment have been extended.
 In order to sustainably develop the fisheries, poultry and dairy sector, the existing facilities for
import of food items and various raw materials related to that sector have been expanded. In order
to protect the poultry sector, the rate of import duty of ‘processed chicken in cut piece form’ has
been increased.
 In order to protect small and medium industries, concessional facilities have been provided for
the import of certain raw materials used in the production of those industries and tariffs have been
increased on the import of products made by small and medium industries (such as nails, screws,
small parts, etc.). The existing tariff rate on honey imports has been increased to protect the
interests of domestic honey farmers.
 Concessions have been provided for the import of certain products (such as: RFID Tag, Industrial
Racking System, cutting table, etc.) required for 100% export-oriented garments and textile
industries.
 In order to expand the potential footwear industry in export diversification, concessional facilities
have been provided for the import of three raw materials of that industry.

 The minimum price of cellular phones has been fixed in order to generate appropriate revenue by
protecting the industry in the cellular phone manufacturing and assembly industry and ensuring
proper pricing at the import stage.
 The existing 15% VAT on gold bar imports has been revoked with a view to discourage illegal
gold imports and encourage legal import of gold through authorized dealers.
 As the country is now generating much more electricity than the demand, the concession on
import of Furnace Oil has been withdrawn by revoking the notification issued in 2011 to
discourage the setting up of Furnace Oil dependent power plants and to prevent misuse of
Furnace Oil.
 Necessary amendments have been made in the existing Customs Act, 1969 for the formation of
Bangladesh Single Window Commissionerate, implementation of D-Minimum Rules, expeditious
unloading of goods and congestion at ports, reduction of discretionary judicial power of customs
officials and restructuring of appellate tribunals for speedy disposal of cases.

Annexure 4.2
: Stimulus Package to address COVID-19 and Economic Recovery
S. L Name of the package Allocation
(in crore Tk.)
1 Special Fund for salary support to workers of export-oriented manufacturing industries including 5,000
ready-made garments
2 Providing low interest working capital loans to affected industries and service sector enterprises to 40,000
ensure their business continuation
3 Providing low interest working capital loans to micro, cottage, small and medium enterprises 20,000
including cottage industries
4 Expanding the Export Development Fund (EDF) to US$ 5 billion from US$ 3.5 billion and setting its 12,750
interest rate to only 2 percent to enhance the facility to import raw materials under back-to-back letter
of credit
5 Introducing Pre-Shipment Credit Refinance Scheme to enhance the capacity of exporters 5,000
6 Providing special honorarium equivalent to two months’ basic salary to the doctors, nurses, medical 100
workers engaged in serving corona patients
7 Providing appropriate compensation to doctors, nurses and health workers engaged in serving corona 750
patients as well as to employees of field administration, law enforcement agencies, armed forces and
other directly involved government employees engaged in implementing instructions of the
government in case of coronavirus infection, or providing appropriate compensation to their families
in case of death
8 Free distribution of 5 lakh metric tons of rice and 1 lakh metric tons of wheat to the poor who have 2,500
suddenly become jobless due to the coronavirus outbreak
9 Selling rice at 10 taka per kg under the Open Market Sale (OMS) among low-income people badly 770
affected by the coronavirus outbreak
10 Providing direct cash transfer of Tk. 2,500 each to 50 lakh beneficiary families across the country to 1,258
protect the ultra-poor who have become jobless and lost their income due to the outbreak of
coronavirus
11 Increasing the number of beneficiaries of old age allowance, widow and divorcee allowance and 815
disability allowance by a total of 11 lakh to protect the poor from the adverse effects of coronavirus
12 Allocating fund for the construction of home for homeless people affected by the coronavirus 2,130
13 Increasing the target for procurement and distribution of paddy by 2 lakh metric tons to ensure fair 860
price of paddy and keep the price of rice stable in the market in the aftermath of the coronavirus
outbreak.
14 Providing support for farm mechanization 3,220
15 Enhancing the amount of agricultural subsidy 9,500
16 Establishing an Agriculture Refinance Scheme to ensure easy loans for farmers 5,000
17 Establishing a refinance scheme for low income professionals, farmers, and small traders 3,000
18 Providing low interest loans to rural poor farmers, expatriate migrant workers and trained youth and 2,000
unemployed youth for establishing business and self-employment in agriculture and agro-related
production and services, small business, small and cottage industries
19 Providing subsidy for partial remission of commercial bank's suspended interest of April and May of 2,000
2020
20 Credit guarantee scheme for the SME sector 2,000
21 Social safety net program for the hapless workers in the RMG, leather goods and footwear industries 1,500
22 Expansion of the coverage of 2 social protection programs to further 1500 poverty-stricken Upazilas. 1,200
23 2nd tranche of the cash transfer to targeted population 930
Total (In Crore Taka) 1,28,441
Total (In Million US$) 15,111
As % of GDP 4.2

Annexure 4.3
Budget at a Glance (with Actual)
(In crore Tk.)
Description Actual Actual Budget Revised Actual (July- May)*
2018-19 2019-20 2020-21 2020-21 2019-20 2020-21
Revenue and Foreign Grants
Revenues 251,879 265,909 378,000 351,532 226857 275478
Tax Revenue 225,958 221,982 345,000 316,000 164159 229622
NBR-Tax Revenue 218,616 216,037 330,000 301,000 188804 224290
Non-NBR Tax Revenue 7,342 5,944 15,000 15,000 5355 5333
Non-Tax Revenue 25,921 43,927 33,000 35,532 32698 45856
Foreign Grants 1,677 2,520 4,013 3,985 798 53
Total: 253,556 268,429 382,013 355,517 227655 275531
Expenditure
Operating Expenditure 238,110 254,880 348,180 323,688 201499 220783
Recurrent Expenditure 217,807 236,124 311,690 302,547 190479 209657
of which 49,461 58,313 63,801 63,729 47112 55413
Domestic Interest 46,015 53,995 58,253 58,500 42954 51355
Foreign Interest 3,446 4,318 5,548 5,323 4158 4058
Capital Expenditure 20,302 18,756 36,490 21,141 11021 11127
Net Outlay for Food Account Operation 4,233 2,278 567 2,553 7160 6778
Loans and Advances (Net) -1,708 1,205 4,210 4,717 -3846 -2989
Development Expenditure 151,055 161,797 215,043 208,025 89440 87717
Scheme 184 1,619 2,522 3,239 1015 1475
Non-ADP Special Project 2,795 3,343 4,722 4,610 2528 2162
Annual Development Programme
(ADP) 147,287 155,380 205,145 197,643 85363 82392
Non-ADP FFW and Transfer 789 1,455 2,654 2,532 534 1688
Total Expenditure: 389,165 420,160 568,000 538,983 294253 312289
Overall Deficit (including Grants ) -135,609 -151,731 -185,987 -183,466 -66598 -36758
(In percent of GDP) -5.3 -5.4 -5.9 -5.9 - -
Overall Deficit (Excluding Grants ) -137,286 -154,251 -190,000 -187,451 -67396 -36811
(In percent of GDP) -5.4 -5.5 -6.0 -6.1 - -
Financing
Foreign Borrowing-Net 31,289 41,610 76,004 68,414 4765 13193
Foreign Borrowing 44,790 52,928 88,824 80,954 15577 24357
Foreign Debt Repayment -13,501 -11,318 -12,820 -12,540 -10812 -11164
Domestic Borrowing 106,845 108,049 109,983 115,052 59909 19999
Borrowing from Banking System (Net) 34,588 79,268 84,980 79,749 69004 22025
Long-Term Debt (Net) 21,129 63,530 53,654 60,749 56650 49825
Short-Term Debt (Net) 13,459 15,739 31,326 19,000 12354 -27800
Non-Bank Borrowing (Net) 72,257 28,781 25,003 35,303 -9094 -2026
National Saving Schemes
(Net) 50,357 15,139 20,000 30,302 11566 393529
Others (Net) 21,900 13,641 5,003 5,001 -20660 -41355
Total Financing: 138,134 149,659 185,987 183,466 64675 33192
Memorandum Item:
GDP 2,542,483 2,796,378 3,171,800 3,087,300** - -
Source: iBAS ++, Finance Division
* Provisional, ** Estimated Nominal GDP

CHAPTER FIVE
MONETARY MANAGEMENT AND FINANCIAL MARKET

DEVELOPMENT
Monetary policy stance and the money and credit programmes have been announced for FY 2020-21 with
prime objectives of recovering the economy from the adversity of the COVID-19 pandemic and rehabilitation
of the production capacity of the economy along with maintaining price stability and quality growth. The FY
2020-21 monetary programme primarily set to support 8.2 percent real GDP growth and containment of CPI
based average inflation at 5.4 percent. Due to expanding outbreak of COVID-19 pandemic in declining
domestic as well as global demand, downward revision of the growth target to 7.4 percent induced to lower
the broad money growth target by 60 basis points to 15.0 percent, which was 15.6 percent previously. In
February 2021, net foreign asset (NFA) increased (30.8 percent) substantially due to decreasing growth of
imports payments and significantly increases of workers’ remittances. The actual broad money increased by
13.4 percent in February 2021 over February 2020 mainly attributed from the sharp growth in NFA. Public
sector credit experienced 8.3 percent growth in February 2021 against 69.7 percent growth in February 2020.
Public sector credit growth decreased mainly due to much government’s borrowing from national saving
certificates. The private sector credit growth in February 2021 was far shorter (8.9 percent) than the target
(14.8 percent) for FY 2020-21 mainly due to the slow economic activities resulted from Coronavirus impact.
The recent trends in weighted average lending and deposit rates show downward movement. The weighted
average lending rate decreased to 7.48 percent at the end of February 2021 from 9.62 percent of end
February 2020. Similarly, the deposit rate continuously decreased to 4.46 percent in February 2021 from 5.53
percent from February 2020. Therefore, the spread declined to 3.02 percent at the end of February 2021 from
4.09 percent at the end of February 2020. With a view to building a sustainable economic infrastructure of the
country the government has been engaged in the exploration and promotion of innovative and successful
policy initiatives to bring the financially excluded marginal population under the umbrella of financial
inclusion. In FY 2020-21, both stock markets (Dhaka Stock Exchange and Chattogram Stock Exchange)
noticed some volatility, however, both the price index and market capitalisation increased significantly. The
market capitilisation and the broad index of DSE increased by 49.29 percent and 35.49 percent respectively at
the end of February 2021 compared to end June 2020. Similarly, the market capitalisation and CSE All Share
Price Index increased by 60 percent and 37.69 percent respectively, compared to end June 2020.
Monetary policy stance and the monetary and priority sectors like agriculture, cottage, micro,
credit programs have been announced for FY small and medium enterprises (CMSMEs),
2020-21 with prime objectives of recovering the manufacturing industries and so on with the
economy from the adversity of the COVID-19 options of necessary adjustment to match the
pandemic and rehabilitation of the production demand of the specific sectors where essential.
capacity of the economy including restoration of Based on these considerations, Bangladesh
the normal livelihoods of the people along with Bank’s monetary policy stance and monetary
maintaining dual goals of price stability and programmes for FY 2020-21 are essentially
quality growth. Therefore, the MPS for FY 2020- expansionary and accommodative for all growth
21 has adopted a strategy so that the adequate support
financing support would be available to all the
Chapter 5: Monetary Management and Financial Market Development | 55

Due to expanding outbreak of COVID-19 December 2020. In February 2021, NFA

pandemic in Bangladesh from March 2020 and increased (30.8%) substantially due to decreasing
declining domestic as well as global demand, growth of imports payments and significantly
actual GDP growth is much lower than the target increases of workers’ remittances. The actual
level and the CPI based general average inflation broad money increased by 13.4 percent in
slightly surpasses the target level for FY 2019- February 2021 over February 2020 mainly
20. The FY 2020-21 monetary programme attributed from the sharp growth in NFA. Public
primarily set to support 8.2 percent real GDP sector credit experienced 8.3 percent growth in
growth and containment of CPI based average February 2021 against 69.7 percent growth in
inflation at 5.4 percent needs without impairing February 2020. Public sector credit growth
attainment of the targeted inflation containment. decreased mainly due to much government’s
borrowing from national saving certificates. The
The annual monetary programmes of Bangladesh
private sector credit growth in February 2021
Bank have been outlined making sure enough
was far shorter (8.9 percent) than the target
rooms for money and credit growth to
(14.8%) for FY 2020-21 mainly due to the slow
sufficiently support the targeted nominal GDP
economic activities resulted from Coronavirus
growth. The broad money (M2) growth has been
impact.
set based on the equation of exchange that
accounts for the necessary adjustment in the Some monetary policy measures in line with the
change of the money velocity, and the target broad objectives of expansionary monetary
nominal GDP growth comprising the summation policy stance for the current fiscal year have
of target real GDP growth and inflation target already been taken. To ensure the availability of
ceiling. Bangladesh Bank would use its monetary less costly funds for banks and rationalising the
policy instruments along with its available open policy rates’ corridor (the gap between the repo
market operation tools to control reserve money and reverse repo rates), the repo and reverse repo
(RM) growth impacting broad money growth interest rates have slashed down by 50 basis
and, thereby, influencing ultimate policy points and 75 basis points to 4.75 percent and
objectives. 4.00 percent respectively with effect from 30 July
2020. However, 360-day repo facility with effect
Bangladesh Bank has reviewed the FY 2020-21
from 13 May 2020 is also introduced.
monetary programmes in January 2021 and
decided to revise the targets of some monetary The Bank Rate which remained unchanged for
aggregates including M2 and net foreign asset the last 17 years (since 2003) has also been
(NFA) growth. In the revised programme, the slashed down by 100 basis points to 4.00 percent
broad money growth target has been reduced by to rationalize it with the current interest rate
60 basis points to 15.0 percent which was 15.6 regime. CRR has been reduced from 5.5 percent
percent previously, mainly to cope up with the to 4.0 percent for domestic banking operations,
recent slash down of GDP growth target (from from 5.5 percent to 2.0 percent for offshore
8.2 percent to 7.4 percent). The NFA growth banking operations, and from 2.5 percent to 1.5
target has been revised upward (from 5.8% to percent for financial institutions (FIs).
20.1 percent) by considering the robust growth
Money and Credit Situation
trend of inward remittances while the public
sector credit growth has been revised slightly Growth Trends of Monetary Aggregates
downward (from 44.4 percent to 31.7 percent) by At the end of February of FY 2020-21, the year-
considering its actual growth trend up to on-year growth of reserve money, broad money

(M2) and narrow money (M1) are 19.72 percent, net foreign assets has contributed in the year-on-
13.35 percent and 19.19 percent respectively. year growth of M2. Table 5.1 shows the growth
During the time period, 30.36 percent growth of trends of monetary aggregate since FY 2014-15.
Table 5.1: Growth Trends of Monetary Aggregates

(Year-on-year growth)
Indicator 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Feb'20 Feb'21
Narrow Money (M1) 13.53 32.10 13.01 6.17 7.22 20.11 9.89 19.19
Broad Money (M2) 12.42 16.35 10.88 9.24 9.88 12.64 12.57 13.35
Reserve Money (RM) 14.33 30.12 16.28 4.04 5.32 15.56 10.69 19.72
Source: Bangladesh Bank
Narrow Money (M1) Broad money (M2) increased by 12.64 percent to

Narrow money (M1) increased by 20.11 percent Tk. 13,73,735.1 crore in FY 2019-20 as compare
during FY 2019-20, which is higher than 7.22 to Tk. 12,19,611.5 crore of FY 2018-19. Year-
percent growth in FY 2018-19. Up to February on-year growth of M2 stood at 13.35 percent up
2021 of FY 2020-21, M1 increased by 19.19 to February 2021 and M2 stood at Tk.
percent, which is higher than 9.89 percent growth 14,80,933.1 crore. M2 growth was 12.57 percent
in the same period of the previous fiscal year. Of in the same period of the previous fiscal year.
the components of the M1, the growth of Time deposit increased (year-on-year) by 11.78
currency notes and coins with the public and percent at the end of February 2021, which was
demand deposit have stood at 14.53 percent and 13.32 percent in the same period of the previous
25.71 percent respectively up to February 2021, fiscal year. Table 5.2 shows the movement and
which were 10.86 percent and 8.55 percent growth of the components of broad money (M2)
respectively in the same period of the previous and domestic credit. Figure 5.1 and Figure 5.2
fiscal year. show the growth of Broad Money and its
components and percentage share of the
Broad Money (M2)
components of Broad Money respectively.
Figure 5.1: Composition of Broad Money (Year-on-Year Percentage Change)
Narrow Money (M1) Demand Deposit Broad Money (M2)

25
20
Percent(%)
15
10
0
June, 17 June, 18 June, 19 June, 20 Feb'21

Table 5.2: Movement and Growth of the Components of M2 and Domestic Credit
Indicators June, 2017 June,2018 June,2019 June, 2020 Feb. 2020 Feb. 2021
End period stock (In crore Taka)
1. Net foreign assets of the banking system 266697.0 264674.4 272399.5 297336.2 277486.5 361731
2. Net domestic assets of the banking system 749379.1 845306.6 947212.0 1076398.9 1029010.3 1119202.1
a. Domestic credit 890670.2 1021626.6 1146884.7 1307633.7 1251174.6 1364504.2
a.1. Government sector (net)1 97333.5 94895.1 113273.4 181150.7 162241.6 179511.5
a.2. Public sector (other)1 17280.2 19200.0 23355.6 29215.1 30033.6 31482.1
a.3. Private sector1 776056.5 907531.5 1010255.7 1097267.9 1058899.4 1153510.6
b. Other assets (net) -141291.1 -176320.0 -199672.7 -231234.8 -222164.3 -245302.1
3. Narrow money 240078.5 254893.7 273293.4 328263.9 277333.7 330549.9
a. Currency notes and coins with the public 137531.8 140917.5 154287 192114.5 161820.5 185332.8
b. Demand deposit2 102546.7 113976.3 119006.4 136149.4 115513.2 145217.1
4. Time deposit 775997.6 855087.3 946318.1 1045471.2 1029163.1 1150383.2
5. Broad money [(1)+(2)] or [(3)+(4)] 1016076.1 1109981.0 1219611.5 1373735.1 1306496.8 1480933.1
Year-on-year percentage change
1. Net foreign assets of the banking system 14.40 -0.76 2.92 9.15 4.54 30.36
2. Net domestic assets of the banking system 9.68 12.80 12.06 13.64 14.96 8.76
a.1. Government sector (net) -14.78 -2.51 19.37 59.92 74.55 10.64
a.2. Public sector (other) 7.66 11.11 21.64 25.09 25.83 4.82
a.3. Private sector 15.66 16.94 11.32 8.61 9.13 8.93
b. Other assets (net) 19.70 24.79 13.24 15.81 15.69 10.41
3. Narrow money 13.01 6.17 7.22 20.11 9.89 19.19
a. Currency notes and coins with the public 12.66 2.46 9.49 24.52 10.86 14.53
b. Demand deposit 13.49 11.15 4.41 14.41 8.55 25.71
4. Time deposit 10.24 10.19 10.67 10.48 13.32 11.78
5. Broad money 10.88 9.24 9.88 12.64 12.57 13.35
Source: Bangladesh Bank.
Note: 1. including accrued interest, 2. including deposits of other financial institutions and government agencies.
Figure 5.2: Percentage Share of the Compositions of Broad Money
Currency Outside Bank Demand Deposit Time Deposit
100
90
80
70
76.37 77.04 77.59 76.10 77.68
Percent(%)
60
50
40
30
20 10.09 10.27 9.76 9.91 9.81
10 13.54 12.70 12.65 13.98 12.51
0
June, 17 June, 18 June, 19 June, 20 Feb'21

the previous fiscal year and stood at Tk.

Domestic Credit
300493.4 crore. On the other hand, net foreign
The growth of domestic credit stood at 14.02 assets of BB increased by 11.22 percent at the
percent in FY 2019-20 compared to 12.26 end of FY 2019-20 compared to the 1.45 percent
percent in FY 2018-19. Domestic credit at the end of previous fiscal year. In FY 2020-21,
increased (year-on-year) by 9.06 percent up to net foreign assets of BB increased by 33.34
February 2021 of FY 2020-21, which is lower percent up to February 2021 compared to the
than 15.09 percent growth in the same period of 4.00 percent decrease in the same period of the
the previous fiscal year. Of which private sector previous fiscal year.
credit growth stood at 8.93 percent at the end of
Claims on government sector (net) increased by
February 2021 against 9.13 percent in the same
Tk. 10928.1 crore in FY 2019-20 compared to
period of the previous fiscal year. The net credit
Tk. 8616.8 crore in FY 2018-19. Claims on
to the government increased by 10.64 percent at
deposit money banks (DMBs) increased by Tk.
the end of February 2021 which was increased by
8378.0 in FY 2019-20, which was decreased by
74.55 percent in same period of the previous
Tk. 195.6 crore in FY 2018-19. In FY 2019-20,
year. At the end of February 2021, the share of
claims on government sector (net) decreased by
government (excluding others public sector) to
Tk. 37645.9 crore at the end of February 2021,
total domestic credit stood at 13.16 percent.
which was increased by Tk. 12958.3 crore at the
Private sector credit to total domestic credit stood
same period of the previous fiscal year. At the
at 84.54 percent which was 83.91 percent at the
same period, Claims on deposit money banks
end June 2020.
(DMBs) increased by Tk. 4399.6 crore, which
Reserve Money was increased by Tk. 8140.0 crore in the same
Reserve money stood at Tk. 284483.4 crore at the period of the previous fiscal year. During this
end of FY 2019-20, which was Tk. 246187.7 in time, claims on other public sector increased by
FY 2018-19. Reserve money growth stood at Tk. 608.0 crore, that was increased by Tk. 222.3
15.56 percent in FY 2019-20 compared to 5.32 crore in the same period of the previous fiscal
percent of the previous fiscal year. In FY 2020- year. Components and sources of reserve money
21, reserve money increased by 19.72 percent up and its changes over time have been shown in
to February 2021 compared to the same period of Table 5.3 and Table 5.4 respectively
Table 5.3: Components of Reserve Money and their Changes
End Period (In Crore Tk.)
Particular
June, 2017 June, 2018 June, 2019 June, 2020 Feb. 2020 Feb. 2021
1. Currency issued 151265.2 154940.5 170387.1 208094.1 175222.6 203381.8
2. Balances of scheduled banks with BB 72732.7 78043.4 75012.1 75768.3 74986.5 96552.9
3. Reserves of other financial 661.5 759.1 788.5 621.0 779.5 558.7
institutions with the BB
4. Reserve Money [(1)+(2)+(3)] 224659.4 233743.0 246187.7 284483.4 250988.6 300493.4
Percentage Change (Year-on-Year)
1. Currency issued 14.33 2.43 9.97 22.13 10.25 16.07
2. Balances of scheduled banks with BB 20.62 7.30 -3.88 1.01 11.7 28.76
3. Reserves of other financial 10.79 14.75 3.87 -21.24 15.82 -28.33
institutions with the BB
4. Reserve Money 16.28 4.04 5.32 15.56 10.69 19.72

Table 5.4: Sources of Reserve Money and their Changes
End Period (In Crore Tk.)

Particular June, June, June, June, February February
2017 2018 2019 2020 , 2020 , 2021
1. Net foreign assets of BB 252027.0 253509.8 257195.4 286040.9 260343.4 347148.6
2. Net domestic assets of BB -27367.6 -19766.8 -11007.7 -1557.5 -9354.8 -46655.2
a.1. Claims on Government sector (net) 12977.7 22572.2 31189.0 42117.1 26329.1 -11316.8
a.2. Claims on other public sector 2157.8 2367.8 2380.4 2551.9 2574.9 3182.9
a.3. BB's claims on DMBs 5054.4 5582.5 5386.9 13764.9 14440.3 18839.9
a.4. BB's claims on NBDCs 4976.6 5146.2 4789.5 5342.5 4879.3 5375.3
b. Other assets (net) -52534.1 -55435.5 -54753.5 -65333.9 -57578.4 -62736.5
3. Reserve Money [(1)+(2)] 224659.4 233743.0 246187.7 284483.4 250988.6 300493.4
Percentage Change (Year-on-Year)
1. Net foreign assets of BB 15.14 0.59 1.45 11.22 4.0 33.34
2. Net domestic assets of BB 6.54 -27.77 -44.31 -85.85 -60.32 398.73
a. Domestic credit -4.60 41.73 22.64 45.79 79.89 -66.65
a.1. Claims on Government sector (net) -2.96 73.93 38.17 35.04 96.91 -142.98
a.2. Claims on other public sector 7.06 9.73 0.53 7.20 9.45 23.61
a.3. BB's claims on DMBs -16.10 10.45 -3.50 155.53 129.2 30.47
a.4. BB's claims on NBDCs 0.20 3.41 -6.93 11.55 2 10.17
b. Other assets (net) 0.89 5.52 -1.23 19.32 14.28 8.96
3. Reserve Money 16.28 4.04 5.32 15.56 10.69 19.72
Money Multiplier Income Velocity of Money

Money multiplier decreased to 4.829 in FY 2019- Income velocity of money declined to 2.04 in FY
20 as compared to 4.954 of FY 2018-19 due to 2019-20 which was 2.08 at the end of FY 2018-
lower growth of broad money compared to 19. The trends of income velocity of money and
reserve money. During FY 2020-21, money broad money as a percent of GDP have been
multiplier stood at 4.928 at the end of February shown in Table 5.5. The Movement of broad
2021. Ratios of money multiplier as reserve- money as percent of GDP has been shown in
deposit ratio and currency-deposit ratio stood at Figure 5.3.
0.089 and 0.143 respectively at the end of
February 2021.
Table 5.5: Income Velocity of Money
(In billion Tk.)
GDP (current Income velocity
FY Broad Money (in Broad Money
market price) of money
billion Taka) as percent of GDP
(in billion Taka) (GDP/M2)
2010-11 9158.30 4405.20 48.10 2.08
2011-12 10552.00 5171.09 49.01 2.04
2012-13 11989.20 6035.05 50.34 1.99
2013-14 13436.74 7006.23 52.14 1.92
2014-15 15158.02 7876.14 51.96 1.92
2015-16 17328.64 9163.78 52.88 1.89

GDP (current Income velocity

FY Broad Money (in Broad Money
market price) of money
billion Taka) as percent of GDP
(in billion Taka) (GDP/M2)
2016-17 19758.15 10160.80 51.43 1.94
2017-18 22504.79 11099.78 49.32 2.03
2018-19 25424.83 12196.12 47.97 2.08
2019-20* 27963.78 13737.4 49.13 2.04
2020-21** 30873.33 14809.3 47.97 2.08

Source: Bangladesh Bank and BBS.
* Provisional, ** GDP: Estimated, M2: Up to February 2021
Figure 5.3: Movement of M2 as Percent of GDP

54.00 52.88
53.00 52.14 51.96
52.00 51.43
51.00 50.34
50.00 49.01 49.32 49.13
Percent (%)
49.00 48.10 47.97 47.97

48.00
47.00
46.00
45.00
Rationalsing the Rate of Interest/Charges The weighted average lending rate of commercial
banks decreased continuously and stood at 7.79
With a view to rationalising the rate of interest on
percent at the end of July 2020 from 9.62 percent
deposit and lending through competitive
of end February 2020. The weighted average
environment among the banks, Bangladesh Bank
lending rate increased a little but having a
has been continuing in providing instructions to
declining trend lending rate stood at 7.48 percent
banks on a regular basis for taking proper
at the end of February 2021 from 7.79 percent of
initiatives in FY21. In order to rationalize the rate
end September 2020. Similarly, the deposit rate
of interest in other sectors including productive
continuously decreased to 4.46 percent in
sector, banks are advised to limit the difference
February 2021 from 5.53 percent in the same
between lending and deposit rates or spread
period of previous year. The interest rate spread
within lower single digit except high-risk
was 4.09 percent and 4.07 percent respectively in
consumer credit (including credit card). Besides,
February 2020 and March 2020. The interest rate
the maximum rate of interest/profit on
spread decreased much to 2.92 percent at the end
unclassified loans/investment is set at single digit
of April 2020 from 4.07 percent of March 2020.
except credit card.
After that, the spread declined a little and then
The recent trends in weighted average lending increased time to time and stood at 3.02 percent
and deposit rates show downward movement. at the end of February 2021. The trends of

weighted average lending and deposit rates and February 2021 have been shown in Figure 5.4.
the interest rate spread from February 2019 to
Figure 5.4: Weighted Average Deposit and Lending Interest Rate
Weighted Average Deposit Interest Rate Weighted Average Lending Interest Rate
Interest Rate Spread

12
10
8
Percent(%)
Financial Market Management more non-scheduled banks are also operating.

These banks are: Ansar VDP Unnayan Bank,
Banking Sector
Karmasangsthan Bank, Grameen Bank, Jubilee
As on February 2021, there are 61 scheduled Bank and Palli Shanchay Bank. As of February
banks in Bangladesh. Among 61 scheduled 2021, structure of the scheduled bank system by
banks, there are 6 state owned commercial banks, types of banks and as of December 2020, their
3 specialised banks, 43 private commercial banks share in total deposits and assets are shown in
and 9 foreign commercial banks. In addition, 5 Table 5.6.
Table 5.6: Structure of the Banking System in Bangladesh
(End February 2021)
No. of No. of Branches Percentage of Percentage of
Type of Banks
Banks
Urban Rural Total Total Assets* Total Deposit*
State-owned Commercial Banks
6 1761 2038 3799 25.08 25.53
(SOCBs)
State-owned Specialised Banks
3 285 1214 1499 2.18 2.44
(SBs)
Private Commercial Banks
43 3424 1973 5397 67.25 67.59
(PCBs)
Foreign Commercial Banks
9 67 0 67 5.49 4.44
(FCBs)
Total 61 5537 5225 10762 100.00 100.00
Source: Bangladesh Bank, *= as per December, 2020 data.

In Bangladesh, 61 scheduled banks are Apart from industrial, commercial and housing
performing their banking business with 10,762 sectors, these companies also invest in the
branches as on February 2021. Of these total country's capital market. To strengthen the Non-
bank branches, the number of urban and rural Bank Financial Management Structure, to ensure
branches are 5,537 (51.5%) and 5,225 (48.6%) transparency and minimise risk of financial
respectively. According to the Bank group and institutions and in order to bring corporate good
region-wise bank branches, the number of urban governance, various measures (guidelines,
and rural branches of SOCBs are 1,761 (46.4%) circulars and circular letters) have been taken at
and 2,038 (53.6%), in case of PCBs the number different times by Bangladesh Bank. As part of
of urban and rural branches are 3,424 (63.4%) these, guidelines on products and services, base
and 1,973 (36.6%), the number of urban and rural rate system, early warning system, commercial
branches of SBs are 285 (19.0%) and 1,214 paper, Code of Conduct etc. have been
(81.0%) and the branch number of foreign banks' introduced. In this connection, a number of
is 67 which is located into Urban areas only. As measures were taken by Bangladesh Bank in
on December 2020, of all the total assets of 2020. Among these the noteworthy policies are:
banking system, 67.25 percent and 25.08 percent suitable and modified existing commercial paper
are included to the PCBs and SOCBs and stress testing guidelines for financial
respectively. As of December 2020, of the total institutions. It may be mentioned that in the year
deposits of the banking system, 67.59 percent 2020, Bangladesh Bank has issued license to a
and 25.53 percent are included into the PCBs and new financial institution named Strategic Finance
SCBs respectively. and Investment Limited.
Non-bank Financial Institutions (NBFIs) Like elsewhere across the globe, the COVID-19
pandemic has brought uncertainties in financial
Non-Bank Financial Institutions (NBFIs) are
and economic sector in Bangladesh. Bangladesh
playing a significant role in the areas of financing
Bank has taken several policy measures to
in industry, trade, housing, transportation, and
mitigate the impacts of COVID-19 on financial
information technology (IT) of the country. As
institutions and their clients. Some of those
on February 2021, 34 licensed non-bank financial
policies are: keeping classification status of
institutions (NBFIs) are functioning in the
loan/lease/advance unchanged from January to
country with a wide network of 276 branches
December 2020, lowering the Cash Reserve
spreading over 37 districts. Among those, 94 are
Requirement (CRR) from 2.50 percent to 1.50
set up in Dhaka district and the rest 182 are
percent on bi-weekly basis and from 2.0 percent
located in 36 districts across the country. As on
to 1.0 percent on daily basis, restructuring and
December 2020, total paid up capital and reserve
short term loan renewal facilities on easy terms
of these financial institutions stood at Tk.
and conditions. Furthermore, Bangladesh Bank
12,187.31 crore of which paid up capital was Tk.
facilitates interest rate subsidy and refinance
8,575.78 crore. At present, the shareholders'
scheme for pandemic affected clients of Financial
equity of financial institutions stood at Tk.
Institutions under the government stimulus
9,088.22 crore, total asset was Tk. 90,173.78
packages for lending working capital in
crore, total deposit was Tk. 45,343.09 crore, total
industries and service sector.
outstanding loan/lease was Tk. 67,016.00 crore
and total classified loan/lease stood at TK Financial Inclusion
10,053.58 crore which is 15.02 percent of the
In recent times, financial inclusion seems to be
total loan/lease.
the most prominent tool to ensure inclusive and

sustainable economic development in the world. the street and working children, which was
With a view to building a sustainable economic introduced in 2014 to make this population
infrastructure of the country and realising the financially independent, to safeguard their
importance of financial inclusion, Bangladesh hard earned money and secure their future.
Bank has been engaged in the exploration and Now if the biological parents of these
promotion of innovative and successful policy children are available, then the account can
initiatives to bring the financially excluded be operated by the joint signature of the street
marginal population under the umbrella of children and their father/mother. The number
financial inclusion. The major policy initiatives of these accounts and the balance of these
taken by Bangladesh Bank to promote financial accounts stood at 10,648 and Tk.0.41 crore
inclusion are as follows: respectively up to December 2020.
 With a view to providing a safe, secured, and
 Bangladesh Bank has issued various circulars
sound alternative delivery channel for
from time to time to open bank account
banking services to the non-privileged,
(popularly known as Tk. 10 bank account)
underserved population especially from
with a minimum deposit of Tk. 10 to include
geographically remote location, BB has
the under-privileged and financially excluded
introduced Agent Banking in June 2014.
population in the formal banking services.
Through Agent Banking, it becomes easy to
Bangladesh Bank has also instructed all the
provide affordable banking services for the
banks to operate these accounts without any
non-privileged, underserved and poor
service charges or any minimum balance
segment of population especially from
requirements. People from various classes
geographically remote location. As of
and professions such as farmers, hardcore
December 2018, 21 Banks have received
poor, workers of City Corporation, shoe &
approval from BB to provide agent banking
leather, and RMG, physically challenged
services whereas 19 banks out of them have
persons, beneficiary under the social security
started operation. As of December 2020, 28
programme and freedom fighters along with
Banks have received approval from BB to
other financially excluded groups are
provide agent banking services whereas 26
included in this category. With the initiatives
banks out of them have started their
the number of these account reached to 2.25
operations. Up to December 2020, Agent
crore at the end of December 2020.
banking services have been provided through
 With a view to facilitate the farmers for
96,43,163 bank accounts opened by 15,977
keeping their Tk10 account effective by
outlets of 11,925 agents of that 26 banks.
providing credit under minimum conditions,
 Foreign remittance sent by Non-Resident
Bangladesh Bank has created a revolving
Bangladeshis (NRBs) generates significant
refinance fund worth of Tk. 200 crore from
contribution to the economic development of
its own source. Small, marginal, and landless
Bangladesh. In order to create a dynamic,
farmers are the main target groups of this
interactive, and online database for the
refinance scheme. Clients can borrow
remittance senders, BB has taken an initiative
maximum Tk.50,000 individually and
to collect the information of NRBs. Any
Tk.5,00,000 through a group from this fund.
NRB can open an account in this database
About Tk.193.03 crore has been disbursed
through Bangladesh Bank website and
under this scheme up to 03 February 2021.
upload his/her information. This database
 Bangladesh Bank has relaxed the regulations
will play as a communication platform for
for opening the Tk.10 special accounts for

Bangladesh Bank and NRBs as well. For disbursing credit to the end-users at a
Bangladesh Bank, this database helps to maximum rate of 9 percent per annum. MFIs
promote and uphold investment information are getting finance from the banks at 3.5
arranged for NRBs by government, to create percent per annum. Bangladesh Bank is
awareness on proper remittance channel and providing refinance to the banks at 1 percent
method, important financial or economic per annum. 75 percent of the funds are to be
moves of government in which NRBs can provided as microcredit and 25 percent of the
participate. They can submit complaint, scheme are to be provided to the micro
query or feedback through this database. entrepreneurs. Women, persons belong to
They also use this database to link between under-privileged groups, returnee migrants
themselves and search other NRBs according are getting priority in getting loan under this
to country, profession, etc. Scheme. The ceilings for individual
 Alliance for Financial Inclusion (AFI) is a microcredit and micro entrepreneur are Tk.
worldwide network for financial inclusion 75,000 and Tk. 10,00,000 respectively. For
policy makers to facilitate the access of group based lending, the minimum size of
quality financial services for the poor. More the group is 5 members and the loan limits
than 100 central banks and regulatory are Tk. 3,00,000 and Tk. 30,00,000
institutions of different countries throughout respectively for microcredit and micro
the world are members of this organisation. entrepreneurs. 42 scheduled banks including
Bangladesh Bank is a principal member of 8 state owned bank have signed on
AFI since 2009. Governor of Bangladesh participation agreement with Bangladesh
Bank was one of the esteemed members of Bank to disburse credit under this Refinance
the AFI Board of Directors (BoD) since 2016 Scheme. Up to February, 2021, 31 banks has
and was the Chair of AFI BoD from 2017 to approved Tk. 2,230.04 crore in favor of 141
September 2019. Bangladesh Bank has Micro-finance Institutions of which Tk.
achieved AFI Policy Award in 2014 and AFI 1431.89 crore has been disbursed. 28 Banks
Member Zone Award in 2015 for its has claimed refinance of Tk. 987.76 crore.
contribution in Financial Inclusion. In Upon thorough examination Tk. 821.99 crore
addition, Bangladesh Bank has been selected has been refinanced in favor of 25 banks.
as Financial Inclusion Ambassador of AFI 2,03,740 low-income professionals, farmers,
during GPF in 2019 in Kigali, Rwanda for its holders of small and marginal businesses
outstanding contribution and commitment in across 64 districts has received the loan
gender inclusion. under this refinance scheme. Among these
 To extend credit to the low-income borrowers 92.43 percent are female while
professionals, farmers and holders of 7.57 percent are male.
small/marginal businesses in the rural areas School Banking
through Microfinance Institutions (MFIs) to
enable them in reviving their income Bangladesh Bank has introduced School Banking
generating activities, a revolving Refinance for the students less than 18 years of age with a
Scheme of Tk. 3,000 crore for the COVID-19 view to promote savings habit from the
affected low-income professionals. Farmers childhood and acquainting them with the banking
and holders of small/marginal businesses has services and technology. Under this agenda,
been formed by Bangladesh Bank on 20 Financial Literacy Programmes are being
April 2020. Under this Scheme, MFIs are organised throughout the country following the

Lead Bank model under Bangladesh Bank’s A high-level committee headed by a Deputy
monitoring and supervision. School banking Governor of Bangladesh Bank, has been formed
conferences have been started from 2016 and to review the 5 banking related laws, namely, (1)
financial literacy related video documentaries, The Bank Companies' Act, 1991, (2) The Money
presentations, quiz programmess and different Loan Court Act, 2003, (3) The Financial
cultural programs are being arranged through Institutions Act, 1993 (Proposed `The Finance
these conferences with a view to disseminating Companies Act, 2020), (4) The Negotiable
financial literacy. Up to December 2020, Instrument Act, 1881, and (5) The Insolvency
26,90,550 school banking accounts have been Act, 1997 to address the prevailing scenario of
opened whereas total amount of Tk. 1,950.86 default loans of banks and NBFIs. The committee
Crore has been deposited in these accounts. comprises 10 officials from Bangladesh Bank
and Financial Institutions Divisions of Ministry
Banking, Monetary and Credit Policy
of Finance. The five acts stated above have
Reforms already been reviewed by the committee and
Reforms in the Bangladesh Bank recommendations have been sent to the Financial
Institutions Division of Ministry of Finance in
With a view to improve financial market
the form of draft bill. International best practices,
infrastructure, regulatory and oversight capacity
good governance in banking sector and pragmatic
of Bangladesh Bank and access to long term
problems have been taken into considerations
financing for manufacturing sector in Bangladesh
while reviewing the above acts with a view to
for ensuring stability and greater resilience of the
uphold the corporate governance and discipline
financial sector, the Financial Sector Support
in the financial sector of Bangladesh.
Project (FSSP) is being implemented with the
assistance of International Development Reforms in State Owned Commercial Banks
Association (IDA). The salient feature of the
Bangladesh Bank has signed Memorandum of
project is shown in Annex-5.2.
Understanding (MOU) with the State Owned
Legal Reforms Commercial Banks (Except Basic Bank Limited
and Bangladesh Development Bank Limited) in
The presence of outsiders, employees of the
FY 2020-21 as similar to the previous year.
banks except when called by the board or its
Under the MoU instructions have been given to
committee, and shareholders have been
the SOCBs to ensure efficiency in asset-liability
prohibited in the meeting of board of directors
management, reduce the NPLs, ensure cash
and of its committees vide BRPD circular letter
recovery against NPLs, control the operational
no. 55 dated 12 November 2020. In line with the
expenses, reduce high cost deposit to the desired
amendment made in the company law in 2020,
level, ensure digital banking services as well as
banks have been notified regarding exemption of
to enforce the internal control and compliance
compulsory use of company common seal by
system within the banks. To improve asset
issuing BRPD Circular Letter No. 57 dated 15
quality certain conditions have been imposed in
December 2020. Directors, managing director or
current MoU for example, purchasing FDBP
chief executives and officials two tiers below the
(Foreign Documentary Bills Purchase), creating
rank of managing director or chief executive of
of forced loan/PAD/Demand loan and their
the banks have been advised to submit their own
rescheduling for long period by the banks. In
and family related business information to the
addition, Bangladesh Bank has also been
board of directors on annual basis vide BPRD
regularly monitoring the activities of SOCBs in
circular letter no. 02 dated 21 January 2021.

achieving the targets of MoU, Compliance of day special repurchase agreement (REPO)
conditions as well as overall implementation facility to avail credit directly from the
status of MoU. central bank. The existing Repo and Reverse
Repo rates of interest of Bangladesh Bank
Money and Financial Market Reforms
have been reduced by 50 basis points and 75
With a view to strengthening and updating the basis points respectively and re-fixed at 4.75
risk management activities of the banks in line percent and 4.00 percent respectively on 30
with the changing environment, ‘Risk July 2020.
Management Guidelines for Banks’ introduced in
Development of Payment System
2012 has been revised. In order to ensure sound
risk management practices in the banks, A safe and efficient payment system is crucial in
instructions regarding specifying roles and maintaining financial stability and effective
responsibilities of the Board of Directors, Board performance of the financial system. To establish
Risk Management Committee, Executive Risk a public interest oriented modern, effective and
Management Committee and Chief Risk Officer capital based payment system in the country and
(CRO) along with restructuring the risk to ease ongoing financial transactions of the
management framework of banks have been mass, Bangladesh Bank has implemented three
included in the said guideline. Besides, initiatives interoperable payment platforms for retail
have been taken to establish a well-organized payments segment such as Bangladesh
Risk Appetite Framework for balancing between Automated Cheque Processing System (BACPS),
the risks taken and business targets to be Bangladesh Electronic Funds Transfer Network
achieved by the banks. (BEFTN) and National Payment Switch
Bangladesh (NPSB) for banked population. In
Steps to mitigate impacts of COVID-19 in the
addition, for the large-value payments segment,
Money and Financial markets
Bangladesh Real Time Gross Settlement (BD-
 The existing bank rate has been reduced by RTGS) System has been established to settle high
100 basis points and re-fixed at 4.00 percent value transactions in local and foreign currencies
from 5.00 percent. The maintenance of CRR on a real-time basis. At present, the check
by the scheduled banks (except Islami presented from any part of the country can be
shariah based banks) has been reduced to disposed within 24 hours in BACPS payment
4.00 percent on bi-weekly average basis with system. On the other hand, the BEFTN system
a provision of minimum 3.50 percent on a deals with various types of credit transfers, such
daily basis from 5.00 percent on bi-weekly as salary allowances, foreign and domestic
average basis and 4.50 percent on a daily remittances, social security, principal payment
basis. and profit of savings certificates, company
 Financial institutions which accept time dividends, retirement benefits could be settle
deposit are allowed to maintain 1.5 percent through EFT credits while at the same time utility
CRR on bi-weekly weighted average basis. bill payment, loan repayments, insurance
And this reserve cannot anyhow be less than premiums, corporate to corporate payments could
one percent on daily average basis. be accommodated in EFT debits. In addition,
 To implement the announced stimulus debit and credit card customers are instantly
packages for the COVID-19 pandemic and enjoying 24/7 ATM or POS transaction facility
maintaining enough liquidity in the money through NPSB. In FY21 (December, 2020),
market, Bangladesh Bank has introduced 360 BACPS handled about Tk 7.59 lakh crore

through high value checks and about Tk 4.17 well, especially when maintaining physical
lakh crore through regular value checks. During distance and staying home was inevitable.
the same period, transactions amounting to about
 To ensure economic security of the workers
Tk 22.48 thousands crore were settled in the
of export oriented industry, the cash
BEFTN system on debit transactions and about
assistance announced by government for
Tk 1.65 lakh crore on credit transactions. In the
about 0.5 crore marginalized families was
current FY21 (up to December, 2020), about Tk.
directly disbursed to the workers MFS
16.2 thousand crore has been transacted through
account. The MFS providers were instructed
NPSB system and about Tk. 9.63 lakh crore has
to open new MFS wallets for the workers
been settled in BD-RTGS.
who do not have a bank account or wallet.
As an Alternative Payment Channels, 13 banks The cash-out charge to cash-out the salaries
and 2 subsidiaries companies of two banks are were reduced to 0.8 percent from 1.85
providing Mobile Financial Services (MFS) percent.
through mobile phone technology. These service  Daily necessities and medicine selling small
providers are continuing their activities of inward merchants were enabled to use their personal
remittance disbursement, transaction/bill bank accounts and/or MFS wallets for such
payment through agent/bank branch/ATM/ business transactions and the transaction
mobile operator outlet, utility bill payment, charges were waived. In addition, person-to-
payment of wage, payment of miserable, widow, person transaction limit through mobile
elderly allowances, allowances of freedom wallets was enhanced from Tk. 75 thousand
fighter, individuals transactions, microfinance to Tk. 2 lakh for purchasing the emergency
disbursement and insurances premium. Non- food/daily necessities and medicine and cash
bank payment service providers are also Out charges have become free up to Tk. 1
providing similar and financial services to thousand per day.
customers like banks. As on December 2020, the  To keep payments for essential services,
total number of agents under Mobile Financial medical services, social safety net payments,
Services was 10,58,897 and the number of and government payments uninterrupted
registered clients was about 9.9 crore, of which during the COVID-19 related general
the number of active accounts was about Tk. 3.20 holidays, interbank cheque transfer and
crore. In December, 2020, the average daily Electronic Funds Transfer Network were
turnover was about Tk. 1.8 thousand crore. kept open. Instructions were also issued to
Bangladesh Bank has issued licenses as Payment the financial institutions to ensure the
Systems Operator (PSO) to various organizations security of ICT infrastructure, system,
as Payment Gateway and Payment Aggregator to database, and also to stay alert against
deal with e-commerce or online shopping, which financial fraud related to COVID-19.
play a vital role by providing unparalleled
services. Steps taken for the Prevention of Money
Activities of payment systems to combat the Laundering and Combating Financing of
outbreak of Covid-19 Terrorism
Amid the COVID-19 pandemic, existing  The 4th Follow-Up Report of Mutual
payment system and digital payment systems like Evaluation, which was completed in 2016 to
MFS played a crucial role to run the economy evaluate measures to prevent money
laundering and terrorist financing in

Bangladesh, was published in November, Exchange Commission (BSEC) are given below:
2020. In that Follow-Up Report, Asia Pacific
 On 22 June 2020, the Commission directed
Group on Money Laundering (APG) has
both the stock exchanges to collect fast
upgraded Bangladesh’s rating on FATF
integrated data and to start submission and
Recommendation No. 28 (Regulation and
distribution activities on the online platform
Supervision of DNFBPs) from Partially
by applying the digital Bangladesh
Compliant (PC) to Largely Compliant (LC)
Philosophy. This system would ensure listing
and Recommendation 33 (Statistics) from
related compliances by issuer companies
Partially Compliant (PC) to Compliant (C).
such as application, shareholding reporting,
 After the publication of 4th Follow-Up declaration, corporate action, financial
Report, out of 40 recommendations of FATF, disclosure, publication, providing price
Bangladesh has achieved 9 Compliant, 27 sensitive information, resolving grievances
Largely Compliant and 4 Partially Compliant and other compliances.
ratings. It is noted that Bangladesh has no
 With a view to ensure good governance,
Non-Complaint (NC) rating out of FATF 40
transparency and betterment of the Z
recommendations.
category Company, BSEC issued a
 In FY21 (up to February, 2021), Bangladesh Notification on 01 September, 2020
Financial Intelligence Unit (BFIU) received imposing different conditions regarding buy,
1,33,58,646 nos. cash transaction reports sale, transfer, transmission and pledge of
(CTR) from various banks and non-bank securities by directors, board reconstitution,
financial institutions. During the period appointment or nomination of observer,
BFIU also received 3,302 nos. Suspicious appointment of auditors etc.
Transaction/Activity Reports (STR/SAR)
 For ensuring transparency BSEC issued a
from various reporting organizations. The
Notification on 06 September 2020 regarding
received STRs/SARs has been reviewed by
financial statement of mutual fund and asset
the BFIU and forwarded to the concerned
management company.
law enforcement agencies for investigation
and other necessary action where applicable.  Bangladesh Security and Exchange
Commission (Trading Rights Entitlement
 BFIU has continued its effort to increase the
Certificate) rule 2020 has been made on 12
capacity and awareness of the officials of
November 2020.
banks, other reporting organizations, law
enforcement agencies and other relevant  In order to encourage the opening of digital
regulators and supervisors on combating BO accounts through online, BSEC issued a
money laundering and terrorist financing. Notification on 13 December 2020 regarding
Furthermore, BFIU has jointly organised setting up of booth within the country up to
various webinar/virtual meetings on the union level and abroad also.
prevention of money laundering and terrorist
 BSEC issued a Notification on 28 December
financing with different organisations.
2020 showing exit plan procedure to those
Capital Market financially weak companies who failed to
declare dividend or whose commercial
Recent notable reforms and amendment of
operations are closed subject to payment to
securities laws, rules and regulation and notable
the investors. The Commission made
activities performed by Bangladesh Security and

substantial progress in the appointment of Capital Market Situation

listed companies’ Independent Directors, in
Dhaka Stock Exchange Ltd (DSE): In DSE
the restructuring of Nomination and
total number of listed securities has increased
Remuneration Committee (NRC) and Audit
from 589 in June 2020 to 604 in April 2021. At
Committee of Corporate Bond and in the
the end of April 2021, total issued capital of all
enforcement of Corporate Governance Code
listed securities stands at Tk. 138,728.20 crore,
for the listed companies.
which was 6.3 percent growth from June 30,
 BSEC issued a Notification on 14 January 2020. Total Market Capitalisation of all listed
2021 instructing to form a fund named securities was Tk. 311,966.98 crore in June 2020,
‘Capital Market Stabilisation Fund’ with which stands at Tk. 470712.80 crore in April
undistributed portion of the declared dividend 2021, representing 50.89 percent increased. DSE
by the listed companies upholding the Broad Index has increased from 3,989.09 points
investors claim. in June 2020 to 5,479.62 points in April 2021,
representing 37.37 percent increase.
Table 5.7: Securities Trading Information of Dhaka Stock Exchange
Year/Month No. of Listed No. of Issued Capital Market Securities DSE Board
End Securities (Including IPOs (Tk in crore) Capitalization Traded in Value Index **
Mutual Funds & (Tk in crore) (Tk in crore)
Debentures
2014-15 555 16 109,195 324,730 112,351 4,583.11
2015-16 559 11 112,741 318,574 107,246 4,507.58
2016-17 563 9 116,551 380,100 180,522 5,656.05
2017-18 572 11 121,966 384,734 159,085 5,405.46
2018-19 584 15 126,857 399,816 145,965 5,421.62
2019-20 589 5 129,981 311,966 78,042 3,989.09
2020-21* 604 10 138728 470713 14377 5479.62
Source: Dhaka Stock Exchange Ltd. * Up to April 2021
Figure 5.5: DSE Market Capitilisation and Indices
Market Capitilisation DSE Broad Index

500000 6000
450000
400000 5000
350000
(In crore Tk.)
4000
300000
(Index)
250000 3000
200000
150000 2000
100000 1000
50000
0 0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
* Up to April 2021

Chittagong Stock Exchange (CSE) of 28th February 2021, Market Capitalization of

CSE 3919.44 Billion BDT which was increased
At the end of February 2021, the total number of
60% from the last fiscal year. CSE All Share
listed securities in Chittagong Stock Exchange is
Price Index was 15,742.96 at the end of 28th
341. At 28th February 2021, issued capital of all
February 2021 which was 11,332.58 in the end of
securities is 806,749.69 million BDT which was
June 2020. Details of Securities Turnover are
more than 10% from June 2020. Towards the end
below in the Table 5.8 and Figure 5.5.
Table 5.8: Securities Trading Information of Chittagong Stock Exchange
Year Total Number Issued Market Total Turnover value CSE All
number of of IPO Capital (In Capitalization of All Securities Share Price
listed Million BDT) (In Million BDT) (In Million BDT) Index
Securities
2014-15 292 20 501,306.30 2,571,464.01 96,480.01 14,097.17
2015-16 298 11 566,073.01 2,496,848.91 77,471.60 13,623.07
2016-17 303 9 606,572.10 3,113,242.90 118,075.27 15,580.37
2017-18 312 12 654,059.10 3,123,521.70 109,850.60 16,558.50
2018-19 326 16 712,894.30 3,293,302.81 84,800.13 16,634.21
2019-20 332 4 735,897.62 2,447,567.13 53,078.17 11,332.58
2020-21* 341 13 806,749.69 3,919,444.86 62,022.50 15,603.80
Source: CSE * Up to February 2021
Figure 5.6: CSE Market Capitilisation and All Share Price Index
Market Capitilisation All Share Price Index

450000 18000
400000 16000
350000 14000
(In crore Tk.)
300000 12000
(Index)
250000 10000
200000 8000
150000 6000
100000 4000
50000 2000
0 0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
* Up to February 2021

Annexure
Annex. 5.1
Reforms in the Bangladesh Bank
With a view to improve financial market infrastructure, regulatory and oversight capacity of Bangladesh
Bank and access to long term financing for manufacturing sector in Bangladesh for ensuring stability and
greater resilience of the financial sector, the Financial Sector Support Project (FSSP) is being
implemented with the assistance of International Development Association (IDA). The total approved
project cost is USD 350.00 million of which IDA will provide USD 300.00 million and Bangladesh Bank
will provide USD 50.00 million. The project was commenced on 01 July 2015 and will end on 30 June
2021.
The project will be implemented through three major components over the project term. The components
are (a) Developing key financial market infrastructure through benchmarking with international best
practices, (b) Strengthening the capacity of the regulator to comply with international standards and
accords on banking sector supervision and regulation, (c) Serving as a catalyst for developing a financial
market in long-term finance market segment.
Specific objectives of these components are as follows:
1. Strengthening Financial Market Infrastructure
This component aims to improve financial IT infrastructure of the country further, especially focusing on:
(a) development of Payment and Settlement System to ensure a large scale shift to electronic payments in
Bangladesh, specially of the Government payments, (b) expanding and modernizing Credit Information
Bureau (CIB) by including credit information of the Microfinance Sector and increasing reliability of
credit reporting system, (c) strengthening the systems of BFIU by integrating with systems of other
stakeholders thereby leading to safety and integrity of the financial systems and (d) strengthening the IT
Governance and IT management of the Bangladesh Bank to lay a robust and secured financial platform
for advanced financial market. Necessary capacity building and knowledge transfer initiatives will also be
taken to make the officials of the central bank and its associated organizations to embrace the new
technologies and align their regular functions with the technology based new processes. Till February
2021, 04 consultants have been recruited and 09 IT packages have been procured under this component.
One main data center in BB head office and one near data center at Bangladesh Bank Training Academy,
Mirpur have been built. A Disaster Recovery Center is under construction at BB Rajshahi Office.
2. Strengthening Regulatory and Supervisory Capacity
The project expects to provide technical assistance towards the development and adoption of the
comprehensive risk-based integrated approach to banking regulation and supervision, which would
include related documentation and training. Currently, Rules based approach is in place to regulate and
supervise the banking system. However, the risk-based approach evolves the supervisory process toward
one that is more anticipatory. This component will help BB to migrate to a risk-based approach to
supervision to discharge its responsibilities to ensure a safe and sound banking system. A Bank
Supervision Specialist firm was appointed in June, 2019 to help Bangladesh Bank in pursuing and
achieving financial sector stability and ensuring a safe and sound banking system. The firm has completed
its tenure on December 2020 and has given several recommendations to introduce an effective Risk-based
Supervision (RBS) in line with Basel Committee on Banking Supervision (BCBS) recommendations.

With these recommendations BB can conduct a thorough review of supervisory effectiveness based on
micro and macro financial risks faced by banks. Meantime, the firm has conducted several
workshops/trainings on Risk-based Supervision (RBS) to train the Bangladesh Bank officials.
3. Supporting Long Term Finance
One of the deficiencies of the current financial market structure is inadequate sources of long term fund to
meet the demand of the productive sector of the country. As a result, the financing need for long term
investments are met with relatively shorter maturity funds creating maturity mismatch both at banks and
investors book. Hence there is a demand for long term financing for the manufacturing sectors for
maintaining growth through up-gradation of technology and production lines and improve compliance
with the international standards on social and environmental practices. This prime component of the
project will provide long term funds, especially in US Dollar, which would be channeled by BB to
eligible participating financial institutions (PFIs) based on eligibility criteria for lending. The fund will be
available, on demand, to the manufacturing enterprises for procurement of capital machineries, equipment
and other needs of the industry for setting up of new firm, expansion and/or up-gradation. The project
would extend technical assistance to support PFIs to build appraisal skills (including on assessing
safeguards risks) and to funded borrowers. The PFI agreement has been signed with 31 scheduled banks
and USD 299.10 million has been sanctioned from which USD 271.03 million has been disbursed till
February 2021. Besides, an Environmental Regulations Compliance Specialist and a Long Term Project
Financing Advisor have completed their tenure.
Upon successful implementation of the project, it is expected that the IT infrastructure of the financial
market will be strengthened, the regulatory and supervisory capacity of the central bank will migrate to
more advanced level and an additional production capacity will be created which will result in increase of
real output in the country.

Annex 5.2
Implementation of Basel III
Towards building a robust and risk resilient banking system, Basel-III capital and liquidity standards
aligned with the international best practices getting momentum in the banking sector of Bangladesh.
Bangladesh starts implementation of Basel III with a transitional arrangement from January 1, 2015 and
fully implemented at the end of December 2019. In this regard, Bangladesh Bank issued a comprehensive
guideline and declared a road map with a phase-in action plan for implementation of BASEL III in
December 2014. The aim of implementing Basel-III is to increase resilience of the banks and the banking
sector and prepare the banks and banking system to survive in the financial and economic crisis. Banks in
Bangladesh need to maintain an adequate level of capital requirement in addition of a minimum capital
requirement considering their risk profile.
Basel III increases not only the level of capital but also the quality of capital. Banks need to maintain a
minimum capital ratio of 10.00 percent, out of which 6.0 percent as Tier-1 capital. Under Basel III, banks
also maintaining a Capital Conservation Buffer (CCB) in addition of minimum capital requirement. This
buffer started with 0.625 percent from 2016 and ended up with 2.50 percent in December 2019. The
macroprudential aspects of Basel III especially counter cyclical capital buffer to protect the banking
sector from periods of excess credit growth is yet to be introduced.
Aiming a leaf forward towards Internal Ratings Based (IRB) Approach, Bangladesh Bank issued circular
regarding ‘Guidelines on Internal Credit Risk Rating System (ICRRS)’ and prepared different ‘financial
models’ for banks for better managing credit risk internally. ICRRS has been exempted for the loans
extended under stimulus packages. However, Quantitative and Qualitative parameters of ICRRS have
been revised in February 2021.
Capital adequacy reporting under Basel III accord starts from the first quarter ended in March 2015. It is
evident that at the end of December 2020, Capital to Risk-weighted Asset Ratio (CRAR) of the banking
industry stood at 11.64 percent while Common Equity Tier 1 (CET1) was 7.30 percent which
accomplished Basel III capital adequacy requirements. However, at individual level, 10 out of 59 banks
were not able to maintain CET1 and minimum capital requirements, i.e. CRAR at required level.
As a step towards implementation of Pillar II of Basel III, Bangladesh Bank is working for
implementation of Internal Capital Adequacy Assessment Process (ICAAP) in Bangladesh. Banks
evaluate their internal processes and strategies to ensure adequate capital covering all material risks
through ICAAP. Bangladesh Bank reviews and evaluates banks’ ICAAP reports and their strategies
during its Supervisory Review Evaluation Process (SREP) inspection. Based ICAAP reports and SREP
inspection as of December 2018; a series of bilateral meeting took place with 12 banks in between March
05, 2020 and March 19, 2020. Meetings with other 45 banks could not ground due to COVID-19
pandemic.
As per last year observation (base year 2018), 13 out of 57 banks were undercapitalized in terms of total
capital needed under pillar I and pillar II of Basel III accord. Moreover, with the experience of the last
three years meetings (base year of 2015, 2016 and 2017 respectively) with banks, it was found that the
estimated additional capital requirement for residual risk was arisen mainly due to documentation error
which was the highest among the pillar II risks. Apart from that, strategic risks and appraisal of core risks
management were the other foremost concerns for the banks

CHAPTER SIX
EXTERNAL SECTOR
Bangladesh’s foreign tread has started to return to a positive trend after confronting the adverse effect of
COVID-19 pandemic. In FY 2019-20 total export earnings decreased by 16.93 percent to US$ 33,674.09
million compared to the previous fiscal year. Export earnings stood at US$ 35,180.81 million during
July-May of FY 2020-21, which is 13.64 percent higher than the export earnings in the same period of
previous fiscal year. The recent setback of exports growth transpired from the lack of external demand
due to global pandemic situation of COVID-19 is gradually recovering and is expected to restore a
positive growth in the coming months. During the period of July-May 2021, commodity-wise growth of
export earnings show that, export earnings for almost all the commodities have increased compare to the
same period of previous fiscal year. The total import payments (c&f) stood at US$ 52,489.90 million in
FY2020-21 (July-April), which was 13.02 percent higher than the import payments of the same period of
the preceding fiscal year. The trade deficit widened mainly due to increase in the value of import. The
current account balance incurred a deficit of US$ 47 million during July-April 2021, which was a
surplus of US$ 125 million during July-March 2021. However, this deficit was improved compared to the
deficit of US$ 3,772 million during July-April, 2020. Despite the deficit of current account balance, the
overall balance achieved a significant surplus of US$ 7,498 million during July-April, 2021 as compared
to the surplus of US$ 713 million during July-April 2020, stemmed by the surplus in capital and financial
account. Due to the surplus in the overall balance, the foreign exchange reserve reached in a new height.
The foreign exchange reserve stood at US$ 45 billion at the end of April 2021. At this time, the exchange
rate of Taka depreciated marginally by 0.03 percent against US dollar. The process of reducing import
tariff rate of Bangladesh is still continued in FY2020-21 in order to increase the efficiency of the
indigenous industries and makes consistency with the process of world-wide tariff reduction. The
Ministry of Commerce has undertaken initiatives to conclude more PTA/FTA in order to overcome the
challenges of graduation after 2024.
Global Trade economies is expected to reach at 9.1 percent and

The COVID-19 pandemic shows an 6.4 percent in 2021 and 2022 respectively.
unprecedented disruption to the world trade, as Likewise, export of the advanced economies is
production and consumption are scaled back expected to reach at 7.9 percent and 6.4 percent
across the countries. However, prospects for a during the same period. On the other hand, the
quick recovery in world trade have improved as growth of import in emerging markets and
merchandise trade expanded more rapidly than developing economies will increased 9.0 percent
expected in the second half of last year. in 2021 and expected to moderate at 7.4 percent
According to forecasts of IMF World Economic in 2022. Likewise, export growth in emerging
Outlook, April 2021, the growth of global trade markets and developing economies will increase
volume of goods and services will sharply to 7.6 percent in 2021 and expected to reach at
increase to 8.4 percent in 2021 from a contraction 6.0 percent in 2022. The trend of growth of world
of 8.5 percent in 2020 and moderating 6.5 trade volume is shown in the Table 6.1
percent in 2022. Growth of import in advanced
Chapter 6: External Sector | 75

Table 6.1: World Trade Volume

(Percent Change)
Actual Projections
2019 2020 2021 2022
World Trade Volume (Goods and Services) 0.9 -8.5 8.4 6.5
Imports
Advanced Economies 1.7 -9.1 9.1 6.4
Emerging and Developing Economies -1.0 -8.6 9.0 7.4
Exports
Advanced Economies 1.3 -9.5 7.9 6.4
Emerging and Developing Economies 0.5 -5.7 7.6 6.0
Source: World Economic Outlook, April 2021, IMF
Balance of Payments (BOP) million as compared to US$ 14,222 million in the

corresponding period of the last fiscal year.
During FY 2019-20, merchandise exports and
imports saw a sharp contraction in line with the The trend of trade balance from FY 2014-15 to
contraction in global trade. The decline in export FY 2020-21 (July-April) has been shown in
outweighed that in imports-leading to increase Figure 6.1 and the overall balance of payments
trade deficit of US$ 17,858 million from US$ position from FY 2014-15 to FY 2020-21 has
15,835 million in previous year. The trade deficit been shown in Table 6.2. Detail of the Balance of
during July 2020 to April 2021 was US$ 17,227 Payment (BOP) has been shown in Appendix 55.
Figure 6.1: Trade Balance
Trade Balance (Million US$) Exports f.o.b. (%) Import, f.o.b. (%)
0 30.0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
-2000 25.0
-4000 20.0
-6000 15.0
-8000 10.0
Million US$
Percent(%)
-10000 5.0
-12000 0.0
-14000 -5.0
-16000 -10.0
-18000 -15.0
-20000 -20.0
* July- April, 2021

Table 6.2: Balance of Payments

(In million US$)
Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2019-20* 2020-21*
Trade balance -6965 -6460 -9472 -18178 -15835 -17858 -14222 -17227
Exports f.o.b. (including EPZ) 30697 33441 34019 36285 39604 32832 28752 31331
Import, f.o.b. (including EPZ) 37662 39901 43491 54463 55439 50690 42974 48558
Services (net) -3186 -2708 -3288 -4201 -3176 -2541 -2266 -1149
Primary income (net) -2252 -1915 -1870 -2641 -2382 -3106 -2579 -2798
Of which Govt. interest payments 366 382 384 597 758 978 855 817
Secondary income (net) 15895 15345 13299 15453 16903 18782 15295 21127
of which workers' remittances 15820 15278 13240 15402 16862 18763 14691 20463
Current account balance 3492 4262 -1331 -9567 -4490 -4723 -3772 -47
Capital account 496 464 400 331 239 256 207 127
Financial account 1267 944 4247 9011 5130 7537 4476 7867
Of which FDI (net) 2525 2502 3038 3290 4946 3233 1111 1468
Portfolio investment (net) 379 139 457 365 224 191 31 -220
Other investment (net) -284 -480 2137 7128 3108 5872 3334 6619
Errors and omission -882 -634 -147 -632 -700 -145 -198 -449
Overall balance 4373 5036 3169 -857 179 2925 713 7498
Source: Bangladesh Bank* July-April, 2021.
Deficit in net services receipts was US$ 2,541 balance was mainly due to increase in the value
million in FY 2019-20, which was US$ 3,176 of import. However, this deficit was improved
million in FY 2018-19. During July-April 2021, compared to the deficit of US$ 3,772 million
services net registered a deficit of US$ 1,149 during July-April, 2020. Despite the deficit of
million, which was US$ 2,266 million during the current account balance, the overall balance
same period of previous fiscal year showing an achieved a significant surplus of US$ 7,498
improvement of services receipt of the country. million during July-April, 2021 as compared to
the surplus of US$ 713 million during July-April
The current account balance incurred a deficit of
2020, stemmed by the surplus in capital and
US$ 47 million during July-April 2021, which
financial account. The trend of current account
was a surplus of US$ 125 million during July-
balance, capital and financial account and overall
March 2021. This deficit in current account
balance are shown in Figure 6.2.
Figure 6.2: Balance of Payments (BOP)
Current Account Balance Capital and Financial Account Overall Balance
15000
10000
5000
Million US$
0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
-5000
-10000
-15000
* July-April, 2021

Commodity-wise Export Earnings growth during the period. Among the exported
items agricultural products (16.13%), chemical
The total export earnings for FY 2019-20 stood at
products (33.28%), leather and leather products
US$ 33,674.09 million, which is 16.93 percent
(14.43%), jute and jute goods (33.23%), knitwear
lower than the previous fiscal year. Export
(20.55%), woven garments (1.18%), home textile
earnings stood at US$ 35,180.81 million during
(54.76%) and engineering products (79.21%) etc.
July-May of FY 2020-21, which is 13.64 percent
have increased compare to the same period of last
higher than the export earnings in the same period
fiscal year. Commodity-wise share of export
of FY 2019-20. Moreover, commodity-wise
earnings in total export earnings and export growth
growth of export earnings showed that, almost all
from FY2018-19 to FY2020-21 (up to May) are
of the exported commodities recorded positive
shown in Table 6.3.
Table 6.3: Commodity-wise Share and Growth of Export Earnings
(Million US$)
Percentage of Total
Export Earnings
Commodities Export Growth*
2018-19 2019-20 2019-20* 2020-21* 2019-20* 2020-21*
A. Primary Commodities: 1409.36 1318.21 1206.85 1336.87 3.90 3.80 10.77
1. Frozen and Live Fish 500.4 456.15 426.69 430.88 1.38 1.22 0.98
2. Agricultural Products 908.96 862.06 780.16 905.99 2.52 2.58 16.13
B. Manufactured Commodities 39125.68 32355.88 29752.29 33843.94 96.10 96.20 13.75
3. Chemical Products 205.18 198.86 182.76 243.59 0.59 0.69 33.28
4. Leather & Leather Products 1019.78 797.6 739.39 846.08 2.39 2.40 14.43
5. Handicrafts 19.95 20.52 18.47 31.73 0.06 0.09 71.79
6. Jute & Jute goods 816.27 882.35 817.97 1089.81 2.64 3.10 33.23
7. Knitwear 16888.54 13908 12743.05 15362.32 41.16 43.67 20.55
8. Woven Garments 17244.73 14041.19 12965.88 13199.53 41.88 37.52 1.80
9. Home Textile 851.72 758.91 670.97 1038.36 2.17 2.95 54.76
10. Engineering Products 341.3 292.92 270.35 484.49 0.87 1.38 79.21
11. Other Manufacturing Products 1738.21 1455.53 1343.45 1548.03 4.34 4.40 15.23
Grand Total (A+B) 40535.04 33674.09 30959.14 35180.81 100.00 100.00 13.64
Source: Export Promotion Bureau (EPB), Ministry of Commerce.
Note: Based on Custom Records, *July-May
Country-wise Export Earnings and 15.4 percent respectively of country’s total

export earnings. The major commodities
USA and Germany recorded the top position in
exported to USA and Germany were woven
respect of importing commodities from
garments, knitwear, frozen shrimp, cap, home
Bangladesh. During the time, export earnings to
textile, etc. The other major destinations of our
USA and Germany stood at US$ 6,278.95
exports were UK (9.8%) and France (5.0%). The
million and US$ 5430.1 million respectively in
country-wise export earnings have been shown in
FY 2020-21 (July-May), which were 17.8 percent
Table 6.4.

Table 6.4: Country-wise Export Earnings

(In million USD)
FY USA UK Germany France Belgium Italy Netherland Canada Japan Others Total
2010-11 5107.5 2065.4 3438.7 1538.0 666.2 866.4 1107.1 944.7 434.1 6760.1 22928.2
2011-12 5100.9 2444.6 3689.0 1380.4 742.0 977.4 691.3 993.7 600.5 7682.2 24301.9
2012-13 5419.6 2764.9 3962.6 1513.9 730.8 1036.6 712.5 1090.0 750.3 9046.2 27027.4
2013-14 5583.6 2917.7 4720.5 1677.7 970.5 1332.4 858.1 1099.6 862.1 10164.8 30187.0
2014-15 5783.4 3205.5 4705.4 1743.5 975.1 1382.4 840.3 1029.1 915.2 10629.0 31208.9
2015-16 6220.7 3809.7 4988.1 1852.2 1015.3 1385.7 845.9 1112.9 1079.6 11947.2 34257.2
2016-17 5846.6 3569.3 5475.7 1892.6 918.9 1463.0 1045.7 1079.2 1013.0 12352.1 34655.9
2017-18 5983.3 3989.1 5890.7 2005.0 877.9 1559.9 1205.4 1118.7 1131.9 12906.2 36668.2
2018-19 6876.3 4169.3 6173.2 2217.6 946.9 1643.1 1278.7 1339.8 1365.7 14524.4 40535.0
2019-20 5832.4 3453.9 5099.2 1703.6 723.4 1282.8 1098.7 1000.5 1200.8 12278.9 33674.1
2020-21* 6278.95 3450.34 5430.1 1768.15 638.25 1186.01 1145.04 1045.0 1085.16 13153.82 35180.8
Share(%)
2019-20 17.3 10.3 15.1 5.1 2.1 3.8 3.3 3.0 3.6 36.5 100.0
2020-21* 17.8 9.8 15.4 5.0 1.8 3.4 3.3 3.0 3.1 37.4 100.0
Source: Export Promotion Bureau (EPB), Ministry of Commerce.
Note: Based on Custom Records, * July-May 2021
various activities including financial
Some Ongoing Activities for Export incentives for the development of these
Promotion sectors are being implemented. Along with
 Cash incentives: In order to encourage this, separate policies are being formulated in
exports and export of commodities cash the relevant sectors to encourage sector-
incentive is being provided to the exporters. based exports.
This facility is being extended to new  Active Pharmaceutical Ingredients (API):
products as well. As a result, the export of Due to the patent waiver of LDCs on
agricultural products and processed foods, pharmaceutical products under the WTO
frozen shrimp, potato, handicrafts, jute Trips contract on 31 December 2032, the use
goods, leather goods, light engineering of patent waiver facilities has opened up
products and other products are increasing. opportunities for the country to get immense
Considering this, cash incentive is being improvement in medical exports. Because we
provided from 2 percent to 20 percent in 36 do not have our own Active Pharmaceutical
products. Ingredient, about 95 percent of the APIs used
 Diversification of export products: The for therapeutic have to be imported. Our
government is taking various initiatives to pharmaceutical industry will not be durable
differentiate the export product. Out of these, based on imported raw materials. On the
significant activities are identified such as the other hand, there is a probability of
potential products as 'highest priority sector' increasing the price of medicines in the end
and 'special development sector', declaration of the waiver facility. That is why it is
of ‘product of the year' and working closely essential to produce the raw material of the
with the expansion of the market of these medicine industry in our country. In addition,
products and giving special facilities. In 2017 the developed and developing countries,
‘leather products including paddock’, in 2018 which have to give remediation to the rights
‘raw materials’ and in 2019 ‘Agricultural and holders to create patented medicinal (API) in
Agricultural Processed Products’ and in 2020 their own country, they will be interested to
‘light engineering products’ has been invest in Bangladesh to take advantage of
declared as product of the year. Besides, Trips Waiver. In this context, in order to

create business and investment-friendly  Setting up new commercial wing: At

environment to increase productivity, export present there are 23 commercial wings are
diversification and encouraging domestic and performing in 22 countries. In addition, an
foreign investment through sustainable official from the Ministry of Foreign Affairs
industrialization in the API sector, the has been assigned the responsibility to
Ministry of Commerce has published preserve the commercial interests of
‘National Active Pharmaceutical Ingredients Bangladesh in those missions where
and Laboratory Reagent Production and commercial wings are not created. With these
Export Policy’. Activities are currently being officials, the Ministry of Commerce has
implemented to implement the policy. continued to make intensive business efforts
 Diversification of export market: Trade to further accelerate the commercial
delegation is being sent to different countries activities.
of the world, including the participation of Commodity-wise Import Payments
international trade fairs, to increase exports The total import payments (c&f) for FY 2019-20
through diversification of products as well as stood at US$ 54,785 million, which was 8.6
expansion of the market. Besides, business percent lower than the previous fiscal year.
delegation yet to send Morocco, Egypt, Country's total import payments (c&f) stood at
Tunisia, Algeria, Russia and CIS, Brazil, US$ 52,489.9 million in FY 2020-21 (July-
Chile, Colombia etc. with the representation April), which was 13.02 percent higher than the
of public and private to explore new markets. import payments of US$ 46,443.4 million in the
Due to COVID-19 pandemic, it was not same period of the preceding fiscal year.
possible to participate in International trade Commodity-wise import payments from FY
fair during FY 2020-21. 2013-14 to FY 2020-21 (July-April) have been
shown in Table 6.5.
Table 6.5: Commodity-wise Import Payments

(In million USD)
Commodity 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2019-20* 2020-21*
1. Major Primary Commodities 5327 4477 4227 4725 7270 5846 6548 5523 8361
Rice 347 508 113 89 1605 115 22 17 697
Wheat 1118 983 949 1197 1494 1437 1651 1449 1583
Oil Seeds 508 374 534 432 571 796 1183 951 1045
Crude Petroleum 929 316 386 478 365 416 731 583 2538
Cotton 2425 2296 2245 2529 3235 3082 2961 2523 2498
2. Major Industrial Commodities 9475 7906 8403 8894 10818 12185 11145 9095 9995
Edible Oil 1761 924 1450 1626 1863 1656 1617 1383 1544
Petroleum Products 4070 2076 2275 2898 3652 4562 4627 3325 4747
Fertilizer 1026 1339 1117 737 1006 1301 1035 998 1160
Clinker 619 638 574 644 766 993 879 814 875
Staple Fiber 493 1078 1018 1017 1180 1228 1086 945 835
Yarn 1506 1851 1969 1972 2351 2445 1901 1629 835
3. Capital Machinery 2332 3321 3556 3817 5462 5413 3581 9675 10174
4. Others Commodities (including EPZ) 23598 25000 26936 29569 35315 36471 33511 22150 23960
Total (1+2+3+4) 40732 40704 43122 47005 58865 59915 54785 46443 52490
% Change (over the corresponding year) 19.5 -0.1 5.9 9.0 25.2 1.8 -8.6 - 13.02
Source: Compiled by Bangladesh Bank using data of National Board of Revenue (NBR), *July-April
Note: Data from FY 2011-12 to FY 2013-14 is based on banking records and data from FY 2014-15 is based on custom records
Country-wise Import Payments China. India was the second largest source of
In terms of value of total imported commodities, import (16.03%) while Japan held the third
China secured the first position for our import. position (3.89%). Country-wise import payments
Up to February of FY 2020-21, 25.91 percent of have been shown in Table 6.6.
the total imported commodities came from

Table 6.6: Country-wise Import Payments

FY India China Singapore Japan Hong Taiwan South USA Malaysia Others Total
Kong Korea
2010-11 4569 5918 1298 1308 777 731 1124 677 1760 15500 33658
2011-12 4743 6440 1710 1455 703 792 1544 709 1406 16014 35516
2012-13 4777 6328 1422 1180 612 733 1296 538 1903 15295 34084
2013-14 5985 7550 2407 1291 762 897 1182 792 2084 17782 40732
2014-15 5588 11268 2894 1816 881 1060 1417 880 1361 13539 40704
2015-16 5722 12582 1203 2075 827 1004 1417 1134 1184 15974 43122
2016-17 6336 13292 2113 2031 726 990 1483 1358 1040 17636 47005
2017-18 8941 15937 2255 2422 676 1129 1907 2160 1342 22096 58865
2018-19 8242 17265 2274 2254 614 1175 1618 2370 1520 22583 59915
2019-20 6663 14360 1883 2092 382 1084 1525 2839 1623 22334 54785
2020-21* 6424 10383 1429 1557 186 602 809 1405 971 16303 40069
Share (%)
2019-20 12.16 26.21 3.44 3.82 0.70 1.98 2.78 5.18 2.96 40.77 100.00
2020-21* 16.03 25.91 3.57 3.89 0.46 1.50 2.02 3.51 2.42 40.69 100.00
Source: Bangladesh Bank and National Board of Revenue (NBR), * July -February
Foreign Exchange Reserve foreign exchange reserves increased to US$

The surplus in the overall balance helped to 46.39 billion at the end of June 2021, which is
maintain the foreign exchange reserve up. On 30 sufficient for maintaining 8.5 months of import
June 2020, the foreign exchange reserves reached coverage. Table 6.7 and Figure 6.3 show the
US$ 36.04 billion. On 30 June 2019, the foreign foreign exchange reserve position at the end of
exchange reserve was US$ 32.72 billion. The June 2011 to end of June 2021.
Figure 6.3: Foreign Exchange Reserves and Month of Import Coverage
Table 6.7: Foreign Exchange Reserve

Year End Amount
(In million US$)
2010-11 10912
2011-12 10364
2012-13 15315
2013-14 21508
2014-15 25020
2015-16 30168
2016-17 33493
2017-18 32943
2018-19 32717
2019-20 36037
2020-21 46391
Exchange Rate 84.78 per US$ in FY 2019-20. The weighted

average of Taka-Dollar exchange rates from FY
Bangladesh observed overall 0.03 percent
2010-11 to FY 2020-21 has been shown in Table
depreciation of Taka against US dollar in FY
6.8 and Figure 6.4.
2020-21 compare to that of the FY 2019-20. The
weighted average inter-bank rate stood at Taka
84.81 per US$ in FY 2020-21, which was Taka

Table 6.8: Weighted Average

Exchange Rate (Taka per US$)
Weighted
FY Average exchange
Rate
2010-11 71.17
2011-12 79.10
2012-13 79.93
2013-14 77.72
2014-15 77.67
2015-16 78.26
2016-17 79.12
2017-18 82.10
2018-19 84.03
2019-20 84.78
2020-21 84.81
Tariff Regime Duty concessions and general exemptions to the

Bangladesh has been following the Most applied MFN tariff rates are being provided in
Favoured Nation (MFN) tariff rate from FY accordance with Section 20 of Customs Act on a
2000-01 in order to facilitate smooth case-by-case basis through Gazette notification.
implementation of the import policy of the At present, three types of tariff concessions on
Government. Tariff structure from FY 2000-01 to these MFN rates are being provided: (i) import
FY 2020-21 has been presented in the Table 6.9 under different bilateral/regional trade
below: agreements, (ii) imports of capital machinery and
Table 6.9: Tariff structure from FY 2000-01 spares/parts by registered industrial consumers
to FY 2020-21
including export-oriented industries and (iii)
Maximum Number of
Operative Tariff import of raw material for a specific use or user
FY Tariff Operative
(%)
Rate (%) Tariff Slabs (i.e. end use provisions) such as dairy and
2000-01 0, 5, 15, 25, 37.5 37.5 5
2001-02 0, 5, 15, 25, 37.5 37.5 5 poultry, pharmaceuticals, leather and textile
2002-03 0, 7.5, 15, 22.5, 32.5 32.5 5 industries. At present tariff concession are being
2003-04 0, 7.5, 15, 22.5, 30 30 5 provided along with MFN tariff rate in respect of
2004-05 0, 7.5, 15, 25 25 4
2005-06 0, 7.5, 15, 25 25 4 following goods:
2006-07 0, 5, 12, 25 25 4  Capital machinery and parts imported by
2007-08 0, 10, 15, 25 25 4
2008-09 0, 3, 7, 12, 25 25 5
export oriented Industry.
2009-10 0, 3, 5, 12, 25 25 5  Capital machinery and parts by registered
2010-11 0, 3, 5, 12, 25 25 5 Industry.
2011-12 0, 3, 5, 12, 25 25 5  Raw materials imported by Pharmaceutical
2012-13 0, 3, 5, 12, 25 25 5 Industry.
2013-14 0, 2, 5, 10, 25 25 5
2014-15 0, 2, 5, 10, 25 25 5
 Raw materials used in Textile Industry.
2015-16 0, 1, 2, 5, 10, 25 25 6  Accessories used in Agriculture Sector.
2016-17 0, 1, 5, 10, 15, 25 25 6  Computer and Computer accessories.
2017-18 0, 1, 5, 10, 15, 25 25 6  Medical equipment and accessories.
2018-19 0, 1, 5, 10, 15, 25 25 6
2019-20 0, 1, 5, 10, 15, 25 25 6
 Newsprint imported by newspaper and
2020-21 0, 1, 5, 10, 15, 25 25 6 periodical publishers.
Source: NBR

 Raw materials used by the insecticide World Trade Organisation (WTO)

manufacturers which used in Agriculture
WTO cell, under the Ministry of Commerce
 Machinery, parts and accessories imported by
Poultry Firm. primarily is mandated to discharge all functions
related to the World Trade Organisation (WTO).
Reduction of Tariff
Bangladesh is a founding member of WTO.
The process of reducing import tariff rate of
Implementing WTO rules and regulations,
Bangladesh started since FY1991-92 is still
availing of the opportunities under the WTO,
continued in FY2020-21 in order increase the
building trade capacities and protecting interest
efficiency of the indigenous industries and makes
of the state in international trade regime are
consistency with the process of world-wide tariff
important of those responsibilities. Some
reduction. The Un-weighted import average tariff
remarkable constituents are being put here
rate in FY1991-92 was 57.22 percent which
together:
decreased at 14.77 percent in FY2020-21. At
present, ad-volerum duties are being imposed on  The WTO, an international body is
99.57 percent tariff line. Specific duties are in facilitating rule-based multilateral trading
existence at different rate on some products such system across the world in order to expedite
as sugar, cement clinker, bitumen, gold, steel international trade in an easy and rapid
products-scraped ship against 0.43 percent tariff manner. Due to the expansion of trade across
line. Value Added Tax, Regulatory Duty, the nations, the WTO commands over huge
significance thus becoming a platform of
Supplementary Duty, Advanced Income Tax and
talks and negotiations where each country
Advanced Trade VAT are imposed on importable
has equal rights. Against these backdrops, the
goods in addition with Customs Duty. The MFN
WTO cell is ordained to coordinate and
Un-weighted import average is given in Table
operate among the different stratum of trade
6.10 below:
entities (both public and private) that fall
Table 6.10: MFN Un-weighted Import Average within the purview of WTO ambit.
FY MFN Un-weighted Average (%)  In order to raise awareness among the
2000-01 21.39 stakeholders concerned, WTO cell conducts
2001-2 21.01 routine workshop/training programme and
2002-03 19.88 symposium every year. Meanwhile,
2003-04 18.85
orientations on TRIPS, SPS, Trade in
2004-05 16.53
2005-06 16.39
Services, Anti-dumping etc. were held.
2006-07 14.87 Besides, WTO cell is also monitoring the
2007-08 17.26 implementation of the agreements of WTO
2008-09 15.12 i.e. Agreement on Agriculture, Agreement on
2009-10 14.97 SPS, Agreement on TBT, Agreement on
2010-11 14.85 TRIMS Agreement on Rules of Origin,
2011-12 14.83
Agreement on Safeguard, Agreement on
2012-13 15.10
2013-14 14.44 Subsidies and Countervailing Measures etc.
2014-15 14.44 Non-Agriculture Market Access (NAMA)
2015-16 14.37 have been organised by WTO Cell. Through
2016-17 14.61 this, over 1200 officials from both public and
2017-18 14.56 private sectors, concern teachers from
2018-19 14.60
different universities, representatives from
2019-20 14.77
2020-21 14.78 chambers of Commerce and journalists have
Source: NBR been provided training on trade.

 Due to Bangladesh's strong role as LDC submitted notification with a view removing Para
coordinator in various WTO Ministerial tariff and Non-Tariff barriers within SAFTA
Conferences, all developed countries except a region. Concerned COE continues negotiation to
few are providing almost 100 percent Duty- remove/reduce such barriers progressively. If
Free and Quota-Free (DFQF) market access such barriers are removed through this
to LDC products under the WTO. negotiation and phase-III be implemented then
Developing countries such as China, India, trade in this region will significantly increase.
South Korea, Australia, Japan, Chile and
Thailand also have endorsed DFQF facilities. SAARC Agreement on Trade in Service
(SATIS)
 Due to the successful negotiations of the
SAARC Agreement on Trade in Service (SATIS)
Least Developed Countries (LDCs) including
was signed during the Sixteenth SAARC Summit
Bangladesh, the existing intellectual property
held in Thimphu on 28-29 April 2010. The offer
exemption in 2015 has been extended until 1
January 2033. As a result, the development list and request list of service have been
of the Pharmaceutical Industry in Bangladesh exchanged among the member countries. All the
will continue and new horizons will be member states have ratified Agreement and
opened in the export of medicines. exchanged the offer list and request list of service
with a view to finalise the schedules of
Regional Trade Agreements (RTAs) commitments. In the meantime Bangladesh has
South Asian Free Trade Area (SAFTA)
offered 2 service sectors (telecom and tourism)
The activities of the sensitive lists and trade and submitted its schedules of commitments.
liberalisation programme (TLP) of the South Bangladesh has also requested to all the member
Asian Free Trade Area (SAFTA) agreement states to liberalise ten service sectors. Discussion
came into force on 1 July, 2006 has been and negotiations among the member states are
continuing. Under Trade Liberalisation going on for finalising the Schedules of
Programme (TLP) Phase-II, all member states Commitments. Bangladesh would be benefitted
reduced their sensitive list by 20 percent, which in the area of investment and trade after
has been effected from 1 January 2012. implementation of the Agreement. According to
Bangladesh, as an LDC enjoys duty free access the 11th Expert Group meeting held in Islamabad,
to India for all products except 25 items. The Pakistan on 5 July 2015 Afghanistan,
number of products under sensitive list of Bangladesh, India, Nepal and Bhutan have
Bangladesh is 1,031 for non LDCs and 1,022 for prepared their primary offer list. All member
LDCs. In the special meeting of SAFTA states except Pakistan have sent their schedule of
Committee of Expert (COE) held in Islamabad, commitment to the SAARC Secretariat.
Pakistan on 4 July 2015 it was proposed by Successful implementation of this agreement will
Pakistan, India, Bhutan and Maldives that within increase the trade of Bangladesh in service
2020 number of products in the sensitive list will sector.
be reduced to 100. In this context, Afghanistan
Bay of Bengal Initiative for Multi-Sectoral
proposed to reduce their sensitive list to 235
Technical and Economic Cooperation
within 2030. At present, the activities of TLP (BIMSTEC)
Phase III are underway for further reduction of Bay of Bengal Initiative for Multi-Sectoral
the number of items from the sensitive lists of the Technical and Economic Cooperation
member countries. Under SAFTA Bangladesh is (BIMSTEC) is a regional organisation comprised
the second highest exporting country after India. the countries namely Bangladesh, India,
Every member countries of SAFTA have Myanmar, Sri Lanka, Thailand, Nepal and

Bhutan. Primarily this economic organisation Asia-Pacific Trade Agreement (APTA)

named as BIST-EC (Bangladesh, India, Sri
With the initiatives taken by the ESCAP, the
Lanka and Thailand Economic Cooperation) was
seven countries in the Asia-Pacific region namely
formed in 1997. In the same year as a result of
Bangladesh, India, Laos, South Korea, Sri Lanka,
Myanmar’s joining, the alliance was renamed as
Philippines and Thailand established Bangkok
BIMST-EC (Bangladesh, India, Myanmar, Sri
Agreement in 1975. The objective of the
Lanka and Thailand Economic Cooperation). In
Agreement is to enhance intra-regional trade
2004 Nepal and Bhutan joined this alliance and it
through the exchange of tariff concessions among
was renamed as BIMSTEC.
member countries. Among the cited members of
A Framework Agreement was signed in February the APTA, Philippines and Thailand have not yet
2004 with a view for forming BIMSTEC Free been ratified the agreement. This agreement has
Trade Area. In the Framework Agreement trade gained a new momentum as a result of China’s
in goods, trade in services and investment sectors joining in 2001. After China’s joining 3rd round
were included. Although the Agreement trade in of negotiation started and the agreement was
goods was almost finalised, discussion on trade renamed as Asia-Pacific Trade Agreement
in services and investment sectors were going on. (APTA).
In this agreement 14 sectors/sub-sectors have
been included, namely- (i) Trade and Investment In these trade negotiations, members have
(ii) Technology (iii) Energy (iv) Transportation exchanged tariff preferences on a notable number
and Communication (v) Tourism (vi) Fisheries of products. In the first APTA Ministerial
(vii) Agriculture (viii) Cultural Cooperation (ix) meeting held on November 2005, this agreement
Environment and Disaster Management (x) was signed as a new agreement. The second
Public Health (xi) People-to-People Contact (xii) APTA Ministerial meeting was held in Goa,
Poverty Alleviation (xiii) Counter Terrorism and India on 26 October 2007. According to the
Transnational Crime and (xiv) Climate Change. decision of this meeting member states started 4th
BIMSTEC Trade Negotiating Committee (TNC) round of negotiation. In this negotiation tariff
has been constituted to conduct negotiations on preferences have become deeper and wider,
(i) Agreement on Trade in Goods, (ii) Agreement alongside some other issues have been included
on Trade in Services, (iii) Agreement on of them, among which Non-Tariff barriers, Trade
Investment, (iv) Agreement on Cooperation and facilitation, Service Sector and Investment are
Mutual Assistance in Customs Matters, (v) noteworthy. Framework Agreements on Trade
Protocol to Amend the Framework Agreement on Facilitation, Framework Agreement on
the BIMSTEC Free Trade Area, (vi) Agreement Investment have been signed 15 December 2009.
on Dispute Settlement Procedures and Moreover, Framework Agreement on Promotion
Mechanism. The 21st TNC meeting was held in and Liberalisation of Trade in Services has been
Dhaka, Bangladesh on 18-19 November 2018. signed on 24 August 2011.Mongolia acceded to
The meeting made significant progress in APTA in September 2020.
finalising the draft texts of three important During the Ministerial meeting held on the 13
agreements relating to BIMSTEC FTA, namely January 2017 in Bangkok, the APTA member
Agreement on Trade in Goods, Agreement on states were given tariff preference by Bangladesh
Cooperation and Mutual Assistance in Customs on 598 products where margin of preference were
Matters, and Agreement on Dispute Settlement from 10 to 70 percent and LDC members were
Procedures and Mechanisms. The Meeting also given additional preference on 4 products from
made progress on developing texts of three other 20 to 50 percent. Besides, it was also decided in
agreements relating to Investment, Services and the meeting that Member states will give tariff
Trade Facilitation. concession of at least 33%. Moreover, it was also

discussed that member states will complete Rules Bilateral Preferential/Free Trade
of Origin procedures within 1 July 2017. Agreement (PTA/FTA)
However, through Standing Committee meetings,
discussion on the draft terms of reference for the Bangladesh will lose duty-free access to
fifth round of negotiation on trade in goods is developed and developing countries as a result of
ongoing. transitioning from the Least Developed Country
to developing country. To address these
Trade Preferential System among OIC challenges, the Ministry of Commerce has taken
Countries (TPS-OIC) development activities to trade with different
Under the Framework Agreement on Trade countries. As part of these activities, initiatives
Preferential System among OIC Countries (TPS- have been taken to conclude Preferential Trade
OIC) was signed in 1997 with a view to Agreement (PTA), Free Trade Agreement (FTA)
expanding trade within the OIC countries with various commercially important countries
Bangladesh signed the concerned Rules of Origin for Bangladesh. Progress has been made in
on 25 February 2011 and ratified it on 23 June signing the Preferential Trade Agreement (PTA)
2011. Moreover, Bangladesh has sent offer list of with Nepal and Indonesia. The Ministry of
476 products on February 2012. After signing Commerce already has conducted feasibility
this agreement, utilising the preference given study to sign FTA/PTA with Malaysia, Sri
under the Rules of Origin (30 Percent) as an LDC Lanka, United States, Thailand, Japan, Lebanon,
Bangladesh will be able to increase exports to the Morocco, Canada, Association of Southeast
other member countries. Asian Nation (ASEAN) and Eurasian Economic
Union (EAEU). In addition, the ministry has
Preferential Trade Agreement among taken initiatives for conducting feasibility studies
Developing Countries (D-8 PTA) to sign FTA/PTA with Australia, the Philippines,
Eight developing OIC countries reached Nigeria, Iraq, Kenya, Sierra Leone, Senegal and
consensus to form a regional bloc on 15 June South Korea.
1997 in Istanbul, Turkey aimed at trade and Signing of Bangladesh-Bhutan Preferential
economic cooperation. The regional bloc consists Trade Agreement (BB-PTA)
of Bangladesh, Egypt, Indonesia, Iran, Malaysia,
Nigeria, Pakistan and Turkey which is in short Bhutan was the first country to recognise
known as D-8. A Preferential Trade Agreement Bangladesh as a sovereign and independent
(PTA) among D-8 Member States was signed on country. Bhutan thus bears special significance to
13 May 2006 and entered into force on 25 us. Bangladesh provided duty free market access
August 2011 after ratified by four countries to 18 Bhutanese products and reciprocally
namely Turkey, Malaysia, Iran and Nigeria. Bhutan provided duty free market access to 90
Bangladesh has ratified the preferential trade Bangladeshi products in 2010 under special
agreement in 2017. It is mentionable that till to arrangement. During the visit of Honb’le Prime
date all the member states including Bangladesh Minister of Bhutan H.E. Lyonchhen Dr. Lotay
have ratified this agreement except Egypt. As a Tshering at the invitation of Hon’ble Prime
result, Bangladesh will be given preference by Minister of Bangladesh H.E. Sheikh Hasina from
the ratifying member countries. The 6th meeting 12-15 April 2019 both the Prime Minister agreed
of the Supervisory Committee formed under D-8 to allow duty free access to additional 16 items
PTA was held virtually on 26 January 2021. It is proposed by Bhutan and 10 items proposed by
to be mentioned that the 10th D-8 Summit was Bangladesh. After the meeting of the two Prime
held virtually on 8 April, 2021. Ministers both sides expedited the process. Then
the first meeting of Trade Negotiating Committee

(TNC) for Bangladesh-Bhutan Preferential both the sides have already started the Study
Trades Agreement (BB-PTA) was held on 22-23 which is expected to be completed by April,
August 2019 in Thimphu. Both the sides finalised 2021.
the draft for a PTA after several meetings. The
Border Hat
final PTA was signed in 6 December 2020 at the
presence of the Prime Ministers of both the The decision was taken to set up a Border Hat to
countries. provide essential commodities to the people
living in the Bangladesh-India border area, who
Bangladesh-Bhutan Preferential Trade
have no haat-bazaar nearby, and to reduce
Agreement (PTA) is the first bilateral PTA of
informal trade. To this end, a Memorandum of
Bangladesh and this is the beginning of PTA.
Understanding (MoU) was signed on October 22,
The Ministry of Commerce has undertaken
2010 to establish Border Hats on the Bangladesh-
initiatives to conclude more PTA/FTA in order to
India border as part of improving the living
overcome the challenges of graduation after
standards of the people in the border areas. Under
2024.
this, a total of 4 Border Hats have been
Comprehensive Economic Partnership established on the Bangladesh-India border.
Agreement (CEPA) with India Bangladesh has objected to the establishment of
6 more Border Hearts and construction work is
Bangladesh and India signed bilateral trade
underway. Besides, joint inspection of 6 more
agreement in 1972 which was later renewed in
Border Hats has been completed. Establishment
2015 with some amendments/modification. But
of Border Hat has facilitated the purchase and
this agreement is only facilitative in nature.
sale of goods by the people of the border areas as
However, being member of SAFTA and APTA
well as reducing the informal trade of
Bangladesh is enjoying duty benefits for trade in
Bangladesh with the border countries.
goods in India. During the Commerce Secretary
level meeting held in Dhaka in February 2018 Trade and Investment Cooperation Forum
both the countries agreed to explore the Agreement (TICFA)
possibility of entering into a Comprehensive
The Trade and Investment Co-operation Forum
Economic Partnership Agreement (CEPA)
Agreement (TICFA) was signed between
covering various aspects of trade such as trade in
Bangladesh and the United States on 25
goods, trade in service, investment, e-commerce,
November 2013 to discuss trade and investment
standardisation etc. This issue was further
issues, and came into force on 30 January 2014.
discussed during the Hon’ble Prime Minister’s
The TICFA agreement has resulted in a forum for
visit to India in October 2019. India proposed a
regular discussions between the two countries.
draft Terms of Reference (ToR) for conducting
The fifth meeting of the Trade and Investment
CEPA between Bangladesh and India. The
Co-operation Forum Agreement (TICFA)
Ministry of Commerce examined the draft ToR
between Bangladesh and the United States was
and the ToR has been agreed by both the
held on 5 March 2020 in Dhaka. The meeting
Countries. India nominated Centre for Regional
focused on providing technical assistance to
Trade (CRT) on their behalf while on the other
Bangladesh in the implementation of the Trade
hand, the Ministry of Commerce has nominated
Facilitation Agreement (TFA), US investment
Bangladesh Foreign Trade Institute (BFTI) to
and technology transfer in Bangladesh, and
conduct a joint feasibility study finalised within a
providing preferential market access to
period of six months, followed by its
Bangladeshi products and services in the United
adoption/approval by both sides, within a further
States. The United States is urged to take
period of two months. It may be mentioned that
effective action in this regard.

Annexure
Annex 6.1
Summary of major changes in foreign exchange regulations during FY2020-21
Bangladesh Bank in its ongoing endeavor to further ease the foreign exchange regulations embarked upon
the following notable changes during FY2020-21 (up to February, 2021):
 Disposal of IMP Form after matching with bill of entry (B/E) electronically: Authorised Dealers
may accept B/E accessible to them through the customs automated system to dispose IMP Form on
completion of matching formalities in terms of prescribed instructions. The custom houses where
there is no automated system shall do same stated at paragraph 31, chapter 7 of GFET.
 Release of foreign exchange for online study abroad: Given the ongoing situation due to COVID-
19, AD banks have been preferred to release foreign exchange on account of study abroad under
online teaching arrangements which will be effective for 2 semesters/sessions till 21 March, 2021.
 Payment of fees for webinar solution services to conduct virtual meetings: Due to COVID-19
situation, ADs have been preferred for payments against webinar solution services and examining
accuracy of invoice and supporting documents with necessary tax cutting. AD banks adopt necessary
steps to make payments.
 Use of international cards for travels outside Bangladesh: International cards may be used for
online purchase of air tickets by cardholders having visa, where applicable, for travels of such
destinations outside Bangladesh.
 0.03 percent of the total export value will be deducted for transferring to SND account naming
‘Central of Fund (RMG)’ at Sonali Bank Ltd. Ramna Corporate Branch: According to the
guidelines issued by the Ministry of Labor and Employment, 100 percent export oriented garment
industry would deduct 0.03 percent of export value received and cashed against each work order of
the company for transferring to SND account mentioned above by lien bank from all the LCs to be
cashed in Lien Bank of various industries in the 100 percent export oriented readymade garments and
the information regarding transferring money have to inform the Secretary of Central Fund
Administration Board.
 Waiver of quarterly repayments against imports permissible under supplier’s/buyer’s credit:
To facilitate smooth settlement of imports payments, the exemption from quarterly installment
repayments will apply for other permissible deferred payments imports.
 Refinancing for imports against usance back to back LCs: Given the ongoing situation due to
COVID-19, the refinancing facilities from EDF for settlement of back to back LCs had been
established till 30 September 2020. Before seeking refinance from Bangladesh Bank, ADs shall have
to be ensured of the bona fide grounds regarding non-availability to extend usance period/refinancing
facilities for extendable tenure. The facilities shall remain valid up to 31 March 2021 for the drawing
of refinances.
 Import of Gold Jewellery: In view of the trade regulatory framework, now it has been decided that
import of gold jewellery is to be executed by Authorised Gold Dealers (AGDs) within the purview of
the Gold Policy, 2018.
 Interest rate on borrowing from Export Development Fund (EDF): Given the ongoing situation
due to COVID-19, the interest rate on EDF loans has been reduced to 1.75 percent per annum
chargeable to eligible borrowers; for disbursement till 31 March, 2021. In accordance with the

decision, ADs shall make interest payments to Bangladesh Bank at 0.75 percent per annum; the
remainder 1.00 percent per annum as before will be retained by ADs as their interest income.
 Collection of Demurrage, Detention, Handling or equivalent charges by the foreign shipping
lines/their agents for calculation of their remittable surplus: It has now been decided that the
above mentioned charges collected prior to FY 2017-18 shall be considered for calculation of surplus
earnings subject deduction of applicable taxes.
 Relaxation of foreign exchange regulation for trade transactions-extended facilities: Given the
ongoing situation due to COVID-19 pandemic, the extended period for realization of exports
proceeds shall equally be applicable for all sectors, depending on the necessity, till 31March, 2021.
 Repatriation of balances held in foreign currency accounts: This is to reiterate that the balances
held in the concerned foreign currency accounts are repatriable abroad without approval from
Bangladesh Bank. All AD banks are instructed to facilitate repatriation of fund without creating any
obstacle.
 Import of Ophthalmic Medical Equipment including Intraocular Lens on deferred/usance
basis: To facilitate the imports of Ophthalmic Medical Equipment including intraocular Lens, the
deferred/usance period under supplier’s/buyer’s credit is extended up to 180 days from existing 90
days.
 Business-to-consumer export through sales orders received on internet: To bring wider scope for
Business-to-consumer export, ADs may allow such exports of each sale on e-Commerce website up
to USD 500 or equivalent under cash on delivery/payment on shipment terms.
 Discontinuation of submission of Returns/Statements to Bangladesh Bank: To improve the ease
of doing business and reduce the cost of compliance, ADs are no longer required to submit
returns/statements in hardcopy to Bangladesh Bank. However, ADs shall continue reporting of the
same information in relevant online portals/modules of Bangladesh Bank.
 Transfer of remunerations to Foreign Currency (FC) accounts maintained by foreign nationals
employed in Bangladesh: To bring flexibility in executing transactions from FC accounts, it has
been decided that up to 75 percent of net monthly income in equivalent foreign currency may be
credited to FC accounts of the expatriate employees from Taka accounts and Exporters’ Retention
Quota (ERQ) accounts of the employers.
 Advance payments against imports under buyer’s credit: Advance payments against permissible
imports may also be executed directly by external financiers and/or offshore banking operation of
scheduled banks, subject to repayment guarantees irrespective of amount acceptable to ADs receive
from banks abroad and compliance of other relevant instruction.
 Working Capital Loans from Abroad by Foreign owned/Controlled Companies: In addition to
manufacturing enterprises, the short term borrowing may be applicable to foreign owned/controlled
companies engaged in services output activities in Bangladesh; however trading business shall not
come under this facility. Such loan may be admissible in convertible foreign currencies maximum for
6 years from the date of inception of manufacturing and/or service output activities by the borrower
enterprises.
 Endorsement of foreign exchange on passports: Endorsement on passport is applicable against
release of foreign exchange either in cash or in non-cash form like international cards, etc. both out of
eligible entitlement of travels. The endorsement is equally applicable for release of foreign in cash
irrespective of entitlement/sources to persons other than those holding foreign passports.

 Enhancement of loan limit from Export Development Fund (EDF): Given the ongoing situation
due to COVID-19, it has been decided to continue the enhanced limit of US$ 30.00 million, for
disbursement until 30 June, 2021 to member mills of BGMEA and BTMA.
 Repatriation facilities by MFSPs to ITES (Information Technology Enabled Services)
exporters: To facilitate small value ITES exports, it has been decided to allow Mobile Financial
Service Providers (MFSPs) licensed by Bangladesh Bank for repatriation of export proceeds in
association with internationally recognized OPGSPs/digital wallets and/or aggregators having
operation in multiple countries.
 Purchase of foreign currency from digital wallets of incoming tourists/passengers: To facilitate
the transaction for incoming tourists/passengers bringing money through digital wallets, it has been
decided that ADs may provide acquiring services to facilitate their transaction while visiting
Bangladesh subject to observance of several conditions. ADs shall purchase foreign currency from
wallets of incoming tourists/passenger by making payment in equivalent Taka in cash and/or one time
issuance prepaid card in Taka.\
 Financing facilities from stimulus packages to industries operating in EPZs/EZs/HTPs: Type A
and Type B industries operating in different zones may access to finance in Taka from concerned
stimulus packages. Likewise, Type C industries will be eligible for financing in Taka from stimulus
packages as admissible to such industries outside zone areas.

CHAPTER SEVEN
AGRICULTURE
Agriculture is the main source of food and nutrition for the people and a source of employment for
the rural population. In addition to the impact of climate change, the role of agriculture in
ensuring food security for a growing population from declining cultivable land is undeniable. The
government is working tirelessly to build a sustainable, safe and profitable agricultural system to
ensure food security. In the light of Vision 2041, 8th Five Year Plan, National Agricultural Policy
2018, Sustainable Development Goals, Deltaplan-2100 and other planning documents, the
government has been making all out efforts for the overall development of the agriculture sector.
At present, the government has adopted short, medium and long-term action plans to meet the
needs of the growing population in the future, keeping in view the success achieved so far in the
agricultural sector in various emergencies, including the impact of COVID-19. The total
production target of food grains in FY 2020-21 was 466.35 lakh metrictonnes (MT), which was
453.44 million MT in FY 2019-20. In the revised budget of FY 2020-21, the target for domestic
food grain procurement was 14.04 lakh MT. As of February 2021, the country has imported 3.12
lakh MT of food grains under government management. However, a total of 35.00 lakh MT (2.21
lakh MT of rice and 32.79 lakh MT of wheat) was imported in the private sector. In FY 2020-21, a
total of Tk. 16,180.82 crore was disbursed as against the target of Tk. 26,292 crore till February
2021, which is about 61.54 percent of the target. In order to increase the productivity in response
to the effects of corona, subsidies on agricultural inputs have been increased, agricultural inputs
have been made available and the scope of agricultural credit has been facilitated. In view of the
increase in domestic agricultural production, Tk. 9,500 crore was allocated in the budget of FY
2020-21 for subsidising fertilisers and other agricultural activities to provide assistance to
farmers. A total of 45.03 lakh MT of fish was produced from inland water bodies and marine
sources in FY 2019-20, which is targeted 45.52 lakh MT in FY 2020-21. As of February 2021 in
FY 2020-21, 1.04 crore and 26.71 crore dose vaccines have been produced for cattle and poultry
respectively.
As a result of the adoption of favorable population, climate change, and the impact of the
agricultural policies and strategies by the COVID-19 epidemic. At this time, Bangladesh
government, agriculture is working as one of the has risen from fourth place to third place in the
driving forces of the economy of Bangladesh. world in rice production. As a result, the
Agriculture is playing an important role in food foundation of food security in the country has
grain production, food security, employment and been strengthened. Agricultural research has
export trade. According to the Provisional been evaluated and given importance by
estimate of BBS, in FY 2020-21 agriculture awarding the Independence medal to the
contributes about 13.47 percent to the GDP. The Bangladesh Agricultural Research Council this
agriculture sector is playing an important role in year. This recognition will play a role in
increasing productivity, ensuring sustainable increasing agricultural research and food
food security and creating employment production.
opportunities. The role of agriculture in reducing
Management of Agriculture
rural poverty and accelerating national growth is
undeniable. Crop yields continue to increase Achieving self-sufficiency in food as well as
instead of declining arable land, growing ensuring nutritious and safe food to a large
Chapter 7- Agriculture | 91
section of the population and establishing a Short, medium and long-term action plans have
profitable agricultural system is one of the main been adopted to ensure food security of the
goals of the government. To attain this goal, the people of the country by increasing agricultural
government has taken timely policies, action production in response to various emergencies
plans and steps. With the highest consideration including the impact caused by the global
for the development of agriculture and the epidemic coronavirus (COVID-19). As per the
welfare of the farmers, the government is directions of Hon'ble Prime Minister, necessary
continuing its all-out efforts for the overall steps have been taken to increase the production
development of the agricultural sector in the light of food in every inch of cultivable land.
of Vision 2041, 8th Five Year Plan, National Considering the movement of workers in the
Agriculture Policy 2018, National Agricultural corona situation and the issue of early floods,
Extension Policy 2020, National Agricultural agricultural machinery combined harvesters and
Mechanisation Policy 2020, Master Plan for reapers have been allotted on an urgent basis for
Agricultural Development in the South, harvesting paddy in seven districts of the haor
Sustainable Development Goals, Deltaplan-2100 region. To combat the effects of corona,
and other planning documents. In order to agricultural subsidies, incentives and support
increase crop production and productivity, cards for fertilisers, seeds and other agricultural
improved and adversity tolerant varieties are inputs, reduction in irrigation prices,
being developed and expanded rapidly, small and transportation of agricultural commodities at
marginal farmers are being provided incentives reduced fares, support for agricultural
for natural disasters, free and subsidised high rehabilitation, special agriculture credit at low
yielding varieties are being distributed among interests and easy terms, have been provided.
farmers and development assistance is being
Food Grains Production
provided in agricultural inputs including
According to the combine estimate of BBS,
fertilisers. Along with this, mechanisation of
Ministry of Agriculture and Department of
agriculture, innovation of new cropping systems,
Agriculture Extension (DAE), the volume of food
development of irrigation system,
grains production in FY 2019-20 stood at 453.44
implementation of integrated pest management
lakh MT, of which Aus accounted for 30.12 lakh
(IPM) system, production of transgenic crops etc.
MT, Aman 155.02 lakh MT, Boro 201.81 lakh
have been undertaken. Measures have been
MT and wheat 12.46 lakh MT. In FY 2020-21
taken for targeted agricultural expansion, quality
total food grains production target is 466.35 lakh
control of agricultural products, adequate crop
MT, of which Aus 34.52 lakh MT, Aman 156.11
protection measures, development of marketing
lakh MT, Boro 205.81 lakh MT and wheat 12.99
system, and ensuring fair prices for all
lakh MT approximately. Table 7.1 and Figure 7.1
agricultural products.
shows the food grains production status.
Table 7.1: Food Grains Production
(In lakh MT.)
Food Grains 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Aus 23.26 23.28 22.89 21.34 27.09 27.20 30.12 34.52
Amon 130.23 131.90 134.83 136.56 139.94 140.55 155.02 156.11
Boro 190.07 191.92 189.38 180.16 195.76 203.89 201.81 205.81
Total Rice 343.56 347.10 347.10 338.06 362.79 373.63 386.95 396.44
Wheat 13.02 13.48 13.48 13.12 10.99 11.48 12.46 12.99
Maize 25.16 23.61 27.59 35.78 38.93 46.99 54.02 56.93
Total 381.74 384.19 388.17 386.96 412.71 432.11 453.44 466.35
Source: Bangladesh Bureau of Statistics (BBS), Ministry of Agriculture.* target.
Figure 7.1: Food Grains Production
500 453 466

432
450 413
388 387 54 57
400 39 47 12 13
28 36 11 11
350 13 13
300 202 206
Matrictonnes
196 204
250 189 180
200
150
100 140 141 155 156
135 137
50
0 23 21 27 27 30 35
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Aus Amon Boro Wheat Maize Total
* target
Food Budget imported food grain was 38.12 lakh MT (3.17

lakh MT rice and 34.95 lakh MT wheat).
Internal Procurement of Food Grains
Public Food Distribution
In the FY 2019-20, the revised budget of public
food grain procurement was 22.69 lakh MT Under the Public Food Distribution System
(20.74 lakh MT rice and 1.95 lakh MT wheat). (PFDS) government distributes food grains to
Out of this targeted amount,18.05 lakh MT rice prioritised groups of employees and low- income
was domestically procured from Boro and Aman people through different channels. Under this
seasons. About 0.64 lakh MT wheat was program, food grains are distributed through
procured from last Wheat season. monetised channel that includes subsidised
distribution program such as-Open Market Sale
In FY 2020-21, the revised budget for public
(OMS), Essential Priority (EP), Others Priority
food grains procurement has been set at 14.04
(OP), Food friendly program (Khaddya bandhob
lakh MT (13.04 lakh MT rice and 1.00 lakh MT
Kormosuchi), LE program and so on. On the
wheat). Against this target, 6.55 lakh MT rice has
other hand, non-monetised channels are all the
been procured from Boro and Aman up to 28
social safety net programs like Food for Work
February 2021.
(FFW), Test Relief (TR), Vulnerable Group
Food Grains Import Feeding (VGF), Vulnerable Group Development
In FY 2020-21, the revised budget for (VGD), Gratuitous Relief (GR) and others.
government food grain import was 15.68 lakh In FY 2019-20, the government had a revised
MT (10.01 lakh MT rice and 5.67 lakh MT budget of 31.04 lakh MT food grains for
Wheat). Out of the budget, a total of 3.12 lakh distribution and the actual distribution was 27.77
MT food grains (0.96 lakh MT rice and 2.16 lakh lakh MT (monetised 16.02 lakh MT and non-
MT wheat) was imported up to February 2021. monetised lakh 11.75 MT). In FY 2020-21, the
On the other hand, in private sector a total of 35.0 government food grains distribution budget has
lakh MT food grains (2.21 lakh MT rice and revised and set at 24.55 lakh MT. Against this
32.79 lakh MT wheat) was imported during the budget, up to February 2021, total actual
same period. As a result, a total amount of
distribution was 14.58 lakh MT, where 9.87 lakh Management Quality. A total of 92 cases have
MT was in monetised channels and 4.71 lakh MT been filed and a fine of Tk. 1.31 crore has been
in Non-monetised channel. imposed through 64 mobile courts for
inconsistencies related to safe food in different
Food Grain Storage Capacity
food establishments.
The total capacity of food godowns and silos in
In the Mujib Year, to increase public awareness
the country till February 2021 in FY 2020-21
about safe food by following the COVID-19
stands at 22.59 lakh MT; Which was 21.72 lakh
hygiene rules BFSA conducted 363 seminars
MT in the same period of FY 2019-20. At present
/workshops, 60 caravan road shows at upazila
3 projects are being implemented with the aim of
level, 15 seminars at district level and 03
increasing the capacity to 30 lakh MT by 2030.
seminars /workshops at divisional level in where
Besides, 5 lakh family silos have been distributed
public awareness instructions on safe food have
in 63 upazilas of 19 disaster prone districts of the
been provided to about 19,000 stakeholders. On
country. On the occasion of Bangabandhu's birth
the occasion of the 4th National Food Safety Day
centenary celebration, a project has been taken up
2021, discussion meeting on food safety has been
to distribute 3 lakh more family silos in FY
held with the stakeholders.
2020-21.
Seed Production and Distribution
Food Safety
Quality seed is one of the main fundamental
Following the ‘Food Safety Act-2013’, the
inputs for increasing crop production to ensure
government of Bangladesh has established
food security. Quality seed alone can contribute
Bangladesh Food Safety Authority (BFSA) which
to the increase of yield by 15-20 percent. At
is in effect since February 2015 with a view to
present, quality seed for different crops is being
ensuring safe food for the people of the country.
provided from public sectors as per demand. A
2nd February in each year has been declared as
number of private seed producing organisations
National Food Safety Day and this day is being
are also supplying hybrid rice, maize and
observed as National Food Safety Day since
vegetable seeds. Bangladesh Agricultural
2018. As a science based central coordinating
Development Corporation (BADC) is performing
body, it collects food samples from all over the
seed production activities through 24 cereal seed
country and conducts tests in various food
production farms, 2 jute seed production farms, 2
laboratories recognised by the Government of
potato seed production farms, 4 pulse and oil
Bangladesh, monitors various food
seed production farms, 2 vegetable seed
establishments, conducts enforcement in case of
production farms and 111contract growers’
inconsistencies in safe food and conducts various
zones. Likewise, BADC produces and supplies
public awareness activities such as meetings,
different crop sapling, graft and gooties through 9
seminars/workshops, Caravan road shows, hand
Horticulture Development Centers and 14 Agro
wash programs regularly
Service Centers. At present number of farmers
As of February 2021 in FY 2020-21, 1,777 food are 3,98,327 under the 111 contract-growers
samples have been collected out of which 1,476 zones throughout the country, the area of land is
food samples have been tested and 1,266 7,41,640 acres. In FY 2020-21 seed production
standard samples and 209 non-standard samples target of BADC is 1,45,500 MT as per demand of
have been proved by the recognised lab. Grading the country. Seed production and distribution by
(A+, A, B, C, D) has been given to 87 BADC in the FY2018-19 to FY 2020-21 are
hotels/restaurants based on Food Safety shown in the table 7.2
Table 7.2: Seed Production and Distribution

(In metrictonnes)
Name of
FY2018-19 FY 2019-20 FY 2020-21
the Seed
Production Distribution Production Distribution Production Distribution*
(target)
Rice 88141 84347.11 84282 88520 87287 79726
Wheat 12007 17958.16 14922 12053 16000 13143
Maize 82 13.78 82 55 88 519
Potato 34992.7 31649.26 33537 33496 37440 25578
Pulses 2279.6 2128.92 2069 2118 1820 1121
Oil 1636.4 1210.30 1724 1519 1690 1051
Jute 293.3 352.39 826 793 960 0
Vegetables 82.8 67.72 90 98 100 69
Spices 205 199.41 205 178 115 158
Total 139720.6 137927 137737 138829 145500 121364
Source: Ministry of Agriculture. * Up to February 2021
Fertiliser fertiliser is increasing with the increased demand

The expansion of modern agricultural farming for food production in the country. The use of
practices like use of High Yielding Variety urea fertiliser alone is the highest in the
(HYV) together with intensified cultivation is agriculture of the country. In FY 2019-20 urea
needed to ensure food for all, which leads to an fertilizer was used at a volume of 25.05 lakhs MT
increased demand for fertilisers. Therefore, it is and total volume of fertiliser used was 54.57
necessary to ensure timely supply of both organic lakhs MT. The year wise use of fertilisers during
and chemical fertilisers to meet the nutritional the period from FY2013-14 to FY 2020-21 is
demand of these varieties. The use of chemical shown in Table 7.3.
Table 7.3: Use of Chemical Fertiliser
(In ‘000’metric ton)
Name of Fertiliser
FY Urea TSP DAP SSP NPKS MOP AS Gypsum Zinc Others Total
2013-14 2462.00 685.00 543.00 0 27.00 577.00 3.00 126.00 42.00 0.40 4465.40
2014-15 2638.00 722.00 597.00 0 27.00 640.00 6.22 122.00 39.00 0.00 4791.22
2015-16 2291.00 730.00 658.00 0 39.59 727.00 9.96 229.42 53.43 0.00 4738.40
2016-17 2366.00 740.00 609.00 0 40.00 781.00 10.00 323.30 57.47 0.00 4926.77
2017-18 2427.46 706.62 689.90 0 50.00 789.47 10.00 250.00 80.00 90.00 5093.45
2018-19 2594.00 781.00 763.00 0 50.00 724.00 10.00 285.00 95.00 120.00 5422.00
2019-20 2505.00 660.00 953.00 0 42.00 715.00 6.00 360.00 115.00 101.00 5457.00
2020-21* 2450.00 500.00 1300.00 0 40.00 750.00 4.00 550.00 141.00 130.00 5865.00
Source: FFM, Ministry of Agriculture. * provisional figure.
Irrigation has given more importance on reducing irrigation

cost and maintaining environmental harmony by
Efforts are being made to ensure harmonious and
increasing use of surface water and reducing use
well-planned use of groundwater and surface
of underground water. The government is
water of the country through conservation of
implementing various activities for efficient
environment, intensification of crop production,
micro-irrigation management. Rubber dam and
diversification and increase in yield. Government
Hydraulic Elevator Dam project has been taken
in small and medium rivers of prospective areas supplying of 44,800 meter ribbon pipe which will
for using surface water. Removal of water be completed by June 2021.
logging, re-excavation of canal, construction of
Barind Multipurpose Development Authority
surface irrigation channel and underground
(BMDA) has expanded irrigation in all the
irrigation channel, embankment, irrigation
districts of Rajshahi and Rangpur divisions.
structure, installation of power pump, Deep Tube
About 5.25 lakh hectares of land has been
Well (DTW), construction of Jhiribadh in hilly
brought under irrigation in Rabi season by using
areas and installation of artisan well are being
16,057 nos. of deep tube-wells. To use surface
implemented.
water for irrigation BMDA has re-excavated
A total of 201 Auto Water Level recorders have 3,224 nos. has ponds, 8 nos. water bodies, 2,045
been installed by BADC through survey and km. khas cannel and to preserve the water in the
monitoring project of minor irrigation cannel 749 nos. cross dam has been constructed
development. Data of every moment is being across the cannels. As a result about 97,500
collected Auto Water Level recorders hactares of land has brought under supplementary
automatically. Data monitoring and analysis of irrigation. To increase the use of surface water
underground water is being made possible by for irrigation the Authority has introduced a
preparing digital data bank. By this time, system by which water is lifted from the Padma,
Groundwater Zoning Map has been prepared Mohanonda and Atrai river and transported to the
using those data and updating it on a regular cannel through Burried pipe line. About 15,000
basis. Where and which type of irrigation hactares of land has brought under irrigation by
equipment is required throughout the country can using 516 nos Low Lift Pumps (LLP) beside the
easily be determined by this Ground Water cannel, River and other water bodies. Irrigation
Zoning Map. Furthermore, irrigation charge can work is being carried out on about 5,500 hectares
easily be collected by setting and using smart of land in 5 upazilas along the river by setting up
card/prepaid meter. This has enabled the farmers a single rubber dam on Baranai river in Puthia
to irrigate in optimum and timely manner. upazila of Rajshahi district. In order to increase
Renewable energy such as solar operated pump the efficiency of irrigation activities, about
has been installed by BADC. So far 206 solar 13,517 km. Irrigation activities are being
pumps and installation of 66 dug well have been conducted by constructing and extending
installed in different districts of the country. underground pipelines. Pre-paid meters have
Other districts are being considered to install been installed in (16,057) irrigation devices to
solar operated irrigation pumps. In FY 2020-21, prevent wastage of irrigation water and electricity
18 irrigation projects and 10 irrigation programs and to provide irrigation at moderate cost. In the
are being implemented. Through these irrigation areas where no irrigation system is effective in
projects and programs 475 k.m. khal/canal/drain the Barind region, a total of 574 wells have been
re-excavation, construct 300 irrigation dug to retain groundwater and rainwater
infrastructures, 4 rubber dam, 400 k.m. irrigation conservation and 457 wells have been installed in
channel, 140 deep tube wells rehabilitation, funnel-shaped structures with solar panels to
installation of 250 power pumps, electrification generate about 1,640 kilowatts of eco-friendly
in 407 irrigation schemes, installation of 75 solar solar energy. Through management, about 925
powered irrigation pumps, 16 km construction of hectares of land is being used for cultivation of
embankments/ crop protection dams, 1 nos low irrigation crops and for food and household
installation of sprinkler irrigation systems, 36 nos purposes.
drip irrigation system exhibition plots and
Area under irrigation continues to grow. The total irrigation in the FY 2020-21 has been set at 56.30
area under irrigation in FY 2014-15 was 54.48 lakh hectares. The irrigated land area during the
lakh hectares, which increased to 56.27 lakh period from FY 2014-15 to FY 2020-21 is shown
hectares in FY 2019-20. The target area for in Table 7.4
Table 7.4: Area under Irrigation
(Area in lakh hectare)
Irrigation method 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
(Target)*
LLP & others 12.51 13.42 13.88 12.21 12.48 12.70 12.71
Deep tube well 9.62 11.94 10.63 10.72 10.76 10.84 10.85
Shallow tube well 32.35 29.54 30.79 29.82 29.94 30.01 30.01
(surface/deep/very deep)
Others - - 1.97 2.82 2.69 2.72 2.73
Total 54.48 54.90 55.27 55.57 55.87 56.27 56.30
Source: BBS, DAE, Ministry of Agriculture. * provisional figure.
Jute Crop Production Agricultural Credit

Rising environmental awareness around the With a view to improving the socio-economic
world has increased the demand and market condition of the country along with an
value of jute as a natural fiber to protect the underscored role of the agriculture and rural
environment from the harmful effects of sector, agricultural credit program is being
synthetic fibers nationally and internationally. implemented through all scheduled banks.
About 3 percent of the country's total export Extended Agricultural and Rural Credit Policy
income comes from jute and jute products. and Program has been formulated in FY 2019-20
Therefore, the contribution of jute sector in the by Bangladesh Bank to ensure agricultural and
development of agriculture and socio-economic rural credit disbursement easier and hassle free.
condition of this country is very important. Like previous years, the agricultural and rural
credit policy and program of FY 2020-21 is
The government has enacted ‘Compulsory Use of
formulated with a view to speed up the
Jute Fiber Packaging Act-2010’ and ‘Rules for
agricultural credit at the marginal level. In FY
Compulsory Use of Jute Fiber Packaging-2013’.
2020-21 Tk. 16,180.82 crore has been disbursed
According to this rule, jute fiber packaging is
up to February’21 as agricultural and rural credit
compulsory for 17 items. As a result, demand of
through all the scheduled commercial and
jute fiber is increasing at home and abroad.
specialised banks against the target of Tk. 26,292
Production and demand of jute is also increasing.
crore, which is 61.54 percent of the target. Table
The market price of raw jute in the recent years
7.5 shows a summary of agricultural credit
might play key role in growing interest of
disbursement and recovery during the period
farmers to increase area and production.
from FY 2013-14 to FY 2020-21.
Subsequently the production will reach around
77.25 lakh bale from an area of 6.82 lakh hectare
in FY 2020-21.
Table 7.5: Year-wise Disbursement and Recovery of Agricultural Credit

(In crore Tk.)
Fiscal Year Target Disbursement Recovery Balance
2013-14 14595.00 16036.81 17046.02 34632.82
2014-15 15550.00 15978.46 15406.96 32936.80
2015-16 16,400.00 17646.39 17056.43 34477.37
2016-17 17550.00 20998.70 18841.16 39047.57
2017-18 20400.00 21393.55 21503.12 40601.11
2018-19 21800.00 23616.25 23734.32 42974.29
2019-20 24124.00 22749.03 21245.24 45592.86
2020-21* 26292.00 16180.82 17492.36 45053.28
Source: Bangladesh Bank * up to February 2021
Development projects/program and promote minor irrigation facilities

through solar energy driven dug wells.
Ministry of Agriculture has prepared an Action
 Raising awareness among farmers and
Plan-2020 to confront with the COVID-19 shock personnel involved with agricultural
and such emergency situations to ensure activities on the proper utilisation of arable
increasing agricultural production, improve land, fertiliser and other agricultural inputs.
agricultural marketing systems and ensure fair  Establishment of Bangladesh Institute of
prices of agricultural commodities. Ministry of Research and Training on Applied Nutrition
Agriculture has been implementing different (BIRTAN) to reduce of nutritional problems,
development projects/programs in the field of to develop skilled Human Resources and to
agricultural research and education, agricultural create employment opportunities.
extension and training, marketing of agricultural  Agriculture research organisations have
invented flood, drought, salinity and high
products, agricultural support and rehabilitation,
temperature tolerant crop varieties to cope
innovation, procurement and management of
with climate change effect.
agricultural input and equipment, seed
 Introduction of crop zoning technology.
production, storage and distribution, extension of
 Implementing projects on the marketing of
irrigation facilities, fertiliser management agricultural products to ensure fair price for
activities, farm mechanisation and crop storage the farmers.
etc. for ensuring long term food security. Some  Implementing projects on Farm
important reform activities are mentioned below: Mechanisation Technology to increase crop
 Implementing projects in haor areas to production and minimize the seasonal labor
increase cropping intensity. crisis.
 Ensuring nutrition security through year-  Ensuring supply of quality seed to farmers
round fruits production. through establishment of seed cold storage.
 Implementing projects to reduce pressure on  Establishment of seed multiplication farm in
ground water and enhancing ground water Dashmina, Patuakahli, pulse and oil seed
level through recharge wells. multiplication farm and seed processing
 Expansion of irrigation facilities and increase center in Subarnachar, Noakhali.
of crop production through installation of  Modernisation of seed production, processing
rubber dams on small and medium rivers. and distribution system to ensure quality seed
 Implementing projects on irrigation and supply to farmers.
conservation of rain water in the Barind  Establishment of Community Rural Radio to
Region in order to increase crop production share information on modern agricultural
practices among rural farmers community.
 Establishment of Agriculture Information all poverty alleviation of Bangladesh is very

and Communication Centre (AICC) at union important and undeniable. GDP growth rate in
level. fisheries sector is 5.74 percent. Fisheries sector
 Promotion of agriculture and agriculture contributes 3.57 percent to the national GDP and
based services through the development of 26.50 percent to the total agricultural GDP of the
several online based activities such as Online country. The government is taking and
Fertiliser Recommendation Software,
implementing various activities to ensure the
Bangladesh Rice Knowledge Bank etc.
supply of animal protein through increasing fish
 Establishment of a call center at the head
office of Agriculture Information Service production. As a result of the implementation of
(AIS). fisheries-friendly activities of the government
 Introduction of internet facilities to all and the provision of demand-based and
marketing offices at district level and appropriate technical services at the farmer and
publication of market prices and other entrepreneurial level, fish production has
information at the website increased to 45.03 lakh MT in FY 2019-20,
(www.dam.gov.bd). which is 27 percent more than the total
 Promotion of agriculture and agriculture- production (35.48 lakh MT) in FY2013-14. It
based services through mobile operators. may be mentioned that the total fish production
 Implementing project for the establishment in the country was 7.54 lakh MT in FY1983-84.
of Post-Entry Quarantine Centre. Fish production has increased more than six
 Promotion of organic pest control method times in 37 years.
and organic agriculture activities.
 Promotion of organic pest control method According to FAO report ‘The State of World
and organic agriculture activities. Fisheries and Aquaculture 2020’, Bangladesh
 Implementing a project on Genome ranked 3rd in inland open water capture
Sequencing of Jute for selection of jute production and 5th in world aquaculture
cultivation area and extension of Ribbon production. In the last 10 years, Bangladesh has
Rating Technology. risen to the second position in terms of growth
 Using solar energy for irrigation to save oil rate of fish production in inland water bodies.
and electricity.
Moreover, Bangladesh ranked 1st among 11
 Extension and popularisation of cultivation
Hilsa producing countries in the world. Currently
of vegetables and spices on floating bed in
Bangladesh ranks 4th in Tilapia production in the
water logging area.
 Promoting participation of women in world and 3rd in Asia.
agricultural sector to alleviate poverty and The recent coronavirus outbreak has posed a
create employment opportunities. major challenge to fish marketing due to supply
 Adoption of synchronized cultivation. constraints. The government has continued to
 Project implementation for coffee and provide necessary assistance to address this
cashew nut production. crisis. At this time selling of fish through mobile
 Project implementation for the establishment fish sales center/growth center, online fish
of family nutrition garden in homestead and marketing and distribution of fish with relief to
uncultivable fallow land. poor and helpless people to speed up fish
Fisheries Sector marketing of fish farmers were carried out for the
development of fish supply chain. Table 7.6
Fish Production
shows the trend of fish production during the
The contribution of the fisheries sector to the period from FY2013-14 to FY 2020-21.
socio-economic progress, prosperity and above
Table 7.6: Fish Production Trends in Different Resources

(In lakh metric tonnes)
Sector Area 2013- 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
(Lakh 14 (Projected)
ha)
1.Inland
(a) Capture
(i) River & 8.54 1.67 1.75 1.78 2.72 3.21 3.25 3.29 3.32
Estuaries
(ii) Sundarban 1.78 0.19 0.18 0.17 0.18 0.18 0.18 0.21 0.21
(iii) Beel 1.14 0.89 0.93 0.95 0.98 0.99 2.00 1.00 1.00
(iv) Kaptai lake 0.69 0.08 0.08 0.10 0.10 0.10 0.11 0.13 0.13
(v) Flood plain 26.93 7.13 7.30 7.48 7.66 7.69 7.82 7.73 7.79
Sub-Total 39.08 10.0 10.24 10.5 11.64 12.17 12.36 12.49 12.59
(Open Water)
(b) Culture
(i) Pond 3.77 15.26 16.13 17.20 18.33 19.00 19.75 20.46 20.75
(ii) Baors 0.055 0.07 0.07 2.08 0.08 0.08 0.1 0.11 0.11
(iii) Seasonal 1.33 1.93 2.01 0.08 2.16 2.16 2.17 2.26 2.3
cultured water
bodies
(iv)Shrimp 2.756 2.17 2.24 2.40 2.47 2.54 2.58 2.7 2.71
/Prawn farms
(iv) Pen culture 0.833 0.13 0.13 0.13 0.13 0.11 0.12 0.13 0.13
(iv) Cage culture 0.001 0.01 0.02 0.02 0.02 0.04 0.04 0.04 0.05
(v) Crab 0.13 0.14 0.12 0.12 0.13 0.13
Sub-Total 8.745 19.57 20.60 22.04 23.33 24.05 24.88 25.83 26.18
(Culture)
Total (Inland) 47.825 29.53 30.84 32.52 34.97 36.22 37.24 38.32 38.77
2. Marine
Fisheries
(a) Industrial 0.77 0.85 1.05 1.08 1.2 1.07 1.15 1.16
(b) Artisanal 5.18 5.15 5.21 5.29 5.35 5.53 5.56 5.59
Total (Marine) - 5.95 6.00 6.26 6.37 6.55 6.60 6.71 6.75
Country Total 47.825 35.48 36.84 38.78 41.34 42.77 43.84 45.03 45.52
Source: Department of Fisheries, Ministry of Fisheries and Livestock.*projected
Figure 7.2: Fish Production Trends in Different Resources
50 43.84 45.03 45.52

41.34 42.77
45 38.78
6.6 6.71 6.75
40 6.55
6.37
35 6.26
Lakh MT
30
25 24.05 24.88 25.83 26.18
23.33
20 22.04
15
10
5 10.5 11.64 12.17 12.36 12.49 12.59
0
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Inland open water (capture) Inland closed water (culture) Marine Total
*Projected

Production of Fish Spawn and Fish Fry quality of fry by producing quality brood in
hatchery through collecting fry from natural
Hatchery produced seed/fry provide about
sources. At present there are 143 government fish
hundred percent of total demand in aquaculture.
farm and 1,068 private farms throughout the
But the availability of quality fish fry is quite
country. The production statistics of carp spawn
difficult due to inbreeding problem in hatcheries.
and fingerlings both from public and private
To overcome this problem, Department of
sectors are shown in Table 7.7
Fisheries has continued its efforts to ensure the
Table 7.7: Production Statistics of Carp Spawn/Fingerlings from Hatcheries
Year No. of Hatcheries Spawn (MT.) No. of Fry/Fingerlings (Crore)

Public Private Public Private Total Public Private Total
2011 125 845 6.84 617.64 624.48 2.12 818.21 820.33
2012 125 902 9.07 626.52 635.59 2.14 822.62 824.76
2013 134 887 9.04 477.34 459.11 1.35 900.15 901.50
2014 136 893 9.87 492.47 502.34 2.34 1028.33 1032.61
2015 136 857 10.46 705.19 715.65 2.59 828.02 830.61
2016 137 899 11.18 668.20 679.38 2.78 828.47 831.25
2017 138 872 12.49 670.09 682.58 2.52 879.12 881.64
2018 143 985 12.06 767.16 779.22 2.77 822.36 825.13
2019 143 1038 12.58 734.43 747.01 3.38 821.16 824.54
2020 143 1068 14.98 972.91 987.83 4.31 957.26 961.57
Source: Department of Fisheries, Ministry of Fisheries and Livestock.
Conservation Program for Jatka  Implementation of Vulnerable Group Feeding

(VGF) program to prevent fishermen from
Bangladesh ranked first among 11 Hilsa
starvation during jatka conservation period of
producing countries in the world. About 12.15
November to June.
percent of the country’s total fish production
 Distribution of alternative income generating
comes from Hilsa alone. Hilsa contributes more
resources to the extreme poor fishermen who
than one percent to the country's GDP. The
are abstained from Jatka fishing.
contribution of hilsa as a single species is the
highest. Hilsa of Bangladesh is appreciated in the  A part from increasing public awareness to
world market with its own identity after stop Jatka fishing, ‘The Jatka Protection Act’
obtaining the Geographical Registration is strictly implemented from November to
Certificate (GI Certificate) titled Bangladesh June.
Hilsa. Bangladesh, which produces more than  Arranging awareness building and fish act
two-thirds of the world's Hilsa will henceforth be implementation program to stop Hilsa fishing,
presented to the world as the country of Hilsa. marketing and carrying for 22 days during the
The government is firmly committed to the peak spawning season to protect Hilsa brood.
desired development of these resources. The  Observing Jatka Conservation Week every
government has adopted following steps for the year to create social movement for protection
protection and conservation of Hilsha fishes: jatka fish.

 Establishment of a total of 6 hilsa sanctuaries and expedition of blue economy through marine
in the upper and lower basins of Padma, fisheries resources management, exploitation,
Meghna, Kalabadar, Andharamanik and other protection and development. Initiatives has been
coastal rivers including Tentulia and taken to prepare National Marine Fisheries Policy
strengthening of partnership management. (NMFP) and Marine Fisheries Management Plan
 To destroy Illegal fishing net ‘Special (MFMP).
Combing Operation’ has been operating every The Research and Survey vessel ‘RV Mean
year. Sandhani’ have already conducted 27 survey
Production and size of Hilsa has increased cruises till February 2021 in the Bay of Bengal.
unexpectedly as a result of smooth All the collected data have been preserved for
implementation of 6 existing Hilsa sanctuaries in further biological analysis. A marine surveillance
the country and implementation of joint check post is being operated in Chattogram and
operations/activities, conservation of Jatka, 16 more marine surveillance check posts will be
protection of brood Hilsa. Under the social established under the ‘Sustainable Coastal and
security program, a total of 26305.20 MT food Marine Fisheries Project’. With the help of Eco
assistance provided to 3,28,815 Jatka families for fish project, 3,188 sq km area adjacent to Nijhum
2 months (up to February-March) at 98 upazila dweep under Hatia Upazila has been declared as
under 20 district In FY 2020-21. VGF also given Marine Protected Area (MPA). The government
at the ban period of brood hilsa. In FY 2020-21, has undertaken a pilot project to extract Tuna and
total amount of 10,566.84 MT VGF food similar pelagic fish in the deep sea. Crab
assistance were provided to 5,28,342 families at hatchery has been established at Kalatali, Cox's
the rate of 20 kg at 152 upazila under 36 district Bazar and crablets are being successfully
.In the year 2021, special combing operations produced. In addition, seaweed and oyster culture
were conducted in 17 districts and 492 mobile is being piloted in coastal areas that will unveil
courts and 1,681 operations were executed. By the new horizon of blue economy.
this operation, 2,448 destructive Behundi nets,
Export of Fish and Fisheries Products
274.18 lakh meters of current nets and 3,255
other nets were seized and destroyed. Fish and fishery products are one of the major
export commodities of Bangladesh. Bangladeshi
Management of Marine Fisheries Resources fish and fishery products are exported to more
than 50 countries including European Union
The government is implementing special
(EU), USA, Japan, Russia, China etc. EU
programs and enacting laws and regulations to
countries are the major importers of Bangladeshi
ensure proper utilisation and control of marine
fish and fishery products. At present, a total of
fisheries resources. Ministry of Fisheries and
105 fish processing plants are licensed of which
Livestock has already taken different Pragmatic
73 are approved for exporting their products to
initiatives like framing short term, mid-term and
long term ‘Action Plans’ to ensure conservation, the EU countries. In FY 2020-21(up to January
sustainable development and harnessing the 2021) Bangladesh earned Tk.2,555.04 crore by
exporting 46,393.52 MT fish and fishery
potentials of the marine resources. Marine
products.
Fisheries Act-2020 has been passed on 16
November 2020 in the 11th National Parliament Livestock
and published to Govt. gazette on 26 November
Contribution of livestock sector in national GDP
2020 in order to income generation, employment
at constant price was 1.44 percent and share of

livestock sector in agricultural GDP was 10.69 distribution for preventing diseases, providing
percent in FY 2020-21. Though the share of the treatment and diagnostic services, distribution of
livestock sub sector in national GDP is small, but chicks and ducklings at subsidised rate among
it has immense contribution to meet the daily the stakeholders, providing training and
animal protein requirements for human technology transfer to the farmers, entrepreneur’s
consumption. A number of multilateral activities development, etc. The population of livestock
and initiatives have been taken by this sub-sector and poultry rose to 560.62 lakh and 3,585.46 lakh
for livestock development. The most important respectively by February 2021 in FY 2020-21.
activities are: extension of breed up gradation Table 7.8 shows the livestock and poultry
through artificial insemination using superior population of the country over the past few years.
quality semen, vaccine production and
Table 7.8: Number of Livestock and Poultry Population in Bangladesh.

(Number in Lakh)
Livestock/ Poultry 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Cattle 234.88 236.36 237.85 239.35 240.86 242.38 243.91 244.42

Buffalo 14.57 14.64 14.71 14.78 14.85 14.92 14.93 15.01
Goat 254.39 256.02 257.66 259.31 261.00 262.67 264.35 264.94
Sheep 32.06 32.70 33.35 34.01 34.68 35.37 36.07 36.24
Total livestock 535.90 539.72 543.57 647.45 551.39 555.34 559.26 560.62
Chicken 2553.11 2617.70 2683.93 2751.83 2821.45 2892.83 2966.02 2984.06
Duck 488.61 505.22 522.40 540.16 558.53 577.52 597.16 601.39
Total Poultry 3041.72 3122.93 3206.33 3292.00 3379.98 3470.35 3563.18 3585.46
Source: DLS, MoFL,*Up to February 2021.
The production of animal protein like milk, meat especially in the marketing for eggs and milk
(beef, mutton and chicken) and egg has been products, and the government has taken
increasing over the past several years. As a result, necessary steps, and is continuing to provide
per capita availability of milk, meat and egg rose required assistance to help the sector overcome
to 175.63 ml/day, 126.20 gm/day and 104.23 those difficulties. The production statistics of
no’s/year respectively in FY 2019-20. However, milk, meat and eggs during the period from
due to prolonged public holidays due to the FY2013-14 to FY 2020-21 are summarised in
coronavirus outbreak, there have been enormous Table 7.9
difficulties in the poultry and dairy sector,
Table 7.9: Production of Milk, Meat and Eggs
Production
Product Unit 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Milk Lakh Ton 60.90 69.69 72.75 92.83 94.06 99.23 106.80 78.96
Meat Lakh Ton 45.20 58.62 61.52 71.54 72.60 75.14 76.74 61.98
Eggs Lakh 101680 109952 119124 149331 155200 171100 173600 122348
Source: Department of Livestock Services, ministry of Livestock and Fisheries,*Up to February 2021.

Artificial Insemination of Cattle Sirajganj district through ‘Sirajganj Govt.

Veterinary College Establishment’ project, which
Artificial Insemination is an important tool to
starts academic session in FY 2019-20 education
increase production and productivity of domestic
years. Moreover, for creating diploma graduate in
animal. DLS is implementing artificial
livestock sector, Gaibandha and Brahmanbaria
insemination (AI) activities through 4,609 nos AI
livestock diploma institute were established
point/sub-centers throughout the country. As a
through ‘Establishment of Institute of Livestock
result, about 48 percent cattle population were
Science and Technology’ project, which runs
transformed into crossbreed cattle in Bangladesh
academic session. Through this project another 3
now. During FY 2019-20, 46.74 lakh doses of
diploma institute establishment at Gopalgonj,
quality semen were produced and 44.41 lakh
Khulna and Netrakona district is going on.
doses semen were used for artificial insemination
in cows. During this period about 14.78 lakh Besides, a national livestock and poultry training
cross breed calves were born. By February 2021 institute were established at Gopalgonj district
in FY 2020-21, 28.66 lakh doses of quality through ‘Establishment of National Institute of
semen were produced and 27.89 lakh doses Livestock and Poultry Management and Disease
semen were used for artificial insemination in Diagnostic Laboratory’ project for providing
cows. In this period about 10.48 lakh cross breed training and disease diagnostic facilities to the
calves were born. farmers. Moreover, with a view to increase sheep
Vaccination and Treatment farming in Bangladesh 3 demonstration sheep
farm were established at Rajshahi, Bagerhat and
The government has been producing 17 different
Bogura district through ‘Conservation and
types of livestock and poultry vaccines to
Improvement of Native Sheep through
immune livestock and poultry population to
Community Farming and Commercial Farming’
prevent diseases. In FY 2020-21, (up to February
project which are now in function. For more
2021) 1.04 crore doses Livestock vaccine and
semen production, establishment of 2 bull station
26.71 crore doses of poultry vaccines were
cum A.I lab at Chattogram and Faridpur district
produced. To strengthening vaccine production
and 5 bull calf rearing unit cum mini A.I lab at
activities ‘Vaccine production technology
Bogura, Sylhet, Khulna, Rangpur and Barisal
modernisation and expansion of research work’
district is going on through ‘Artificial
project is going on. Moreover, to prevent trans-
Insemination Activities Extension and Embryo
boundary diseases 24 animal quarantine stations
Transfer Technology Implementation’ project.
are working at different river port, land port and
Moreover, establishment of a national livestock.
airport.
quality control laboratory at Savar, Dhaka is
Infrastructural Development going on through ‘Establishment of Quality
Control Laboratory for Livestock Inputs and its
For providing one stop service to the farmers, 85 Food Products’ project for quality control of
new ULDC building were established through livestock product and by products. With a view
‘Upazila Livestock Development Center (ULDC) to eradicate PPR disease from Bangladesh and
Establishment’ project. On the other hand, for control of FMD in selected 4 districts, a project
increasing day old duckling production, 14 new named ‘Eradication of PPR disease and control
duck hatchery were established through of FMD project’ is implementing at project area.
‘Regional Duck Breeding Farms Establishment’
project. With a view to creating more veterinary
graduates, a veterinary college was established at

Export of Meat and Livestock Products In view of the increase in agricultural production,
Tk 9,500 crore was allocated in the budget for
Livestock sector has been earning foreign
FY 2020-21 for subsidising fertilisers and other
exchange by exporting meat and livestock
agricultural activities to provide assistance to
products to USA, UAE, China, Kuwait, Canada,
farmers. Up to February 2021 Tk. 800.84 crore
Vietnam, Malaysia, India and Maldives. In FY
has released to provide subsidy on fertilisers and
2019-20, 66.83 metrictonnes meat, 57.88
other Agriculture Inputs. In addition to that an
metrictonnes bull stick, 989.5 metrictonnes beef
amount of 374.85 crore has allocated for
bone chips, 20.5 metrictonnes tail hair of cattle,
Agriculture Rehabilitation Programmes and an
64.53 metrictonnes sweet products (sweet, curd
amount of Tk.130 crore has allocated for seed
and roshmalai), 142.44 metrictonnes duck
production activities. An incentive package of
feather, 12.60 metrictonnes animal feed and 63
Tk. 3,220 crore has been formulated for
metrictonnes bone gelatin were exported from
distribution of agricultural machinery to
Bangladesh which earned about Tk. 26.05 crore.
modernise agriculture, increase production,
Besides, livestock sector also earned about
resolve labor crisis in major seasons and ensure
Tk.743 crore by exporting livestock products
overall food security. An agricultural refinance
through Export Promotion Bureau (EPB) during
scheme of Tk. 5,000 crore was set up to facilitate
FY 2019-20. By February 2021 in FY 2020-21,
farmers to get loans. Under this, loans amounting
61.0 metrictonnes meat, 40.5 metrictonnes bull
to Tk. 3,936.00 crore have been disbursed till
stick, 62 metrictonnes tail hair of cattle, 158.57
April 2021. Another refinancing scheme of Tk.
metrictonnes sweet products, 2,213.54
3,000 crore has been launched for low-income
metrictonnes animal and poultry feed, 137
farmers/small traders in the agriculture sector and
metrictonnes bone gelatin and 13.56 metrictonnes
as of April 2021, Tk.1,772 crore have been
Omasum were exported from Bangladesh which
disbursed. As many as 2,05,99,869 farmers have
earned about Tk. 35.41 crore.
been provided incentives through cards for the
Budget Allocation for Agriculture Sector assistance of fertilisers, seeds and other
agricultural inputs worth Tk. 413.46 crore in FY
The government has taken several important
2020-21. In addition to the normal subsidy for
initiatives to ensure food security and keep
agricultural development, a 20 percent cash
agricultural production normal in the country
incentive is being provided for the export of
under coronavirus (COVID-19). In FY 2020-21,
agricultural inputs and a 20 percent rebate on
the total budget allocation for agricultural sector
electricity bills for the use of electricity-driven
(Ministry of Agricultural, Ministry of Livestock
irrigation equipment.
and Fisheries and Ministry of Food) stood at
Tk.24,682 crore, which is 4.35 percent of the
total budget allocation.

CHAPTER EIGHT
INDUSTRY
Bangladesh economy is turning around in the context of tackling the coronavirus of the world
economy. The contribution of Industry Sector to GDP is progressively increasing in Bangladesh.
According to BBS, the contribution of the broad industry sector to GDP has been estimated at
34.99 percent in FY 2020-21 which was 34.78 percent in FY 2019-20. In fact the government is
persistently taking comprehensive measures for developing and flourishing of all industrial
sectors of the country such as manufacturing industry and fuel industry for energy security,
agriculture and forestry, mineral extraction and processing industry, tourism and service industry,
construction industry and ICT based industry. In order to accelerate the pace of industrialisation
of the country the government announced the ‘National Industrial Policy-2016’.The importance
and underlying objectives of the Industrial Policy 2016 include sustainable and inclusive industrial
growth through generation of productive employment to create new entrepreneurs, mainstreaming
women in the industrialisation process and international market linkage. 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 are on the increase. In response to the ongoing COVID-19 epidemic, the
government has already announced several financial and incentive packages, including providing
low-interest working capital loan facilities to affected industries and service sector enterprises
and small and medium enterprises, including affected cottage industries. The EPZs are playing
special role in the process of promoting rapid industrialisation and attracting foreign direct
investment.
According to Bangladesh Bureau of Statistics The contribution of the manufacturing sector is

(BBS) estimates, the contribution of the broad the highest in GDP. In FY 2019-20 the
industry sector to GDP stood at 34.74 percent in contribution of manufacturing sector to GDP was
FY 2019-20 which increased to 34.99 percent in 23.59 percent which increased to 23.66 percent in
FY 2020-21. Among the fifteen sectors of GDP, FY 2020-21.The volume and growth
the broad industry sector includes four sectors performance of the manufacturing sector from
namely mining and quarrying, manufacturing, FY 2012-13 to FY 2020-21 is shown in Table
electricity gas and water supply and construction. 8.1.
Table 8.1: Volume and Growth Rate of Manufacturing Sector
(At constant prices of 2005-06)
(In Crore Tk.)
Type of 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Industry
Small and 24557.9 26113.1 28342.6 30909.4 33945.8 37086.4 41148.0 42778.1 43519.1
cottage (8.81) (6.33) (8.54) (9.06) (11.20) (9.25) (10.95) (3.96) (1.73)
Medium- 108436.2 118540.3 131225.4 147313.5 163819.5 187183.7 214969.9 217949.4 232245.1
Large (10.65) (9.32) (10.70) (12.26) (9.82) (14.26) (14.84) (1.39) (6.56)
Total 132994.1 144653.4 159568.0 178222.8 197765.3 224270.1 256117.9 260727.6 275764.2
(10.31) (8.77) (10.31) (11.69) (10.97) (13.40) (14.20) (1.80) (5.77)
Source: Bangladesh Bureau of Statistics. Note: Figures in parentheses indicate rate of growth.* Provisional.
Chapter 8: Industry |107

National Industrial Policy 2016 For example, creating high priority sector,
defining various sectors (handicrafts, creative
Considering industrialisation or industrial sector
industry, high priority industry) ; ( protection of
as the most important sectors, industrial policy,
intellectual property rights, management of
2016, was announced to speed up the pace of
industrial pollution, creation of effective skill
industrialisation in the country and inclusive
development programme, provision of pragmatic
industrial growth through generation of
policy and strategic benefit to develop a strong
productive employment to create new
private sector). For the effective implementation
entrepreneurs, mainstreaming women in the
of this Policy, a time bound Action Plan has been
industrialisation process and international market
incorporated in the Industrial Policy 2016.
linkage creation. In order to implement these
Practical, implementable and theoretical
goals and objectives, proper strategies are
knowledge and experiences of the experts and
outlined in the industrial policy. The necessary
stakeholders of the industry sectors have been
initiatives have been taken in consultation with
reflected in the Industrial Policy 2016. It is
the concerned ministries and other beneficiaries
expected, with implementation of this policy,
in the integrated initiatives in the implementation
industrial sector would be revitalised by bringing
of the industrial policy and in the protection of
noticeable advancement of the country as a
consumer interest. To secure a sustainable
whole.
development through economic, social and
environmental protection, the government Quantum Index of Production of
declares small and medium enterprises as the key Manufacturing Industries
sector for the growth of industrialisation. In
The Quantum Index of Production is an
addition to that, the government also lays
important indicator of the measurement of
emphasize on heavy industry and few selected
product production in the manufacturing
service sectors. Short, medium and long-term
industry. According to the data of Bangladesh
activities will be taken to achieve the targets of
Bureau of Statistics (BBS), the production index
National Industrial Policy 2016.
of medium to large scale industries increased
For planned industrial development in the from 195.19 in FY 2012-13 to 496.73 in FY
country and to realise a sustainable industrial 2020-21 at the base price of FY 2005-06. Table
growth in relation to continuous technology 8.2 shows the index during FY 2012-13 to FY
related innovation, followings issues have been 2020-21.
included in the National Industrial policy 2016:
Table 8.2: Quantum Index of Production for Medium to Large Scale Manufacturing Industries
(Base: 2005-06)
Fiscal Year 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Medium to Large Scale Industries 195.19 213.22 236.11 267.88 297.89 342.47 392.82 398.35 496.73
Percentage change 11.59 9.24 10.74 13.46 11.20 14.97 14.70 1.41 21.89
Source: Bangladesh Bureau of Statistics *up to March 2021 *(compared to the same period of previous fiscal year).
playing a significant role in achieving economic

A Small and Medium Enterprises (SMEs)
growth and earning foreign currency by
Small and Medium Enterprises (SMEs) are encouraging and expanding the business
considered as a potential sector for solving activities. For the expansion and development of
unemployment problem through new the sector to enhance the standard of lifestyle of
employment generation. This sector has been the mass people and ensure women

empowerment to diminish gender discrimination, Banks and NBFIs altogether have disbursed an
Bangladesh Bank has been continuing its amount of Tk. 1,04,515.17 crore against 5,17,250
refinancing facilities in the year 2020 for Banks SMEs. On the other hand, 43,636 women led SME
and Non-Bank Financial Institutions (NBFIs) enterprises received financing of Tk. 3,553.47
against their financing to SMEs. Steps have been crore during the same time period.
undertaken for the development of SMEs are
A self-determined year-wise lending target
given in annexure 8.1.
(calendar year basis) in SMEs sector for banks
Disbursement of SME Loan and NBFIs was first introduced in 2010. The
success in SME loan disbursement is considered
Banks and NBFIs have come forward for financing
as yardstick for the approval of opening new
and the development of SMEs sector under close
branches and a criterion to determine CAMELS
monitoring and supervision of Bangladesh Bank.
ratings of banks. Table-8.3 reveals the
Total net outstanding loans and advances in SME
disbursement of category-wise SME credit from
sector at the end of September, 2020 is Tk.
the year 2010 to 2020.
1,90,969.83 crore. In year 2020 (up to September),
Table 8.3: Disbursement of SME Credit by Banks and NBFIs

(TK. in Crores)
Period Target Actual Disbursement Women Achievement
Trading Manufacturing Service Total Ent. (%)
2010 38858.12 35040.53 15147.72 3355.68 53543.93 1804.98 138
2011 56940.13 34382.64 15805.95 3530.85 53719.44 2048.45 95
2012 59012.78 44225.19 21897.33 3630.90 69753.42 2224.01 118
2013 74186.87 56703.72 24016.64 4602.89 85323.25 3351.17 115
2014 89030.95 62767.18 30246.20 7896.77 100910.15 3938.75 113
2015 104586.49 73551.78 30462.02 11856.68 115870.48 4226.99 112
2016 113503.43 90547.57 35168.63 16219.19 141935.39 5345.66 125
2017 133853.59 96934.79 42334.87 22507.66 161777.32 4772.99 121
2018 161031.89 66936.21 55739.61 36834.25 159510.07 5517.09 99.05
2019 176902.00 72522.37 58715.31 36723.99 167970.67 6108.99 94.95
2020* 229153.21 75225.14 73832.16 41912.53 190969.83 6938.70 83.34
Source: Bangladesh Bank. *Up to September, 2020. A target based lending to cottage, micro, small and medium enterprises has been initiated
since 2010. Until 2019, lending target calculation process was disbursement based. From 2020, lending target is being determined using Net
Outstanding based calculation process which is initiated by SMESPD Circular No. 02: dated September 05, 2019.
Refinance Schemes Tk.12,335.40 crore has been provided to different

Banks and NBFIs under different refinance/pre-
In addition to regular financing to SME
finance schemes up to February 2021 against
enterprises, Banks and NBFIs are also making
1,48,416 enterprises. These refinancing facilities
short to long term financing to SMEs through
have been helping for benefitting SMEs to expand
refinance and pre-finance schemes of Bangladesh
their business; and thereby, creating new
Bank. Presently, Bangladesh Bank is running 8
employment opportunities. The overall status of
funds and projects with the help of JICA, various
these funds as on February, 2021 has been
European development partners and its own
presented in Table-8.4.
funds in the SME sector. A total amount of

Table 8.4: Summary Information on SME Refinance Schemes

SL. Amount of Refinance
Name of the Fund Financed Enterprises
No (Tk. in Crore)
Refinance Scheme for Agro-based Industries in
1 2061.53 2931
Rural Areas
Small Ent. Refinance Scheme: (i+ii) 4577.74 40422
2 i) Small enterprise Refinance Scheme 4214.89 37984
iii)Small enterprise Refinance Scheme-
362.85 2438
Extension 2014
3 New Ent. Refinance Fund for CMSEs 37.93 615
4 Islamic Shariah-based Refinance Fund 610.53 903
5 JICA FSPDSME 1036.86 1350
6 JICA UBSP 59.38 6
7 COVID-19 Refinance Scheme 2497.16 82116
8 SREUP 59.77 4
9 IDA Fund (EGBMP) 312.61 3160
10 SMESDP (ADB-1) 334.94 3264
11 SMEDP (ADB-2) 746.95 13645
Grand Total 12335.40 148416
Source: Bangladesh Bank (Up to February 2021)
Policy response to support SMEs affected by introduced to overcome the collateral

COVID-19 pandemic: problem.
 Bangladesh Bank has instructed all the Banks
 A stimulus package worth Tk. 20,000 crore and FIs to establish Help Desk in each of
has been announced to meet-up the working their branches. Having a discussion with
capital need of COVID-19 affected SMEs. Bangladesh Bank, FBCCI has also established
Under this package, Banks and FIs will help desk in each district.
disburse working capital loans from their  Bangladesh Bank has increased the fund
own fund to the entrepreneurs at 9 percent sizes of three existing refinance schemes to
interest rate. The Government will provide meet up the term loan (including working
5percent to Banks and FIs as an interest capital) requirement of the entrepreneurs. At
subsidy. So, credit will be disbursed at lower the same time, the interest rates of those
rate of 4 percent at the borrower level. schemes have been reduced to 3 percent at
 Disbursement will be made at least 5 percent Banks/FIs level and 7 percent at borrower
to women enterprise under the stimulus level.
package.  The repayment of working capital loans on
 Bangladesh Bank has created a Revolving EMI (Equal Monthly Installment) basis has
Refinance Fund worth Tk. 10,000 crore to been allowed. Banks are instructed in a way
support the liquidity requirement of Banks that effective interest rate won’t be more than
and FIs for successful implementation of the 9 percent while type of loans, tenure and
stimulus package. sanction limit remain unchanged.
 A Credit Guarantee Scheme for Cottage,  District-based Lead Bank Calendar has been
Micro and Small Enterprises has been formulated to address the adverse impact of
COVID-19 pandemic.

Small and Medium Enterprise Foundation assistance of BSCIC are 54, 2,398 and 4,912
(SMEF) respectively. Total investment in these industrial
units is Tk. 2,168.19 crore. Among these
In line with the SME Policy 2019, Industrial
investment, the amount of debt distributed by
Policy 2016, 8th Five Year Plan, Vision 2021,
banks, BSCIC and other financial institutions is
SDG 2030 and Vision 2041, SMEF has been
Tk. 275.16 crore, entrepreneurs’ equity of
implementing multifaceted activities. Some key
1,178.20 crore and remaining 714.83 crore has
activities of SMEF are given in annexure 8.2.
been invested entrepreneurs setting up industries
Bangladesh Small and Cottage Industries in their own initiative. Through the above
Corporation (BSCIC) investment, there are a total employment of
Investment in small and cottage industries is one 37,757 persons has been created in the small and
of the main areas of investment, production and cottage industries sector.
employment in the non-agricultural sector in Contribution of BSCIC Industrial Estates
Bangladesh. For the development of small and
Up to February 2021, 10,412 industrial plots had
cottage industries in the private sector,
been allotted in favour of 5,974 industrial units in
Bangladesh Small and Cottage Industries
76 Industrial Estates of BSCIC throughout the
Corporation (BSCIC) has given a brief description
country. Among them 4,666 units are presently
of the contributions made to the national
under production. Total investment in these 76
economy by providing support, services and
industrial estates upto June 2020 is Tk. 41,217.20
facilities to entrepreneurs in FY 2020-21(up to
crore. These units had produced goods worth of
February 2021) are given below:
Tk. 5,91,992.95 crore in the 2019-2020 financial
Investment and employment generation in year, out of which product worth of Tk.
Small and Cottage Industries sector 57,711.23 crore had been exported. Most of the
During FY 2020-21, up to February 2021, the exported items were hosiery products. The
number of medium, small and cottage industrial contribution made by the industrial estates is
units established with direct and indirect summerised below:
Table 8.5: Investment, Production and Employment of BSCIC Industrial Estates
1. Total no. of Industrial Estates 76
2. Total no. of Industrial plots 10895
3. Total no. of plots allotted (Up to February 2020) 10419
4. Total no. of Industrial units allotted (Up to February 2020) 5974
5. Total no. of units under production (Up to February 2020) 4666
6. No. of export oriented units (Up to June 2019) 946
7. Total Investment (Up to June 2019) Tk. 41217.20 crore
8. Employment (Up to June 2019) 8.25 Lakh Persons
9. Total sales price of the products produced (FY2018-2019.) Tk. 591992.95 crore
10. Total sales price of exported products (FY2018-2019.) Tk. 57711.23 crore
Source: MoI, BSCIC

Table 8.6: Yearly Investment, Production and Employment of BSCIC Industrial Estates
Financial Investment (Cumulative) Annual production Employment (from the beginning)
Year (Taka in Crore) (Taka in Crore) (In Lakhs)
2012-13 17411 36097 5.04
2013-14 18897 42509 5.26
2014-15 19380 43858 5.50
2015-16 20178 45879 5.63
2016-17 20178 55262 5.64
2017-18 25418 59107 5.79
2018-19 27689 50682 8.24
2019-20 41217 591993 8.25
Source: MOI, BSCIC.
 Training Programme help the affected entrepreneurs and boost the

economy hit by COVID-19. With the help of
During FY 2019-2020 BSCIC had imparted
stakeholders through the Loan Distribution
training to 12,491 and in the financial year
Monitoring Committees in 64 districts, a list
2020-2021 up to February 2021, BSCIC had
of 10,506 affected entrepreneurs has been
imparted training to 11,822 entrepreneurs,
compiled by 31 January 2021 and
technicians, managers and others through its
recommendations have been made to various
Small & Cottage Industries Training
banks for disbursement of loans. According
Institute (SCITI), Design Centre, 15 Skill
to the Bangladesh Bank, Tk 12,417.32 crore
Development Training Centres, 64
was distributed among 84,196 entrepreneurs
Industries Service Centres and other offices/
from the incentive package till 28 February
projects.
2021.
 Incentive package to help affected  Other activities
entrepreneurs in COVID-19
A District Loan Distribution Monitoring
A part from the activities mentioned
Committee has been formed to monitor the above, few more services were delivered
disbursement of loans from the incentive by BSCIC, which is presented below in
package announced by the government to comparison to previous few years:
Table 8.7: Delivery of Services of BSCIC
Sl. Area of Assistance Achievement (in number)
no 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
1. Registration of Medium - - - - - 14 14 21 10
Industrial Unit Small 525 604 251 647 869 647 617 625 920
Cottage 1376 1363 494 1329 2041 1838 1706 1619 2199
2. Distribution of Design 2261 2409 2409 2326 2448 2833 2939 2351 2783
3. Preparation of Project 437 421 422 476 486 504 565 335 461
Profile
4. Marketing Study 383 381 411 396 423 436 416 246 387
5. Sub-Contracting Linkage 40 43 60 61 61 60 53 41 63
6. Arrangement of Fair 10 12 11 14 18 18 15 14 17
Source: BSCIC,Upto February 2021.

Bangladesh Chemical Industries Corporation factories Tk. 927.48 crores, which is 65.04
(BCIC) percent of the target. At the time the revenue
(duties and taxes) of the national exchequer was
Bangladesh Chemical Industries Corporation
Tk. 61.76 crores.
(BCIC) has made its highest effort ensure food
security of its people by producing more food Name of the Running Factories in BCIC:
grains through scientific application of
1. Chattogram Urea Fertiliser Ltd (CUFL).
agricultural inputs like fertiliser. It is the largest 2. Shahjalal Fertiliser Company Ltd
public-sector corporation of the country. BCIC is (SFCL).
now being run with 10 large and medium size 3. JamunaFertiliser Company Ltd (JFCL).
enterprises under its management including 4 4. AshuganjFertiliser& Chemical Company
Ltd (AFCCL).
urea fertiliser factories, 1 DAP fertiliser factory, 1 5. TSP Complex Ltd (TSPCL).
TSP fertiliser factory, 1 paper mill, 1 cement 6. DAPFertiliser Co. Ltd. (DAPFCL).
factory, 1 glass sheet factory and 1 insulator and 7. Karnaphuli Paper Mills Ltd. (KPML).
sanitary ware factory. Manufacturing products 8. Chhatak Cement Company Ltd. (CCCL).
like urea fertilizers, paper, cement, glass sheet, 9. Usmania Glass Sheet Factory Ltd.
(UGSF).
insulators, sanitary ware, etc. are being 10. Bangladesh Insulator and Sanitary ware
manufactured in industrial establishments. 80 Factory Ltd. (BISF).
percent of BCIC's products are chemical
Name of joint venture factories in partnership
fertilisers, of which 70 percent is urea fertiliser
with BCIC:
and 10 percent is others fertiliser. There are 9
organisations operating under local/foreign joint 1. KarnaphuliFertiliser Co. Ltd. (KAFCO)
2. Sanofis (Bangladesh) Ltd.
venture partners with BCIC.
3. Bayer Crop Science (Bangladesh) Ltd.
During FY 2020-21 (Till February 2021) the 4. Novartis (Bangladesh) Ltd.
running factories under BCIC produced 6,66,979 5. Syngenta (Bangladesh) Ltd.
6. Dhaka Match Industries Co. Ltd.
MT of urea fertiliser, 73,318 MT TSP, 59,007 7. Bulk Management (BD) Ltd.
MT DAP fertiliser, 4,411.88 MT of paper, 9,995 8. Miracle Industries Ltd.
MT cement, 645.17 MT of sanitary ware, 470.49 9. Bangladesh Fertiliser and agro chemicals
MT of insulator and 126.63 MT refractories. Ltd.
Until December 2020 in FY2020-21, the actual The production, demand, sales and import
production has been Tk. 961.88 crore against the statistics of urea fertiliser from FY 2012-13 to
target of Tk. 1,424.54 crore in 10 factories of FY 2020-21 (up to February 2021) are given
BCIC, which is 67.52 percent of the target. At the below In Table 8.8:
same time the sales volume of the BCIC's
Table 8.8: The Production, Demand, Sales and Import Statistics of Urea Fertiliser
(in MT)
Fiscal year Targets Actual Target Achieved Demand Actual Sales rate against Import
production (%) sales demand (%)
2012-13 1115000 1026999 92 2500000 2247116 90 1314703
2013-14 1012500 838628 83 2450000 2461681 101 1731057
2014-15 786056 878360 112 2700000 2638533 98 1880964
2015-16 1095000 1007498 92 2800000 2291452 82 1676165
2016-17 928000 922717 99 2500000 2365737 95 1153324
2017-18 943974 764006 81 2500000 2427467 97 1419149
2018-19 810000 788435 97 2550000 2594093 102 2045715
2019-20 900000 796598 89 2650000 2509726 95 1699764
2020-21* 1240000 666979 54 2550000 1956415 89 1172744
Source: Bangladesh Chemical Industries Corporation * up to February 2021

Bangladesh Sugar and Food Industries Bangladesh Steel and Engineering

Corporation (BSFIC) Corporation (BSEC)
Bangladesh Sugar and Food Industries Enterprises under Bangladesh Steel and
Corporation operates activities of its 15 sugar Engineering Corporation have been playing
mills, 1 distillery unit, 1 engineering factory, 1 important role in the economic development of
organic Bio-fertiliser and three commercial the country as they produce Electric Cables,
establishments. Annual production capacity of 15 Transformers, Tube Light, and Super Enameled
sugar mills under the corporation is 2.10 lakh Copper Wire etc. BSEC has also a share in the
MT. At present the annual demand of sugar is road transport sector since it has been assembling
about 18 lakh MT in our country. Sugar Bus, Truck, Jeep, Motorcycle etc. Enterprises of
production is insufficient in sugar mills based on BSEC also produce MS/GI/API Pipe, MS Rod and
sugarcane, compared to the actual demand of Safety Razor Blade.
sugar in the country. As a result, the deficiency
As per revised budget goods worth Tk. 632.34
of sugar is fulfilled by imported sugar and sugar
crore is expected production during FY 2020-21.
produced in the 5/6 sugar refinery, established in
Estimated sales target of Enterprises under BSEC
the private sector.To prevent the spread of the
during FY 2020-21 were Tk. 730.43 crore and
novel corona virus, The distillery of Carew and
actual sales were Tk. 226.27 crore during
Co. (BD) Ltd. has produced and marketed hand
July’20-February’21. Actual productions in FY
sanitiser.
2019-20 were Tk. 687.13 crore and actual sales
In FY2020-21, BSFIC has produced 41,212.60 were Tk. 886.19 crore. BSEC’s enterprises earned
MT of Sugar against the revised target of 83,444 net profit of Tk. 54.14 crore and pay to national
MT up to February 2021. In FY 2020-21 the exchequer as taxes Tk. 301.71 crore. Due to
production target of distillery unit has been COVID-19 profits could not be achieved as per
determined as 50.00 lakh proof liter but 29.64 the target for dull business and stoppage car
lakh proof liter products have been produced up purchases in government project caused. Besides
to February 2021. The annual production targets in FY 2020-21 till February’2021 Enterprises
of engineering products have been determined as under BSEC produces goods Tk. 247.15 crore and
1,000 MT but up to February, 2021 about 647.55 sales were Tk. 226.27 crore. Moreover, pay to
MT products have been produced. In the current national exchequer as vat-taxes Tk. 86.38 crore.
fiscal year BSFIC has been deposited Tk. 54.91
crore up to January 2021 as duty and tax to the
national exchequer.
Table 8.9: Net Profit/Loss of BSEC Enterprises
Particulars 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Profit 98.88 84.54 95.41 96.68 102.87 104.59 85.81 4.79
Loss 9.30 12.96 9.19 19.60 23.91 36.69 31.66 25.76
Net Profit/ (Loss) 89.58 71.58 86.22 77.08 76.50 67.90 54.15 (20.97)
Source: BSEC. Up to Feb. 2021
Table 8.10: Statement of Revenue Deposited by BSEC

Particulars 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Duties and Taxes: 256.98 245.66 243.13 237.92 359.41 484.68 299.07 92.55
Source: BSEC. Up to Feb 2021

Bangladesh Forest Industries Development B. Rubber Sector:

Corporation (BFIDC)
Since its inception, the BFIDC has planted rubber
Bangladesh Forest Industries Development plants in its 33,129 acres of land. BFIDC has been
Corporation (BFIDC) is a profit-makingstate- playing an important role in the carbon
owned enterprise. The activities of the sequestration, reducing degradation and erosion
Corporation are divided into two sectors. The of land as well as creating employment
sectors are Industrial sector and Rubber opportunity, saving foreign currency and
(agriculture) sector. generating economic activities in the remote rural
areas. The quantity of exported rubber in FY
A. Industrial Sector:
2019-20 is 1,855 MT. In FY2013-14 to FY 2019-
The Industrial sector consists of 8 industrial 20 the quantity of exported rubber is 59 percent
units. Among them 3 units are engaged in of total production and earned US$ 30.99
collection of woods from Chattogram hill tracts million. BFIDC is playing a vital role in extension
and economically life cycle lost rubber trees from of rubber cultivation/plantation in both public
rubber garden of BFIDC, seasoning and treatment and private sector. BFIDC produced raw rubber
of woods. The rest 5 units are engaged in are used in producing sandal, tire-tube of light
manufacturing door, window, chowkat, dunnage, vehicle and rickshaw; hosepipe, bucket, gasket,
chair, table, bench, sofa-set and high-quality oil seal, textile and jute spare parts etc. The
furniture commercially. In FY 2019-20 the amount of revenue deposited in the government
Industrial unit earned profit Tk. 19.23 crore. treasury in the last ten years is presented in the
Table 8.11.
Table 8.11: The amount of Revenue Deposited in the Government Treasury in the last 10 years
( in LakhTk.)
Item of Financial Year
S
depostie 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 *
L
1. VAT 1812.59 1783.66 770.94 633.49 528.15 716.00 946.28 1047.70 895.26
2. Salse IT 473.45 442.03 180.30 33.21 56.77 47.49 96.40 4.75 23.91
Income
3. 0.82 - 0.11 - - - 5.95 10.89 5.06
Tax(Salary)
4. Royaltie 64.85 150.00 42.84 46.15 - - - 138.93 -
Income tax
5. 4166.28 4312.55 3966.56 1564.47 1117.68 315.00 94.00 528.15 -
(corporation)
6. Other Taxes 184.96 150.00 305.02 136.66 233.22 441.40 123.07 - 265.45
7. Dividends 100.00 184.62 - 25.00 - - - - -
Sub Total 6802.95 4797.17 5265.77 1772.28 1350.9 756.4 217.07 1730.42 1189.68
DSL
8. Paid Paid - - - - - -
(Main loan)
Total 13605.9 9594.34 5265.77 3544.56 1350.9 756.4 217.07 1730.42 1189.68
Source: BFIDC * Up to December 2020
Textile Industry Bangladesh Textiles Mills Corporation

(BTMC)
Bangladesh is the Second Largest RMG
Exporting Country in the world. In FY 2019-20, From FY 1972-73 to FY 2017-18 (October 2017)
Bangladesh Approximately earned US$ 27.95 BTMC produced 8,265.50 lakh kg. yarn, out of
billion from readymade garments sector which is which BTMC’s own production 7,282.92 lakh kg
approximately 83 percent of the total export of and 982.50 lakh kg produced under service
the country. charge system. BTMC had also produced 8149.98

lakh meter fabrics. After closing the weaving medium-size textile industries, 01 mill is under
section of the composite mill under BTMC, the process of setting up ‘Textile Polli’. Two mills
production of fabrics had been also closed since have handed over to the private partners for
FY 1996-97. From FY 1996-97 to FY 2017-18 operation under PPP. Infrastructure Investment
(October’17) BTMC has earned revenue Tk. Facilitation Company (IIFC) has been appointed
484.63 crore as service charge. The production of by PPP authority for 13 mills. In the 2nd phase of
yarn based on service charges is on view till PPP International tender will take place for 4
October 2017. From November 2018, all of the mills. They have already started their work
five mills are operating in a rental Basis. Even regarding these 4 mills. As guided by Khulna
now, the yarn produced by the mills introduced Development Authority, a changed proposal of
in the rental system of BTMC is still playing a Khulna Textile polli to construct theme park,
small role in satisfying the demand in the local amusement park, resort or hospital has been sent
market. to Ministry for approval. A comparative
statement is provided below showing the
At present BTMC has 25 mills. Out of which 02
installed capacity, utilisation capacity and
mills are in operation under the rental system
production performances for the period of FY
from November 2017. With the approval of the
2009-10 to FY 2017-18.
Prime Minister's attempt to develop small and
Table 8.12: Year-wise Yarn Production
Financial Year Installed Capacity Capacity Utilisation Production

(%) (Lakh Kg.)
Spindles Spindles Yarn
2009-10 176512 11 11.46
2010-11 176512 43 24.05
2011-12 176512 20 9.36
2012-13 168968 18 16.68
2013-14 186264 20 19.80
2014-15 199608 20 20.48
2015-16 198792 23 22.37
2016-17 169472 29 20.47
2017-18* 152176 22 4.98
Source: BTMC, up to October 2017.
Handloom Sector amount of foreign exchange earned through

textile exports has been US$ 11.15 crore.
The handloom industry is the astringent of the
tradition of Bangladesh. The industry directly Bangladesh Handloom Board
and indirectly employs about 15 lakh people
Bangladesh Handloom Board (BHB) has been
throughout the year. According to the Weaving
implemented a number of development
Census, 2018, the total number of looms in the
projects/programs for the overall development of
country is 2,90,282 and the annual production of
the handloom sector. These projects/programmes
weaving is about 47.474 crore meters. The
have been contributing much to the promotion
weaving industry is supplying more than 28
and development of handloom sector in general
percent of the country's domestic textile demand.
and the weavers in particular. A project titled
The annual value added of this industry is about
‘Micro Credit Programme for the Weavers’ was
Tk. 2,269.70 crore. In the last 10 years, the
undertaken to provide working capital to the

weavers owning 1-5 looms by organising them in lakh people are directly and indirectly associated
groups as per rules of Tanti Samity, 1991. There with silk industry across the country. Most of
is a provision that the loan amount will be them are women.
refunded to the Government after 5 years of
Bangladesh Sericulture Development Board
implementation period. Up to February, 2021 an
amount of Tk. 7,459.30 lakh has been disbursed Bangladesh Sericulture Development Board
among 44,816 weavers against 67,361 looms. (BSDB) has been formed in 2013 to integrate the
The recovered money is Tk. 6,037.84 lakh and Bangladesh Sericulture Board, Bangladesh
recovery rate is 73.05 percent. To find out Muslin Sericulture Research and Training Institute and
cotton and the technology of Muslin yarn through Bangladesh Silk Foundation for the integrated
extensive research, to revive and produce the development of sericulture. Under the direction
Muslin yarn and Muslin fabrics eventually and to given by the Hon'ble Prime Minister, silk farming
bring back the lost glory, ‘the golden heritage of has been included in the ‘Amar Bari, Amar
Bangladesh’ project was approved by The Khamar’ project.
Honorable Planning Minister at an investment In 2002, Rajshahi Silk Factory was closed. After
cost of Tk. 12.10 crore. The research works for a long closure of 16 years, it was possible to
rejuvenating Muslin are going on. The cotton for reopen the Rajshahi Silk Factory with the
making Muslin 'Phuti Carpus' has been revived dedicated efforts of all. Initiatives have been
from this research. Already The department of taken to repair 62 looms of closed Rajshahi and
Patents Designs And Trademarks has published Thakurgaon silk factories. The Rajshahi Silk
‘Dhakai Muslin’ as Geographical Indication (GI) Factory was officially inaugurated on January 10,
product in journal no-9 in favor of Bangladesh 2021 by the Hon'ble Minister of Textiles and
Handloom Board. Jute. A showroom has been inaugurated at
Sericulture and Silk Industry Farmgate, Dhaka on January 24, 2021.
Information on production of Disease Free
Silk industry is a traditional cottage industry.
Laying’s (DFLs), Cocoon, Silk Yarn, Imparting
This industry has been playing an important role
training and Small Loan Disbursement in public
in improving the living standards of the hardcore
sector from FY 2011-12 to FY 2020-21(up to
poor people of the villages. Presently around 6.50
February 2021) is given in Table 8.13.
Table 8.13: Production of Disease Free Laying (DFLs) Cocoon, Silk Yarn and Microcredit
Disbursement
Fiscal Years Production Production Production of Silk Small Loan disburse
of DFLs of Cocoon Yarn in govt. (In Lakh)
( Million (MT) sector
Nos.) (MT) Silk Farmer Silk Weaver
2011-12 4.43 180.00 2.67 - -
2012-13 4.43 122.00 1.64 - -
2013-14 4.17 98.00 0.66 Disburse: 231.30 Disburse: 41.27
Recovery: 205.40 Recovery: 36.18

Fiscal Years Production Production Production of Silk Small Loan disburse

of DFLs of Cocoon Yarn in govt. (In Lakh)
( Million (MT) sector
Nos.) (MT) Silk Farmer Silk Weaver
2019-20 4.52 200.02 1.21 disburse: 231.30 disburse: 41.27
2020-21* 1.41 87.00 0.56 disburse: 231.30 disburse: 41.27
Source: Bangladesh Sericulture Development Board *Up to February 2021.
Research and Training Progress total 34,757 retired and terminated workers,
In FY 2020-21 Bangladesh Sericulture Research 30,343 workers were paid Tk. 1,595.42 crore as
and Training Institute (BSRTI) has been 50 percent of the total amount by their bank
conducting research for developing high yielding account and rest of the 50 percent is being repaid
mulberry, high yielding silkworm races and silk in the form of profit-based savings certificates
reeling technologies. The research activities will (Sanchaypatra) through the bank under social
be completed June 2021. Now the total number security. In FY 2020-21 (Up to February 2021)
of high yielding mulberry variety is 16 and BJMC exported 40,670MT. (delivered) of jute
silkworm developed race 49. At present in goods valued at Tk. 309.72 crore, which was
germplasm bank 83 mulberry varieties and 113 35,000 MT. (delivered) and valued at Tk. 300.46
silkworm races are maintaining. Due to crore in FY 2019-20.
development of high yield mulberry and Jute Diversification Promotion Centre (JDPC)
silkworm race leaf production has been increased
JDPC has been established for accelerating and
to 40-47 mt/ha/yr in place of 37-40 mt/ha/yr and
extending uses of high value added diversified
cocoon production to 70-75 kg/100dfls in place
jute products along with the conventional jute
of 60-70 kg/100dfls respectively. Now it is
products, the objectives of JDPC also include
possible to produce 1 kg raw silk from 8-9 kg of
revival of the past glory of jute with the idea of
cocoon in place of 10-12 kg. In FY2020-21, till
multifaceted and multidimensional uses of jute-
now 260 personnel in short-term course on
through creating entrepreneurs, providing
sericulture have been trained up. This skill
training, supplying raw materials, design
manpower is working in the Bangladesh
development and helping marketing of jute
Sericulture Development Board, NGOs and other
products in domestic and international market.
private enterprises.
Major activities of JDPC is given below:
Jute Industry
 To create awareness of JDPs through fair,
Bangladesh Jute Mills Corporation (BJMC) exhibition, buyer-seller meetings, workshops,
In order to revive and modernise the jute sector seminar, and other marketing programme.
as well as to pay the long-accumulated arrears of  To provide entrepreneurship development
the workers and retired employees, the training for new and existing entrepreneurs.
production activities including the termination of  To explore and promote new technologies for
labour of 25 state-owned jute mills were declared production of high value added diversified
closed from 1 July 2020. Accordingly, out of jute product.

 To explore potential markets for diversified industrial units in the economic zone have the
products both in home and abroad. potential to invest 4.5 billion and create
employment for 5,00,000 Bangladeshis. Besides,
 To provide raw materials through Raw
conversion of 1,819 acres land of Rangpur Sugar
Materials Bank (RMB).
Mills into EPZ and set up of an EPZ in Jashore
Department of Jute and near Payra seaport are under process.
The main functions of the Department of Jute are As on February, 2021, 463 enterprises are in
to regulate and control of internal and operation and 68 enterprises are under
international trade of jute and jute goods and to implementation. Among the enterprises in
minimise malpractices therein. The principal operation, 153 industrial units are in Chattogram
functions of the department to issuing licenses of EPZ, 94 industrial units are in Dhaka EPZ, 50
different categories, preventing irregularities and industrial units are in Adamjee EPZ, 46 industrial
malpractices and generate revenue. Moreover, units are in Cumilla EPZ, 43 industrial units are
revenue is being collected at the rate of Tk. 2 per in Karnaphuli EPZ, 24 industrial units in Uttara
bale in case of raw jute export and Tk. 0.10 per EPZ, 19 industrial units are in Ishwardi EPZ and
100 in case of jute goods export. 34 industrial units in Mongla EPZ. As on
February, 2021, the amount of cumulative
The production of jute and jute goods mainly
investment in the EPZs is US$ 5,516.45 million.
depend on internal and international demand and
As per Annual Performance Agreement, the
market price. For this reason, production of jute
target of investment for FY 2020-21 has been
and jute goods, export and prices thereof
fixed at US$ 280 million. In the first 8months of
fluctuate widely. In FY 2019-20, 75.60 lakh Bale
FY 2019-20, the amount of actual investment
raw jute and 7.90 lakh MT. jute products have
stands at US$ 226.58 million. As on February,
been yielded and export value was US$ 855.09
2021, the amount of cumulative export from the
million. In FY 2020-21( till February 2021) the
EPZs is US$ 84.81 billion. As per Annual
export earning marked US$ 862.74 million.
Performance Agreement, the target of export for
Investment Status in the Export Processing FY 2020-21 has been fixed at US$ 6,700 million.
Zones In the first 08 months of FY 2020-21 financial
Bangladesh Export Processing Zones Authority year, the amount of export from the EPZs stands
(BEPZA) has been engaged in attracting and at US$ 4,202.99 million. It may be mentioned
facilitating foreign and local investment in the here that the export made from EPZ during FY
Export Processing Zones of the country. At 2019-20 contributed about 19.27 percent of
present, there are 8 EPZs in the country, namely- national export. Up to February, 2021, a total of
Chattogram, Dhaka, Mongla, Cumilla, Ishwardi, 4,23,501 Bangladeshi nationals have been
Uttara (Nilphamari), Adamjee and Karnaphuli employed in the enterprises in the EPZs, out of
EPZ. Apart from that, the work of setting up an which 66 percent is female. Up to February 2020,
economic zone called BEPZA Economic Zone on a total of 5,01,355 Bangladeshi nationals have
1,150 acres of land in Mirsarai upazila of been employed in the enterprises in the EPZs, out
Chattogram district is in the final stage. 539 of which 66 percent is female. Information
industrial plots will be constructed under the regarding EPZ-wise number of operating
project. In the first phase, from April 2021, 140 industries, investment, export and employment
industrial plots are expected to be allotted to up to February 2020 are shown in the Table 8.14.
domestic and foreign investors. The 350 Up to February 2020, information regarding
Product-wise number of operating industries,

investment and employment are shown in the investment and export of different EPZs are
Table 8.15 and information regarding actual shown in Table 8.16.
Table 8.14: Zone-wise Statistics of Industries Investment Export and Employment of EPZs.
Number of Industry
Investment Export Employment
Name of EPZs
Under (Million US$ ) (Million US$) (No.)
In Operation
Implementation
Chattogram EPZ 153 10 1836.91 34749.93 153948
Dhaka EPZ 94 4 1578.40 29874.87 71034
Adamjee EPZ 50 15 567.23 5675.37 46697
Cumilla EPZ 46 8 439.50 3737.02 34543
Karnaphuli EPZ 43 5 638.08 7439.68 70316
Ishwardi EPZ 19 13 157.36 1056.30 12691
Mongla EPZ 34 8 87.35 771.76 5989
Uttara EPZ 24 5 211.62 1476.68 28283
Total 463 68 5516.45 84781.63 423501
Source: BEPZA. *Up to February 2021
Table 8.15: Product wise Enterprises Investment and Employment in EPZs
Enterprise Investment Employment

Sl Product
(Nos.) (Million US$) (Nos.)
1 Garments 139 2290.44 264747
2 Garment Accessories 88 714.89 15766
3 Textile 35 709.23 23949
4 Knitting andother Textile pdt. 26 324.04 16792
5 Footwear & Leather goods 25 313.58 34241
6 Electronics & Electrical goods 20 174.36 3949
7 Tent 14 159.04 18876
8 Plastic goods 13 95.71 4632
9 Service Oriented Industries 10 54.99 1080
10 Metal Products 9 40.00 1137
11 Terry towel 8 28.81 2266
12 Agro Products 6 4.01 17
13 Chemical & Fertilizer 6 32.10 166
14 Caps 5 70.61 5925
15 Jute Products 5 29.39 879
16 Luggage/Bag 5 10.20 3095
17 Furniture 3 33.02 1026
18 Paper Products 3 4.72 144
19 Power Industry 2 135.02 190
20 Toys 2 55.39 4062
21 Yarn 2 9.44 202
22 Fishing Reel & Golf Equipment 1 43.46 1115
23 Miscellaneous 36 184.02 19245
Gr. Total 463 5516.45 423501
Source: BEPZA, *Up to February 2021

)
Table 8.16: EPZ wise Investment and Export
(In Million US$)
Name of
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
EPZ
Dhaka Investment 77.17 68.45 125.79 84.02 80.63 70.72 68.69 76.14 88.50 52.95
Export 1614.45 1780.70 1937.50 1,997.50 2183.9 2091.3 2200.3 2206.31 1814.56 1078.34
Chattogram Investment 101.74 133.84 109.46 152.02 100.71 90.57 86.19 75.69 53.37 64.84
Export 1883.81 2095.12 2261.61 2383.76 2419.71 2254.16 2442.20 2391.69 2092.44 1346.62
Mongla Investment 0.08 3.52 5.10 8.27 18.98 6.15 11.78 10.14 16.15 2.05
Export 54.24 74.10 77.28 84.26 74.657 45.79 52.55 89.44 91.86 53.05
Investment 20.07 21.06 23.39 23.41 30.18 29.32 31.51 31.08 38.43 54.48
Cumilla
Export 148.36 176.93 209.41 274.63 308.33 337.39 408.26 490.76 464.40 354.61
Investment 5.97 20.62 17.27 19.89 33.53 24.56 20.42 31.02 14.01 7.59
Uttara
Export 16.03 20.38 33.22 87.99 188.8 227.07 224.93 293.76 230.94 144.47
Investment 17.85 5.12 3.15 5.42 15.11 20.07 20.17 8.18 7.85 4.55
Ishwardi
Export 41.53 55.71 93.16 108.26 114.74 96.55 131.39 150.22 125.46 97.92
Adamjee Investment 34.55 29.99 73.75 48.51 54.70 50.36 50.16 50.22 31.73 13.57
Export 207.32 274.10 386.20 467.40 562.90 644 762.06 826.40 741.83 449.87
Investment 81.33 45.93 44.67 64.81 60.51 51.32 50.67 50.90 25.61 26.54
Karnaphuli
Export 245.05 379.61 526.85 709.74 823.28 853.08 976.85 1075.52 927.62 678.11
Source: BEPZA. *Up to February 2021.
So far, 38 countries including Japan, S. Korea, Wedding Dress, Wig, etc. 2 private Power Plants
China, Malaysia, Indonesia, Singapore, U.S.A, with the capacity of supplying of 200 MW
U.K, Germany, France, Italy, Sweden, electricity have been set up in Dhaka EPZ and
Netherlands, India, Pakistan, Australia, Ireland, Chattogram EPZ and setting up of Power Plants
Turkey, Ukraine, Kuwait, Rumania, Marshal in other EPZs is under process. As per the power
Island, Sri Lanka, Belgium, British Virgin Island, supply agreements, the Power Plants are allowed
and Bangladesh have already invested in the to supply and sale their extra power to the
EPZs of Bangladesh. The EPZ enterprises have national power grid after meeting the demand of
contributed significantly in terms of export the EPZ enterprises. Thus, the Power Plants in the
diversification of the country. The list of EPZs are contributing to the national economy by
diversified export items from EPZs includes: meeting up the demand of electricity outside the
Electrical equipment and components, EPZ areas.
Automobile Parts, Mobile Parts, Camera and
BEPZA has installed Solar Panels with the
camera lens, Engineering products, Bi-cycle,
capacity of supplying 229 kilowatt electricity in
Battery, Golf shaft, Leather products and
the EPZs and also set up 800 Solar Lights for the
Footwear, Textile, Energy saving bulbs,
streets inside the EPZs. Environmental Labs have
Furniture, Tent, Bullet Proof Jacket, Cosmetic
been set up in Dhaka EPZ and Chattogram EPZ.
and Hollywood mask, PPE Products, Face Mask,
For ensuring supply of treated water in the EPZs,
Isolation Gown, Medical Gown, Eye -glass and
Water Treatment Plants (WTPs) have been set up
Frame, Toys, Garments, Garments Accessories,
in Adamjee, Karnaphuli, Chattogram and

CumillaEPZs through private initiatives. Setting for security of the foreign nationals and overall
up of Water Treatment Plants in other EPZs is safety of the EPZs. The Financial Times, a
under process. Apart from that, Central Effluent London based FDI magazine, ranked the
Treatment Plants (CETPs) have been established Chattogram Export Processing Zone (CEPZ) in
in Chattogram, Dhaka and Cumilla EPZs through the 3rd position in Best Cost Effective Zone
Private initiatives. BEPZA has deployed 30 category and 4th position in the Best Economic
Environmental Counselors for regularly Potential category among the 700 economic
monitoring of the waste management system of zones in the world for 2010-11. (FDI Magazine of
the enterprises in the EPZs. BEPZA has deployed The Financial Times, London, June-July, 2010
60 social counselors to protect the rights of the issue). They have also ranked Chattogram Export
workers and also to ensure improvement of Processing Zone in the 9th position for FDI Global
working environment in the EPZs. To resolve the Free Zone of the future 2012/13 category. (FDI
disputes between the owner and the worker, 3 Magazine of The Financial Times, London, June-
Conciliators and 3 Arbitrators have been July, 2012 issue).
employed for 8 EPZs. The Government has
Other Industries
enacted a complete and separate ‘Bangladesh
Pharmaceutical Industry
EPZ Labour Act, 2019’ to ensure the rights and
welfare of the workers of the industries in the After the liberation, Bangladesh was totally
EPZ. dependent on import for medicine. People had to
buy medicine at a very high price. Now we are
To create a Digital Bangladesh, BEPZA has
producing medicine 98 percent of our national
started process automation system (online import
need. Very few high-tech products like biosimilar
permits and export permits, bill collection, work
products, anti-cancer medicines, vaccines etc. are
permit, Pay Roll Management etc.) for all EPZs.
now imported for our country. Already
BEPZA has set up Video Conferencing between
Bangladesh has become an exporter country from
the zones, inter-active website, Wi-Fi facility in
an importer country and Bangladeshi medicines
the EPZs, Remote Communication Electrical
achieve goodwill in the whole world. At present,
Metering System in all EPZs. CCTV Surveillance
54 pharmaceuticals companies are exporting in
System, Automated Access Control Gate, Metal
148 countries. A short picture of Bangladesh
Archway etc. have been introduced in the EPZs
export condition is shown in Table 8.17.
Table 8.17: Export of Drugs and Raw Materials.
(In Crore Taka)
Year Medicine production Export of Raw Materials Total Export Countries
2011 421.22 4.93 426.15 87
2012 539.62 11.60 551.22 87
2013 603.87 16.06 619.93 87
2014 714.20 19.07 733.27 92
2015 812.50 195.58 1008.08 113
2016 2245.60 1.40 2247.05 127
2017 3192.46 3.86 3196.32 145
2018 3508.17 6.12 3514.28 146
2019 4067.95 22.14 4090.09 147
2020 4069.27 86.19 4155.46 148
Source: Directorate General of Drug Administration

Industrial Credit has been providing industrial loans and other

ancillary supports through banks and financial
Rapid industrialisation is required to achieve a
institutions in the last few years. As a result, the
desired level of economic growth of an agro-
volume of industrial loan disbursement and
based developing country like Bangladesh. In
recovery has been increasing gradually. Year-
this context, the role of industrial sector is very
wise disbursement and recovery of industrial
crucial. To promote SMEs along with the large-
loans from FY 2011-12 to FY 2020-21 (up to
scale industries, the Government of Bangladesh
September 2020) is presented in Table 8.15.
Table 8.18: Disbursement and Recovery of Industrial Loans
(Tk in crore)
Disbursement Recovery
Fiscal Year Working Term Loan Total Working Term Loan Total
Capital Capital
2011-12 76674.98 35278.10 111953.08 64400.27 30236.74 94637.01
2012-13 103165.56 42528.31 145693.87 85496.14 36549.41 122045.55
2013-14 126102.59 42311.32 168413.91 113291.25 41806.69 155097.94
2014-15 155476.72 59783.70 215260.42 117959.78 47540.81 165500.59
2015-16 199349.21 65538.69 264887.90 149762.72 48225.29 197988.01
2016-17 238517.05 62155.08 300672.13 185532.77 52094.57 237627.34
2017-18 275629.05 70768.17 346397.22 202980.48 70193.08 273173.56
2018-19 319006.98 80850.08 399857.05 243194.05 76568.81 319762.87
2019-20 312134.01 74257.02 386391.03 256605.77 69723.89 326329.66
2020-21* 79393.38 15456.28 94849.66 72910.39 11322.37 84232.76
Source: Bangladesh Bank. *as on September 2020
It has been observed that credit disbursement and  Formulation and publication of national
recovery saw upward trends from FY 2010-11 to standards for goods and services.
FY 2018-19. Credit disbursement fall sharply in  Preserving the national standards of
FY 2019-20 but recovery increased in this period. Bangladesh in terms of weights and measures
and establishing consistency with the
In FY 2020-21, the amount of credit
International Unit i.e. SI system.
disbursement and recovery (up to September,  Inspection of factories and collection of
2020) stood at Tk. 94,849.66 crore and Tk. samples for conducting test activities in
84,232.76 respectively. It is expected that the compliance with Bangladesh standards in the
incremental disbursement of industrial credit will production of industrial and agricultural
contribute significantly towards maintaining the products.
growth of the industrial sector of the country and  Approval, renewal, disallow, withdrawal or
will ensure a sustainable economic development suspension of Certification Marks (CM)
license.
as well.
 Conduct mobile court and surveillance
Industry Related Activities activities to ensure quality of local products
as well as imported products and ensure
Bangladesh Standards and Testing Institution accurate of weighs and measure equipment
(BSTI) used by trade bodies.
As the only national standards body in the Significant ongoing activities
country, Bangladesh Standards and Testing
 Introduction of QR code for web-based
Institution (BSTI) has the following key
license/certificate issuance, license and
responsibilities:
certificate including security of CM

licenses/certificates issued by BSTI of From July 2020 to February 2021, the total
product check mobile apps. number of Patent, Design, Trademark and GI
 Introduction mobile apps content information applications filed in DPDT 249, 999, 11,528 and
on the packaged products. 1 respectively and the total number of
 Software development work has been applications disposed 165, 1,350. 15,399 and 6
undertaken to bring BSTI's CM license respectively. Total amount of non-tax revenue
services under the online system. collected in FY 2020-21 is about Tk. 12.05 crore,
 ‘Subject based training’ program for BSTI which was Tk. 11.09 crore and Tk. 9.85 crore in
officials is being implemented. the same period of FY 2019-20 and FY 2018-19
 In BSTI hotline response service has been respectively.
introduced. Office of the Chief Inspector of Boilers
 Project has been taken for establishment of Bangladesh
Regional offices of BSTI at 10 districts.
Office of the Chief Inspector of Boilers is a
vertical extension of the existing building of
service-oriented technical department under the
BSTI offices at Mymensingh, Faridpur,
Ministry of Industries. To facilitate the service
Cumillaand Cox's Bazar for establishing
for stakeholders 07 new zonal offices have been
Physical testing labs.
established in Khulna, Rangpur, Mymensingh,
 Initiative has been taken to establish National
Sylhet, Gazipur, Narayanganj and
Metrology Laboratories (NML) at Head
Narsingdidistricts along with the number of
Office and Divisional Offices of BSTI and
inspectors have been increased. At present boiler
also create training facilities for BSTI officers
related services are delivering from total 10 zonal
and staff.
offices. Activities have been taken to update
 Halal certification issue of products.
boiler act and rules for standard boiler
 Formulated Standards for face mask and
manufacturing, import and use. In order to
different automobile parts.
prevent boiler accidents standard, safe, fuel
 Project is being taken to establish of 41 efficient and environmental friendly boiler design
district offices of BSTI at district level. has been invented for using at rice mill (Chatal)
Department of Patents Designs and instead of low quality boiler. Activities have been
Trademarks (DPDT) taken for boiler registration and renewal in
online. Moreover, boiler users are getting
Like all other member countries of WIPO,
information about the expiry period of Boiler and
Department of Patent, Design and Trademarks
boiler using certificate through e-file. In FY
observes April 26 as World Intellectual Property
2020-21 up to February'21 total 446 Boilers were
Day considering the importance of Intellectual
registered; 108 numbers of locally manufactured
Property and the world current scenerio.To
Boilers were certified and 269 Boiler attendant
stimulate the scientists, entrepreneurs as well as
certificates were issued.At that time Tk. 3.67
stakeholders, a Technology and Innovation
crore has been collected as revenue and 4
Support Centre (TISC) has been established in the
meetings have been held to aware about Boiler
DPDT. To digitise and easy-to-access to the
operation.
activities of DPDT it has been launched IPAS,
EDMS, one stop service, online filing, etc. It is to Bangladesh Accreditation Board (BAB)
be noted that IP Policy and Strategy is formulated For upgrading the quality infrastructure, BAB is
with the help of WIPO. working to develop conformity assessment
System in Bangladesh. BAB is contributing to the

economic development of the country by improving the skills of the trainees through
increasing consumer confidence, helps in the technical training. In addition to the 28 trades,
protection of consumer right and trade facilitation BITAC conducts various short-term specialised
through enhancing the quality of products and training courses on specific technology or
services. BAB, since its first accreditation in machine operations to fulfill the needs of
2012, has accredited 85 local and multinational entrepreneurs. BITAC is providing technical
organisations by 2020. assistance through technical books and video
training modules in simple Bengali language with
In result of BAB accreditation, the area and
the aim of assisting the light engineering industry
competence of local testing, inspection and
in Dholaikhal. Under the project titled ‘Extension
certification activities have been increased
of BITAC for Self-Employment and Poverty
significantly that is helping in the increase of
Alleviation (SEPA) through hands on technical
export business. BAB by 2020 has arranged 26
training highlighting women’ (Duration-2009-
Assessor Courses and 35 other technical courses
2019) total number of 8,397 trainees, among
on different international standards such as
ISO/IEC 17025, ISO15189, ISO/IEC 17021, ISO/IEC
them 4,063 are men and 4,334 are women, were
17020, ISO/IEC 17043 etc. A total of 1,800 persons employed in various industries at home and
from different technical disciplines have been abroad under the direct supervision of BITAC and
trained by BAB who, becoming skilled and some have become self-employed in the small
competent manpower are contributing to and cottage industries.
developing national quality infrastructure. In FY National Productivity Organisation (NPO)
2019-20, BAB has earned Tk. 79.82 lakh from its
National Productivity Organisation (NPO) is a
accreditation and training services. In future,
national level specialised organisation to promote
through increasing the work portfolios and
productivity and thereby accelerate pace of
activities, BAB will be able to have significant
economic development through its
contribution to the national economic
multidimensional activities like creation of
advancement.
productivity awareness, development of
Bangladesh Industrial Technical Assistance productivity infrastructure and implementation of
Centre (BITAC) productivity improvement programme, NPO is
Since its establishment, BITAC has been working the only organisation responsible for formulation
to provide skilled manpower for industrial sector, and implementation of productivity policy of the
enhance productivity and render technical government. NPO also implements the plans and
knowledge, introduce modern technical training programs of the Tokyo based Asian Productivity
to maintain machinery of the factory and to Organisation (APO) which is an inter-
manufacture world-class sophisticate spare parts. governmental body for productivity promotion in
BITAC is playing vital role in creating the Asia and the Pacific region. On October 2,
employment opportunities through human 2020, National Productivity Day was observed
resources development and skilled manpower for across the country. The theme of the day was
both in home and abroad. The headquartered of 'Productivity in Building the Golden Bengal of
BITAC is in Dhaka. At present, BITAC has five the Father of the Nation's Dream'.
local centers located at Dhaka, Chittagong,
To accelerate national economic development,
Chandpur, Khulna and Bogura.
NPO performed the following activities during
BITAC imparts a total number of 28 training FY 2020-21 NPO arranged 36 training courses
courses in the short and long term, aimed at where 1,260 participants were trained, 6

workshops with 600 participants. 2 Productivity Bangladesh Institute of Management (BIM)

Seminar held in deferent entropies and 2
BIM conducts short training programs of various
Consultancy Service organised deferent
types, 1-year long post graduate diploma courses
organisation. 5 enterprises formed productivity
and 6-month long diploma programmes along
improvement cell, data has been collected from
with its specialized training and consultancy
58 enterprises for prepared of research report and
projects. Since its inception in 1961 to February
around 80,000 awareness materials have been
2021, BIM has trained about 73,700 people in
distributed. NPO arranged discussion meeting
different disciplines of management. In FY 2019-
with 18 private sector leading enterprises. One
20, BIM has imparted training to 1,289 people in
APO programme with 39 oversees participants
65 short training programs and up to February
was implemented in Dhaka. Moreover 03
2021 of FY 2020-21 BIM has imparted training to
Technical expert service (TES) held by APO
717 people in 37 short training programs. In
assistance.
addition to that 826 participants were graduated
National Productivity Organization (NPO), and 750 participants enrolled in 5 diploma
Ministry of Industry prepared Bangladesh courses of one-year durations perfectively, in
National Productivity Master Plan FY2021 to 2019 and 2021 academic sessions. Besides, 44
2030 with joint venture of Asian Productivity persons are attending 6-month long Diploma in
Organization (APO), Japan to enhance Social Compliance and Diploma in Quality and
productivity, quality, competitiveness and Productivity in FY 2020-21 session. Apart from
innovation in various sectors of Bangladesh that a significant number of tailor-made courses
where the productivity growth rate for the next were held at the request of client organizations up
ten years is set at 5.6 percent. It has 5 goals in to February 2021.BIM has made significant
order to increase the export of innovative and strides in innovation and digitisation of
proactive enterprises, production of high value- government and civic services and continues to
added products and services increase the export do so. During the COVID-19 pandemic online
of modern products and services of international classes were launched through Zoom in
standard and create easy environment for collaboration with BdREN (Bangladesh Research
business management and growth, necessary and Education Network) under the Bangladesh
reforms in the field of education and health have University Grants Commission. In addition,
been mentioned. short-term training of various durations is also
being done online.

Annexure
Annex: 8.1
Steps have been undertaken for the development of SMEs
 Net outstanding based target for SME loans of Banks and FIs has been introduced instead of
previously used distribution-based target. Banks and FIs are instructed to set their target to at least 25
percent of their net outstanding amount of all loans and advances by 2024 while maintaining a
minimum 1 percent enhancement in each year.
 Banks and FIs are instructed to disburse 50 percent of the total SME loan to Cottage, Micro and Small
sector by 2024.
 Banks and FIs are instructed to provide three months grace period for one-year term loan and three to
six months grace period for medium to long term loan based on banker-customer relationship.
 To enhance SME activities, quarterly monitoring meeting is being held with SME heads of Banks and
FIs regularly. Also, SME monitoring cell has been established in all branches of Bangladesh Bank
including SME and Special Programs Department. Banks and FIs are also performing three tiers SME
monitoring for better outcome.
 New Entrepreneurs Refinance Scheme allows collateral security free financing more than Tk. 1
million on case to case basis and collateral security supported financing up to Tk. 2.5 million for New
Entrepreneurs.
 To expedite cluster-based financing to SME Sector, Banks and FIs are advised to formulate a cluster
development policy for strengthening existing clusters and developing new clusters.
 To ensure loan facility for women entrepreneurs, Banks and FIs are instructed to maintain at least 15
percent of the net outstanding of total loans and advances for women entrepreneurs.
 Instructions have been given for establishing separate ‘Women Entrepreneurs Dedicated Help Desk’
in each branch of every Bank and FI. If possible, they are also advised to employ a female official in
the desk to provide suggestions and services towards women entrepreneurs regarding project
preparation, loan application process etc.
 Instructions were given to Banks and FIs to consider sanctioning loan up to Tk. 2.5 million to women
entrepreneurs without collateral security but against personal guarantee under the refinance facilities
provided by Bangladesh Bank.
 A borrower friendly loan application form (in Bengali) has been introduced to expedite the
application procedure for entrepreneurs.
 With the successful implementation of pilot project named Local Support to Initiatives (LFI),
Bangladesh Bank has established a credit guarantee scheme unit in 2019. For providing credit
guarantee in the cottage, micro and small enterprises sector, this unit has introduced ‘Credit
Guarantee Scheme’ and issued ‘Manual of Credit Guarantee Scheme’ to implement and follow up
with the banks and financial institutions.
 All Banks and FIs are advised to find out and train at least three prospective SME Women
entrepreneurs who have not received any financing yet per branch and finance at least one of them in
each year.
 The Government of Bangladesh (GoB) has taken a project titled ‘Skills for Employment Investment
Program (SEIP)’ with the assistance of Asian Development Bank (ADB) and Swiss Agency for
Development and Cooperation (SDC). Under this project, as of February 2021, total 11,484 trainees
received market demanded training and 11,246 are certified. Among them, 2,310 have become
entrepreneurs in SME sector and 6,149 got job placement in different companies.

Annexure
Annex: 8.2
Some key activities of SMEF
 SME Foundation has identified 177 SME cluster across the country. Among them, needs assessments
of 75 SME clusters have been conducted to design intervention programs for the clusters. Foundation
arranged 79 capacity building training programs in 33 SME clusters to improve skill of the cluster-
based SME entrepreneurs. Feasibility study has already been conducted for establishing Common
Facility Center in 4 SME clusters.
 To expand market of SME products, SME Foundation has been organizing SME Fairs since 2012. 08
National SME Fairs in Dhaka, 84 regional (district level) SME product fairs and 03 Heritage
Handloom Festivals in Dhaka have been organised with participation of 6,360 entrepreneurs, out of
which 67 percent are women. SME Entrepreneurs sold products worth of Tk. 65 crore in cash and Tk.
71 crore as order. Apart from this, SMEF has been assisted 145 SME entrepreneurs to participate in
Dhaka International Trade Fair as well as different international product fairs (Germany, India, Japan
and China).
 To encourage SMEs, National SME Entrepreneur Award has been given every year. 34 SME
entrepreneurs have been awarded of whom 24 entrepreneurs are women.
 In order to create new SME entrepreneurs and make SME entrepreneurs more competitive, SME
Foundation is organising training programmes. 1,040 training programmes were organised for 31,220
entrepreneurs and workers of whom about 60 percent are women. A training center has been
established to provide trainings to SME entrepreneurs.
 To provide credit support, SME Foundation is operating Credit Wholesaling Program through banks
and non-bank financial institutions. Under the program, Foundation has been distributed 115 crore
taka collateral free loan at single digit (9%) interest rate among 2,100 SMEs (520 women) at 31 SME
clusters and cliental group.
 To make the bank officials aware about SME financing, 85 workshops on financial literacy specially
designed for SME bankers and bankers-entrepreneurs matchmaking events have been organised.
 Established an incubation center to develop new entrepreneurs and startups.
 To improve quality and enhance productivity, 4,370 SMEs have been supported through technology
up-gradation and different related awareness building programs.
 SMEF Business Support Service Center assisted 6,500 emerging entrepreneurs to provide business
information. A digital display center has been set up to showcase products of SME entrepreneurs.
 SME Foundation is working to promote and expand the country's SME products abroad. SMEF has
signed Memorandum of Understanding with the similar SME development Agency of D-8 Countries,
Bulgaria, South Korea and Turkey respectively.

CHAPTER NINE
STATE-OWNED ENTERPRISES
The contribution of SOEs is very important specially in power and gas, transport, communication
and service sector. During FY 2018-19, the total operating revenue of all existing SOEs was Tk.
1,79,630.54 crore which reduced from Tk. 1,66,722.20 in FY 2019-20.However, Considering of
the production cost, the amount of value addition increased to Tk.24,235.09 crore during FY
2019-20 which was Tk. 18,076.99 crore in FY 2018-19. According to the revised estimation in FY
2020-21 (up to 23 May 2021), the SOEs made a net profit of Tk. 8,499.64 crore. On the other
hand, the SOEs that earned profit contributed Tk. 1,326.25 crore to the national exchequer during
the same period. According to the estimation of Finance Division, the total Debt Service
Liabilities (DSL) stood at Tk. 1,75,567.23 crore up to 23 May 2021 in FY 2019-20. Up to 28
February 2021, outstanding state owned commercial bank loan against 30 SOEs stood at
Tk.33,451.28 crore. Out of this, the classified loan stood at Tk. 68.75 crore. Though the operating
profit on total assets of SOEs was 3.46 percent in FY2015-16, in FY 2018-19 this profit reached to
1.02 percent. The net profit on operating revenue was 6.42 percent in FY 2019-20. The rate of
dividend on equity decreased to 0.80 percent in FY 2019-20. Considering the turnover of assets, the
efficiency of resource utilisation during FY 2019-20 reduced compared to the level of efficiency in
the previous fiscal years.
State owned enterprises play significant role in In accordance with Bangladesh Standard
increasing national productivity, value addition, Industrial Classification (BSIC), 49 state-owned
employment and revenue income. Scope and non-financial enterprises in the country have
intensity of investment from state owned been categorised into 7 sectors. Both the
enterprises for expansion of local industry and economic and financial achievements of these
trade is also increasing as well as the investment sectors have been analysed in this chapter.
of the private sector. Classification of these enterprises shown in table
9.1
Table 9.1:Non-Financial Public Enterprises

No. of
Sl. No Sector Title of Enterprises (Non-financial)
Enterprises
1 Industry 6 Bangladesh Textile Mills Corporation (BTMC), Bangladesh Steel &

Engineering Corporation (BSEC), Bangladesh Sugar & Food Industries
Corporation (BSFIC), Bangladesh Chemical Industries Corporation
(BCIC), Bangladesh Forest Industries Development Corporation (BFIDC),
Bangladesh Jute Mills Corporation (BJMC).
2 Power, gas and 6 Bangladesh Oil, Gas & Mineral Corporation (PETROBANGLA),
Bangladesh Power Development Board (BPDB), Dhaka Water Supply
water
and Sewerage Authority (WASA), Chattogram Water Supply and
Sewerage Authority, Khulna Water Supply and Sewerage Authority and
Rajshahi Water Supply and Sewerage Authority.
Chapter 9-State Owned Enterprises | 129

No. of
Sl. No Sector Title of Enterprises (Non-financial)
Enterprises
3 Transport and 7 Bangladesh Shipping Corporation (BSC), Bangladesh Inland Water

Transport Corporation (BIWTC), Bangladesh Road Transport Corporation
communication
(BRTC), Chattogram Port Authority (CPA), Mongla Port Authority (MPA),
Bangladesh Land Port Authority (BLPA) and Bangladesh Bridge Authority
(BBA).
4 Trade 3 Bangladesh Petroleum Corporation (BPC), Trading Corporation of
Bangladesh (TCB), Bangladesh Jute Corporation (BJC) (abolished).
5 Agriculture and 2 Bangladesh Fisheries Development Corporation (BFDC),
Fisheries
Bangladesh Agricultural Development Corporation (BADC).
6 Construction 6 Rajdhani Unnayan Kartipaksha (RAJUK),

Chattogram Development Authority (CDA),
Rajshahi Development Authority (RDA),
Khulna Development Authority (KDA),
Cox’s Bazar Development Authority (Cox DA) and
7 Service 19 Bangladesh Muktijoddha Kalyan Trust (BMKT), Bangladesh Film
National Housing
Development Authority (BFDC),
Corporation (NHA). Bangladesh Parjatan Corporation
(BPC), Bangladesh Small and Cottage Industries Corporation (BSCIC),
Civil Aviation Authority of Bangladesh (CAAB), Bangladesh Inland
Water Transport Authority (BIWTA), Rural Electrification Board (REB),
Bangladesh Export Processing Zone Authority (BEPZA), Bangladesh
Handloom Board (BHB), Bangladesh Sericulture Board (BSB),
Bangladesh Tea Board (BTB), Bangladesh Telecommunication
Regulatory Commission (BTRC), Export Promotion Bureau (EPB),
Bangladesh Sericulture Research and Training Institute (BSRTI),
Bangladesh Energy Regulatory Commission (BERC), Bangladesh
Standard and Testing Institution (BSTI), Bangabandhu Sheikh Mujibur
Rahman Novo Theatre, Bangladesh Industrial Technical Assistance
Source: Monitoring Cell, Finance Division. Centre (BITAC) and Bangladesh Economic Zone Authority (BEZA).
Production and Factor Income of SOE Sector was Tk. 18,076.99 crore which increased to
In FY2015-16, the total operating revenue of all Tk.2,42,35.09 in FY 2019-20. Incremental
existing SOEs stood at Tk. 1,36,602.69 crore growth in value addition was 1.85 percent. In FY
which rose to Tk.1,66,722.20 crore in FY 2019- 2018-19, the operating surplus of the SOEs stood
20. During this period the average annual growth at Tk. 3,481.10 crore which increased to Tk.
rate was of 5.11 percent. At the same time, the 5,686.57 crore in FY 2019-20. Table 9.2 shows
value of purchase of goods and services boosted the growth rate of revenue, value addition and
up to 5.72 percent. According to the production production income of non-financial SOEs during
cost, the amount of value addition in FY 2018-19 FY2015-16 to FY 2019-20.

Table 9.2: Growth Rate of Revenue, Value Addition and Production Income of Non-financial SOEs
Compound
2015-16 2016-17 2017-18 2018-19 2019-20 Growth
Rate
Operating revenue 136602.69 149898.93 174361.14 179630.54 166722.20 5.11
Purchased goods and services 114077.15 126643.24 154985.90 161553.65 142487.11 5.72
Value addition by production cost 22525.54 23255.69 19375.24 18076.99 24235.09 1.85
Pay and allowances 6015.52 6594.91 6050.99 6901.25 6851.64 3.31
Depreciation 4977.82 5950.33 6831.97 7694.64 11696.88 23.81
Operating surplus/Loss 11532.20 10710.45 6492.28 3481.10 5686.57 (16.20)
Value Addition 22525.54 23255.69 19375.24 18076.99 24235.09 1.85
Source: Monitoring Cell, Finance Division
Net Profit/Loss to Tk. 1414.21 crore in FY 2019-20. According

to a revised estimation, the contribution of SOEs
The net loss of SOEs was Tk. 2,608.35 crore in
to the public exchequer was Tk. 1,326.25 crore
FY2012-13. The SOEs earned profit for eight
in FY 2020-21 up to 23 May 2021. The dividend
consecutive years. According to the revised
contribution of non-financial state-owned
estimation, net profit stood at Tk. 8,499.64 crore
enterprises to national exchequer is shown in
up to 23 May 2021 in FY 2020-21. In FY 2020-21,
Appendix 22.
Bangladesh Petroleum Corporation (BPC)
made the highest net profit. Net profit made by Government Grant/Subsidy
Bangladesh Petroleum Corporation (BPC)
In FY 2019-20, the government provided
increased from Tk. 5,066.54 Crore in FY 2019-
grant/subsidy amounting to Tk. 1,494.97 crore to
20 to Tk. 5,839.39 crore in FY 2020-21.
16 public entities which increased to Tk.
Bangladesh Telecommunication Regulatory
1,460.79 crore according to revised estimation of
Commission (BTRC) earned second highest
FY 2020-21. Among all SOEs BIWTA took the
profit of Tk. 2232.29 crore in FY 2020-21.
highest subsidy amounting to Tk.507.85 crore in
Conversely, Trading Corporation of
FY 2020-21. BADC received the second largest
Bangladesh (TCB) made the highest net loss in
amount Tk. 462.63 crore in FY 2020-21. In
FY 2020-21. Net loss of TCB was declined to
addition, the Government approved Tk. 197.00
Tk. 1038.26 crore in FY 2020-21 from Tk.
crore as subsidy in favour of BSCIC in FY 2020-
186.02 crore in FY 2019-20. The net profit/loss of
21. Table 9.3 shows the government
SOEs is shown in Appendix 21.
grant/subsidy provided to different SOEs during
Contribution to Public Exchequer FY2015-16 to FY 2020-21.
The SOEs contributed Tk. 920.06 crore to the

public exchequer in FY 2018-19 which increased

Table 9.3: Government Grant/Subsidy

(In CroreTaka)
Organisation 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Provisional (Revised)
BJMC 48.95 55.04 77.29 35.84 41.35 40.36
BIWTC 0.50 0.50 0.50 0.50 0.50 0.50
RDA 0.40 0.50 1.50 4.00 3.00 3.00
BIWTA 274.35 419.06 417.31 427.59 504.79 507.85
BSCIC 115.69 144.04 163.34 208.49 193.98 197.00
BSB 21.35 22.37 23.07 26.94 30.50 33.87
EPB 20.18 27.95 34.84 28.69 26.18 25.20
BADC 312.33 376.98 405.95 415.74 477.29 462.63
NHA 16.61 17.00 19.00 20.00 18.77 19.00
BEJA - 10.00 14.00 73.99 73.99 44.13
Khulna Wasa 11.50 14.10 14.50 15.50 15.50 16.00
Rajshahi Wasa - 15.91 27.6 23.73 22.27 23.89
BSRTI 4.68 5.56 6.11 6.19 6.56 6.86
BSMRN - - 4.59 5.13 5.71 7.00
CBDA - - 6.65 12.00 12.00 12.00
BITAC - - 45.29 57.40 62.58 61.50
Total 826.54 1109.01 1261.54 1361.73 1494.97 1460.79
Source: Monitoring Cell, Finance Division.
Debt Service Liabilities (DSL) crore), BPC (Tk. 3,789.88 crore), BCIC (Tk.
3,515.07 crore), BADC (Tk. 3,402.47
DSL Branch of Finance Division has
crore),BJMC (Tk. 971.23 crore) and REB (Tk.
provisionally estimated the total debt service
910.00 crore). On the other hand, the SOEs
liabilities of 128 SOEs. According to this
which have classified loan are- BADC (Tk. 21.27
estimate, the total Debt Service Liabilities (DSL)
crore), BTMC (Tk. 20.49 crore), BJMC (Tk.
against 128 SOEs stood at Tk.1,75,567.23 crore
14.62 crore) and BTB (Tk. 10.52 crore). The
in FY 2019-20. The total DSL liabilities and
cumulative amount of outstanding bank loans and
recovery against 128 SOEs is shown in
the classified loans of SOEs is illustrated in
Appendix-23.
Appendix 24.
Bank Loan
Financial Performance of SOEs
At the end of February 2021, the outstanding
Almost all assets and loans belonging to the
bank loan against 30 state-owned enterprises
SOEs of Bangladesh are provided either by
(SOEs) stood at Tk. 33,451.28 crore. Out of this
Government or by State-owned Commercial Banks
amount, the classified loan accounted to Tk.
(SCBs).Therefore, the rate of profit on total
68.75 crore. The SOEs which own substantial
assets is an important benchmark for judging the
amount of debt to State-owned Commercial
financial performances of these entities. Table
Banks (SCBs) are: BSFIC (Tk. 6,981.57 crore),
9.4 shows the profit earned by SOEs during the
BBC (Tk. 6,291.13 crore), BPDB (Tk. 6,059.84
period from FY2015-16 to FY 2019-20.

Table 9.4: Profit Earned by the SOEs

(In Crore Taka)
Growth Rate
from FY2015-
Items 2015-16 2016-17 2017-18 2018-19 2019-20
16 to FY
2019-20
1. Operating revenue 136602.69 149898.93 174361.14 179630.64 166722.20 5.11
2. Operating surplus 11532.20 10710.45 6492.28 3481.10 5686.57 (16.20)
3. Non-operating revenue 3127.18 3152.79 4038.02 4689.28 5234.60 13.75
4. Employee participatory fund 69.18 70.18 9109.00 77.26 75.51 2.21
5. Subsidy (direct) 0.50 0.50 0.50 0.50 0.50 -

6. Interest 2467.57 2881.14 3405.43 3851.38 3956.69 12.53
7. Net profit/loss(before tax)
12187.19 10918.42 6793.92 12115.80 14293.10 4.07
(2+3+5)-(4+6)
8.Tax 1298.66 1609.48 1621.16 1438.57 3582.14 28.87
9. Net profit after tax(7-8) 10888.53 9308.94 5172.76 10677.23 10710.96 (0.41)
10.Dividend 1841.05 2279.12 1010.78 920.06 1424.21 (6.22)
11.Retained earnings (9-10) 9047.48 7029.82 4161.98 9348.53 9286.75 0.65
12.Total investment/fund 333013.44 373821.45 433588.16 509651.05 555780.27 13.66
13.Equity 68715.41 55163.21 71883.13 122192.71 178092.62 26.88
14.% of operating profit on
3.46 2.87 1.50 0.68 1.02 (26.27)
total assets.(2/12)
15.% of net profit on operating
7.97 6.21 2.97 5.94 6.42 (5.25)
revenue (9/1)
16.% of dividend on equity
2.68 4.13 1.41 0.75 0.80 (26.09)
(10÷13)
17.Turn over on total assets
0.41 0.40 0.40 0.35 0.30 (7.53)
(1÷12)
Table 9.4 shows that in FY2015-16 the operating dividend on equity decreased to 0.80 percent in
profit on total assets of SOEs was 3.46 percent FY 2019-20 from 2.68 percent in FY2015-16. It
which declined to 1.02 percent in FY 2019- appears from the turnover of assets that the
20 . The net profit on operating revenue was 7.97 efficiency of resource utilisation declined in FY
percent in FY2015-16. However, in FY 2019-20 2019-20 (0.30 percent) compared to that in FY
such profit turned into 6.42 percent. The rate of 2018-19 (0.35 percent).
Figure 9.1: Financial Performance of SoEs
0
2015-16 2016-17 2017-18 2018-19 2019-20
% of operating profit of total asset % of divident on equity

CHAPTER TEN
POWER AND ENERGY
The role of power sector in socio-economic development, industrialisation and poverty alleviation
of the country is immense. During FY 2020-21 (up to February 2021), total installed electricity
generation capacity stood at 21,778 MW which was 24,982 MW including captive and renewable
energy. Till now the maximum generation was 12,892 MW (5 September2020). Total net electricity
production was 71,419 million kilowatt-hours in FY 2019-20 and in the first seven months of FY
2020-21 (up to January 2021) total net electricity production stood at 44,439 million kilowatt-
hours. Out of total net generation, 38.69 percent power was generated by public sector, 45.76
percent power from private sector, 4.90 percent from joint venture and 10.59 percent from power
import. In addition, total system loss of transmission and distribution of electricity substantially
declined to 10.62 percent in FY 2020-21 (up to January 2021) from 15.73 percent in FY 2009-10.
At present, the total distribution line is 6.03 lakh kilometer and total consumer is 3.96 crore.
According to Power System Master Plan (PSMP) 2016, the government has set a target to increase
installed electricity generation capacity to 24,000 MW by 2021, 40,000 MW by 2030 and 60,000
MW by 2041. On the other hand, natural gas met almost 63 percent of the country's total
commercial use of energy. A total of 27 gas fields have been discovered from which about 18.24
trillion cubic feet gas has been produced cumulatively (up to December 2020) leaving 10.05
trillion cubic feet recoverable. Besides, the country has about 13.60 lakh metric tons reserve fuel
oil. Considering the country’s energy security and fuel diversification plan, government is
generating power from coal, LNG, dual-fuel, nuclear and renewable energy alongside establishing
gas and liquid fuel-based power plants. Furthermore, electricity is being imported through
regional and subregional cooperation.
Power Sector sector and measures for import of power on the

basis of regional cooperation. Government has
Government has prioritised the power sector right
continued the activities of development and
from the beginning and undertaken immediate,
reform and restructuring of the power sector to
short, medium and long-term plans to meet the
provide electricity to all within Mujib Borsho. As
increasing demand of electricity. At present, the
per vision 2021 and vision 2041, government is
installed generation capacity of the country has
working towards to implement power generation
been increased to 24,982 MW including captive
capacity of 40,000 MW by 2030 and 60,000 MW
and renewable energy. Per capita power
by 2041 as per Power System Master Plan
generation has increased to 512 kWh. The power
(PSMP)
distribution line has increased to 6.03 lakh km
and the number of consumers has increased to Power Generation
3.96 crore. The system loss has come down to
Power Generation Capacity
10.62 percent till December of FY 2020-21
which was 14.73 percent in FY 2010-11. Total grid based installed capacity was 20,383
Extensive development in the power sector is due MW in FY 2019-20 including 9,717 MW in
to timely and realistic planning and public sector, 622 MW in Joint Venture (JV) and
implementation through intensive supervision, 8,884 MW in private sector and 1,160 MW from
provision of incentives and incentives to attract cross-border power-trade from India. In FY
domestic and foreign investment in the private 2020-21 (up to February 2021), the total grid
Chapter 10-Power and Energy | 135

based installed capacity is 21,778 MW including maximum generation was 12,892 MW (05
9,990 MW in Public Sector, 1,244 MW in JV, September 2020). The installed capacity of
9,384 MW in Private Sector and 1,160 MW power power generation by fuel type and ownership in
imported from India. Considering captive and FY 2020-21 (up to February 2021) is shown in
renewable energy, the total installed capacity of Figures 10.1 and 10.2 respectively.
Bangladesh is now 24,982 MW. Till to date the
Figure 10.1: Installed Capacity (by Fuel Type) Figure 10.2: Installed Capacity (By Sector)
Power Joint
Import, Hydro, Private Venture,
Coal, 8.1% 5.3% Renewable Sector, 6% Power
1.1%
Diesel, Energy, 43% Import, 5%
5.9% 0.4%
Public
Furnace Oil, Sector,
27.5% Natural 46%
Gas, 51.7%
Total Installed capacity: 21,778 MW
Total Installed Capacity: 21,778 MW
Source: Power Division *Up to February 2021.

percent power from private power plants and
Power Generation (Million kWh)
4.94 percent from JV power plants and 10.59
In FY 2020-21 (till January 2021), the total net percent from power import. The share of fuel-
generation from public and private sector power based power generation were Gas 58.15 percent,
plants is 44,439 MkWh, of which 17,196 MkWh liquid fuel 23.63 percent, Import 10.60 percent,
in the public sector, 2,195 MkWh in the JV, Coal 6.40 percent, Hydro 1.09 percent, and
20,338 MkWh in the private sector and 4,710 renewable energy generation 0.13 percent. Fuel
MkWh of imported power generation. Out of total wise and sector wise net energy generation in FY
net generation, 38.69 percent power was 2020-21 (up to January 2021) are shown in figure
generated by public sector power plants, 45.76 10.3 and 10.4 respectively.
Figure 10.3: Energy Generation (National) by Fuel Figure 10.4: Energy Generation (National) by Sector
Power Coal, Hydro, Power Joint

Import, 6.40% 1.09% Import, Venture,
Liquid 10.60% Renewable 10.59% 4.94%
Fuel, Energy,
23.63% 0.13%
Private Public
Sector, Sector,
Natural 45.76% 38.69%
Gas,
58.15%
Total Net Generation: 44439 MKWh Total Net Generation: 44,439MKWh
Source: Power Division *Up to January 2021.

Maximum Power Generation in FY 2020-21. The installed capacity and

maximum generation since FY 2010-11 are
In FY 2010-11 maximum power generation was
presented in Table 10.1.
4,890 MW, which was increased to 12,892 MW
Table 10.1: Installed Capacity and Maximum Generation
Fiscal Year Installed capacity MW Maximum generation MW

2010-11 7264 4890
2011-12 8716 6066
2012-13 9151 6434
2013-14 10416 7356
2014-15 11534 7817
2015-16 12365 9036
2016-17 13555 9479
2017-18 15953 10958
2018-19 18961 12893
2019-20 20383 12738
2020-21* 21395 12892
Source: Power Division, *up to January 2021.
Fuel Consumption for Power Generation 20. The amount of furnace oil and diesel used in
power plants in the public sector in FY 2019-20
The natural gas consumption in public sector
is 301 and 12 million liters respectively. In FY
power plant was 150 billion cubic feet in FY
2020-21 (up to December 2020), 121 billion
2010-11 which has been increased to 268 billion
cubic feet of gas, 1.12 million tons of coal and
cubic feet during FY 2019-20. Coal has been
185 million liters of furnace oil and 70 million
used as fuel for the first-time during FY 2005-06.
liters of diesel were used in public sector power
The total consumption of coal for electricity
plants. The consumption of natural gas and liquid
generation was 1.24 million ton during FY 2019-
fuel since FY 2010-11 are given in Table 10.2.
Table: 10.2: Fuel Consumption by Public Sector Power Plants
Natural gas Coal Liquid Fuel (Million Liter)

Fiscal Year
(Billion cft) (1000 Tonne) Furnace Oil HSD, SKO & LDO
2010-11 150 410 119 138
2011-12 151 449 182 60
2012-13 175 590 266 35
2013-14 183 539 424 175
2014-15 180 522 378 291
2015-16 207 489 439 238
2016-17 215 587 513 348
2017-18 211 825 615 795
2018-19 274 565 484 385
2019-20 268 1.24 301 12
2020-21* 121 1.12 185 70
Source: Power Division * up to December 2020.
Power Generation Program and Future Plan demand of electricity and to provide the
electricity for all by 2021. As per PSMP 2016,
‘Power System Master Plan 2016 (PSMP)’ has
power generation capacity will be 24000 MW by
been prepared based on the availability of
2021, 40000 MW by 2030 and 60000 MW by
primary fuel supply for mitigating the growing

2041. In order to secure the fuel supply, this plan, coal, nuclear, gas/LNG based combined
government has taken plan for fuel cycle power plant will be used as base load
diversification. Electricity generation from gas/ power plants. On the other hand, liquid fuel and
LNG, Liquid fuel, coal, nuclear, hydro, LNG/gas will be used for peak load power plants.
renewable energy and import from neighboring Table 10.3 shows power sector development and
countries has also included in this plan. As per future plan of the government up to 2041.
Table 10.3: Power Sector Generation Future plan

Year Year Year Year
SL Description
2020 2021 2030 2041
1. Installed Capacity (MW) 22787* 24000 40000 60000
2. Electricity Demand (MW) 14800 19000 33000 52000
3. Transmission Line (Ckt. KM) 12119 12000 27300 34850
4. Substation Capacity (MVA) 44340 46450 120000 261000
5. Distribution Line (KM) 560000 515000 526000 530000
6. Per Capita Power Generation (KWh) 510 700 815 1475
7. Access to Electricity (%) 96% 100% 100% 100%
Source: Power Division *Including Captive and RE.
Under Construction Power Generation  Ghorasal 3rd & 4th Unit Repowering
Projects  Rupsa 880 MW
At present, a number of power plants are under  Bibiyana 383 MW CCPP
construction in both public and private sector. At  Matarbari 1200 MW coal-based power plant
present, 14 projects of capacity 4,619 MW in  Ashuganj 400 MW.
public sector, 3 projects of capacity 3,731 MW in Joint Venture
JV and 22 projects of capacity 5,729 MW power
plants in private sector are under construction  1200-1320 MW Bangladesh India Friendship
i.e., total 39 power plants of 14,079 MW capacity Power Company Ltd (BIFPCL)
are under construction. The expected power  Patuakhali (2nd Phase) 1320 MW coal based
generation targets under ongoing projects are (BCPCL)
summarised in Table 10.4.  Patuakhali 1320 MW coal-based power plant
(RNPL)
Table 10.4: Power Generation Projects (Under  Rooppur 2x1200 MW nuclear based power
Construction) plant.
Sector No. of Projects Capacity (MW)
Private Sector
Public Sector 14 4619
JV 3 3731  Meghnaghat 583 MW, 750 MW, 584 MW
Private Sector 22 5729 CCPP
Total (Under 39 14079  Chattogram 1,224 MW coal based
Construction) B. Transmission System
Source: Power Division
Power Grid Company of Bangladesh Ltd.
Among them mentionable projects are:
(PGCB)
Public Sector Power Grid Company of Bangladesh Ltd. (PGCB)
 Khulna 336 MW CCPP is responsible for operation, maintenance and

development of transmission system all over 28,529 MVA, 450 MVAR capacitor bank at 132
Bangladesh. At present, power generated in kV level and 1,340 MVAR capacitor bank at
different power plants is transmitted to the 33kV level in the country. At present, the total
national grid through 400 kV, 230 kV and 132 kV length of installed transmission line is 12,692 ckt
transmission lines. In 1996, when PGCB was km. A total of 189 (PGCB: 150 and others: 39)
formed, the total lengths of 230 kV and 132 kV High Voltage Grid Substations owned by
line were 838 ckt km and 4,755 ckt km different organisations under Power Division
respectively. At present (up to February 2021), and other private organisations with total
the lengths of 400 kV, 230 kV and 132 kV capacity of 49,384 MVA (PGCB: 42,692 MVA
transmission lines are 861 ckt km, 3,658 ckt km and others: 6,692 MVA) and 1 no station with
and 8,128 ckt km respectively. Now there is 1 total capacity of 1,000 MW HVDC are connected
HVDC back-to-back station with total capacity of to the national grid. 529 ckt km transmission line
1000 MW, 4 nos 400/230 kV grid substations of and 11 grid substations has been added to the
3,770 MVA, 2 nos 400/132 kV grid substation of transmission infrastructure in the last one year
1,300 MVA, 30 nos of 230/132 kV and 230/33 (Feb, 2020 to Feb, 2021). Table 10.5 shows year
kV grid substations of 15,785 MVA capacity, 153 wise transmission system and sub-station
nos 132/33 kV grid substations of capacity infrastructure developed by PGCB.
Table-10.5: Transmission System and Substation Infrastructure by PGCB
Fiscal Transmission System (ckt km) 400 kV 400/230 kV 230/132 kV & 132/33 kV
Year HVDC & 400/132 230/33 KV Substation
Substation KV Substation
Substation
400 kV 230 kV 132 kV No MW No MVA No MVA No MVA
2010-11 - 2647.30 6018.00 - - - - 13 6675.00 81 8437.00
2011-12 - 2647.30 6080.00 - - - - 13 6675.00 83 8737.00
2012-13 - 3020.77 6080.00 - - - - 15 6975.00 84 9705.00
2013-14 164.70 3044.70 6120.00 01 500 - - 18 8775.00 86 10714.00
2014-15 164.70 3171.45 6358.83* 01 500 01 520 19 9075.00 89 11964.00
2015-16 220.70 3171.45 6396.83* 01 500 01 520 19 9375.00 90 12420.00
2016-17 559.75 3312.99 6503.95* 01 500 02 1690 19 9675.00 91 13364.50
2017-18 559.75 3324.99 6795.89* 01 500 03 2210 19 9675.00 91 15045.50
2018-19 697.76 3371.67 7328.64* 01 1000 05 3900 26 13135.00 132 22641.50
2019-20 861.00 3500.00 7758** 01 1000 06 5070 27 13385.00 145 25885.00
2020-21* 861.00 3658.00 8128** 01 1000 06 5070 30 15785.00 153 28529.00
Source: Power Division *up to February 2021. *including DPDC 85.2 ckt km.
** including DPDC 93.2 ckt km + DESCO 7.32 ckt km.
C. Power Distribution System 4. Dhaka Electric Supply Company (DESCO)
At present the following six organisations are 5. West Zone Power Distribution Company
responsible for electricity distribution: (WZPDC)
1. Bangladesh Power Development Board 6. Northern Electricity Supply Company Ltd
(BPDB) (NESCO)
2. Bangladesh Rural Electrification Board Inter-Utility Energy Import
(BREB)
The distribution utilities have imported
3. Dhaka Power Distribution Company (DPDC) 67,220.602 MKWh and 43,169 MKWh electricity

at 33 KV and 132 KV level during FY 2019-20 respectively. which is shown in figure 10.5 and
and FY 2020-21 (up to January 2021) 10.6.
Figure 10.5: Inter Utility Energy Import Figure 10.6: Inter Utility Energy Import
FY (2019-20) FY (2020-21)
DESCO, NESCO, DESCO, NESCO,

BPDB, 8% 6% 8% 6%
BPDB,
13% WZPDCO, WZPDCO,
16%
5% 5%
DPDC,
DPDC, 13%
13%
BREB, BREB,
54% 53%
Source: Power Division
System Loss such as continuous performance monitoring of

the utilities reforms and target-oriented measures
System loss is one of the key performance
are being implemented to reduce the system loss.
indicators of the distribution entities. To achieve
The system loss from FY2011-12 to FY 2020-21
desired performance of the sector, system loss
(up to January 2021) is shown in Table 10.6 and
needs to be further reduced. Various measures,
in figure10.7
Table 10.6: Year- wise System Loss Statistics
Fiscal Year Transmission Loss (%) Distribution Loss (%) Total Loss (T&D)%
2010-11 1.98 12.75 14.73

2011-12 2.35 12.26 14.61
2012-13 2.23 12.03 14.36
2013-14 2.17 11.96 14.13
2014-15 2.19 11.36 13.55
2015-16 2.14 10.96 13.10
2016-17 2.21 9.98 12.19
2017-18 2.27 9.60 11.87
2018-19 2.61 9.35 11.96
2019-20 2.5 8.73 11.23
2020-21* 2.41 8.21 10.62
Source: Power Division * up to January 2021.

Figure 10.7: Year Wise System Loss Statistics
14 13.1
12.19 11.87 11.96
10.96 11.23
12 10.62
9.98 9.6 9.35
10 8.73
8.21
8
4 2.27 2.61 2.5 2.41

2.14 2.21
2
0
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Transmission Loss (%) Distribution Loss (%) Total Loss (T&D)%
Source: Power Division. Up to January 2021.
Accounts Receivable Figure 10.8: Year Wise Accounts Receivable

To improve financial viability and efficiency of Accounts Receivable
the sector, the government adopts a financial

2.5
action plan to maintain power sector receivable at 2 1.95 1.87
2.01
no more than 2 months' billed amount equivalent 2 1.71
1.58
and reduce receivables from autonomous, public 1.5
entities and private customers to an acceptable 1
limit. From FY 2010-11 to FY 2020-21 year wise 0.5
accounts receivables are shown in Table 10.7 and
0
in Figure 10.8.
Table 10.7: Year wise Accounts Receivable
Fiscal year Accounts Receivable
(Equivalent Months)
Source: Power Division *Up to November 2020
2010-11 2.22
2011-12 2.21 Pre-Paid Meter
2012-13 2.06
To improve power distribution system, 39,16,119
2013-14 2.04
2014-15 2.01
prepaid meters have been installed by different
2015-16 2.00 entities. Till January 2021, BPDB, BREB, DPDC,
2016-17 1.95 DESCO, WZPDCL and NESCO installed
2017-18 1.71 13,31,313, 11,10,568, 5,27,863, 5,65,773,
2018-19 1.58 3,60,299 and 20,303 numbers of prepaid meters
2019-20 1.87 respectively. Moreover, due to introduction of
2020-21* 2.01 prepaid meters, system loss has been reduced
Source: Power Division *Up to November 2020. significantly and also consumption pattern has
also been changed. Power Division has set a
target to bring all large and medium consumers
under prepaid meter. The list of installed prepaid

meters up to January 2021 has been shown in Projects under Implementation of BREB
table 10.8.
In order to achieve 100 percent electrification,
Table:10.8: Installation of prepaid meters presently 11 projects are running under
Utility Single phase Three phase Total
Bangladesh Rural Electrification Board under
BPDB 1300767 30546 1331313
guidance of Power Division of Ministry of
REB 1036968 13600 1110568 Power, Energy and Mineral Resources (MPEMR).
DPDC 477791 50072 527863 In FY 2020-21 Tk. 5,741.90 crore is allocated
DESCO 512444 53329 565773 from Annual Development Program (ADP) of the
WZPDCO 351306 8993 360299 Government of Bangladesh. Expansion of Rural
NESCO 19917 386 20303 Electrification and Development and up-
Total 3759193 156926 3916119 gradation of existing distribution system is
Source: Power Division. growing rapidly by implementing running
projects, where 3 projects are for System Up-
D. Bangladesh Rural Electrification Board
gradation, Rehabilitation and Intensification, 2
(BREB)
projects for technical assistance, 4 Projects are
Up to December, 2020 Bangladesh Rural for Line Construction and Consumer Connection
Electrification Board with its 80 Palli Bidyut and 1 Project for Solar Photovoltaic Pumping for
Samities has connected total consumers Agricultural Irrigation. Beside these 01 Project
3,06,71,281 among them of 2,78,74,732 for Emergency Assistance Project-BREB
domestic, 2,46,888 irrigations, 19,15,581 Component (Electrification for Displaced
commercial, 2,12,849 industrial, 3,87,555 Myanmar Nationals in Cox’s Bazar) by this
charitable institute, 4,331 constructions, 1,143 project displaced Myanmar Nationals are getting
temporary, 27,680 street lights, water pump and emergency electricity facilities. In FY 2020-21
battery charging station and 522 general of target of sub-stations construction 153 nos.
84,426 villages become connected by (1,500 MVA) where already 83 nos. (830 MVA)
constructing 5,23,540 km distribution lines. established (Up to January, 2021). By this
Target and achievement of line construction and construction line BREB provides new 18.28 lakh
consumer connection of BREB from FY 2010-11 of different category consumers under Rural
to FY 2020-21 is shown in Table 10.9. Electrification Programme.
Table 10.9: Physical Target and Achievement E. Sustainable Energy Development
of BREB
Renewable Energy
FY Distribution Line Consumer
(Km) Connection The government has planned to produce
Target Achive Target Achievem
ment ent electricity through coal, dual fuel and nuclear
2021-11 2095 3028 - 259548 power to reduce the dependence on natural gas.
2011-12 7700 10049 - 723713
2012-13 10222 10279 - 304417 Apart from this, government has taken different
2013-14 16971 17544 - 758932 steps to produce environment- friendly electricity
2014-15 18750 18698 - 1839064
2015-16 20000 31612 1500000 3597883 from renewable energy. After formulation of
2016-17 25000 36554 2000000 3511573 renewable energy policy, it has been
2017-18 30000 54886 3200000 3851143
2018-19 25000 71326 2000000 3045593
implemented from 2009. The government has
2019-20 50000 50166 2000000 2405312 established ‘Sustainable and Renewable Energy
2020-21* 30000 19275 1300000 1679989 Development Authority (SREDA)’ for effective
Source: Rural Electrification Board (REB)* Up to December
2020. utilisation and conservation of renewable energy

both in public and private sector. To monitor and industry, building and residential sector for
co-ordinate renewable energy and efficiency of purchasing energy efficient machineries;
energy related issue different agencies are
 Introduction of awareness raising campaign
working with SREDA. To fulfill the government
for Energy Efficiency and Conservation.
target of generating electricity from renewable
energy sources, SREDA is ready to provide any Renewable Energy Program of BREB
sorts of assistance within its purview to BREB is the pioneer of Solar Home System
implement renewable energy projects. At present, through the first ever Renewable Energy project
722.06 MW renewable energy system has been in Bangladesh in 1993. Since then 63,510 solar
installed. rooftop systems/home systems have been
Energy Efficiency (EE) and Energy installed by the Rural Electrification Board
Conservation (EC) through various projects and new connections
with a capacity of about 15.38 MW peak. An on-
In order to consolidate the sustainable energy
grid rooftop solar generation plant with a peak
system, SREDA has been working to achieve the
capacity of 10 kW has been set up in the office
energy saving targets set out in the Seventh Five-
building with the own funds of 11 Palli Bidyut
Year Plan of Bangladesh, along with the
Samiti. There are plans to set up such solar plants
formulation of various rules, regulations,
in all the remaining rural power societies in
guidelines and policies on energy efficiency and
phases.
conservation. SREDA has formulated ‘Energy
Efficiency and Conservation Master Plan up to F. Rooppur Nuclear Power Plant (RNPP)
2030’ and working according to the plan to In order to meet the growing demand of
achieve the goal. The Master Plan has set a target electricity Bangladesh Atomic Energy
of improving 20 percent energy intensity by 2030 Commission is constructing Rooppur Nuclear
(compared to FY 2013-14). Power Plant (RNPP). In the meantime first
Achievement in Energy Efficiency concrete pouring of Unit 1(1200 MW) & Unit 2
Improvement: (1200 MW) were done. In this regard till now
following important steps have been completed:
 Preparation of Energy Efficiency and
Conservation Master Plan up to 2030. • About 100 percent land development work
in the project area has already been
 ‘Energy Efficiency and Conservation Rules completed;
2016’ has been formulated.
• The ground level of soil of Rooppur Nuclear
 Formulation of Energy Efficiency and Power Plant, including all the areas of Unit 1
Conservation Rules 2018. and Unit 2 and foundation of other important
 Conducting Training and Examination to installations of the project has been
prepare Energy Auditors and certifying them. completed up to 21 meters in Deep Soil
Mixing method;
 Starting energy audit in state-owned
industries and in public buildings • Foundation work of Unit-1 and Unit-2
Reactor Building with 3m thickness (from -
 Conducting Energy Efficiency & 8.45 m to -5.45 m height) and foundation of
Conservation Promotion Financing Project, other important installations has been
to facilitate low interest (4-6%) loan for completed.

• Manufacturing of Long Term Manufacturing Bangladesh has taken initiative in cross border
Equipment (LTME) and other equipments of trade of electricity through bilateral cooperation
Rooppur Nuclear Power Plant is going on with Nepal, Bhutan and India. Bangladesh has
schedule in different countries of Europe been working for the overall development of the
including Russian Federation. power sector as an active member of the
Manufacturing of some LTMEs has been Regional, Sub-Regional Cooperation and various
completed and supplied to the project area. Cooperation Forums.
• Project inspectors are supervising the Electricity import from India
manufacturing of LTME and other
An inter-regional grid has been implemented to
equipment. Of these, Reactor Pressure
import electricity from Baharampur, India to
Vessel of Unit-1 and 4 Steam Generators
Bheramara, Kustia. At present, 1,000 MW
have already been reached at the project
electricity has been imported through 400 KV
area.
transmission line from Baharampur, India and
• Complete Steam Turbine Set of first unit, 160 MW electricity also imported from Tripura,
Condenser Ball Cleaning System, Turbo India to Cumilla, Bangladesh.
Generator, Complete Turbine Condenser, 6
Initiatives have been taken to import 500 MW
Reactor Colling Pump and other equipment
electricity through Bheramara- Baharampur 400
have been sent to Bangladesh and High
KV transmission line. A contract has been signed
Pressure Heater, LBJ tank, Reactor Upper
with Adani group, India to import 1,600 MW (net
Unit, Generator Rotor, Generator Stator,
1,496 MW) Jharkhand coal-based power. The
Polar Crane Grid etc. equipment has been
PPA and IA have been signed among BPDB,
arrived in Bangladesh.
PGCB and Adani group on 5 November 2017.
• Necessary training of about 1424 manpower
Electricity import from Bhutan
has been arranged for the operation and
maintenance of Rooppur Nuclear Power An initiative has been taken to import hydro
Plant center. In this regard, 658 trainees of power from Bhutan. A Tripartite MoU is at final
different categories have already been stage between Bangladesh, India and Bhutan in
recruited and another 428 people are in the order to construct a power plant through joint
process of recruitment. There are currently investment.
71 trainees who are receiving training in Electricity import from Nepal
Russia. Till now, 349 of the trainees have
returned to Bangladesh completing their An initiative has been taken to import power
training from Russian Federation. Besides, from Nepal. A Memorandum of Understanding
(MoU) has been signed to import 500 MW
599 trainee will be trained in 2021 and 129
trainee in 2022 electricity from Nepal.
Regional Power Cooperation BIMSTEC’s cooperation
To enhance the development of power sector, An initiative has been taken for regional
Bangladesh Government is working with cooperation through BIMSTEC. In this regard, a
neighboring countries as well as SAARC, Memorandum of Understanding (MoU) has been
BIMSTEC, SASEC and D-8 for regional
signed.
cooperation. Collaboration effort with the
SAARC countries is continuing. Also

China cooperation in Bangladesh power sector and subsequent energy reserve enhancement. The
and investment opportunity main aim of the sector is to reduce extreme
dependence on natural gas through
A Memorandum of Understanding (MoU) has
diversification of energy-mix and
been signed between Bangladesh and China on
alternative/renewable energy resource usage,
21 October 2012 to enhance cooperation in
balanced and synchronised development of gas
power sector. As a result, cooperation and
production, transmission and distribution
investment opportunity in Bangladesh power
activities, encourage participation of private
sector will be enhanced. For this, both the
entrepreneurs in oil and gas exploration,
countries will contribute to uplift the trade and
production and distribution.
economic cooperation. Electricity generation,
transmission, distribution, energy efficiency, Natural Gas Reserves
renewable energy has been identified as the scope
Natural gas accounts for 63 percent of the
of cooperation. Also, a discussion was held with
commercial energy of the country. Till now, 27
Myanmar government to import 500 MW power
gas fields have been discovered in the country.
in 2010. With this reference, MoU will be signed
According to the latest estimation of Petrobangla
with Myanmar
total initial gas in place (GIIP) is 39.80 trillion
Oil, Gas and Mineral Resources cubic feet (TCF), out of which 28.29 TCF is
recoverable in proven and probable categories.
The main purpose of oil, gas and mineral
From 1960 to December 2020, total 18.24 TCF
resource sector is to meet energy demand of the
gas was produced leaving 10.05 TCF
country by undertaking exploration, production,
recoverable. Status of field-wise gas production
development and appraisal of oil and gas fields
and reserves is presented in Table 10.10.
Table 10.10: Status of Gas Production and Reserve
(Billion Cubic Feet)
Produ GIIP Remaining

Product. Cumulative
cing (Gas Reserves
L. No. Fields Recoverable Reserve FY Production
Well initially in w.r.t 2P
2019-20 (Dec, 2020)
(PW) place) (Jan, 2021)
2P 3P
1P
A. PRODUCING
1 Titash 24 8148.9 5384.0 6367.0 6517.0 153.4984 4930.46 1436.54
2 Habiganj 8 3684.0 2647.0 2647.0 3096.0 67.8844 2574.05 72.95
3 Bakhrabad 6 1701.0 1052.9 1231.5 1339.0 15.0180 855.17 376.36

4 Koilashtila 3 3610.0 2390.0 2760.0 2760.0 20.1892 733.68 2026.32
5 Rashidpur 5 3650.0 1060.0 2433.0 3113.0 17.5318 659.48 1773.52
6 Sylhet/Haripur 1 370.0 256.5 318.9 332.0 1.3596 217.95 100.95
7 Meghna 1 122.1 101 101.0 - 3.1031 76.89 24.11
8 Narshingdi 2 369.0 218.0 276.8 299.0 9.0945 220.06 56.74
9 Biyanibajar 1 230.7 150.0 203.0 203.0 3.0593 108.34 94.66
10 Fenchuganj 1 553.0 229.0 381.0 498.0 1.4181 162.70 218.30
11 Salda 2 379.9 79.0 279.0 327.0 2.17032 94.01 184.99

12 Shahbajpur 4 918.1 - 642.7 0.0 16.7958 90.95 551.73
13 Semutang 2 653.8 151.0 317.7 375.1 0.3221 13.51 304.19
14 Sundalpur 1 62.2 25.0 35.1 43.5 2.6025 17.38 17.72
15 Srikail 3 240.0 96.0 161.0 161.0 11.1886 103.10 57.90

16 Begumganj 1 100.0 14.0 70.0 0.0 1.9377 5.56 64.44
17 Jalalabad 7 1491.0 1429.3 1429.3 - 72.6765 1429.26 -
18 Moulavibazar 5 1053.0 405.0 428.0 812.0 5.3155 332.96 95.04
19 Bibiyana 26 8350.0 4415.0 5755.4 7084.0 444.5319 4528.73 1226.70
20 Bangura 5 1198.0 379.0 522.0 941.0 32.9168 488.97 225.027
Sub-total A: 108 36884.7 20481.7 26551.4 27900.6 882.6141 17643.22 8908.17

B. NON-PRODUCING
21 Kutubdia 1 65.0 45.5 45.5 45.5 0.0 45.5
22 Bhola North 1 621.9 0.0 435.3 - 0.0 435.3
Sub-total B: 2 686.9 45.5 480.8 45.5 0.0 0.0 480.8

C. PRODUCTION SUSPENDED
23 Sangu 11 899.6 544.4 577.8 638.7 487.9 89.85
24 Chattak 5 1039.0 265.0 474.0 727.0 26.5 447.54
25 Kamta 1 71.8 50.3 50.3 50.3 21.1 29.20
26 Feni 5 185.2 125.0 125.0 175.0 62.4 62.6
27 Rupganj 1 48.0 - 33.6 - 0.7 32.92
Sub-total C: 23 2243.6 984.7 1260.7 1591.0 0.0 598.5 662.11

Grand Total,
39815.2 21511.9 28292.88 29537.1 18241.77 10051.11
BCF - 882.6141
Grand Total,
39.80 21.5 28.29 29.54 0.88 18.24 10.05
TCF -
Source: Energy and Mineral Resources Division.
Natural Gas Production and Sector-wise total gas production was 882.6141. billion cubic
Consumption feet and R-LNG supply was 203 billion cubic feet
(BCF), in total gas supply was 1,085.61 billion
In FY 2018-19 total gas production was 961.7
cubic feet. Year-wise/sector-wise natural gas
billion cubic feet and R-LNG supply was 116
production and consumption are shown in Table
billion cubic feet (BCF), in total gas supply was
10.11. and sector wise gas consumption pattern
1,077.7 billion cubic feet. Then, In FY 2019-20
are given in Figure 10.9 and Figure 10.10.
Table 10.11: Production of Natural Gas and its Consumption by Sector
(In billion cubic feet)
FY Production Consumption
(including
Power Captive Fertiliser Industry Tea Com. Dom. CNG Total
R-LNG)
Power Estate
2010-11 708.9 275.8 121.6 58.9 122.1 0.8 8.5 87.4 38.5 713.6
2011-12 743.7 302.3 124.2 58.5 128.3 0.8 8.6 89.2 38.3 750.4
2012-13 800.6 328.8 134.1 60.0 135.7 0.8 8.8 89.7 40.2 798.1
2013-14 820.4 337.4 143.8 53.8 141.9 0.8 8.9 101.5 40.1 828.1
2014-15 892.2 354.8 150.0 53.8 147.7 0.8 9.1 118.2 42.9 877.3
2015-16 973.2 399.6 160.8 52.6 156.0 0.9 9.0 141.5 46.5 966.9
2016-17 969.2 403.6 160.5 49.1 163.1 1.0 8.7 154.4 47.0 987.3
2017-18 968.7 398.6 160.5 43.0 166.6 0.9 8.2 158.0 46.2 982.0
2018-19 1077.7 450.9 157.5 57.7 164.5 1.0 7.9 158.9 43.4 1041.8
2019-20 1085.61 455.9 151.6 54.6 155.7 1.1 6.7 132.7 36.1 994.4

Figure: 10.9: Category-wise Gas Consumption Figure: 10.10: Category-wise Gas Consumption
FY2018-19 FY 2019-20
Com.,
Com., 0.7%
Tea, 0.1% 0.8% Dom., Dom.,
Tea, 0.1%
Industry, 15.3% Industry, 13.3%
15.8% CNG, 4.2% 15.7% CNG, 3.6%
Fertiliser,
5.5% Fertiliser,
5.5%
Captive,
15.1%
Captive,
Power, Power,
15.3%
43.3% 45.9%
Total: 1,041.8 BCF Total: 994.4 BCF
Source: Petrobangla.
Sector wise Gas Demand Forcast mmcfd in FY 2023-24. Demand for natural gas in
industry sector is considered 925 mmcfd in FY
The gas demand in the power sector is increasing
2020-21 and 1,299 mmcfd in FY 2023-24.
with the industrial development of the country.
Natural gas demand in household is expected to
Total gas demand is expected to rise 4,520
rise 425 mmcfd in FY 2020-21 and this demand
mmcfd in FY 2020-21, 4,610 mmcfd in FY 2021-
is considered 490 mmcfd in FY 203-24.
22, 4,787 mmcfd in FY 2022-23 and 4,931
Table 10.12: Sector-wise Average Gas Demand Forecast
(mmcfd)
Sector 2020-21 2021-22 2022-23 2023-24
Power 2197 2210 2266 2279
Captive 480 432 389 350
Domestic 425 425 457 490
Industry 925 1044 1169 1299
Fertiliser 316 316 316 316
CNG 139 145 152 159
Comercial & tea 38 38 38 38
Total 4520 4610 4787 4931
Liquefied Natural Gas (LNG) FSRU, with similar capacity, installed by Summit
LNG Terminal Co. Ltd. was commissioned in
To meet the growing energy demand of the
April 2019. Both the FSRUs are in the Bay of
country, necessary steps have been undertaken by
Bengal near Moheshkhali, Cox’s Bazar.
the government to import Liquefied Natural Gas
Government also has a plan to construct a land
(LNG). As per decision of the government, two
based LNG Terminal with a re-gasification
Floating Storage and Re-gasification Units
capacity of daily 1,000 Million Cubic Feet at
(FSRU) have been installed having storage
Matarbari, Cox’s bazar. Petrobangla has signed
capacity of 1,38,000 cubic meter LNG each and
two long term Sale Purchase Agreements (SPA)
re-gasification capacity of daily 500 Million
with Ras-Laffan Natural Gas Company Ltd. (3),
Cubic Feet each. The first LNG terminal, installed
Qatar and Oman Trading International, Oman
by Excelerate Energy Bangladesh Ltd. (EEBL)
(OTI) for LNG procurement. Besides, Master Sale
was commissioned in August 2018. The second
Purchase Agreements (MSPA) have been signed

with shortlisted suppliers/traders for purchase be possible to discharge annually 90 lakh metric
LNG from spot market. tonnes crude and refined petroleum through
pipeline directly for mother tanker. A project is
Petroleum Products
going on to construct pipeline for transporting
Bangladesh Petroleum Corporation (BPC) diesel from Chattogram to Dhaka. Another
imports, acquires, stores and markets petroleum pipeline construction is in progress to transport
products. It develops and maintains storage aviation fuel from Pitolganj to Kurmitola
facilities to preserve sufficient stock of petroleum
Aviation Depot, Dhaka. A pipeline will be
products. The current storage capacity of constructed from Shiliguri, India to Parbotipur
petroleum products is around 13.60 lakh metric depot, Bangladesh to import diesel from India to
tonnes. BPC has taken initiative to set up a new ensure fast, smooth and uninterrupted supply of
unit of existing refinery named ERL Unit-2 and
petroleum to northern region of Bangladesh.
total crude oil processing capacity will be 45 lakh
Information regarding imported crude oil and
metric tonnes of both units. Construction of the refined petroleum products during FY 2010-11 to
project Installation of Single Point Mooring FY 2020-21 is shown in Tables 10.13 and 10.14
(SPM) with double pipelines is going on. It will
Table 10.13: Import of Crude Oil
FY Quantity (Metric tonnes) C and F Value/ Crore Taka
Million US$
2010-11 1409302 978.81 7037.00
2011-12 1085937 919.26 7053.51
2012-13 1292102 1060.30 8536.70
2013-14 1176693 968.55 7957.29
2014-15 1303194 734.00 5739.35
2015-16 1093120 336.49 3225.92
2016-17 1391629 514.10 4132.35
2017-18 1173647 565.99 4603.81
2018-19 1361877 721.28 6080.39
2019-20 1151963 455.91 3854.64
2020-21* 862618 300.21 2550.28
Source: Energy and Mineral Resources Division * Up to February 2021.
Table: 10.14: Import of Refined Petroleum Products

FY Diesel, Lubricating Base Oil Furnace Oil
Octane and Jet A-1
Quantity Value Quantity Value Quantity Value
(Metric tonne) (Crore Taka) (Metric tonne) (Crore Taka) (Metric tonne) (Crore Taka)
2010-11 2488456 21403.69 4749 43.75 230524 1123.17
2011-12 3409934 27111.24 4980 53.11 680982 3819.07
2012-13 2827160 21949.10 4853 38.56 803603 4367.26
2013-14 3158343 23485.56 - - 1016101 5144.68
2014-15 3403890 18569.62 - - 691705 2714.30
2015-16 3337426 11110.31 - - 335150 660.52
2016-17 3871432 14433.91 - - 521199 1240.66
2017-18 4892089 23300.67 - - 650540 2091.52
2018-19 4281958 23376.50 - - 318634 1282.49
2019-20 3873131 17045.18 - - 175694 687.04
2020-21* 2242857 7662.84 - - 22852 54.48
Source: Energy and Mineral Resources Division *Up to February 2021.

Subsidy for Petroleum Products Coal

Bangladesh Petroleum Corporation (BPC) Five coal fields have been discovered in
imports crude and refined oil every year Bangladesh till now. The total estimated reserves
according to country’s demand. There are ups of these discovered coal fields are about 7,962
and downs of refined and crude oil prices in million tons. Out of these 5 coal fields, coal is
international market. So, BPC has continuously being commercially extracted only from the
incurred losses due to non-adjustment of oil price Barapukuria coal field from 2005, with an
as well as custom duty in the domestic market in average annual production of 0.8 million metric
conformity with increases of oil price in the tons. Coal is mainly used in thermal power plant
international market. As a result, government had for electricity generation and also as fuel in brick
to give remarkable amount of subsidy for field, steel industry and various other industries.
importing petroleum products. Since November A coal-based thermal power plant with a capacity
2014, the price of oil has fallen in the of 525 MW has been set up from which
international market. So, government did not give electricity is being regularly supplied to the
any subsidy in the FY 2015-16 to FY 2019-20. national grid.
Table 10.15 shows the amount of subsidy given
Hard Rock
to BPC.
Total reserve of hard rock is 174 million metric
Table 10.15: Amount of Subsidy given to BPC
tons, of which 73 million metric tons is
by the government
extractable. In 1994, Bureau of Mineral
(In Crore Taka)
FY Amount of Subsidy
Development (BMD) has given a lease of 5,400
Hectare areas of Parbatipur and Nawabganj
2010-11 4000.00
upazila of Dinajpur District to extract Hard Rock.
2011-12 8550.00
Since the beginning of commercial production in
2012-13 13558.00
2007, hard rock extraction is still going on.
2013-14 2478.00
2014-15 600.00 Mineral Resources (Except Oil and Gas)
Investigation, Exploration and Evaluation
2015-16 0.00
2016-17 0.00 GSB is the only government organisation under
2017-18 0.00 ministry of Power, Energy and Mineral resources
2018-19 0.00 to expedite the exploration of Mineral Resources
2019-20 0.00
except oil and gas, and also evaluate of that
resources and carrying out geoscientific research
2020-21* 0.00
Source: Bangladesh Petroleum Corporation * Up to
works. GSB has implemented various
February 2021. development projects to strengthen the
exploration and evaluation of mineral resources
Mineral Resources
in the country. As a result, skilled manpower has
The Bureau of Mineral Development (BMD) been developed with foreign training under
issues exploration license and grants mining lease various projects of this department and Research
and quarry lease for different minerals like coal, facilities has made by procuring modern
hard rock, peat, mineral sand, metallic minerals, equipment to work in the petrology-mineralogy,
white clay, silica sand, ordinary/sand mixed engineering geology, sedimentology and clay
stone, limestone, clay etc. mineralogy, remote sensing and GIS,
micropaleontology, geophysics and analytical

chemistry laboratories. Besides these, GSB has Monitoring of Production Sharing Contract (PSC)
discovered Peat, Glass Sand, White Clay, and other Contracts; Petroleum Refining and
Construction Sand, Gravel, Limestone, Heavy Marketing Management, Mines and Minerals
minerals in different parts of the country. Coal Development related Rules and Regulations.
and Peat discovered by GSB is now used in
Bureau of Mineral Development (BMD)
power generation and household activities.
Bureau of Mineral Development (BMD) is an
Recent Achievements of GSB
institution which is responsible for collecting
 In FY 2018-19 and FY 2019-20 Geological revenue in favoure of this government. It
and geomorphological mapping have been provides exploration license, lease of mines and
completed of 2,595 and 2,452 sq. km quarries including management of the mineral
respectively. resources (other than oil and gas) of the country
under the Mine and Mineral (Control and
 GSB has discovered 30 meters thick
Development) Act, 1992 and the Mine of Mineral
limestone in 675 meters depth in Tajpur area
Rules, 2012.
of Bilasbari union of Badalgachi upazila
under Naogaon district. Regulatory Functions in Energy Sector
 GSB also discovered 29 meters thick of To expedite long term development of the energy
limestone in Bhagwanpur area of Naogaon sector, the Bangladesh Energy Regulatory
district. Commission (BERC) is carrying out activities for
creating favorable environment in electricity
 Recently, GSB has also discovered a generation, energy transmission, transportation
magnetic rock (magnetic, hematite) of 30 and marketing as well as for management and
meters thick at a depth of 430 meters at operation of this sector. In addition, the BERC
Hakimpur Upazila under Dinajpur district. has been working to ensure transparency in tariff
 By the project titled ‘Identification and fixation, protect consumers’ interests and create
Economic Assessment of the Valuable competitive market. Major activities of
Minerals in the River Sands of Bangladesh’ Bangladesh Energy Regulatory Commission are
collection of different sand samples from given below:
Brahmapurta, Meghna, Someshawri river Tariff Determination
basin and analyses of these samples, valuable
minerals like Zircon, Monazite, Ilmenite, The Commission determines the wholesale (bulk)
Rutile, Leocoxin, Kayanite, Garnet, tariff rate for electricity generation
Magnetite etc. has been identified. The entities/companies, electricity transmission tariff
average percentage of heavy mineral is 8.92 for electricity transmission company and retail
percent which is internationally acceptable. tariff rate for electricity distribution
entities/companies as per law and regulations. By
Hydrocarbon Unit issuing tariff order on 27 February 2020, the
Hydrocarbon Unit provides technical support to Commission has adjusted bulk, transmission, and
Energy and Mineral Resources Division to retail tariff rationally that became effective from
provide views/comments on different policies March 2020. For patronising the charging of
including Coal policy, MoU, preparation of SDG’s electrical vehicles, it is initiated separate tariff
Action plan, Gas demand, Gas sector category for battery charging stations and the
development, Future plan of Gas Sector, Attend water pumps used for medium level
PSC's JRC/JMC's meeting, Supervision and irrigation/agriculture purposes under medium

tension, low price tariff category has been Storage 02 and Propane/Butane Storage and
introduced. Due to pandemic caused by COVID- Distribution 01].
19, the Commission has issued two
Arbitration Activities
supplementary orders on 24 March 2020 and 16
July 2020 to waive Late-Payment Surcharge of For settlement of dispute which may arise
residential electricity users for the period of between the licensees or between a licensee and
March 2020 to June 2020. consumers, the Commission prepared the BERC
Dispute Settlement Regulations, 2014 and
Gas Development Fund
published in the Bangladesh Gazette on 22
To augment the financial capacity for exploration January, 2014. By this time, the settlement of
and production of gas by the nationalized disputes under this Regulation has begun and 177
companies, the Commission formed ‘Gas awards were given from FY 2009-10 to FY 2020-
Development Fund’. An amount of about 21(Up to February, 2021) out of 317
Tk.15,521.66 crore has been deposited to the Gas applications.
Development Fund up to December, 2020.
Establishing Transparency and Accountability
Creation of Electricity Maintenance and
The Commission has taken initiative to introduce
Development Fund
Uniform System of Accounts to prepare financial
In order to increase the efficiency and capability account statements in the same standard for the
of BPDB, the commission has created transparency and accountability of utilities. The
‘Electricity Maintenance and Development Fund’ Commission has issued an order for the
in 2011, with the increase of 5.17 percent of bulk implementation of uniform accounting procedure
tariff. Commission has re-fixed the rate of for all licensees of the gas sector. The order
deposit Tk. 0.15 on selling price of per kWh includes guidelines to accounting, permanent
which was effective from 1 December 2017. The asset and inventory management for each
cumulative deposit in this fund up to November financial transaction. The Commission has also
2020 is Tk. 10,809.88 crore. formulated a uniform accounting system for
power sector. From the feedback of power
Creation of Energy Security Fund
distribution companies/organisation, the
With a view to ensuring the energy security in Commission has undertaken necessary steps for
Bangladesh the Commission formed ‘Energy the review and amendment of the system to
Security Fund’. Up to December 2020 Tk. accelerate speedy implementation of the system.
12,323.23 crores have been deposited in this The Commission has taken initiatives to
fund. The fund will be used in the development introduce uniform accounting method in all gas
process of the fuel sector according to the and power utilities through computerised/web
framework outline and investment guidelines. based software. In order to purchase Uniform
Providing License System of Accounts system (Computerised/web-
based software) for gas companies/utilities is
The numbers of issued license by the under processed.
Commission from FY 2009-10 to FY 2020-21
(February 25, 2021) in the gas sector [Gas Preservation of Consumer’s Rights
Distribution License 03, CNG (Storage and The Commission is working sincerely to protect
Distribution License) 379, Auto gas (Storage and the consumer’s rights. With a view to
Distribution License) 01, LPG (Storage, Storage, establishing the consumer’s right, the
Distribution and Marketing License) 37, LNG Commission regularly organise outreach

program, conducts open meeting and public E-licensing activities

hearing in fixing tariff as well as to preparing
In order to make the licensing process easily
regulations and guidelines in order to protect
accessible and fast to the service recipients,
consumer interest. Others important steps taken
online e-licensing system software has been
by the Commission are pre-paid meter system,
installed and training has been provided to the
introduction of mobile billing system, online
concerned officers/employees. From October 1,
customer services and issuing bill clearance
2019, the application and issuance of licenses for
certificates yearly.
various categories of energy sector is being
Energy Auditing maintained through e-licensing system. This
reduces the time and cost for service recipients to
The Commission believes that energy auditing
obtain a license. As a result, service seekers are
will ensure energy efficiency in the energy sector
able to receive services without any hassle and
by use of appropriate and improved technologies.
harassment.
Energy audit will provide the Commission with
the opportunity to review and regulate the energy Research Activities
waste through setting standard for machineries
To find out the problems, solutions and
and instruments. Three power plants of
prosperity of power and energy sector, the
Bangladesh Power Development Board have
Bangladesh Energy Regulatory Commission has
already prepared energy audit related information
conducted some activities in research sector.
and sent to the BERC in the prescribed form.

CHAPTER ELEVEN
TRANSPORT AND COMMUNICATION
An advanced, well organised and modern transport and communication system is an essential
physical infrastructure for the socio-economic development of a country. Regional and
international transport networking with Bangladesh as well as other communication system
development is very crucial. According to Bangladesh Bureau of Statistics (BBS), the contribution
of the transport and communication sector to GDP is 11.04 percent and the rate of growth is 6.07
percent during FY 2020-21 at constant price. It is very much necessary to make a developed and
efficient transport and communication system that will connect Bangladesh with international and
regional road network as well as with other ICT networks. Considering this view, Padma Bridge,
Metro-rail, Bus Rapid Transit, Dhaka Elevated Express way and some other mega-projects are
being implemented. The total length of road in the country is 22,418.95 km as of February 2021 of
current fiscal year. To operate Railway as an environment-friendly, safe, affordable and
dependable means of transport various development program has been undertaken and
implemented. At present, total length of railway is 3,018.88 km. Several measures have already
been undertaken for development and maintenance of navigability of different river routes,
ensuring safe movement of water crafts, development of inland river ports, creating infrastructure
facilities to carry container goods in inland waterways etc. About 92 percent international trade is
happening through Chattogram seaport. Growth of container handling at Chattogram port is 7.39
percent in the last five years. As national flagship carrier Biman Bangladesh Airlines Limited is
conducting 7 national and 19 international flights in different routes. In FY2019-20, Biman has
carried 20.45 lakh passengers and 22,651 tons of cargo. To modernise, develop and expand the
country's telecommunication system, various measures have been undertaken by the government.
The total number of mobile phone subscriber is 17.33 crore in February 2021. Keeping
consistency with the targets of SDG declared by United Nations and 8th Five Year Plan, the
government has undertaken various initiatives to expand information technology. Various
development projects and programs are in progress to ensure the use and application of
information and communication technology by increasing digital literacy at all walks of life,
extend public service through IT-based activities and finally, build a modern and developed
Bangladesh through the introduction of e-governance and e-commerce.
For the socio economic development of a country Plan and keeping consistency with the targets of
the role of a befitting, instrument and modern SDG-2030, the government has significantly
transport and communication system is increased development initiatives.
immeasurable. Regional and international
A. Roads Communication
transport networking with Bangladesh as well as
other communication system development is very Roads and Highways Department (RHD)
crucial. According to Bangladesh Bureau of Under the management of Roads and Highways
Statistics (BBS), the contribution of the transport Department about 22,418.95 km highways of
and communication sector to GDP was 11.04 various types exists. Out of this highway
percent and the rate of growth was 6.07 percent network, 18 percent is National Highway, 22
during FY 2020-21. In this context, for percent is Regional Highway and remaining 60
implementation of 8th Five Year Plan, Perspective percent is Zila roads. In addition, RHD has 4,404
Chapter 11 Transport and Communication | 153

bridges and 14,814 culverts under its control. However, the quality of different important road
Moreover, RHD has currently been operating segments has been significantly improved
about 109 ferry boats in 42 ferry Ghats, 114 through carrying out development/improvement
Pontoons and 45 gangways on its road network works of various standards as per requirement.
throughout the country. It may be mentioned here The Table 11.1 provides a ten year time series
that the length of road network under RHD did data on RHD road lengths.
not increase during last couple of years.
Table 11.1: Various Categories of Roads under Roads and Highways Department
(Kilometer)
Year National Highway Regional Highway Zilla Road Total
2012 3538 4276 13458 21272

2013 3538 4278 13638 21454
2014 3538 4278 13638 21454
2015 3544 4278 13659 21481
2016 3813 4247 13242 21302
2017 3813 4247 13242 21302
2018 3813 4247 13242 21302
2019 3906 4483 13207 21596
2020 3906 4767 13423 22096
2021* 3944 4883 13592 22419
Source: Roads and Highways Department; Ministry of Road, Transport and Bridges.*Up to February 2021.
In order to develop a modern transport and  Improvement of Gabtoli-Nabinagar Highway

communication system, a total of 201 to Expressway with provision of 2 lane service
development projects have been included in the lane on both sides (22 km)
Annual Development Programme (ADP) of
 Up gradation of Chattrogram-Cox’s Bazar
Roads and Highways Department for FY 2020-
Highway to 4-lane
21. Among them, 197 are investment projects
and 4 are Technical Assistance projects. An  Construction of Dhaka Outer Ring Road
amount of TK. 17,255.58 crore is allocated for (South Part)
these development projects. About 38.68 percent
 Development of Dhaka (Joydebpur)-
of total allocation is spent up to February 2021 of
Mymensingh Road
FY 2020-21.
Implementation of New Policies in Road
There are twenty projects under the RHD which
Sector
will be implemented on PPP basis through
participation of the public sector as well as The recently approved Road Transport Law,
private sector for the development of road 2018 has already come into effect. The initiatives
network. Among these projects, the following six are taken to update existing Highways Act, 1925
important projects have been approved. and Tolls Act, 1851. The Road Maintenance
Fund Board Act, 2013 has already been approved
 Up gradation of Joydevpur-Debogram- Bhulta-
to ensure timely and continuous funding for
Madanpur- (Dhaka Bypass) Highway (N-105)
repairing and maintenance of the road. At
- to 4 Lane
present, the finalization of the rule is under
 Up gradation of Hatirjheel-Rampura-Banosree process. Moreover, Landscaping Policy 2020 of
Sheikher Jayga-Amulia-Demra Highway RHD under RTHD has been approved as on 24
(including Chattogram Road Mour and Tarabo February 2020.
Link Road) - to 4 Lane.

Road Safety the impact on the coastal roads. Beside this RHD
is working to reduce Green House Gas emission
In line with the UN Decade of Action for Road
by following the target set by Nationally
Safety 2011-2020 and UN Sustainable
Determined Contribution (NDC). RHD is also
Development Goals, different time bound
working to update its own guideline regarding
strategies have been taken to implement a safe
environment and resettlement related issues for
road network.
its development and maintenance work.
For ensuring the safety of passengers and
Measures taken by RHD during COVID-19
freights, Roads and Highways Department has
taken initiatives to implement the „Construction Even though facing challenges during covid-19,
of axle load station on the entry point of the employees of the Department ensured
important highways‟. A number of axle load uninterrupted transportation of emergency goods
control stations will be constructed at 21 places & services, medicine, food grains, medical
throughout the country under the project. equipments & services, patients & frontline
workers, export- import throughout the country
In line with the National Road Safety Strategic
during the pandemic. The GoB declared general
Action Plan, RHD has also taken initiatives to
holiday since 26th of March to control the wide
implement a project named „Construction of
spread of pandemic. However, to keep active the
restrooms with parking facilities for truck drivers
economic activity and normal livelihood RHD
at 4 National Highways‟. The highways are:
people both in Headquarter and field divisions
Dhaka-Chattrogram, Dhaka-Sylhet, Dhaka-
served their best, following the health rules by
Rangpur and Dhaka-Khulna. It may be
WHO and Cabinet Division of GoB.
mentioned that a project proposal „Installation of
necessary signs and road markings on National Local Government Engineering Department
and Regional Highways and Improvement of (LGED)
vulnerable corridors including the identified
A long term Master Plan over a period of 2005-
accident prone areas‟ has already been done and
2025 has already been prepared for successful
is under process.
implementation of rural infrastructures and other
Grievance Redress System (GRS) programs by LGED aiming at balanced
development across the country and is being
Anyone can post their objection or suggestion by
implemented accordingly. In the last era (2009-
clicking the Grievance Redress System link on
10 t0 December 2020) through the successful
RHD website. In FY 2020-21 till February a total
implementation of various projects, LGED has
of 22 such objections or suggestions were
developed about 63,747 km of road and also
registered in this system. Every post was
periodically maintained about 80,825 km paved
responded within short time by the administration
road. Through the successful implementation of
of this system. RHD is always vigilant to address
various projects, 3,21,322 meters of
the objections and the suggestions from its
bridges/culverts have been constructed on rural
stakeholders.
roads. Besides, LGED has developed 2,154
RHD activities on Climate Change and growth center/village markets, built 1,438 Union
Disaster Management Parishad Complex Bhaban, 346 upazila
A feasibility study on the effect of climate Complex Bhaban and 1,762 cyclone center.
change on the roads under RHD and how it could Sustainable urban development is one of the
be mitigated is ongoing. The study aims to assess prerequisites for the overall economic and social

development of the country. In this regard, have been constructed in different cities and
LGED has constructed about 11,180 km of municipalities to eliminate/reduce waterlogging
roads/footpaths, 13,833 m. bridges/culverts and due to excessive rainfall or flood.
49 bus/truck terminals in cities through various
The table 11.2 depicts achievements in transport
projects for sustainable transportation in urban
infrastructure under various development projects
areas in the last 12 years (2009-10 to December
of LGED up to December 2020 of FY2020-21.
2020). In addition to this, 3,043 km of drains
Table 11.2: Achievement in Transport Infrastructure Development under LGED
Activities 2009-10 20010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21* Total
Paved Road 4023 4614 4905 6639 6549 5990 4813 5200 8534 5400 5500 1580 63747
(km)
Bridge/ 29363 38502 26415 27057 32707 29000 28500 32000 29700 30000 7978 10100 321322
Culvert (m)
Construction of 92 70 468 717 698 1315 1110 1037 1256 1746 2332 339 11180
road &
footpath at
urban area
(km)
Construction of 250 791 627 784 1011 1240 915 795 1167 3615 2538 - 13733
bridge &
culvert at urban
area (m)
Source: LGED * Up to December 2020.
In the last 12 years, LGED has undertaken 558 and fitness certificates of vehicles, route permit
sub-projects to reduce water-logging, conserve and driving license is the main responsibility of
rain water, increase surface water irrigation this organisation. BRTA is playing an important
facilities of 4,30,752 hectares of land through role in overall development of transport sector as
small-scale water resources development. well as establishment of discipline in the sector.
LGED is following government guidelines to Following measures have been taken to enhance
implement program/project during Covid-19 standard of service, prevent environment
situations. Projects are being carried out pollution and reduce traffic jam:
maintaining the physical and social distance. A
 National Road Safety Action Plan, 2017-
Memorandum of Understanding (MoU) has been
2020 has been formulated
signed with a specialized hospital for LGED
officers / employees for the purpose of Covid-19  A central platform named „BRTA Service
identification test and treatment. Portal (BSP)‟ has been launched to bring all
BRTA services to the doorsteps of the
Bangladesh Road Transport Authority
people. All services of BRTA will be
(BRTA)
provided online through the BRTA Service
With a view to bring about discipline in the road Portal (BSP) in phases.
transport sector since its inception Bangladesh
 To reduce road accident and enhancing road
Road Transport Authority (BRTA) has been
safety consciousness, a total of 52,689
entrusted with the task of ensuring overall
professional drivers have been provided
supervision, proper management and effective
training as of January 2021 of FY2020-21.
control. At present the organisation is running its
operation through its 57 district circle offices and  2,68,883 sets Retro Reflective Number
5 metro circle offices. Issuance of registration Plates and radio Frequency Identification

(RFID) tags have been produced and Table 11.3: Revenue Target and Collection of
2,90,484 sets of the same have been affixed BRTA
to various vehicles till January 2021 of (In crore Taka)
Fiscal Target Collection Percentage
FY2020-21.
year Amount of Collection
 As of January 2021 in FY2020-21, a total of (%)
2010-11 870.00 685.24 78.76
4,701 smart Card Driving License have been 2011-12 903.58 642.37 71.09
produced and distributed. 2012-13 1101.24 769.86 69.91
2013-14 1156.59 952.24 82.33
 Digital Registration and Fitness Certificate 2014-15 1249.23 1062.29 85.04
have been introduced. In FY 2020-21 (up to 2015-16 1354.01 1619.01 119.57
January 2021), a total of 3,63,088 Digital 2016-17 1771.83 1470.18 83.00
Registration Certificate (DRC) have been 2017-18 1805.00 1589.55 88.06
produced and 4,11,981 DRC have been 2018-19 1834.00 1825.83 99.55
2019-20 2017.92 1681.67 83.34
distributed. 2020-21* 2235.00 885.84 39.64
Source: BRTA * Up to December 2020
 Collection of MV taxes and fees through
online banking system is continuing. Bangladesh Road Transport Corporation
(BRTC)
 Removing the miserable condition of Taxi
cab service, a modern and environment To ensure modern, fast, efficient, economic,
friendly taxi cab service has been introduced comfortable and safe road transport system
in Dhaka in the light of Taxi Cab Guide Line, through a controlled mechanism for better quality
2014. 400 taxicabs are in operation. service and reasonable fare/freight „Bangladesh
Road Transport Corporation (BRTC)‟ plays an
 A modern central Data Center has been
important role. At present, there are 1,274 buses
established for preserving different vehicle
and 506 trucks in the fleet of BRTC as well as
and driving license data
there are 21 bus depots and 2 truck depots.
 To ensure road safety and provide proper
Some progressive activities of BRTC in recent
service to the service recipients, initiatives
time are given below:
have been taken to establish BRTA Office
Cum Motor Driving Testing, Training and  To facilitate the journey of the students of
Multipurpose Center (BMDTTMC) in every different educational institutions, 60 buses
district. were donated to 33 educational institutions
from BRTC fleet up to FY2019-20 (January
As of December 2020 in FY2020-21, BRTA
2020).
collected revenues Tk. 885.84 crore against the
target of Tk. 2,235.00 crore. The figures of target  To facilitate comfortable journey to the
and actual collection of revenues from the government and semi-government
FY2010-11 to FY 2020-21 are given in table 11.3 employees, beside the students of different
below: universities, BRTC deployed 184 staff buses
to 43 institutions. In addition, to facilitate
safe journey for the tender children 3 school
buses are running now- 2 in Mirpur-Azimpur
route and 1 in Sheora-MES (Naval
Headquarters) route Dhaka city and 10

double decker buses in Chattogram city completed their training. It is to be noted that
under the supervision of Zilla Parishad. training activities under SEIP have been
suspended from March 2020 due to Covid-19
 At present 22 buses, exclusively for „Women
epidemic.
Bus Service‟, are running in 17 routes of
which 20 buses in Dhaka and 2 in  To provide driving and auto-mechanism
Chattogram. training to the unemployed youth and
destitute women to eradicate unemployment
 BRTC is providing free transport service to
as well as to act for human resource
the designated and war-wound freedom
development BRTC trained 3,942 trainees in
fighters. In addition, BRTC reserves 15 seats
FY 2020-21 up to January 2021 through 20
in each bus of city service for women,
training units.
children, physically challenged people and
freedom fighters.  Construction of 22 training centers and
procurement of training aid for 25 training
 International bus services of BRTC is
centers is going on under the project
running now in Dhaka-Kolkata-Dhaka,
„Modernisation and strengthening 3 training
Dhaka-Agartola-Dhaka, Agartola-Dhaka-
institute and 17 training centers of BRTC to
Kolkata-Agartala, Dhaka-Sylhet-Shilong-
develop the skills of drivers‟.
Gouhati-Dhaka and Dhaka-Khulna-Kolkata-
Dhaka routes.  Different types of 1,558 new buses have
been added to the BRTC bus fleet during the
 600 buses and 500 trucks have been
tenure of the present government (from 2009-
procured under the two project „Procurement
2020) in order to increase the quality of
of double decker, single decker AC and Non-
passenger service and facilitate the travel of
AC bus for BRTC‟ and „Procurement of
passengers.
Trucks for BRTC‟ finance by Indian Line of
Credit (LOC-2). The financial statement of BRTC from FY2010-
11 to FY 2020-21 is given in the Table 11.4:
 Rapid Pass (e-ticketing system) for bus
service passengers has been introduced in Table 11.4: Revenue Target and Collection of
Abdullahpur-Motijheel route. In addition, BRTC
(In Crore Taka)
mobile app ‘KOTODUR’ has also been Financial Operatin Operating Operatin
introduced for locating/predicting the Year g Income Expenditur g
position of buses on the road in Nabinagar- e Surplus
Gabtoli route. Besides, introduction of 2010-11 115.11 109.84 5.27
„Vehicle Tracking System‟ is introduced in 2011-12 173.60 171.90 1.70
newly procured 600 buses and this system in 2012-13 201.70 198.48 3.22
all other buses and trucks of BRTC is under 2013-14 243.11 233.53 9.58
process. 2014-15 234.07 230.51 3.56
2015-16 266.36 258.31 8.05
 BRTC will be provided 4-month long 2016-17 262.55 267.60 -5.05
training for 36,000 drivers to develop their 2017-18 253.18 256.10 -2.92
skill under the „Skill for Employment 2018-19 258.88 259.82 -0.94
Investment Program (SEIP)‟ -a project 2019-20 349.28 324.43 24.85
implemented by Finance Division. In the 2020-21* 249.38 238.19 11.19
meantime, 12,900 participants have been Source: BRTC * Up to February 2021.

Dhaka Transport Coordination Authority recommendation of Revised Strategic

(DTCA) Transport Plan (RSTP), Roads and Highways
Department has taken bus based Mass
To provide a smooth planned, coordinated and
Transit System implementation program
modern transport system for Dhaka city and its
under the Greater Dhaka Sustainable Urban
adjacent districts Dhaka Transport Coordination
Transport Project (GDSUTP).
Authority (DTCA) was established in 2012.
Implementation work of northern part is
DTCA jurisdiction covers 7,400 square
going on full swing. The alignment of BRT
kilometers that includes- districts of Dhaka,
Line-3 (Northern Part) is from Gazipur to
Narayangonj, Munshigonj, Manikgonj, Gazipur
Hazrat Shahjalal International Airport (22
and Narsingdi. As a matter of fact, DTCA plans,
km long). After implementation, it will be
approves, coordinates and monitors the transport
able to carry 30,000 passengers per hour in
related infrastructure projects within its
both directions.
jurisdiction.
Progress of Important Activities of DTCA  To bring discipline in public transportation
sector and to reduce traffic congestion Local
 In order to ensure hassle free and seamless Government Division formed a committee
travel by different modes of transport: with 10 members chaired by honorary
Metrorail, Bus Rapid Transit, Bangladesh Mayor, Dhaka South City Corporation and
Railway, BRTC Bus, Marine Transport of Member Secretary is Executive Director,
BIWTC and Non-government contract buses DTCA to implement bus route rationalisation
etc. by using SMART card under e-ticketing and company based bus operation in Dhaka
system, clearing house at DTCA office has city. Infrastructure Investment Facilitation
been established in 2017. Name of Smart Company (IIFC) has been already appointed
card has been fixed as „Rapid Pass‟. In the for consultation of „Revision and Updating of
meantime, 60,000 Rapid Pass have been previous study report on Bus Route
procured and introduced in 2018. To increase Rationalisation and Company based
the use of rapid pass in large scale, Clearing Operation of Bus Service in Dhaka‟ work by
House phase-II project is currently DTCA. In this study, reviews of previous
undergoing. reports on urban transport, consultations
 In order to reduce traffic congestion in Dhaka through partner meetings and all necessary
city through intersection improvement and data will be collected.
Intelligent Traffic System (ITS) introduction  The proposed route of BRT line 7 is
in 4 Intersections (Paltan, Gulshan-1, Capasia-Gajipur to Narayanganj via eastern
Gulistan and Mohakhali), a pilot project fringe area of Dhaka city. The route length is
„Dhaka Integrated Traffic Management about 60 kilometers and the feasibility study
Project‟ is being implemented. The physical of this project is currently undergoing. The
work of the project will be completed very consulting farm already submitted the interim
soon. Under this project Action Plans and report. After completing feasibility study the
Manuals will be prepared by the Japanese implementation will be started.
expert team which will be finalised based on
the information obtained after setting up ITS.  The Dhaka Transport Coordination
Authority‟s (DTCA) “Bus Depot and
 To reduce traffic congestion and provide Terminal Feasibility Study and concept
better service to passengers and according to Design” project has identified 10 locations

around Dhaka City for the Construction of Dhaka Mass Rapid Transit Development
Inter-district and city bus terminals for Project (MRT) Line-6:
buses operating in and around Dhaka. The
Under the revised action plan, MRT Line-6, the
consulting firm (IIFC) has submitted the
first Metro-rail in Bangladesh from Uttara-
Interim Report.
Motijheel being 20.1 km long with 16 stations
 In Chattogram city as a part of transport and capable of carrying 60,000 passengers per
planning DTCA starts a project „Preparation hour in both ways, is ongoing. Up to December
of Comprehensive Transport Master Plan 2020, the progress of the first phase construction
with Pre-Feasibility Study of Mass Rapid from Uttara 3rd phase to Agargaon is 78.38
Transit Network for Chattogram percent. The progress of second phase
Metropolitan Area‟. construction works of the rest for Agargaon to
Bangladesh Bank till December 2020 is 49.47
 According to the DTCA Act, there is a
percent. The combined progress of electrical and
provision for approval of the design of traffic
mechanical system and procurement of rolling
circulation and movement of vehicles from
stock is 43.82 percent. The Topographic survey,
the DTCA before the construction of a multi-
Household survey and Stakeholder‟s meeting has
stored building or residential project. DTCA
already conducted to extend the MRT Line-6 by
gave NOC/approval determined through the
1.16 kilometers from Motijheel to Kamlapur.
Traffic Impact Assessment (TIA).
The Social Study is at the final stages.The land
Dhaka Mass Transit Company Limited acquisition under process.
(DMTCL)
MRT Line-1 and MRT Line-5 (Northern &
With a view to alleviate Traffic congestion and Southern Route):
to improve the environment in Dhaka
MRT Line-1 comprising of 31.24 Kilometers is
Metropolitan City and its adjoining areas, Dhaka
divided into two parts. They are: Airport Route
Mass Transit Company Limited (DMTCL), a
and Purbachal Route. Airport Route (Airport to
government owned company has laid out the
Kamlapur) is the first underground Metro Rail of
following time bound action plan to build a
Bangladesh. The total length of this route is
network of 6 Metro Rail systems by 2030. The
19.87 Kilometers and total number of
time bound action plan is given in the Table 11.5:
underground stations is 12. The length of
Table 11.5: Time Bound Action Plan, 2030 of Purbachal Route (Notun Bazar to Pitalgonj
DMTCL Depot) is 11.37 Kilometers. The entire route is
Name of the Phase Probable Type elevated and total stations are 9. Among them 7
MRT Line Completion stations will be elevated. The Notun Bazar and
Year the Jamuna Future Park stations will be
MRT Line-6 First 2024 Elevated
constructed underground as a part of Airport
MRT Line-1 2026
MRT Line-5; 2028 route. There will be an interchange at Notun
Second
Northern Bazar station. Through the Interchange
Route Elevated and passengers will be able to change routes between
MRT Line-5; 2030 Underground Airport Route and Purbachal Route and vice
Southern Third
Route versa. All studies, Surveys and Basic design for
MRT Line-2 2030 both the routes have already been completed. The
MRT Line-4 2030 Underground progress of Detailed Design stands at 65 percent
Source: Road Transport and Highways Division. as on 31 December, 2020. A process is underway

to acquire 92.97 acres of land under Pitolganj An initiative for the construction of about 16
and Brahmankhali Mouzas of Rupganj Upazila Kilometers long elevated MRT Line-4 from
of Narayanganj District for the construction of Kamalapur to Narayanganj by 2030 through PPP
MRT Line-1 Depot and the corridor for Depot basis is under processing. MRT Line-4 will run
access. Once MRT Line-1 is in operation by along the existing Bangladesh Railway Track.
2026, 8 Lakh people will be able to commute
Bridges Division
daily.
The feasibility study has been completed for the Bridges division is responsible for
construction of MRT Line-5 (Northern route) implementation and maintenance of bridges and
project by December 2028 with a view to build tunnels (which are 1,500 meters and above in
20 Kilometers long lines in combination of length), flyover, expressway, causeway, link road
underground and elevated lines and 14 stations in and so on. The main activities of „Bangladesh
between Hemaetpur and Vatara. The progress of Bridge Authority‟, the only organisation of
preparing the Basic Design was 50.33 percen as Bridges Division, are as follows:
of 31 December 2020. This will be the first East- Bangabandhu Bridge
West MRT Corridor of the mega city Dhaka.
Upon completion in December 2028, 12.30 lakh To ensure integrated communication system, 4.8
people will be able to commute by MRT Line-5: kilometer long Bangabandhu bridge was built in
Northern Route daily. 1998 over Jamuna river at the cost of TK.
3,745.60 crore in order to accelerate the country‟s
In order to build 17.40 Kilometer lines with 16 overall political, social, economical,
(underground 12 and elevated 4) stations in administrative and cultural development which
between Gabtoli and Dasherkandi under MRT connect two regions divided by the Jamuna river.
Line-5 (Southern route) project by 2030 pre- A direct rail communication has been established
feasibility study has been completed. A loan with capital Dhaka to Rajshahi, Lalmonirhat,
agreement has been signed with the Development Dinajpur and Khulna by building railway by the
Partner for the Project Readiness Financing side of Bangabandhu bridge. Apart from the road
(PRF) for MRT Line-5: Southern Route. The and railways facilities, other facilities like
appointment of a Consultant Firm is at the final electricity, gas and fiber optic telephone line have
stages. Upon completion MRT Line-5: Southern been established through this bridge.
Route in 2030, 9.24 lakh people will be able to
commute daily. Construction of Bangabandhu Bridge facilitates
the increase of agriculture production to a great
MRT Line-2 and MRT Line-4 extent in northern region and farmers are getting
The Government of Bangladesh has signed a the fair price of their products. Furthermore,
Memorandum of Understanding with the industries have flourished in that region too. The
Government of Japan to construct the about 24 bridge is significantly contributing in economic
Kilometers long MRT Line-2 comprising of development through reduction of poverty. The
Elevated and Underground sections from Gabtoli revenue earnings for the period of FY2010-11 to
to Chittagong Road by 2030 under G2G through FY 2020-21 (up to February 2021) from this
PPP basis. A report has been submitted in March bridge are shown in Table 11.6.
2020 after completion of PPP research of MRT
Line-2. Preliminary Study is ongoing. Progress of
Preliminary Study is 55 percent as on 31
December 2020.

Table 11.6: Description of the toll collected affected people have given land
from Bangabandhu Bridge development assistance.
(In Crore Taka)
 Environment: 1,73,294 saplings have been
Financial Target Revenue Collection
planted to resettlement area, approach roads
Year collection rate (%)
and service area on both sides of Padma
2010-11 260.00 267.66 102.94
bridge. Besides, establishment of a museum
2011-12 312.21 304.66 97.58
2012-13 335.40 325.20 96.96
at project is progressing. Meanwhile, 2,297
2013-14 358.98 323.38 90.23 samples have been collected and preserved.
2014-15 365.13 349.08 95.60 Besides these, physical progress of construction
2015-16 391.97 402.43 102.66 of Jajira link road, Mawa link road and service
2016-17 456.68 484.42 106.07
area-2 of Padma bridge project is 100 percent.
2017-18 539.48 543.80 100.80
2018-19 566.44 575.41 101.58 The Padma Bridge will connect 19 districts of
2019-20 589.73 560.28 95.00 south-western region of the country with the
2020-21* - 428.98 - eastern part and the capital Dhaka. Moreover,
Source: Bangladesh Bridge Authority,* Up to February 2021. this bridge will bring revolutionary changes in
the communication system in the South Asian
Padma Bridge
regions as well as in the internal communication
To establish an integrated communication system due to its alignment in the Asian Highway
network for South region with other regions of (AH-1). This bridge will play a significant role in
the country the highest priority has shown for the socio-economic development by raising GDP
constructing the Padma Multipurpose Bridge at by 1.20 percent and reducing poverty by 0.84
Mawa-Janjira point (6.15 meter long). The percent approximately.
implementation work of this mega project at the
cost of Tk. 30,193.38 crore which is also the Construction of Dhaka Elevated Expressway
biggest own funded project and is progressing in To reduce the traffic jam in Dhaka city 46.73
full swing. Overall physical progress of project is kilometer (with ramp) long Dhaka elevated
84.50 percent till February 2021. expressway from Hazrat Shah Jalal (R)
The progress of important packages of The international airport to Kutubkhali on the Dhaka-
Padma Multipurpose bridge project up to Chattogram highway will be constructed on
February 2021 is as follows: Public Private Partnership (PPP) basis. An
agreement signed with the investor on 15
 Main Bridge: The physical progress of main December 2013 and construction work has begun
bridge is about 93 percent. on August 2015 of the expressway. By February
 River Training Works: The physical 2021, the first phase of 1,452 working pile
progress of river training work is around 80 driving, 267 pile caps, 187 Pier column, 152
percent. Cross Head, Cross beam 26, 736 I-girder casting
 Resettlement: Tk. 712.93 crore has been and 519 I-girder erection have been completed.
given as additional assistance among the Construction of Tunnel under the River
affected people till February 2021. About Karnaphuli
3,035 plots have been allotted to the affected
families in the resettlement sites. Among To connect the West part of Chattogram city to
them 787 landless (affected) families have East part, reduce traffic jam, ease direct road
got plot without any cost. Besides, 1,031 communication among Dhaka- Chattagram-
Cox’sbazar and transport goods from

Chattogram sea port and proposed deep sea port completion of this expressway, GDP growth will
the implementation work of 3.40 kilometer long be increased by 0.21 percent.
tunnel under the river Karnaphuli at a cost of Tk.
Construction of Dhaka East-West Elevated
8,446.46 crore is progressing. Hon‟ble Prime
Expressway
Minister inaugurated the Tunnel Boring Machine
(TBM) on 24 February 2019. All the 19,616 To construct about 39.24 kilometer long Elevated
tunnel segment castings have already been Expressway from Baliapur of Dhaka-Aricha
completed. By February 2021, 65 percent of the highway to Langolbond of Dhaka-Chattagram
project's physical work has been completed. Its road through Nimtoli-Keranigonj-Fatulla-
construction is expected to be completed by Bandor, PDPP has been approved with the
December 2022. estimated cost of Tk. 16,388.50 crore. This
expressway will connect National Highways and
Construction of BRT Lane (Elevated Section)
Asian Highway. Apart from reducing traffic
Steps have been taken to construct of 20 congestion in and around Dhaka city, traffic
kilometer long Bus Rapid Transit (BRT) lane at movement from Chattogram, Sylhet & other
the cost of Tk. 2,039.85 crore from Gazipur to eastern part and from south western region
Shah Jalal international (R) Airport. Bangladesh through Padma Bridge to the north-western
Bridge Authority (BBA) is responsible for districts will be easier without entering Dhaka
implementation of 4.5 kilometer elevated section. city.
The implementation work is progressing and 43
Conduct Feasibility Study to Construct
percent of physical work has already been
Subway (Underground Metro) in Dhaka city
completed by February 2021. Efforts are given to
complete its construction as soon as possible. To solve the unbearable traffic congestion
problem of Dhaka city, a feasibility study project
Construction of Dhaka-Ashulia Elevated
has undertaken to construct subway in a total
Expressway
alignment of 253 km of Dhaka city at a cost of
To construct about 24 kilometer long Dhaka- Tk. 321.85 crore which will be completed by
Ashulia Elevated Expressway from Hazrat Shah June 2021. In draft feasibility report total 11
Jalal (R) International Airport to EPZ through subway networks have been proposed. It is
Ashulia, a project has been approved on 24 expected that the implementation of the subway
October 2017 with an estimated cost of Tk. construction project will start in time as per the
16,901.32 crore. To construct the expressway on recommendations of the final survey report.
G-to-G basis, commercial agreement has been Already 60 percent of the work of this feasibility
signed with a Chinese government nominated study project has been completed.
company on 29 November 2017. Land
Conduct feasibility study on the construction
acquisition of the project is underway by this
of tunnels along the river Jamuna
time. It is expected that the construction work
will start in due time after signing the loan Steps have been taken to conduct a feasibility
agreement with the China EXIM Bank. study to construct a tunnel along the Jamuna
river connecting the Gaibandha and Jamalpur
It will connect Asian Highway Network and
districts. The study will start in time after
almost all National Highway and thereby, it will
approval of proposed project by the concern
reduce traffic congestion in Abdullahpur-
authority.
Ashulia-Baipail-Chandra corridor that connects
Dhaka city with 30 other districts. After

Construction of bridge over Payra river on will be identified, adopted and recommended in
Kachua-Betagi-Patuakhali road the said master plan. Besides, feasibility study
will be conducted on Meghna river at Chandpur-
The project was approved in the ECNEC meeting
Shariatpur location, on Laxmipur-Bhola road and
on 10 March 2020 at a total cost of Tk. 1,042
construction of Dhaka Inner Elevated
crore for the construction of 1,690 meter long
Expressway. The project has been approved on
bridge over the Payra River on the Kachua-
10/5/2020 at an estimated cost of Tk. 263.47
Betagi-Patuakhali-Lohalia-Kalia road as part of
crore with the own fund of Bangladesh Bridge
the development of road communication network
Authority. The process of hiring a consulting
in the south.The construction of this bridge is
firm is currently underway.
expected to be completed by 2025.
Construction of Other Large Bridges
Road widening and construction of two-lane
road from Panchabati to Muktarpur Bridge In order to maintain uninterrupted road network,
initiatives have been taken to build new bridges
A DPP has approved for widening of 10.75
at different location. As a part of this, feasibility
kilometer road from Panchabati to Muktarpur
study for construction of bridges at “Rahmatpur-
Bridge and constructing 9.06 kilometer elevated
Babugonj-Muladi-Hijla” roads over Arialkha
expressway at an estimated cost of Tk. 2,242.06
river, at “Lebukhali-dumki-boga-doshamina-
crore at the ECNEC meeting on 08/12/2020. It is
golacipa-Amragachi” roads over Golacipa river,
expected that project work will be started in time.
have been completed. Efforts are being made to
Construction of bridge over Meghna river on finance the construction of these two bridges.
Bhulta-Araihazar-Bancharampur road
Moreover, feasibility study has been completed
Preliminary steps have been taken to build a 1.7 for construction of a total of 3 bridges on
kilometer long bridge over the Meghna River on Patuakhali-Amtali-Barguna road over Payra
the Bhulta-Araihazar-Bancharampur road river, Bakerganj-Baufal road over Karkhana river
between Narayanganj and Brahmanbaria and Barguna-Patharghata road over Bishkhali
districts. Meanwhile, Feasibility study has been river. It is expected that the construction work of
completed for its implementation. Work is these bridges will start in time.
underway to hire a Transaction Advisor to build
Steps taken to deal with the Covid-19
the bridge on a G2G PPP basis with a consortium
epidemic
from South Korea.
Bridges Division and Bangladesh Bridge
Preparation of master plan of Bangladesh
Authority have taken timely steps to deal with
Bridge Authority and conducting feasibility
global epidemic Covid-19. Development projects
study for construction of new bridges and
are being conducted in accordance with proper
inner elevated expressways
hygiene rules. As a result, the implementation of
Bangladesh Bridge Authority has taken steps to other important projects including the Padma
formulate a 25 year master plan with the aim of Multipurpose Bridge Project was not hampered.
achieving sustainable development by 2030 and
B. Railway Communication
making Bangladesh a developed and prosperous
country by 2041. In order to ensure integrated To ensure railway communication as a reliable,
and uninterrupted transport system and to affordable, environment friendly and publicly
develop the road communication network of the transport in Bangladesh the Railway Division has
country, short, medium and long term projects upgraded to a separate Ministry named as

Ministry of Railways (MoR) in December 2011. rehabilitation of 1,209.87 km railway line,

The improvement of rail communication and construction of 100 new station building,
transport services has been included as a priority rehabilitation of 194 station building,
sector in the national document on 8th Five-Year construction of 439 new railway bridge,
Plan and Perspective Plan, Vision-2021 and more rehabilitation of 727 railway bridge, procurement
budget has been provided for the development of of 56 locomotives and 20 set DEMU,
the railway than any of the past. Total Number of procurement of 520 passenger coach,
230 projects cost of Tk. 5,53,662.00 crore are rehabilitation of 460 passenger coach,
included for the implementation of six stages procurement of 516 goods wagon and 30 brake
from July 2016 to June 2045 in newly approved van, rehabilitation of 277 goods wagon,
railway master plan. modernization of signaling system of 121 station,
rehabilitation of signaling system of 9 station,
Bangladesh Railway has around 3,018.88
introduction of 142 new train, establishment of 1
kilometer of network which connects 43 District
(Dual gauge) wheel lathe machine, procurement
and almost all the important places of the
of 2 load monitoring devices to ensure the safety
country. The ministry has undertaken 37
of Bangabandhu Bridge, procurement of 6 relief
approved projects to implement in FY2020-
crane, procurement of 2 train washing plant,
21. New districts will be brought under the rail
procurement of 2 locomotive simulator and
network and national and international
extension of current train service of 41 routes.
connections such as Trans Asians Rail Network
will be established through these development In order to meet the growing demand of
activities which will help to improve the overall passengers, projects have been taken for
transport facilities of the country including procurement of 100 MG and 40 BG locomotives,
decrease in the traffic congestion of Dhaka. 550 MG and 150 BG passenger coaches to
resolve rolling stock crisis.
Achievements of Bangladesh Railway during the
tenure of the present Government since 2009 till Table 11.7 présents year wise data on overall
date worth mentioning are construction of 462.15 performance of Bangladesh Railway over the
km new rail line, conversion of 248.50 km period from FY2010-11 to FY2019-20.
railway line from meter gauge to dual gauge,
Table 11.7: Overall Performance of Bangladesh Railway
Fiscal Year Passenger Km Freight Ton Km Total operating Total operating expense
(Million) (Million) revenue (Tk. in crore) (Tk. in crore)
2010-11 8051.92 692.64 747.07 1491.82
2011-12 8787.23 582.11 726.42 1567.12
2012-13 8253.42 525.37 804.26 1562.38
2013-14 8134.70 677.35 800.17 1601.69
2014-15 8711.36 693.84 935.45 1808.29
2015-16 9167.18 675.09 904.02 2229.22
2016-17 10040.66 1052.67 130.37 2835.52
2017-18 12993.91 1236.50 1486.10 2918.02
2018-19 14334.76 1075.14 1406.58 3050.66
2019-20* 11467.80 913.48 1126.05 3241.52
Source: Ministry of Railway. *Provisional

C. Water Transport Table 11.8: Income and Expenditure of

BIWTA
Waterway is an affordable, environment-friendly ( In crore taka)
and secure communication system. The Ministry Fiscal Income Actual Profit/Loss
Year Expenditure (+-)
of Shipping has been developing, maintaining, 2010-11 237.53 239.10 -1.57
managing and controlling the internal water 2011-12 290.78 272.91 +17.87
transport infrastructure of Bangladesh to 2012-13 349.09 329.40 +19.69
2013-14 320.04 377.61 -57.57
maximize the use of these waterways. In order to 2014-15 358.02 382.31 -24.29
achieve overall economic development of the 2015-16 500.80 518.88 -18.08
2016-17 614.46 699.67 -85.21
country by providing modern ports management, 2017-18 625.35 689.33 -63.98
ensuring safe and uninterrupted shipping, human 2018-19 679.38 698.50 -19.12
resources development and providing efficient 2019-20 759.13 762.66 -3.53
2020-21* 434.02 438.47 - 4.45
and affordable water transport services, the Source: BIWTA, Ministry of Shipping. *Up to February 2021.
activities of various departments/organisations
BIWTA performs development and maintenance
under the Ministry of Shipping are described
dredging in every year for smooth transportation
below:
of passenger and cargo. The volume of
Bangladesh Inland Water Transport development and maintenance dredging during
Authority (BIWTA) the period from FY2010-11 to FY 2020-21 is
Bangladesh Inland Water Transport Authoirty presented in Table 11.9.
(BIWTA) is responsible for development, Table 11.9: Development and Maintenance
maintenance and conservation of inland water Works of BIWTA
transportation system, ensuring safe movement of Fiscall Dredging Quantity (lakh cubic
Year meter)
water crafts, development of inland river ports, Developm Maintenance Total
providing pontonns and landing facilities at ent Dredging
different launch terminals, activating the circular Dredging
2010-11 25.54 40.16 65.70
waterways around Dhaka city, creating 2011-12 24.47 43.61 68.08
infrastructural facilities to carry container goods 2012-13 56.03 44.65 100.68
2013-14 47.02 57.90 104.92
in inland waterways, preparation of hydrographic 2014-15 120.15 50.77 170.92
charts in digital system, etc. are the major 2015-16 178.22 104.79 283.01
initiatives to be mentioned. 2016-17 158.79 117.37 276.16
2017-18 211.89 134.98 346.87
A total of 18 development projects of BIWTA 2018-19 278.84 139.63 418.47
2019-20 152.96 280.73 433.69
were included in the Annual Develpment 2020-21* 181.41 128.79 310.02
Program (ADP) in FY2020-21. A total allocation Source: BIWTA, Ministry of Shipping, * Up to February 2021.
of Tk. 1,388.40 crore has been made against
In addition to the above dredging activities,
these projects. A sum of Tk. 391.36 crore
BIWTA procured 45 dredgers and 168 ancillary
expenditure has been incurred upto February
vessels has included in Dredger bayz till
2021 against the projects included in the ADP.
February 2021.
The revenue income of BIWTA in the FY 2020-
21 is Tk. 434.02 crore upto February 2021. BIWTA has installed of 177 new pontoon (up to
Table 11.8 shows the year wise income and February 2021) in different ferry ghat, launch
expenditure of BIWTA during the period from ghat, wayside ghat. With the installation of the
FY2010-11 to FY2020-21. said navigational aids and of 370 pontoons of
various sizes in different launch landing stations
and river ports after having minor and major

repairs, the transportation of passengers and Table 11.11 shows the income and expenditure
goods have become easier during the above of the organisation since FY2010-11 to FY2019-
mentioned period. Ensuring safe movement of 20.
water crafts, to carry passenger, container goods
Table 11.11: Income and Expenditure
in inland waterways safely, BIWTA has procured
Statement of BIWTC
different types of navigational aids and other (In Crore Taka)
ancillary equipment installed the said FY Income Actual Net Profit
navigational aids and has performed Digital Expenditure
Hydragrafic survey during the years 2015-2021. 2010-11 211.99 153.81 32.08
Hydragrafic Survey during the FY2015-16 to 2011-12 229.68 183.48 19.28
2012-13 272.21 216.13 56.08
2020-21 are showned in table11.10:
2013-14 297.35 235.08 62.27
Table 11.10: Year wise Hydragrafic Survey 2014-15 326.72 269.43 57.29
FY Inland water Costal 2015-16 359.18 310.96 48.22
ways (s km) waterways (s 2016-17 356.95 329.71 27.24
km) 2017-18 371.91 287.36 84.55
2015-16 2751.34 1000.00 2018-19 380.13 307.62 15.16
2019-20 196.94 165.48 5.56
2016-17 2750.00 1200.00 Source: Bangladesh Inland Water Transport Corporation.
2017-18 2700.00 1000.00
2018-19 1864.40 700.00 Measures taken during Covid-19 epidemic: To
2019-20 1992.25 750.00 continue the emergency communication during
2020-21* 1712.19 2100.00 Covid-19 global epidemic following the
Source: BIWTA, Up to February 2021. Government directives in compliance with health
Bangladesh Inland Water Transport regulations, Ferry and container services in a
Corporation (BIWTC) limited range had been provided from April,
2020. However, the BIWTC's passenger services
BIWTC is working to provide reasonable and
was completely closed.
service oriented developed transport system by
In addition, as per the directives of the Ministry
operating 177 vessels. To enhance the service
of Public Administration, administrative
quality in the different sector, BIWTC has been
activities/works in the field offices including
constructed total 55 different type of vessels
BIWTC head office carried out in a limited
during FY 2009- 2020 under different
range.
development projects out of which 21 are ferry.
12 are Pontoon, 4 are Sea-truck, 12 are water bus, Chattogram Port Authority (CPA)
2 are Inland Passenger vessel and 4 are Container Chattogram Port Authority, as the principal sea
vessels . port of Bangladesh, handles nearly 92 percent of
Not only the construction of new ferry and international trade of the country. Port activities
Pontoon, BIWTC, alongside, has been completed are increasing day by day with the increasing
rehabilitation of 4 Ro-Ro ferry, 2 K-type ferry, 2 trend of export-import of the country. Statistics
medium ferry and 6 pontoon under different show that the growth rate of container handling at
development projects by spending Tk.61.26 core. Chattogram Port has been average 7.39 percent
Addition of new ferries and pontoons are playing in the last five years.
significant role to carry the gradually increased Chattogram Port is serving as the main gateway
vehicles at different ferry ghat. The organization in exporting garment and other products.
is carrying more than 7,500 vehicles everyday on Considering the immense importance of
average in the 8 ferry route.

Chattogram Port in the field of economy, the Table 11.12: Income and Expenditure of CPA
(In Crore Taka)
government has taken various developmental
Fiscal Year Rev. Rev. Rev.
programs to make the activities of the port more
Income Expenditur Surplus
dynamic. Construction of Patenga Container e (Before
Terminal, Bay Terminal and “Matarbari Port Tax)
Development Project” in Cox's Bazar district's 2010-11 1453.15 634.13 819.02
Maheshkhali Upazila are notable among them. 2011-12 1529.92 652.62 877.30
This mega projects‟ implementation work is 2012-13 1570.37 803.00 767.37
2013-14 1634.32 815.65 818.67
progressing fast. It is hoped that the completion 2014-15 1876.82 860.95 1015.87
of the above activities will significantly increase 2015-16 2029.25 1065.83 963.42
the capacity of Chattogram Port in container, 2016-17 2407.65 1352.54 1055.11
2017-18 2661.76 1390.52 1271.24
cargo and ship handling. 2018-19 2892.86 1610.53 1282.33
mvgwqK
2019-20* 2924.99 1716.29 1208.70
The average turnaround time of container ships at 2020-21** 1942.54 1076.89 865.65
Chattogram port in FY2019-20 was 2.8 days in Source: Chattogram Port Authority,*Privisional **Up to February 2021.
u
jetty berths, and in FY 2020-21 (July 2020- Measures taken during Covid-19 epidemic:
January 2021) it was 2.70 days. In the FY2019-
20, the average growth rate of import-export was To keep the economic wheel of the country
3.37 percent for cargoes and 2.92 percent on running, even during the Corona disaster, the
containers, in the FY 2020-21 (July 2020-January Port of Chittagong remained open 24/7. To fight
2021) the growth rate of import-export was 8.92 the situation The Corona Unit was launched at
percent for cargoes and on the basis of the Chittagong Port Authority Hospital on July 1,
containers, it was 3. 59 percent. 2020. The 50-bed Corona Unit at Chittagong Port
Authority Hospital continues to operate with the
In terms of keeping up with the leading and Port‟s own funding and management.
modern ports of the world, the efficiency of
Chattogram port is increasing in the midst of Mongla Port Authority (MPA)
various challenges as per the international After establishment Mongla Port has been turned
standards. The port of Chattogram has earned its‟ into a modern facilitated seaport gradually by
reputation in the shipping sector of the world. implementing different development projects. At
According to a survey by renowned international present, Mongla port has the capacity to birth
shipping register LIoyd‟s List, Chattogram Port total 42 of ships at a time, 6 in own Jetties, 3 in
was ranked 98th among the world's top container mooring, 22 in anchorages and 11 in private
ports in 2009 and most recently, it ranked 58th in Jetties. There are 6 warehouses, 5 container
2020. That means, The Port of Chattogram has yards, 2 car yards that can accommodate more
advanced 40 steps in the last 11 years. than 1.50 crore m.ton of cargo, 1 lakh TUEs of
Table 11.12 shows the income and expenditure containers and 20 thousand of cars annually.
of CPA. Table 11.13 shows the income and expenditure of
Mongla Port from FY2010-11 to FY2020-21.

Table 11.13: Income, Expenditure and likely to be imported through Mongla Port
Profit/Loss of Mongla Port annually as raw materials of the company. On the
(In Crore Taka) other hand, Special Economic Zone will create a
Fiscal Income Expenditure Net new horizon for imports and exports.
Year Income/ Consequently, the uses of Mongla Port will be
Loss (+/-) increased tremendously.
2010-11 85.52 63.69 21.83
2011-12 105.81 71.66 34.15 To meet up these additional demands efficiently
2012-13 138.08 94.13 43.95 and effectively, Mongla Port has undertaken
2013-14 155.73 102.10 53.63 various development plans. Under these
2014-15 170.17 109.48 60.69 development plans, 10 projects are on-going in
2015-16 196.62 131.90 64.72
FY2020-21. Moreover, along with modern
2016-17 226.56 155.15 71.41
2017-18 276.14 166.81 109.33 equipment construction of two container
2018-19 329.12 196.12 133.00 terminals, one container handling yard, one
2019-20 338.19 221.01 117.18 container delivery yard, expansion of existing
2020-21 241.03 142.14 98.89 port protected area, procurement of 8 service
Source: Mongla Port Authority * Up to February 2021.
vessel, mechanical workshop with equipment,
From FY2008-09 to FY2018-19, handling of marine workshop with slipway, multi-storied port
ships increased by 20.21 percent, cargo 24.28 residential building, main road up to 6 lane and
percent and container 19.43 percent and revenue bypass road of Mongla Port up to 4 lane,
income 18.69 percent respectively. In the overpass at Digraj Rail-crossing etc. will be
FY2019-20, 0.98 percent ship, 2.46 percent cargo completed under „Up gradation of Mongla Port‟
have been decreased but 3.02 percent container Project of Indian 3rd LOC.
and 2.76 percent revenue have been increased in
Payra Port Authority
compared with FY2018-19 at Mongla Port. Due
to the corona virus, in FY2019-20 the use of Payra Port started its journey as third sea port of
Mongla port has been declined slightly. the country on 19 November 2013. In order to
However, in the FY2020-21, the number of ships engaged the port in operational activities on a
and cargo handling has increased and December limited scale within clinker, fertilizer and other
2020, a maximum of 117 ships have already been bulk carrier vessels at outer anchorage and
handled in a month is a record ever. This growing discharge the cargo by inland vessels for
rate is going on. hinterland transport. For hassle free foreign and
inland vessels movement fare way and mooring
To expedite the operational activities and develop
buoys have been laid to earmark navigational
the port infrastructure, government has taken
channel. Very High Frequency (VHF) Base
different types of initiative such as construction
station also installed with telecommunication
of Padma Bridge at Mawa point, establishment
equipment‟s. The customs and shipping facilities
of Khulna-Mongla railway link, construction of
have also been established. As per requirement of
Khan Jahan Ali airport, establishment of 1,320
International Association for Ports and harbor
MW powered coal based power Plant at Rampal,
International Ship and Port Facility Security
Special Economic Zone at Mongla Port area,
(ISPS) code has implemented and UN locator
expansion of port area etc. Those works are
code allotted for Payra Port by United Nations.
expected to be completed by FY 2022-23. After
establishment of coal based power plant at To manage the activities of Payra port an 80
Rampal minimum 45 lakh metric tons coal would meter long jetty has been constructed for
unloading goods from lighter ships. For cargo

handling one mobile hydraulic crane with a of Burimari Land Port” for enhancing
capacity of 30 tons and one terminal tractor (with transparency & accountability.
trailer) with a capacity of 50 tons have been
Table 11.14 shows year wise income and
procured. Immediate maintenance dredging of
expenditure of BPLA during the period from
Rabnabad Channel (Inner and Outer Channel) is
FY2010-11 to FY2020-21.
underway to maintain-6.3m CD depth to ensure
navigation. By February 2021, Payra Port has Table 11.14: Income and Expenditure of
earned Tk. 15.87 crore by handling the goods of Bangladesh Land Port Authority
109 foreign sea going vessels and The (In Crore Taka)
government has earned Tk. 260.00 crore in the Fiscal Income Expenditure Surplus
revenue sector. year (+/-)
2010-11 41.20 32.38 8.82
Bangladesh Land Port Authority (BLPA) 2011-12 42.08 31.91 10.17
2012-13 47.78 35.82 11.96
Bangladesh Land Port Authority (BLPA) came
2013-14 61.31 51.06 10.25
into being in 2001 as a statutory regulatory body. 2014-15 70.52 47.38 23.14
The vision of BLPA is expediting and facilitating 2015-16 83.20 55.36 27.84
export-import activities through land routes and 2016-17 111.51 75.02 36.49
improves to make it safe, most efficient and 2017-18 148.33 95.53 52.80
sustainable ports. So it has a mission to develop 2018-19 210.94 144.25 66.68
and modernize infrastructure, efficient cargo 2019-20 208.77 160.03 48.74
2020-21* 123.47 85.42 38.05
handlings; improvement of storage facilities for Source: Bangladesh Land Port Authority* Up to December 2020
better service delivery.
Department of Shipping (DOS)
BLPA started its activities through the
To ensure safety of inland, coastal fishing, ocean-
declaration of 12 land ports. Afterwards, 12 more
going vessels of Bangladesh and foreign vessels
land customs stations have been declared as land
calling at Bangladeshi ports, Department of
ports. At present, total number of land ports is 24.
Shipping plays important role. It also protects
Among them, Benapole, Bhomra, Akhaura,
the trade interest of the Bangladeshi vessels. The
Burimari, Nakugaon, Tamabil and Sonahat Land
functions of this organisation are performed
Port are being operated by own management of
according to the provisions of national shipping
BLPA. On the other hand, Sonamosjid, Hilli,
policies, shipping laws and regulations and
Teknaf, Banglabandha and Bibirbazar land ports
applicable conventions relating to maritime and
are being operated on Build, Operate and
inland shipping keeping liaison with IMO, ILO,
Transfer (BOT) basis. Warehouse,
UNCTAD and other related organisations. The
Transshipment Shed, Open yard, drainage system
department imparts training following
have been completed at Burimari land port and a
International Maritime Standard.
RCC 4 lane link road has been constructed
between Petrapole ICP of India and Benapole The training and examination procedures for the
Land Port under SASEC Road Connectivity seafaring officers and crews of the ocean-going
Project. vessels plying on the international routes have
been streamlined in accordance with the related
Automation System is being implemented at land
international convention. As a result Bangladesh
ports by phase with a view to building Digital
is included in the „White List‟ of the International
Bangladesh. Necessary steps have already been
Maritime Organization (IMO) under the
taken for the “Automation system of Benapole
provision of the STCW Convention in respect of
Land Port” and the “e-port management system

maritime training, examination and certification Table 11.15: Income and Expenditure of the
of the seafarers. For this reason, the job Department of Shipping
opportunities of the Bangladeshi seafarers have (In Crore Taka)
been expanded in the global shipping market Fiscal year Revenue Revenu Expenditur
income e e
through employing them in foreign ships all over Target income
the world. Currently, the image of Bangladesh 2010-11 10.25 12.55 5.53
has been highlighted in the maritime field as the 2011-12 12.71 13.26 5.54
Bangladesh representative has been elected as the 2012-13 14.26 12.95 14.63
2013-14 15.26 14.43 10.12
Director General of International Mobile Satellite
2014-15 15.99 18.21 9.33
Organization (IMSO) under IMO. A Long Range 2015-16 17.29 29.03 11.63
Identification Tracking (LRIT) system has been 2015-16 19.72 33.46 16.37
implemented for observing movement of the 2016-17 37.93 38.98 16.56
national flag ships plying on the international 2017-18 36.54 43.80 17.53
2018-19 36.54 43.80 17.53
maritime routs. Seafarer Biometric Machine 2019-20 41.81 38.12 15.66
Readable Identity Documents (SID) are being 2020-21* 27.27 26.63 7.79
issued to the Bangladeshi seafarers with a view to Source: Department of Shipping* up to February 2021
facilitating them to travel through all countries of Bangladesh Shipping Corporation (BSC)
the world to join their appointed ship which
providing safe and efficient shipping services in
further helps them to get job opportunities
international sea routes and carry out all forms of
abroad. Bangladesh has ratified and implemented
activities connected with or ancillary to shipping,
the Maritime Labour Convention 2006 and the
Bangladesh Shipping Corporation (BSC) has
Seafarers Identity Document (SID) Convention
been playing an important role. Despite the
(revised) 2003, as amended adopted by ILO. To
limitations of resources, BSC is able to acquire a
develop human resources in the maritime sector,
total of 44 ships through continuous efforts and
four new Marine Academies have been
patronization of the government since
established and to recruit skilled cadet, from this
establishment. At present there are 8 vessels. in
year integrated recruitment activities have been
launched in all public and private institutions. BSC fleet. Hopefully, after the consecutive
efforts of the present government, with the help
The main sources of revenue incomes of the of the Chinese government's loan, BSC has
Department are: registration and survey of ships, added 3 bulk carriers and 3 product oil tanker
conducting competency examination and issuing with capacity of 39,000 DWT each in its fleet in
certificate to the seafaring officers and crews, the FY 2018-19, which is currently engaged in
examination fees, light dues, issuing seafarers ID trade. Recently BSC has undertaken a number of
cards, manning agents licensing fees, penalty for development projects in accordance with the
contravention of shipping laws etc. The statement SDGs, Blue-Economy, Vision-2021 & 2041 of
of incomes and expenditures of this organisation the government for the accomplishment of
is shown in the Table: 11.15. poverty alleviation, employment generation,
foreign currency earning & sustainable economic
development. In addition, efforts are being made
to procure 6 new ships, 4 new cellular container
ships, 6 different capacities LNG carriers on G2G
basis with loan assistance from donor countries /
agencies Table 11.16 shows year wise income

and expenditure of BSC during the period from Institute, London, IMarEST London and South
FY2010-11 to FY2020-21. Asian Business Excellence Award 2017.
Table 11.16: Statement of Income- National Maritime Institute
Expenditure and Profit-Loss of BSC National Maritime Institute is the only Technical
(In Crore Taka)
Total Total Net Training Centre for Bangladeshi seafarers
FY Income Expenses Profit (ratings). Unemployed youths are selected for
2010-11 266.66 264.79 1.87 training from all over the country under a
2011-12 282.01 280.55 1.46
2012-13 328.59 326.96 1.63
standard selection procedure. They are trained
2013-14 171.14 167.77 3.37 here as per the syllabus in accordance with the
2014-15 130.01 124.67 5.34 STCW convention of IMO to develop them into
2015-16 118.81 112.08 6.73 competent maritime manpower. Various ancillary
2016-17 116.55 107.89 8.66
courses are being introduced here for enhancing
2017-18 126.52 114.00 12.52
2018-19 230.31 175.08 55.23 the skills and promotion of serving seafarers
2019-20 322.84 281.37 41.47 (Post-Sea ratings and officers). The seafarers
2020-21* 140.67 115.32 25.35 trained from this institute are employed in the
Source: BSC * Up to December 2020.
National and foreign flag-ships and earn
Bangladesh Marine Academy remarkable foreign currency, which play an
important role for the development of Socio-
Since its inception by the father of Maritime
Economy of the country. On the other hand,
Bangladesh Bangabandhu Sheikh Mujibur
unemployment problem is also being solved.
Rahman, Bangladesh Marine Academy develops
about 4,736 world class, efficient, The Directorate of Seamen and Emigration
environmentally responsive, intelligent and Welfare
dexterous marine cadets (including 81 female
The Directorate of Seamen and Emigration
cadets) following „IMO STCW Convention‟
welfare is a regulatory body for the welfare and
during last five decades. It had a branch status of
wellbeing of seafarers under the control and
IMO‟s World Maritime University (WMU
supervision of the Ministry of Shipping. The
Sweden) since 1990 and that has been upgraded
Directorate has been playing an important role to
to „Partnering Relation‟ in 2019.
solve the seafarers problem at homeport and
Currently, as affiliated with Bangabandhu Sheikh foreign port where Bangladesh seafarers face
Mujibur Rahman Maritime University, previous problem with the coordination to the concerning
3 years Bachelor Degree course of the Academy authorities. It is also playing an important
has been transformed into 4 years Bachelor of responsibility to develop the condition of
Maritime Science (BMS) Honors‟ Degree. As seafarers by endeavoring to implement various
part of Women Empowerment Female Cadets regulations of the ILO and IMO convention and
training in the Academy has been started. The recommendations. The Directorate of Seamen
Female Cadets being trained up in the Academy and Emigration Welfare also perform its
have been working at home and abroad ships responsibilities to enlighten the image of the
with reputation. Recent international standings country by doing welfare activities towards the
include research attachment with Australian foreign seafarers calling at Bangladesh ports.
Maritime College (University of Tasmania),
The Directorate of Seamen and Emigration
recognitions of European Commission,
Welfare have been maintaining the only
Singapore Maritime Administration, UK
Government Seamen‟s Hostel to provide
Merchant Navy Training Board, Nautical

accommodations, recreational and medical preventing illegal possession of rivers, water and
facilities to the seafarers to implement the above environmental pollution, illegal construction and
responsibilities. The Directorate maintains funds various irregularities and also responsible for
to provide educational grant to the children of restoration of normal flow of rivers, proper
seafarers. It also provide financial grant to the maintenance of rivers and the development of the
disease, disable seafarers and also to the family river as a transportable.
members of the distress, alive disable and dead
D. Air Transport
seafarers for their treatment in case of critical
disease and financial helplessness. It runs an Civil Aviation Authority of Bangladesh
International Seafarers Drop in Centre to provide (CAAB)
welfare facilities to the foreign seafarers calling To regulate and develop aviation facilities in
at Bangladesh ports. Bangladesh for national and international air
The Directorate of Seamen and Emigration transportation Civil aviation Authority of
Welfare is exclusively welfare orientated Bangladesh (CAAB) renders it services. CAAB
government organization. It only source of installs, maintains and operates aerodromes, air
income is seat rent collection from seafarers traffic, air navigation, aviation related ground
those who stay in the seamen‟s hostel and certain services and telecommunication services and
portion (15 percent) of Levy Collection under the facilities.
Levy Collection Rule-2013. At present CAAB operates 3 international
National River Conservation Commission airports, 7 domestic airports and 2 Short Take-
(NRCC) Off and Landing (STOL) ports. Out of these, 8
airports are in operation. Due to inadequacy of
The National River Conservation Commission
passengers, no flight is operating at 2 other
was established on 5th August 2014 under the
domestic airports and 2 STOL ports. The
National River Conservation Commission Act,
financial position of CAAB during the period
2013. The Commission is responsible for
from FY2010-11 to FY 2020-21 is shown in
ensuring multidimensional use of the river for
Table 11.17.
socio-economic development including
Table 11.17: Financial Position of CAAB
(In Crore Taka)
Fiscal Year Revenue Revenue Expenditure Total Expenditure (Revenue Net Profit
Income and others)
2010-11 653.89 316.87 623.84 30.05
2011-12 731.05 378.54 838.44 (107.39)
2012-13 795.21 330.34 644.53 150.68
2013-14 1150.29 423.33 976.86 173.43
2014-15 1410.32 497.67 1277.22 133.10
2015-16 1504.17 506.85 1256.76 247.41
2016-17 1518.14 571.56 1424.17 93.97
2017-18 1659.65 594.16 1766.04 (106.39)
2018-19 1690.79 620.73 1708 (17.21)
2019-20* 1554.54 630.94 2165.97 (611.43)
2020-21** 763.04 405.00 800.00 (36.96)
Source: Civil Aviation Authority * Un-audited ** Up to February 2021.

Biman Bangladesh Airlines Limited perform repair and technical services of up-to
„A‟-Check for Dash8-Q400 aircraft. Besides,
At present, Biman Bangladesh Airlines Limited,
steps have been taken to optimise Biman’s
the national flag carrier, is operating flights to 7
revenue earnings and reduce sales cost through
domestic and 19 international destinations. These
introducing Revenue Management and Revenue
include 3 destinations in the SAARC countries, 5
Integrity Systems.
destinations in the South-East Asia, 9
destinations in the Middle East and 2 destination Measures have been taken to face the Covid-
in Europe. Year wise income and expenditure of 19 Pandemic situations
Biman during FY2010-11 to FY 2020-21 is
Following measures have been taken to face the
shown in Table 11.18.
Covid-19 Pandemic situations:
Table 11.18: Income and Expenditure of
 Conducted rotation flights for Bangladesh
(In Crore Taka)
Army, Air Force and Police for UN
Fiscal Revenue Expenses Net
Peacekeeping Missions.
Year Income Profit/Loss
(+/-)  Conducted chartered/non-scheduled flights
2010-11 3343.93 3568.09 -224.16 for transportation of stranded expatriates to
2011-12 3823.67 4417.88 -594.21 & from home and abroad.
2012-13 3951.89 4237.52 -285.63
 Actions taken for operating passenger and
2013-14 3816.94 4102.56 -285.61 cargo charter flights, resumption of operation
2014-15 4772.79 4448.65 324.13 to some suspended destinations,
2015-16 4965.53 4730.03 235.50 commencement of operation to new
2016-17 4551.52 4504.63 46.90 destinations and activated the actions for
2017-18 4931.64 5133.11 -201.47 digital marketing and digital marketing
2018-19 5794.92 5577.11 217.81 platforms, strong PSS, DCS, e-commerce,
2019-20 5044.45 5125.58 -81.13 loyalty club, etc., for maximizing the
2020-21* 1673.79 1807.59 133.80 revenue.
Source: Biman Bangladesh Airlines Limited, *up to December 2020.
 Biman is continuing payment of Principal
At present, Biman has fleet of 19 aircraft. In and Interest for purchased aircraft, lease
FY2019-20 Biman carried a total of 20.45 lakh payment, etc. from the loan amount of Tk.
passenger and 22,651 tons cargo . 1,000 crore; sanctioned by the Government
In order to inform the flight schedule and other under an incentive package due to COVID-
information to its valued passengers, Biman 19, with due monitoring.
introduced SMS (Short Message Service) in E. Information and Communication
2015. To facilitate the passengers, options have Technology Communication Technology
been introduced for purchasing tickets using
Bangladesh Telecommunication Regulatory
mobile phones side-by-side the traditional
Commission (BTRC)
options of using travel agency and on-line
systems. Options have also been introduced for With a view to providing reliable, affordable and
settlement/payment of ticket price using modern telecommunication services for the mass
Bkash/Rocket. people Bangladesh Telecommunication
Regulatory Commission (BTRC) is functioning.
Biman attained capability to perform „C‟-Check
To facilitate „connecting the unconnected‟
for 777-300ER and 737-800 aircraft and to

through quality telecommunication and business friendly policy, many domestic

information technologies at an affordable price entrepreneurs invested in telecommunication
by introducing new technologies, BTRC is sector in last few years. Bangladesh has moved to
working in implementing the national dream of 4G mobile technology in February 2018. The
„Digital Bangladesh‟. BTRC is playing an commission has taken steps to introduce 5G
important role to expand internet and broadband services for the development and expansion of
connectivity throughout the country by effective information technology. Preparation of 5G
utilization of public and private sector resources. guideline is under process by „National 5G
Currently, the penetration of phone users is Committee‟ as directed by the Chairman.
encouraging with the total number of subscribers
Table 11.19 shows the number of mobile and
exceeded 17.33 crore in February 2021. The
fixed phone subscribers, growth rate, internet
number of internet subscribers exceeded 11.27
users, Tele density etc. up to February 2021 and
crore by the same time. The price of internet
Table 11.20 shows the total number of
bandwidth has been reduced by more than 90
subscribers of different mobile operators during
percent in last 10 years and as a result, broadband
February 2021.
internet in penetrating at a high rate. Due to
Table 11.19: Subscriber Number, Growth and Tele Density of Mobile and Fixed Phone
2011 2012 2013 2014 2015 2012 2017 2018 2019 2020 2021
Subscriber Category and
(June) (Decem (Decem (Decem (Febru
Tele density
ber) ber) ber) ary)
Mobile Subscriber (Crore) 7.30 8.66 9.74 11.48 12.19 12.64 13.60 15.70 16.55 17.01 17.33
Fixed phone Subscriber 0.10 0.10 0.10 0.07 0.06 0.06 0.06 0.07 0.14 0.15 0.14
(Crore)
Internet User (Crore) - 2.84 3.10 3.55 4.28 6.66 7.33 9.13 9.90 11.19 11.27
Yearly Tele Density(%) 44.60 60.90 63.91 76.44 78.79 81.48 87.32 96.36 99.24 100.6 99.09
Source: BTRC
Table 11.20: Number of Subscribers of Different Mobile Operators (up to February 2021)
S.L Operators Subscribers (In crore)
1. Grameen Phone Ltd (PG) 40.8
2. Banglalink Digital Communications Limited (kanllalnnk) 5.15
3. Robi Axiata Limited (Robi) 3.59
4. Teletalk Bangladesh Ltd (Teletalk) 0.55
Total 17.33
Source:Bangladesh Telecommunication Regulatory Commission (BTRC) .* up to February 2021.
Bangladesh Telecommunications Company 1,216 Union Parishad through 30,100 km optical

Limited (BTCL) fiber network. BTCL‟s total bandwidth
requirement from Submarine Cable Company
BTCL had 4.92 lakh telephone connections
Limited (BSCCL) and ITC was 110 gbps and 50
throughout the country at the end of February
gbps respectively and website domain service
2021. At the same time, 1-10 Mbps unlimited
customers of Bangla domain (.bangla) and .bd
ADSL internet service and GPON based internet
domain registered are 621 and 31,646
service of 2-30 Mbps was subscribed by 24,147
respectively.
customers. Number of Leased line subscribers of
bulk bandwidth was 2,144. BTCL has so far Moreover, to celebrate Mujib-100 year BTCL is
connected all 64 zillas and 478 upazillas and offering free telephone connection /reconnection

throughout the year (no line rate in telephone) internet and telecommunication network
and comparative low priced voice installation in district/upazilla level around the
communication and broadband internet use and country. Another project cost of Tk. 155.00 crore
also launched mobile telephone application to install switching and transmission equipment
„Telesheba‟ for rapid complain solution and with high speed IP capacity (STNP) and a project
other necessary purpose . to establish telecommunication network with
high internet in Mirersarai, Chattogram are
BTCL is implementing various projects to
under implementation by BTCL.
modernize telecommunication infrastructure. A
project titled „Modernization of Table 11.21 shows the revenue targets, revenue
Telecommunication Network‟ is implementing at income and expenditure of BTCL during the
a cost of Tk. 3,314.94 crore for high speed period from FY2010-11 to FY2019-20.
Table 11.21: Year wise Income and Expenditure of BTCL
(In Crore Taka)
Fiscal Year Target Revenue Earned Expenditure
2010-11 1566 1640 1976
2011-12 1760 2186 2203
2012-13 2498 1761 1756
2013-14 1306 1005 1385
2014-15 848 821 1106
2015-16 784 1242 1578
2016-17 982 1258 1442
2017-18 1148 1260 1652
2018-19 1200 1060 1428
2019-20 1087 922 1246
Source: BTCL
Bangladesh Submarine Cable Company cable consortium SEA-ME-WE-6 on 15th

Limited (BSCCL) September 2019. The implementation of SEA-
ME-WE-6 submarine cable system is going on
After the establishment of Bangladesh Submarine
and it is expected that the country will be
Cable Company Limited (BSCCL) in 2008 under
connected with it by the end of 2023. Since its
the Ministry of Posts, Telecommunications and
inception from 2008, BSCCL has always been a
Information Technology, despite the initial
profitable Company and playing an important
bandwidth capacity of BSCCL with SEA-ME-
role by contributing to the government‟s revenue
WE-4 (SMW4) submarine cable system was only
income. But after the introduction of ITC
7.5 Gbps, by participating to up gradation
companies in the year 2012, Bandwidth usage of
programs and connecting with the (SEA-ME-
BSCCL was reduced resulting in the decrease of
WE-5) submarine cable system it stands at
revenue. This type of short time shortfall has
around 2,800 Gbps. BSCCL is currently
been overcome through befitting guidance of the
supplying almost 65 percent of the country's
government and reduction of bandwidth price,
Internet bandwidth, which is about more than
BSCCL has regained its market share by proving
1,480 Gbps upto February 2021. BSCCL reduces
maximum demand of the Country and become
Internet Bandwidth Price at Tk. 350.00 in year
able to increase its revenue income. Table 11.22
2019 from Tk. 27,000.00 in year 2009.
shows year wise revenue iincome of BSCCL
A Memorandum of Understanding (MoU) has during the period from FY2010-11 to FY2020-
been signed By BSCCL with new submarine 21.

Table 11.22: Income and Expenditure of Bangladesh Submarine Cable Company Limited
(In Crore Taka)
Particulars 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Revenue Earned 83.78 121.45 124.84 75.37 54.07 61.86 103.67 140.50 91.04 249.86 156.19
Net Profit (before 54.48 83.13 109.59 48.81 13.90 17.87 38.95 29.39 77.90 125.20 94.50
tax)
Net Profit (after tax) 30.51 74.48 87.21 36.23 12.91 16.55 31.82 7.33 58.58 95.60 72.00
Source: BSCCL* up to December 2020.
Bangladesh Post Office and building a conducive environment for

investment. After its inception the authority is
Bangladesh Post Office (BPO) renders its service
working to establish hi-tech park/software
throughout the country by 9,886 offices. BPO
technology parks/training and incubation centers
provides services with assistance from its post
at different places in the country for socio-
offices and other organisations.
economic development through ensuring
Total revenue income and expenditure of BPD employment for countless youths and creating
during December 2020 of FY 2020-21 is Tk. skilled human resources. These initiatives will
114.57 crore and Tk. 450.11 crore. In FY 2020- help in achieving the SDG goals, five-year target
21 upto December 2020, Bangladesh Post Office and election manifesto of the government.
transmitted letter and parcel of 44.48 lakh,
deposited savings certificates of Tk. 9,993.39  Bangladesh Hi-Tech Park Authority is
crore, sold stamps of Tk. 11.97 crore and Growth currently working to establish 39 Hi-tech
of revenue 24.69 percent. parks/Software Technology Parks across the
country. These parks are going to be ready
Information and Communication Technology with necessary off-site infrastructure such as
(ICT) fiber optic connectivity, gas, electricity,
For building Digital Bangladesh with a view to water supply, sewerage systems, internal
implementing vision 2021, Information and roads, connecting roads, street lights and
Communication Technology (ICT) Division is industrial building/business spaces etc. to
working ceaselessly. To make the people, support hi-tech manufacturing and related
especially the youths, skilled in ICT for service industries. Meanwhile, construction
implementing Digital Bangladesh; to ensure of 13.15 lakh sq. feet of space have been
connectivity for people at every corner of the completed in various parks including
country; to make the public service available at Bangabandhu Hi-Tech City, Kaliakoir,
the doorstep of the citizens and to work together Sheikh Hasina Software Technology Park,
by providing required facilities to IT industries – Jashore, Sheikh Kamal IT Incubation and
remembering these four pillars multiple activities Training Centre, Natore and 'Janata’ Tower
started to fulfill the dream of digital Bangladesh. Software Technology Park, Dhaka. Among
ICT division has undertaken various initiatives, the ready spaces 7.58 lakh sq. Feet have
projects/ programs as well as implementing already been allocated.
these.  Considering the growing demand in the
Bangladesh Hi-tech Park IT/ITES industry in coming years,
Bangladesh Hi-Tech Park Authority has
Bangladesh Hi-tech Park Authority was
planned to provide training to 59,680 youths
established in order to promote IT/ITES based hi-
by 2025 and 1,00,000 by 2030. So far,
teck industry, creation of tech based employment

training of 15,360 youths has been completed  To increase the company competitiveness to
under various projects and programs under compete with IT/ITES companies in global
BHTPA. BHTPA is also working to building market, BHTPA is providing supports to
bridges between IT industry and educational obtain international quality certifications to
institutions and has set up 22 specialised labs 81 companies. Of the supported companies,
at various universities across the country to 76 (2CMMIL-5,21 CMMIL-3, 47 ISO-9001,
ensure the development of skilled human 6 ISO-27001) have already achieved
resources and create research opportunities. certifications and as a result, these companies
The process of setting up 15 more specialised have been able to expand their businesses to
labs is also progressing. To ensure supply of abroad. Apart from that, more than 120
skilled human resources in the IT/ITES companies have been allocated
sector, BHTPA has set up one Sheikh Kamal space/floor/land in hi-tech/software parks in
IT Training and Incubation Center in Natore a subsidised rate based on their business
and one Sheikh Kamal IT Incubator and possibilities in future. As a direct impact of
Training Center in Rajshahi. Work is this facility local investments in Hi-tech
underway to set up 'Sheikh Kamal’ IT parks in expected to be increased
Training and Incubation Centers' at 10 more substantially. In addition, BHTPA also offers
places. Apart from these „IT Business and priority allocation of spaces and lands to the
Incubator‟ are being set up in Chittagong women entrepreneurs in the all the parks.
University of Engineering and Technology,
 To attract local and foreign investors to
Khulna University of Engineering and
invest in the Hi-tech parks, BHTPA is
Technology to develop eco-system for new
offering a 14 types competitive incentive
entrepreneurs and nourishing new ideas in
package.
the IT/ITES sector.
 Bangladesh Hi-Tech Park Authority has a
 Bangladesh Hi-Tech Park Authority is
target to create employment opportunities of
launching various initiatives to create new
50,000 by 2025 and 2,00,000 by 2030,
entrepreneurs for creating new jobs through
through ensuring full scale operation of
promoting and encouraging entrepreneurship.
different parks. Apart from government
For this purpose, Bangladesh Hi-Tech Park
initiatives, 14 Private Software Technology
Authority is providing free or low-cost
Parks have been declared by the BHTPA. So
space/floor allocations, free internet,
far (Until December 2020) 13,066 people
electricity and other utilities to support new
have been employed in these hi-tech parks.
entrepreneurs and stat up in the IT/ITES
Also due to the selection of the strategic
sector. In addition to the infrastructure
location to establish the Hi-Tech/Software
facilities, BHTPA is also incubating
Technology parks, new townships are being
entrepreneurs by providing mentorship,
formed around the establishments. This will
trainings, technical supports to grow business
indirectly create more employment
and new ideas. So far, more than 100
opportunities, which will accelerate the
startups have received one-year in-house
achievements of the SDG targets and the
incubation facilities from the BHTPA. This
electoral commitments of the government.
incubation facility is available to avail by
prospective entrepreneurs in all hi-tech parks  So far 110 local and foreign companies have
across nation. received allotment in the various parks
established by BHTPA. As of 2019 these

companies have invested Tk. 327.00 crore interested individuals. Meanwhile, digital
and by 2025, these companies are expecting signature has been introduced in e-TIN, e-
to invest around Tk. 2,400 crore in various nothi of a2i, birth registration and online
parks. In these operational parks Bangladesh admit card of National University. RJSC, e-
Hi-Tech Park Authority have invested around TIN, a2i started using digital signature
Tk. 500.00 crore over the years of certificates on test basis. Bangladesh Krishi
development and so far earned Tk. 24.15 Bank and National University of Bangladesh
crore . have been using digital signature certificates
in their online admit card.
Department of Information and
 CCA is mandated to ensure e-authentication,
Communication Technology (DOICT)
privacy and security of data by digital
The Department of ICT was established in 2013, signature certificates. Section 5 of the ICT
under the ICT Division to deliver e-services at Act 2006 (Amendment 2009 and 2013) has
the citizen‟s doorsteps, to establish knowledge- provided the legal validity of electronic
based economics and good governance. This records by using digital signature certificates.
department has been relentlessly working for According to the work plan of National ICT
implementing various activities related to the policy 2009, 2015 and 2018, initiatives were
goals of the incumbent government and other taken to implement e-governance activities,
issues. Besides, special initiatives of the Hon'ble including e-nothi and e-governance activities
Prime Minister and significant issues of the target at government offices. Various government
of the present Government such as My Village institutions have been introducing online
My Town, Strengths of the Young Generation, activities such as software development,
Quality Education, Women's Empowerment and online citizen application and service
other issues Department of ICT have taken delivery, various types of licensing and
various initiatives and are working for registration for implementing the e-
implementation. governance.
Controller of Certifying Authorities (CCA)  Under the program taken by the Information
To achieve the goal of building Digital and Communication Technology Division,
Bangladesh, Office of the Controller of digital signature have been distributed and
Certifying Authorities (CCA) was established in training have been provided to 27,019
2011 as an attached office of the Information and government officials of the concerned
Communication Technology Division under the ministries/ divisions/agencies and the Deputy
provision of Information and Communication Commissioner's Office.
Technology Act 2006 (amended 2009 and 2013)  Awareness workshops on cyber security for
to establish secure e-commerce, e-transaction and women empowerment were conducted in 354
e-Governance in Bangladesh. Steps and progress schools of 8 divisions across the country to
of CCA: make women aware about cybercrime and
 Licenses have been given to non-government security. In these workshops, about 63,547
organisations and to Bangladesh Computer students of the 8th-10th grade were received
Council as the sole government organisation. cyber-security related practical training that
These 6 organisations are providing gave them the overview about cybercrime,
certificates of digital signatures and other related laws, safety strategies on social
related services to various GO-NGOs and network platforms, the way to get rid of

crime, about agencies to get help and specific government. Till now a total of 89,799 email
procedures to complain. accounts are in operation in 610 domains. Its
 Digital Forensic Lab was established to storage capacity has been increased to 12
control and investigate cybercrimes under the petabytes.
project „Improvement of Public Key
 The National Data Center (Tier-IV certified)
Infrastructure System (PKI) and Capacity
has been established at Bangabandhu Hi-
Building of the CCA Office‟ and PKI
Tech City, Kaliakoir, and Gazipur. This is
systems was upgraded. By establishing a
the 7th largest data centre in the world. It was
world-class PKI system, cyber security
inaugurated by the Hon'ble Prime Minister
would be ensured through the use of digital
Sheikh Hasina on 28 November 2019.
signature certificates for online transactions
and information sharing.  A total of 18,434 government offices
(including ministries and offices in districts
 A chain of custody form has been introduced
and upazilas) were brought under fibre optics
for proper seizure, transfer, transportation,
based high speed broadband network through
processing and transmission of forensic
Bangla gov. Net and InfoSarkar-2 projects.
laboratories related to cybercrime
Also, under these projects 25,000 tabs were
investigation.
distributed among government officers and
 Under the „Improvement of PKI and established 893 video-conferencing systems,
Capacity Building of the CCA Office‟ Wi-Fi networks in Bangladesh Secretariat
project, 80 government officials were and ICT Tower, solar-powered electricity
provided with intensive training at home and systems in 487 UNO offices, 254 agricultural
abroad on PKI and forensic issues. Besides, information centers and 25 tele-medicine
600 officers, journalists, university teachers centres.
and law enforcement officers, employees of
 To facilitate access to ICTs for the people
banks and financial institutions attended 6
living in remote areas of the country, a total
seminars/workshops on cyber security,
of 1,013 solar-powered Union Information
digital signature and cyber forensics.
and Service Centres (UISC) (now UDC)
Bangladesh Computer Council (BCC) were established by BCC. Similar digital
access centers were established in 147 UNO
During the last decade Bangladesh Computer
offices.
Council (BCC) has undertaken various initiatives
and projects to implement digital Bangladesh  Under InfoSarkar-3 project 2,600 unions
reflecting four pillars-ICT infrastructure were connected to high speed Internet
development and Connectivity, development of through fiber optics and Virtual Private
skilled human resources, e-government and Network (VPN) connectivity was provided to
development of ICT industry. Most of the 1,000 police offices.
initiatives become successful. Some of the
 The implementation of a project called
successes mentioned below:
„Connected Bangladesh‟ is going on to
 A Tier-III National Data Center was extend connectivity to 617 far-flung and
established in BCC which is currently hard-to-reach unions.
providing uninterrupted services for hosting
email domain, websites, applications, co-
location of servers, cloud, etc. for

 A total of 3,544 full-fledged computer labs system in the country.So far, 5,644 startups
and 100 Smart Classrooms were established have been trained under the project
in educational institutions of the country. „Innovation, Design and Entrepreneurship
Academy (iDEA)‟ and university activation
 A total of 17,358 government offices and
program has been done in 100 public/private
17,358 free Wi-Fi zones were brought under
universities under the marketing promotion
the monitoring system of national Network
of the project. Till now 126 selected startups
Operations Center (NOC) at BCC. A total of
have been provided Tk. 5.13 crore as grant.
902 video conferencing systems were also
connected to this center. Free Wi-Fi service  A 50-meter self-supported tower was
is provided to all these government offices constructed in Moheshkhali Island under
including Bangladesh Secretariat (through Digital Island Maheshkhali project. High
506 access points). All sorts of network speed Internet services are being provided to
connections and technical supports were the island with the help of BTCL. Using this
provided by BCC to 2,200 video conferences facility education, health, e-commerce and e-
of the Honorable Prime Minister and other service for agriculture are being provided.
dignitaries.
 More than 2,21,000 people have been trained
 A 5G-based Wi-Fi 6 network, a specialized on ICT from BCC and its projects. During
network lab and a special effect lab have FY2009-2020, 33,050 persons have been
been installed at BCC. These facilities are trained in 7 diplomas and post graduate
being used to provide training on networking, diploma programs and 26 short courses.
mobile apps, mobile games and cyber
 ICT training has been provided to 7,890
security, data analytics and so on.
teachers as master trainers and 1,12,189
 Bangladesh National Digital Architecture students under the Basic ICT Skill Transfer
(BNDA) has been developed at BCC to up to Upazila Level project.
facilitate e-service implementation across the
 33,564 IT-trained skilled human resources
government. E-Pension Service, Online
have been developed with international
Recruitment system, Food Grain
quality training under the Leveraging ICT for
Procurement Management Service, Android
Growth, Employment and Governance
App for BOESL, Project Progress Tracking
(LICT) project.
System, BCC CA Portal, Digital Service
Book System for DPE, BOESL HR  31 training sessions on business expansion of
Management System and many other executives of selected companies have been
software applications have been developed completed after closely scrutinising the first
by the Leveraging ICT for Growth, row IT companies of Bangladesh.
Employment and Governance Project.  3,025 government officials have been trained
 A software and hardware quality testing lab in e-governance and cyber security at home
has been set up at BCC. It will help in quality and abroad.
assurance of software and hardware in the  A total of 2,300 persons with disabilities
country. were trained in ICT. A job fair is being
 Innovation Design Entrepreneurship organised for persons with disabilities every
Academy (iDEA) has been built at BCC with year since 2015. About 500 persons with
a view to create a sustainable innovation eco- disabilities have been employed.

 250 persons have successfully completed Security Agency (DSA) was established with the
training on Japanese language, Japanese appointment of Director General and two
business culture and IT under „Skills directors on 16 January 2019. The Agency is
Development of IT Engineers tailored by the engaged to ensure digital security and important
Japanese IT sector‟ project. 180 persons initiatives in 2019-2020.
have been employed in Japan and 70 persons
 Digital Security Agency rules 2020 was
have been employed in Japanese-based
published in the official gazette in February
Bangladeshi companies.
2020. Preparatory works to call 1st meeting
 An initiative to setup a Center for Excellence of the National Security Council is
at BCC has been taken to provide training on underway. Hon‟ble Prime Minister is the
technologies relevant to fourth industry Chair of the Council. Preliminary draft of
revolution, such as Robotic, Block chain, Recruitment Rule is being formulated.
Internet of Things (IoT), Big Data, Data
 In FY2019-20 project proposal for
Analytics, Machine Learning, Deep
establishment of DSA Digital Security
Learning, 3-D Printing.
Agency‟s infrastructure development
 BCC has given training to 1,280 and 1,101 programme is under processing. This project
women entrepreneurs under its project includes allotment of land in Bangabandhu
„Office Application & Unocode Bangla hi-tech city at Kaliakoir to build head office
Under WID‟ and „Women IT Frontier of DSA, digital forensic lab and National
Initiative‟. Computer Emergency Response Centre
(NCERT). The on-going operational
Steps taken for tackling ‘Covod-19’ pandemic
activities will be further strengthened.
Bangladesh National Digital Architecture
 Programs to enhance national capacity and
(BNDA) has developed 'Covid-19 Tracker:
awareness in digital security will be
Corona Virus Infection Data Collection System'.
undertaken in current and following year.
The secure video conferencing application
Important among them are develop on-line
‘Boithok’ has been developed, through which
course on digital security for government
various government meetings can be held safely
officers, complete recruitment of all
through online. BCC invented 'porichoy' platform
personnel of the agency, complete audit of
is being used for online registration of Covid-19
at least 5 critical information infrastructures
vaccine. Besides these, web platform „Food for
and operationalise digital forensic labs and
Nation‟, „Health for Nation, and „Education for
complete a few audits.
Nation‟ have been launched in order to keep the
situation normal in this Covid-19 pandemic. Till Agency‟s manpower is recruited, all
operational activities are done through CERT
Digital Security Agency (DSA)
team of BGD EGOV CERT of BCC.
To support development of national digital
The Government is determined to make
security infrastructure, capacity enhancement of
optimum use of digital technology for overall
the engaged manpower, formulate digital
national development. The agency in association
security standards, prevent cyber threat through
with relevant organisation and law enforcement
inter agency collaborations and facilitate
agencies have chalked out elaborate program to
development of cyber security service delivery
SDG Goals. At the same time the agency is
organization in the public and private sector and
determine to ensure uninterrupted flow of
make it a sustainable economic activity Digital

information and freedom of speech for all 333 call-centers have been launched to
citizens. implement all the information services and
grievance redress of the government along with
A2i program
bringing services to the doorsteps of the citizen.
A2i is a program which operated by ICT division As many as 2.14 crore phone calls have been
with the support of Cabinet Division and UNDP. received through 333 call centers till November
Since established in 2007 a2i is working to make 2020, out of which more than 40 lakh have
the public service available at the doorstep of the received corona related services.
citizens.

CHAPTER TWELVE
HUMAN RESOURCE DEVELOPMENT
The government has included HRD as one of the main goals of its development agenda along with
the economic growth. To achieve this goal the government has allocated 23.75 percent of budget
in FY 2020-21 to the HRD related sectors, such as-education and technology, health and family
welfare, women and children, social welfare, youth and sports development, culture, labour and
employment etc. Various programmes including the adoption of the ‘National Education Policy-
2010’ have been undertaken to create skilled and competent Human Resources for the country by
enhancing the quality of education and increasing accessibility to Secondary and Higher
Secondary, Technical and all tiers of higher education. Due to the government’s policy for
recruiting 60 percent female teachers in the government primary schools, the number of female
teachers has been increased from 21.09 percent in 1991 to 64.20 percent till 2021. Bangladesh
has achieved Millennium Development Goal (MDG) related to health sector, prior to the
stipulated time due to undertaking many priority based programmes in health, nutrition and
population sector. In this regard, Bangladesh has won ‘UN South-South Award’ twice. Both
fertility and mortality rates have come down. Remarkable progress has been made in reducing
child and maternal mortality and in increasing average life expectancy. Malnutrition has also
been reduced significantly. At Present, Bangladesh is working hard for achieving health sector
related goal and targets of Sustainable Development Goals (SDGs). Effort has been made to
prevent and control the spread of Coronavirus (COVID-19) as well as to provide health care to
infected people. In addition to preventing and controlling the spread of Coronavirus (COVID-19),
the country is vaccinating people aged 40 years and above under an expanded immunization
program to protect lives from the COVID-19 epidemic. Up to 31 May 2021, 58,22,157 persons
received vaccines, of which 36,10,635 are male and 22,11,522 are female. In order to ensure the
desire development of women and to ensure their participation in the national development
activities the government has legislated ‘National Women Development Policy-2011’.
Furthermore, ‘Domestic Violence (Prevention and Protection) Act-2010’ has been enacted to
prevent violence against women and children. Apart from, the government has formulated
‘National Child Policy-2011’ and ‘Child Marriage Prohibition Rules-2018’. Moreover, two
national action plans have been prepared to implement National Women Development Policy and
to protect violence against women and children. As a result of implementation of various
development programmes, Bangladesh is gradually improving in the Human Development Index
(HDI). According to the ‘Human Development Report-2020’ the position of Bangladesh has been
improved to 133.
The government is implementing different types under privileged and impoverished segments of
of development programmes to accumulate the population. This has resulted in progress in
demographic dividend by utilising the huge the Human Development Index (HDI).
number of working age people. Under this According to the „Human Development Report-
circumstance, the government has taken 2020‟ the position of Bangladesh has improved
relentless efforts and various initiatives for to 133. At present, Bangladesh is a middle
human resource development of the country ranking country in consideration of HDI. Among
through improve the standard of living of the South Asian Association for Regional
Chapter 12: Human Resource Development | 185

Cooperation (SAARC) countries Sri Lanka (72), the ranking of Bangladesh in HDI. Allocations of
Maldives (95), India (131) and Bhutan (129) are human development related sectors have been
ahead of Bangladesh (133) in respect of HDI. boosted up day by day. Position of Bangladesh in
Other SAARC countries, such as Nepal (142), the HDI of recent few years have been presented
Pakistan (154) and Afghanistan (169) are below to the Table 12.1.
Table 12.1: HDI Position of Bangladesh
Year 2000 2010 2015 2016 2017 2018 2019 2020
Index value 0.468 0.545 0.592 0.597 0.608 0.614 0.614 0.632
Source: Human Development Report- 2020. UNDP
Public Expenditure for Human Resource of the total budget allocation. Government could
Development contribute positively by implementing realistic
programmes in education and health sectors. As a
Adequate investment in social sectors including
consequence, gender balance has been achieved
education and health is necessary for human
by elimination of discrimination in the primary
resource development. Government is
and secondary education level. Human resource
consistently enhancing the allocation in sectors
development process is going on through
that are related with human resource
achieving significant progress in reduction in
development like education and technology,
fertility rate, reduction of child and maternal
health and family welfare, women and children,
mortality rate, prevention of spread of
social welfare, youth and sports development,
Tuberculosis and AIDS. Sports and youth
cultural affairs, labour and employment
development can also contribute in human
generation. 23.75 percent resource of the total
resource development. For that reason, budget
budget has been allocated in these sectors related
allocation is also increased in these sectors.
to human resource development in FY 2020-21.
Education and health is considered as the base of Figure 12.1 and Table 12.2 presents the total
human resource development. Government is allocation in operating and development budget
allocating adequate resources for the in the social sector during FY 2010-11 to FY
development of education and health sectors. Tk. 2020-21.Note that the allocation has been
95,648 crore has been allocated in these two growing across the years in this sector.
sectors in the FY 2020-21, which is 16.83 percent
Figure 12.1: Trend of Government Allocation in the Social Sector of Selected Ministries
160000
140000
120000
Tk. in crore
100000
80000
60000
40000
20000
0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Sources: Finance Division, Ministry of Finance*Information‟s are based on Budget

Table 12.2: Allocation (Operating and Development) of Selected Ministries

(In Crore Taka)
2010-11 2011-12 2012-13 2013-14 2014-15 2016-17 2017-18 2018-19 2019-20 2020-21
Sector
2015-16
Education, Science & ICT 18575 20316 21561 28272 33499 34370 52914 65444 67935 79488 85762
Health and Family Welfare 7617 8869 9130 9955 11537 12695 17486 20652 23,383 25733 29247
Youth, Sports and Culture 911 924 976 1061 1068 1199 1343 1803 2008 2063 2057
Labour and Employment 67 82 134 192 226 302 308 262 227 313 350
Social Welfare, Women‟s 3499 3967 4091 4730 5962 7613 9433 11394 13343 15083 16285
Affairs and Liberation War
Affairs
Chittagong Hill Tracts 549 560 583 633 684 779 840 1150 1309 1194 1235
Affairs
Total Allocation 31218 34718 36475 44843 52976 56958 82324 100705 108205 123874 134936
(Operating and
Development)
Sources: Finance Division, Ministry of Finance. *Figures are based on budget
Education and Technology equitable quality education and promote life-long

learning opportunities for all‟. The government
To build an educated, confident and scientific-
has targeted to achieve SDG 4 by ensuring
minded nation, who is capable of facing 21st
quality education for all children by 2030. Target
century‟s challenges, government has undertaken
has been set to provide quality primary education
lots of activities by giving the highest priority to
for all children by 2030 who are ready to go to
education sector. The government has approved
school. Government is implementing Stipend
the „National Education Policy-2010‟ as a step
project, 4th Primary Education Development
towards implementing a time befitting technical
Programme (PEDP-4), Reaching Out of School
education system in the country which will help
(ROSC) project, School Feeding programme for
to establish digital Bangladesh where is the main
poor areas, need based government and newly
goal set out in Vision 2021. The cardinal
nationalised primary school development project
objective of policy is to foster humanity among
(1stphase), Basic Literacy project (64 district) and
the future citizens of the country and to grow
some other projects for attaining the goals of
them as creative, rational, tolerant to others
SDG.
opinion and liberal who will be able to lead the
country towards inclusive development and Number of primary schools in the country was
progress. 49,539 in 1991. The number has increased to
1,33,002 (25 types of schools including BRAC
Primary and Mass Education
centre, ROSC centre, different NGO schools,
The government has constitutional obligation to child welfare and Madrassa/Mosque based
ensure education for all. In line with global centre/Qawmi madrassa) in 2020. Number of
initiative the government is committed to achieve enrolment and ratio of female students is
inclusive and quality education for all. Therefore, increasing consistently. Rate of enrolment of
allocation of education sector is increased step by female students is more than the male students.
step. In FY 2010-11, the government has made In 1991, the male-female students ratio was
an allocation of Tk.24,937 crore for primary 55:45. Currently, the ratio is about 49:51. Table
education development. 12.3 shows students‟ enrolment rate and
The Goal 4 of the „Sustainable Development percentage of male-female students at primary
Goals (SDGs)‟ declares to ensure „inclusive and levels from 2010 to 2020.

Table 12.3: Boys- Girls Enrolment at Primary Level

(In lakh)
Net Enrollment
Year Total Boys (%) Girls (%)
rate (%)
83.95 85.63
2010 169.58 94.8
(49.50) (50.50)
91.39 92.93
2011 184.32 94.9
(49.60) (50.40)
94.63 95.40
2012 190.03 96.7
(49.80) (50.20)
97.81 98.04
2013 195.85 97.3
(49.94) (50.06)
96.39 99.14
2014 195.53 97.7
(49.30) (50.70)
93.69 96.99
2015 190.68 97.9
(49.14) (50.86)
92.28 93.75
2016 186.03 97.9
(49.60) (50.40)
85.08 87.47
2017 172.55 97.97
(49.32) (50.68)
85.39 87.99
2018 173.38 97.85
(49.25) (50.75)
99.69 101.53
2019* 201.22 97.34
(49.55) (50.45)
105.60 109.91
2020* 215.51 97.81
(49.00) (51.00)
Source: Ministry of Primary and Mass Education * With pre-primary
Some students are compelled to leave the school realistic steps. Table 12.4 shows remarkable
before completion of primary education for changes of drop-out scenario of students at
various reasons. Rate of drop out is consistently primary level during the period 2010 to 2020.
decreasing as the government has taken several
Table 12.4: Year wise Drop-out Rate at Primary Level
Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Dropout rate 17.2
39.8 29.7 26.2 21.4 20.9 20.4 19.2 18.8 18.6 17.9
(%)
Source: Annual Primary School Census, 2020, Directorate of Primary Education .
Important Activities in Primary Education been followed. The current ratio of female
and male teachers is 64.20:35.80 in
 As many as 1,495 new government primary
government primary schools.
schools have been set up under the project
 Decentralisation of administrative and
named „Establishment of 1,500 Schools in
financial power in primary education has
Areas where there are Currently no schools‟.
been implemented. As a step towards
 „4th Primary Education Development
decentralisation, „School Level Improvement
Programme (PEDP-4)‟ has been
Plan (SLIP)‟ and „Upazila Primary Education
implemented to develop the quality of
Plan (UPEP)‟ have been implemented phase
primary education. Through various activities
wise.
under this programme, priorities have been
 Non-formal Education Bureau has been
given to increase enrolment and attendance
established to carry out non-formal education
of school-going children, reduce drop-out
along with formal education. „Non-formal
and enhance school contact hour.
Education Act-2014‟ has been promulgated
 Under the present policy of recruitment of
in order to make non-formal education more
teachers, 60:40 ratio of female to male has

dynamic, effective and job oriented. The Physical Infrastructure Facilities at Primary
government has also enacted „Non-formal School Level
Education Policy‟ and Non-formal Education
Infrastructure development activities have been
Board in 2017.
undertaken for increasing the quality of primary
 Amount of stipend has been significantly education. Infrastructure development scenario is
increased. At the same time the number of as follow in FY 2020-21, till Feb 2021:
beneficiaries has also been increased. At
present, 1.4 crore students are being provided  During the tenure of the present government,
with stipend. a total of 80,638 classrooms have been
 To increase enrolment rate and to retain constructed in 21,556 schools.
student at school, school feeding programme  Under Need-based Infrastructure
has been introduced. During the COVID-19 Development of Government Primary School
pandemic, the government is continuing the (1st phase), 8,682 schools have been selected
activities under the 'School Feeding Program for development up to 2020-21. Tender of
in Poverty Stricken Areas‟ in 104 poverty 6,966 schools has been floated, work order of
stricken Upazilas of the country. Despite the 6,615 schools has been issued and
closure of all primary schools in the country construction of 3,780 schools has been
during the Covid-19 pandemic since March completed. Furthermore, construction of 536
2020, high-quality biscuits, rich in various wash blocks and establishment of 1,567 tube-
vitamins and minerals, are being delivered to wells have been completed.
the home of every child maintaining social  Under PEDP-4, constructions of 40,000
distance and following proper health safety additional classrooms and 10,500 teachers'
protocol. This helps meet children's rooms will be constructed within the
nutritional needs. To introduce this support in programme period. Furthermore, 29,000
all government primary schools of all wash blocks for male students and 29,000
Upazilas/Thanas of the country in phases wash blocks for female students will be
will be implemented a new 'Primary School constructed and pure drinking water supply
Mill Project' for the period from July 2021 to system will be installed in 15,000 schools.
June 2026 in accordance with the National Terminal Examination and Scholarship
School Mill Policy.
 Under PEDP-4, „Second Chance Education Since 2009, terminal examination in Grade-5 and
Programme‟ is being implemented to offer Ebtedayee madrasas is being held based on
the primary education to out-of-school and unique questionnaires throughout the country.
dropped out 8-14 year aged 10 lakh deprived Total candidates in Grade-5 examination in 2019
children. were about 24.54 lakh, among them 95.50
percent examines were passed. On the contrary,
 A number of 26,193 registered non-
3.04 lakh Ebtedayeee madrasa students took part
government primary schools have been
in terminal examination and 95.96 percent
nationalised and teachers employed in these
students passed the examination. The final
schools have been brought under Monthly
examination was not held in 2020 due to Covid-
Payment Order (MPO).
19 pandemic.
 The Basic Literacy (64 Districts) project is
under implementation to bring all the Scholarships are being awarded on the basis of
Upazilas of the country under the basic final examination instead of separately
education programme. conducting scholarship tests. Number of

scholarships is also being increased every year. education. 2.13 lakh reading materials/books
82,500 students were awarded scholarships in have been distributed among the students
2019. Number of students who were awarded belonging to five minority groups (Chakma,
scholarship in talent pool category is 33,000 and Marma, Tripura, Garo and Sadri) for pre-
general category is 49,500. Scholarships have not primary class and for the students of Class I, II &
been awarded in 2020 since terminal examination III in 2021.
of grade-5 was not held due to Covid-19
Increase of Contact Hours
pandemic.
In the past, the annual contact period for classes
Stipend Project for Primary School Students
one and two students was 595 hours and 833
“Primary Education Stipend Project (3rd Phase)” hours for the students of classes three to five
has been implemented for the period July 2015 to under the double shift system. It has now revised
June 2021 at an estimated cost of Tk. 13,766.34 to 844 hours and 1473 hours respectively for
crore. The targeted number of beneficiaries will single shift schools as a result of transforming
be approximately 1.40 crore. It will cover almost about four thousand schools from double shifts
100 percent of the enrolled students of system to single shift system. In two shift
Government primary schools. According to the schools, the contact hours for 1st-2nd class and
guidelines of the phase, a poor family receives a 3rd-5th class are 602 hours and 782 hours
stipend of TK. 75 for pre-primary class and Tk. respectively.
150 for class I-V for sending one child to school,
Recruitment of Teachers
Tk. 300 for sending two children, Tk. 400 for
sending three children and Tk. 500 for sending To keep the education programme up-to-date and
four children. For class VI-VIII, they receive Tk. enhance the quality of education, the government
200, Tk.400, Tk.500 and Tk.600 for sending one, has taken steps such as bringing 1.05 lakh
two, three and four children respectively. At teachers within the government payroll by
present stipend money is transferred through Hon'ble Prime Minister, recruitment of 1,97,864
mobile banking system to beneficiaries' mothers' teachers including head teachers and assistant
account. In addition to that, on the occasion of teachers in government primary schools since
Mujib's birth centenary, all the students who 2009. To increase the participation of women in
received stipend in the FY 2010-11 will be given primary education, 60 percent of the posts of
a one-time kit's allowance of Tk. 1,000. teachers are kept reserved for female candidates.
As a result, the percentage of female teachers in
Distribution of Books at Government Cost
the government primary schools has reached
Government is distributing free textbooks for approximately 64.20 percent. Furthermore, post
primary students every year. Students are getting of 26,366 assistant teachers for pre-primary class
free textbooks on the first day of the academic of newly nationalised govt. primary schools has
session. Since 2010, 100 percent new books have been created. Recruitment of 32,577 assistant
been distributed free of costs to the students teachers including the aforesaid created posts is
country-wide. 9.85 crore and 9.56 crore books ongoing.
were distributed in the academic year 2020 and
Programme for Out-of-School and Working
2021 respectively. For pre-primary students in
Children
the academic year 2021, 33.39 lakh books and
33.37 lakh copies of reading materials have been Government has taken multi-faceted programmes
distributed. This system of distribution of new in order to provide primary education to out of
books will be continued in order to ensure quality school, drop outs and urban working children.

These programmes are-Reaching Out-of-School project for development of educational

Children (ROSC) 2nd Phase Project, Basic institutions in haor areas to reduce regional
Literacy Project (64 districts) and Second Chance disparities in education has started in the FY
Education programme. 2020-21. These projects will continue in the next
fiscal year.
Educational activities during Covid-19
pandemic Bearing in mind the importance of science and
technology based education, especially the
To make sure that the students stay focused on
Fourth Industrial Revolution, a number of
lessons and remain attentive in their study during
initiatives have been taken to leverage ICT and
the COVID-19 pandemic, the primary level
digital technology in education management and
lessons broadcasting programme titled 'Learning
education programme. ICT related training of
at Home' is being implemented through broadcast
80,800 teachers and training of 50,000 secondary
by Sangsad Bangladesh Television. This has
school teachers are underway in the current fiscal
made possible to keep about 14 million primary
year. In the next fiscal year, around 2.10 lakh
students engaged in their study.
teachers and 2.75 lakh ICT teachers will be
Secondary Education trained. Online MPO-enlisting of private
The government has been attaching the highest institutions have been already completed by
importance to the expansion of sustainable and demonstrating ingenuity and formulating specific
quality secondary and higher secondary policies. To improve the quality of education
education. In the meantime, to sustain the success through information technology, ICT Training
achieved in the rate of secondary education and Resource Centers have been established in
together with the gender parity, emphasis is being 125 Upazilas. Programmes for the development
placed on the implementation of various of selected private colleges, establishment of ICT
programmes like general, science and technology training and resource centers in another 160
based education and training, provision of Upazilas, and establishment of integrated
financial assistance for students and teachers, education information management system will
various talent development activities, providing be implemented. Implementation of the projects
supportive policies and environment, and for the expansion of the scope of science based
building capacity and constructing and education in government colleges, and activities
developing the infrastructure of government for enhancing the capacity of 323 government
secondary schools. Activities, such as providing secondary schools across the country and
financial benefits to teachers of MPO-enlisted improving the quality of education are underway.
private educational institutions, distributing free This will create opportunities for enrolment of an
textbooks, introducing e-books, and setting up of additional 2 lakh students at the college level and
Upazila ICT training and resource centers are 3.29 lakh students at the secondary level.
underway. In addition, 3 projects are being As part of necessary steps to eliminate inequality
implemented to develop physical infrastructure and improve quality in education, the 'Integrated
of 1,610 private colleges and 6,250 private Stipend Program (HSP)' scheme is being
schools at the secondary and higher secondary implemented by the Prime Minister's Education
levels, and new buildings for 3,000 private Aid Trust under the Secondary Education
schools are under construction. To enhance Development Programme to provide assistance to
awareness about gender sensitive issues among the poor meritorious students to given
adolescents, implementation of the 2nd phase of opportunity for receiving education. Under this
the 'Generation Breakthrough Project', and the

programme, stipends and tuition facilities are subjects of class VI to X have been being
being provided to the students from poor families broadcast since March 29, 2020. Students from
of 6th to 12th grades/classes at the secondary, remote areas can also participate online classes.
higher secondary and equivalent level These virtual classes remove the monotony of the
educational institutions in 517 Upazila/Thana of students and can also be re-watched later through
Bangladesh including the municipal areas of YouTube/Facebook. Educational Institutions are
divisional metropolitan and district headquarters. arranging online classes. Students have the
Under the scheme, students selected by the opportunity to participate in these online classes.
educational institutions are being paid Tk. 1,200 Out of the conventional examination system, the
in 6th-7th grades, Tk. 1,500 in 8th grade, Tk. students have passed the next class in 2020 by
1,600 in 9th-10th grades and Tk. 2,400 in 11th- evaluating the assignments of the secondary level
12th grades. In addition, subsidies at the rate of students. Initiatives have been taken for the
Tk. 201, Tk. 300, Tk. 480 and Tk. 390 teachers‟ training to enable them for taking on-
respectively for tuition fees are being provided to line classes. To continue with the teaching
the students of these grades. It is to be noted that programme during the COVID-19 pandemic, as
tuition fees were waived for the students of grade many as 29,09,844 online classes have been
6 in 2020. Tuition fees for the students of other organised at the secondary and higher secondary
grade will be waived in phases. level. Online classes have been introduced in
15,676 out of 20,499 secondary schools and 700
Free text books are distributed among students
out of 4,238 colleges.
for ensuring the opportunity of education for both
rich and poor, preventing drop outs and making Technical Education
education standard, comprehensive and effective.
The government has placed emphasis on
First day of the year is celebrated as the
technical and vocational education in almost
„Textbook day‟. Free textbooks are distributed
every scheme aimed at transforming the people
among primary and secondary students on this
into manpower to meet the challenges of the
day across the country at the same time. A
Fourth Industrial Revolution.
number of 34,36,62,412 textbooks were
distributed in academic year 2021 under this For this reason, the vocational courses have been
programme. Brail textbooks were distributed for introduced in secondary and higher secondary
the first time in 2017. 9,196 Brail textbooks were level education including madrasas.
distributed in academic year 2021 among 1,187 Unprecedented advancement has been achieved
students under this programme. Other than that, in technical education in the last ten years. Last
2,13,288 textbooks were distributed for pre- year 2020 the enrolment rate in technical
primary students of 5 minority ethnic groups education was 17.14 percent. In continuation to
(Chakma, Marma, Tripura, Garo and Sadri) in the advancement, several projects/programmes
academic year 2021. have been taken in order to increase the
enrolment rate of technical education up to 25
Educational Activities during Covid-19
percent by 2025. Again, necessary steps have
Pandemic
been taken to implement National Technical and
During the closure of educational institutions due Vocational Qualifications Framework (NTVQF)
to the COVID-19 pandemic, distance education at all levels. An „Integrated TVET Development
for the students of secondary level through Action Plan‟ has been developed aligning it with
Sangsad Bangladesh Television titled 'Amar SDGs and 8th Five Year Plan. Time-befitting
Ghore Amar School' has been started. Major trade and technologies have been included in

technical education to make the youths of the Similar to general education system, madrasah
country able to be self-employed and competent education system is also following the NCTB
enough to meet the challenges of the job market developed syllabus and curriculum for general
in the local and global market. Currently, in total core subjects and elective subjects except for the
10,452 TVET institutions are in operational Arabic subjects for madrasah education. Text
mode. Out of these, 119 institutions operate books for all subjects except Arabic and Islamic
through government. subjects have been printed and distributed from
NCTB. Initiatives have been taken to conduct all
To eliminate inequality in technical and
madrasah examinations except the Arabic and
vocational education, stipends are being provided
Islamic subjects with the same syllabus up to the
to the students, free textbooks are being
secondary level since 2014. Competitive, modern
distributed, and one-time grants are being
and life skill oriented subjects like Agriculture,
provided to the poor and meritorious students and
ICT and career related education have been
teachers. Several programmes, such as setting up
included in the syllabus of Madrasah education.
of 1 technical school and college (TSC) in each of
In ensuring more transparency and accountability
100 Upazilas, establishment of 1 women's
of the activities under Madrasah Education
polytechnic institute in 4 divisional cities (Sylhet,
Board, filling up of forms and students‟
Barisal, Mymensingh, Rangpur), establishment
registration are being done online using ICT.
of Polytechnic Institutes in 23 districts, and
establishment of 1 Engineering College in each The government has undertaken extensive
of 4 divisions (Chattogram, Khulna, Rajshahi, activities for the development and modernisation
Rangpur), are underway in the current fiscal of madrasas. To enhance the quality of madrasa
year, and will continue in the next fiscal year. education, construction of new buildings for
1,800 madrasas, setting up of multimedia rooms
To improve the quality of technical education, a
for existing 653 madrasas and capacity building
MoU has been signed with 581 institutions for
of madrasa teachers will continue through the
strong Industry-Institute Linkage. With the
'Development of Scheduled Madrasas' project.
collaboration of Chinese embassy-Dhaka and
Islamic Arabic University has been established in
DTE, since 2017 to 2020, a total of 832 students
2013 with the aim of accelerating higher
with scholarship have gone for higher education
education in madrasah sector. Vocational courses
in China and still this scholarship opportunity is
have been introduced in 88 madrasahs. Model
available for TVET students and graduates.
madrasahs have been set up in 2013 under
Madrasah Education SESDP project. Honours courses have been
Directorate of Madrasah Education is a newly introduced in 77 senior madrasahs. In addition,
created organisation as an apex body for ensuring the MEMIS (Madrasha Education Management
proper management and administration in the Information System) cell has been established to
field of Madrasah education. Presently there are make Madrasa education management and
7,954 madrasahs (MPO enlisted) in the country. administration fast, dynamic and timely.
In order to make madrasah education time- Educational activities during Covid-19
befitting, the curriculum has been improved pandemic
alongside the teaching of religious subjects such
In Covid-19 situation, online education activities
as Quran, Aqaid and Fiqh, Arabic and Hadith
are going on on Sangsad Bangladesh Television
from Class One to Twelve.
in the name of ‘Amar Ghare Amar Madrasah'
(My Madrasah in My Home). Assignment work

is underway to keep students involved in the where 2,76,91,407 students participated in those
education system in the Covid-19 situation. online classes. Online examinations are being
organised in private universities. To ensure
Higher Education
participation of students in online classes at the
During last decade radical change has been university level, soft loans have been provided to
accomplished in higher education sector in 41,501 financially insolvent students to purchase
Bangladesh. Government has taken manifold smart phones.
steps under Bangladesh University Grants
ICT in Education
Commission (BUGC) in order to expand
opportunity and increase quality of higher In order to establish ICT enabled efficient and
education. A public university has been modern education system, ICT in Education
established in almost every old district of the Master Plan has been formulated accommodating
country. At present, number of public universities every phase of education. Computer education
stands to 49; 46 of which started academic has been made compulsory for every student in
programme and out of 107 private universities, secondary level. 33,265 multimedia classrooms
98 already started academic activities. have been set up in selected educational
institutions. Another 47,340 multimedia
For improvement of higher education and
classrooms will be set up. 2,306 computer labs
research activity, „Strategic Plan for Higher
have been set up. 3 lakh 22 thousand 230
Education in Bangladesh: 2018-2030‟ has been
teachers have been provided training on ICT.
formulated as well as initiatives to implement it
Another 350,000 teachers will be trained in ICT.
by UGC. To make madrasha base education
255 posts of ICT teachers have been created in
dynamic, Islamic Arabic university has been
government colleges with the aim of building a
established in Keragniganj, Dhaka. Besides, a
society rich in ICT knowledge. Dash Board has
bill has been passed to make certificate of
been introduced on-line for multimedia class
Dawra-e-Hadith issued by Madrasha equivalent
monitoring in educational institutions. Online
to master‟s degree.
admission process is underway in government
According to Private University Act -2010, schools. ICT cell has been established in every
International Quality Assurance Cell (IQAC) has public university to run ICT activities in the
been formed to ensure quality of higher university.
education in private universities. Besides these,
Development of Health and Family Welfare
34 public universities, 8 private universities, 2
Sector
international universities, 12 medical colleges, 10
research organizations and 3 government During the critical period of the pandemic, the
organizations have been connected to global government has strengthened its efforts to ensure
research network through BDren Asi@connect. affordable health services for all citizens through
ICT cell has been established in every public the development of the health, nutrition and
university to run ICT activities in the university. population sector. As a result, it has become
easier for the government to achieve its aim of
Educational activities during Covid-19
building a healthy, strong and active society.
pandemic
The government has been implementing different
Online classes are being organised at the
programmes in health sector to improve life
university level. Such classes have commenced
standard of all citizen of the country. Due to
in 42 government and 92 private universities. A
adoption of different activities, remarkable
total of 4,97,200 online classes were organised

progress has been made in health sector. Because the quality of the service. In addition, it helps to
of the government‟s timely interventions, the control the infectious diseases. Also, the
fertility rate as well as death rate has decreased, improvement in food security system, expansion
average life expectancy has increased and of women education and other fruitful
neonatal and maternal death rate has decreased interventions enhance living standard of people
notably. The health and social safety programme and life expectancy has also increased
of the government has contributed to the consequently. Table 12.5 shows the trend of
expansion of health service as well as to improve health indicators from 2013 to 2020.
Table 12.5: Recent Trends in Health Indicators
Indicator Level 2013 2014 2015 2016 2017 2018 2019 2020
National 19.0 18.9 18.8 18.7 18.5 18.3 18.1 18.1
Crude Birth Rate Urban 15.3
18.2 17.2 16.5 16.1 16.1 16.1 15.9
(per 1000 population)
Rural 19.3 19.4 20.3 20.9 20.4 20.1 20.0 20.4
National 5.3 5.2 5.1 5.1 5.1 5.0 4.9 5.1
Crude Death Rate Urban 4.6 4.1 4.6 4.2 4.2 4.4 4.4 4.9
(per 1000 population)
Rural 5.6 5.6 5.5 5.7 5.7 5.4 5.4 5.2
Male 24.3 24.9 25.3 25.2 25.1 25.5 25.3 25.2
Average Age at Marriage
Female 18.4 18.3 18.4 18.4 18.4 18.9 18.9 19.1
Both 70.4 70.7 70.9 71.6 72 72.3 72.6 72.8
Life Expectancy at Birth (year) Male 68.8 69.1 69.4 70.3 70.6 70.8 71.1 71.2
Female 71.2 71.6 72.0 72.9 73.3 73.8 74.2 74.5
National 31 30 29 28 24 22 21 21
Infant Mortality Rate (<1 year) Urban 26 26 28 28 22 21 20 20
(per 1000 live births)
Rural 34 31 29 28 25 22 22 21
National 41 38 36 35 31 29 28 28
Under 5 Mortality Rate (per 1000 live Urban 35 30 32 32 27 27 26 26
births)
Rural 43 40 39 36 33 31 29 28
National 1.97 1.93 1.81 1.78 1.72 1.69 1.65 1.63
Maternal mortality Ratio Urban 1.46 1.82 1.62 1.60 1.57 1.32 1.23 1.38
(per 1000 live births)
Rural 2.11 1.96 1.91 1.90 1.82 1.93 1.91 1.78
Contraceptive users rate (%) 62.4 62.2 62.1 62.3 62.5 63.1 63.4 63.9
Total Fertility Rate 2.04
2.11 2.11 2.10 2.10 2.05 2.05 2.04
(per women, 15-49 years of age)
Source: Report on Bangladesh Sample Vital Statistics-2020.
Community Clinic (CC) based Primary Health all over the country at the union level, each for
Care Services about 6,000-8,000 population.
Community Clinic (CC) is the first tier public It is estimated that an average of 40 patients per
health facility to provide primary health care day receive service from each CC and 95 percent
services to the people at periphery, especially in of them are women and children. Beneficiaries
remote and very hard to reach areas. The from the CCs from 2009 to February 2021 are the
initiative for establishment of CC was taken in rural people getting services through around
1998 to extend coordinated health and family 96.86 crore visits. During the same period, more
planning services to the door steps of rural than 7.62 crore emergency and complicated
population. At present 13,881 CCs are functional patients were referred to centres with higher
facility for better management and about 97,882

normal deliveries were conducted in 4,000 CCs. Tuberculosis, Diphtheria, Pertussis, Tetanus,
Recruitment of the Community Health Care Hepatitis-B, Haemophyllus influenza-type-B,
Providers (CHCPs) with proper skill development Pneumococcal Pneumonia and Measles and
training and distribution of adequate medicines Rubella. Currently, fully vaccinated EPI coverage
and contraceptives have made the CCs fully is around 86 percent nationwide. Bangladesh is a
functional. Apart from outdoor services, polio free country since 2006 and that status has
Community Clinics provide health education, continuously been maintained. MOHFW
nutritional services, micronutrient responded effectively to the outbreak of measles
supplementation and referral to higher facilities. and diphtheria among the forcibly displaced
Myanmar nationals (FDMN) population in Ukhiya
Extended Programme on Immunisation (EPI)
and Teknaf Upazilas of Cox’s Bazar district. A
Government is continuing vaccination total of 48,14,528 doses of different
programme against vaccine preventable diseases vaccines/antigens (MR, bOPV, OCV, Penta, PCV,
(VPD) through the expanded programme of Td and vitamin A) were given through
immunization (EPI) to protect the children against vaccination campaign among the FDMNs during
those diseases. EPI is providing vaccines against September 2017 – December 2018. Table 12.6
10 vaccine preventable diseases named: shows the yearly EPI coverage.
Table12.6: Vaccination under EPI Programme
Total
BCG OPV-1 OPV-2 OPV-3 Penta-1 Penta-2 Penta-3 Measles
Year Vaccination
(%) (%) (%) (%) (%) (%) (%) (%)
(%)
2011 99.0 98.9 97.6 94.5 98.9 97.4 89.6 85.5 80.2
2012 99.0 99.0 97.7 95.1 99.0 97.6 90.0 88.5 80.6
2013 99.3 95.1 94.1 91.6 90.9 92.6 92.1 85.5 80.7
2014 99.2 95.8 95.1 92.7 92.6 93.3 93.0 86.6 81.6
2015 99.2 93.4 94.5 93.9 93.9 94.5 93.6 87.4 82.5
2016 99.5 97.8 97.0 90.1 97.8 97.0 90.1 87.5 82.3
2017 101.3 100.1 99.3 97.9 100.1 99.9 98.5 98.8 98.8
2018 100.6 99.3 98.2 97.7 98.7 97.3 96.6 97.6 97.6
Source: *Bangladesh EPI Census 2011, 2012 , 2013, 2014, 2015, 2016, DHIS2 2017, 2018
COVID-19 Vaccination Strategy, Management lakh doses have already been received. There are
and Steps plans to buy vaccines from the Governments of
China and Russia, Pfizer Co. from the USA and
„The National Deployment and Vaccination Plan‟
Sanofi/GSK from France/Belgium. Negotiations
has been prepared under the Expanded
are at the final stage for procuring Sinopharm
Programme on Immunization (EPI) to protect the
vaccine from China and Sputnik-V vaccine from
lives of people from the COVID-19. The
Russia, and, if necessary, manufacturing the
government procured 3 crore doses Covishield
same in Bangladesh. Meanwhile, 70 lakh doses
vaccine of Oxford-AstraZeneca from the Serum
of Oxford/AstraZeneca Covishield vaccine
Institute of India. In addition, 6.80 crore doses of
reached Bangladesh, and the Governments of
coronavirus vaccine will be available from the
India and China gave 32 lakh doses and 5 lakh
Covax facility under the World Health
doses respectively of coronavirus vaccine as
Organisation for 20 percent of our population,
gifts. The World Bank provided US$ 500 million
that is, for 3.40 crore people. Out of this 1.06
for procuring COVID vaccines and US$ 14.87

million for logistics support. Loan Agreement for increasing facility delivery services have been
US$ 940 million with the ADB to procure COVID carried out by the government. Various kinds of
vaccine is at the final stage. Alongside, there is a training activities are running on for developing
good possibility to receive support for vaccine skill of the doctors, Family Welfare Visitors
procurement from the European Investment Bank (FWV) and all field level workers who are
and AIIB. involved in providing for maternal and child
health care.
Plans have been devised to vaccinate 80 percent
of the people in phases. In the first phase, people The government has been implementing
with risks will be vaccinated, and 25 lakh Maternal, Neonatal and Child Health (MNCH)
vaccines will be given each month. The activities all over the country with technical and
vaccination program is being implemented at the financial support of the Development Partners
field level through coordination between the EPI (DPs). Now, Comprehensive EmOC services are
and the Communication Disease Control (CDC). available in all the medical college hospitals, 59
The first dose of vaccination began on February 7 district hospitals, 132 Upazila Health Complexes
while that of the second dose began on 8 April. and 63 maternal and child welfare centres. Rest
Registration for vaccination and distribution of of the Upazila Health Complexes is providing
vaccine certificates and vaccine cards are being Basic EmOC (BEmOC) services. Due to EMONC
done digitally through the surokkha.gov.bd web services MMR falls to 0.17 percent and NMR 2.8
portal using National ID cards. Following the percent. The government has provided short-term
recommendations of the Scientific Advisory training for community based skilled birth
Group of Experts (SAGE) of the WHO and the attendant (CSBA) and midwives and deployed
National Immunisation Technical Advisory them to the remote and rural areas. Till to date
Group (NITAG) of Bangladesh and considering 11,544 CSBAs have been trained to provide
the reality of our country, people aged 40 or maternal health care services at the rural level. 3
above are given priority in the COVID-19 years midwifery training course is going on and
vaccination program, who constitute 20 percent 3,000 posts have been created for midwives and
of total population. The vaccination programme 1,200 Midwives are posted in different Health
is conducted in 1,005 hospital-based vaccination facilities.
centres across the country. Up to 31 May 2021,
Nutrition
58,22,157 persons received vaccines, of which
36,10,635 are male and 22,11,522 are female. To expand the nutrition service throughout the
Out of them 41,73,930 have completed their whole country, the Operational Plan (OP)
second doses. „National Nutrition Services (NNS)‟ has been
taken up under 4th HPNSP. It‟s being implanted
Maternal and Neonatal Health Services
by the Directorate of Health for a period of 2017
As special priority to the improvement of to 2022. The main purpose of the programme are
Maternal and Child Health, many activities have provide up to date and scientific nutrition service
been undertaken at the national level. Among to the vulnerable population, awareness building
these, Emergency Obstetric Care (EmOC) training for the food habit changing and nutrition induced
for the doctors‟, Community based Skilled Birth life style and reducing maternal and child
Attendant (CSBA) training for the field staff are mortality by prevention of malnutrition. The
most notable. In addition, scaling up of family nutrition improvement activities relate to control
planning services, safe MR services, encouraging of nutritional deficiencies, provision of nutrient
private sectors expansion, advocacy for supplements and strengthening of the Severe

Acute Malnutrition (SAM) treatment in primary, NNS is conducting nutrition services activities in
secondary and tertiary level health facilities. 365 coordination with various Ministries / Divisions/
SAM facilities have been created at District and Departments and local and foreign private aid
Upazila hospitals. 395 Integrated Management of agencies.
Childhood Illness (IMCI) Programmes and
In 2017, a survey conducted by NNS on low birth
Nutrition Corners have been established at
weight of newborns showed that the rate of low
District and Upazila hospitals. In order to provide
birth weight is currently 22.6 percent. Table12.7
nutrition services to the people in slums, remote
shows a whole picture of nutrition status of
areas of villages especially in char, haor area,
Bangladesh
Table 12.7: Nutrition Status of Bangladesh
2011 2014 2018 (Target %)

Index Remark
% % % 2022
Underweight child (0-59
36.4 32.6 22 25 On Track
month‟s)
Stunted child (0-59 month‟s) - 36.1 31 25 On Track
Wasting (0-59 month‟s) - 14.3 8 <10 On Track
Low birth weight - 22.6 - <18 On Track
Exclusive breast feeding 47.1 50.8 69 60 On Track
Rate of Anemic pregnant
- - - On Track
women‟s
Rate of Anemic adolescence Less than one-
- - - On Track
girl‟s third decrease
Rate of Anemic child - - - On Track
Night blindness - 0.2 - <1 On Track
Usage rate of Iodine salt at Less than one-
82 - On Track
household level third decrease
Rate of breast feeding child 64 55.3 65 65 On Track
Rate of Vitamin-A capsule
60 92 79 >90 On Track
intake (6-59 month‟s)
Source: Ministry of Health and Family Welfare.
Health Information System and E-health Health Policy and Strategy has been finalised.
Programmes regarding admission in medical and
MOHFW has drawn global attention for the
dental colleges, human resources management in
successful utilisation of IT in the health sector.
the health sector, leave and deputation of the
Laptops and Android Tablets have been provided
doctors, every type of training and higher study
at the community clinics and other grass root
management have been digitalised.
level workers. Programmes are active for
enrolling information related to each pregnant The digital office management has been
mother and under-5 children. A uniform 'Health introduced along with ensuring attendance
identifier Code' is being provided to every citizen through finger print on the machine. Health
which will be used in making the permanent services are being provided through mobile
health record software design linking with the phones from every district and Upazila level
national ID card database. A draft of national E- government hospitals of the country. The clients

can submit complains or receive health services were established during the first wave of the
through SMS at about 800 government hospitals. pandemic last year. Alongside, 55 laboratories
Advanced telemedicine services are being established in the last fiscal year and improved
provided from 82 hospitals. A full-fledged call government healthcare institutions are providing
center named „Sasthyo Batayan‟ has been COVID-19 services. Nine new COVID-19
functioning. „Skype Based Tele-consultation‟ has dedicated hospitals have been established. As a
been introduced alongside the telemedicine result, a total of 89 COVID-19 dedicated hospitals
service. are now in operation. Dhaka North City
Corporation Specialised Hospital and Isolation
Shashtho Shurokkha Karmashuchi
Centre has been opened to provide quick
Keeping the goal of achieving universal health treatment to patients who got infected during the
care in the country by 2030 in view, the second wave of the pandemic. This hospital has
government has formulated the „Strategy for 200 ICU beds, 250 high dependency units (HDUs)
Finance in the Health Sector: 2012-2032‟. In line beds, an emergency ward with 56 beds, and 395
with the strategy, the ‘Shashtho Shurokkha isolated general beds.
Karmashuchi (SSK)‟ has been formulated to
All incoming passengers are being scanned at the
finance healthcare services for people living
points of entry, such as airports, land ports and
below the poverty line. The pilot programme
sea ports. Till date, 22.22 lakh international
under the SSK has been initiated to reduce the
passengers who arrived through the country‟s 3
out-of-pocket expenses of the poor population
international airports, 2 seaports, 2 railway
and protect them from the catastrophic health
stations, and 23 land ports have been screened.
expenditure in receiving hospital-based services.
Samples for detection of COVID infection are
While receiving inter-departmental services from
being tested in a total of 121 public laboratories,
hospitals, every family holding a card gets free
of which 72 are located in Dhaka and 49 outside
treatment including costs of diagnosis and
Dhaka. Isolation beds, 5 in each upazilla, have
medicines. As on April 30, 2021, a total of
been set up in all Upazilla Health Complexes.
20,931 members of 81,619 enlisted families have
Around 10-12 isolation beds have been kept
received services under this programme, and it
ready in District Sadar Hospitals where there is
will gradually be expanded across the country.
no Medical College. As a result, COVID infected
Addressing the COVID-19 pandemic and patients from remote areas are getting proper
protecting public life treatment. Distribution of Tk. 850 crore allocated
When the coronavirus infection was first detected in the current fiscal year for payment of
in Bangladesh in March 2020, the National compensation to the doctors, nurses and other
Preparedness and Response Plan was prepared to officials who have died on duty and payment as
combat and control the virus. Later on, with some honorarium to the doctors, nurses and health
minor revisions, the Bangladesh Preparedness workers are underway. Two institutional
and Response Plan was finalised, and activities quarantine centres have been kept operational. In
are currently being carried out in accordance with addition, a total of 629 quarantine centres are
the Plan. During the second wave of the prepared in different districts and upazillas. 10
pandemic, medical treatment services have been guidelines on COVID-19 matters, 28 instructions,
continued in specialised isolation units in district 4 SOPs and 13 public awareness building leaflets
and upazilla levels, 14 COVID-19 dedicated have been prepared. Due to the setting up of real
hospitals in the capital city, and 67 COVID-19 time hospital dashboards in the hospitals across
dedicated hospitals in the district hospitals which the country, all information on general and ICU

beds in COVID hospitals are now instantly allocated again to meet the urgent demand to
available. Moreover, the online verified test address Covid-19.
report system has been established during the
Family Planning Services and Reproductive
COVID-19 pandemic.
Health
A number plans have been undertaken to develop
As a result of taking various effective initiatives
the health sector to address the impact of COVID-
by the government, Bangladesh could achieve
19. The implementation of some of these projects
commendable progress in the family planning
has begun in the current fiscal year and will
programmes. In 2001, Bangladesh‟s population
continue in the next financial year. Different
growth rate was 1.57 percent, which is now 1.37
projects are being implemented with the funding
percent. So far, the greatest achievement of the
of US$ 600 million from the World Bank, US$
government is to ensure availability of modern
100 million from the Asian Development Bank
and active contraceptive methods. At present,
and US$ 100 million from the Asian
63.9 percent of couples are using birth control
Infrastructure Investment Bank (AIIB). The
methods, but in 2001 it was 53.8 percent.
„COVID-19 Emergency Response and Pandemic
Preparedness‟ project, supported by the World According to BDHS report in 2020, Total Fertility
Bank and AIIB, is in progress. Purchase of Rates (TFR) has been declined sharply from 3.0
vaccines, installation of oxygen lines, setting up in 2011 births to 2.04 in 2020. The government
of ICUs/CCUs and other activities are being taken has identified achieving the replacement level
up under the project. To enhance the country‟s population growth from present rate of 2.04 to
capacity to tackle the pandemic, improve the 2.0 as one of its main target and has taken many
system of prevention, control and treatment of programmes in that direction. In line with this
infectious diseases and strengthen the emergency target activities are being implemented for
preparedness capacity, the „COVID-19 Response increasing net reproductive rate at 75 percent.
Emergency Assistance‟ project is being Besides, maternal and child mortality rates have
implemented with support from ADB. Purchase decreased due to providing mother and child
of ICU beds, ventilators and PCR machines and health services and providing full-time child care
expansion of modern microbiology laboratories services at the union level. At present maternal
in 19 institutions and activities are being taken up mortality rate has decreased from 1.72 to 1.63
under the project. Steps have been taken to (per thousand live births) and infant mortality
enhance capacity of private medical college rate decreased from 31 to 28 (per thousand living
hospitals, including the Department of Nursing births).
and Midwifery, to deal with the pandemic. The
process of urgently recruiting necessary To ensure smooth implementation of
manpower and hiring consultants on a contract programmes on family planning, maternal and
basis is underway to ensure proper case child health services, Upazila Family Planning
management including expanding laboratory Offices, including 10 District Offices and 145
facilities and enhancing the skills of concerned Family Planning Stores have been established.
health workers, doctors, nurses and technologists. To expand services at the grassroot level, 89 new
10-beds MCWCs (Maternal and Children Welfare
In the last 2020-21 budget, a lump sum of Tk. Centers) have been constructed at the union level.
10,000 crore was allocated to meet any urgent Family planning services are being provided
need to address Covid-19. In the next FY 2021- through Web-Logistic Management Information
22 too, a lump sum of Tk. 10,000 crore has been System. At the same time, e-health programs are

being conducted as part of widening the use of government has taken initiative to establish 7
information technology in medical services. To hospitals.
ensure safe maternity services, safe delivery
Medical Education
services for 24 hours a day 7 days a week have
been introduced in Health and Family Welfare The government not only pays attention at health
Centers in 2,854 Unions. The National Newborn service but also health education. In addition to
Health Program (NNHP) is being implemented in various specialized institutions, postgraduate
order to protect the health of newborns and courses have been started in medical colleges.
children as part of health management. In There are 36 government Medical Colleges
addition, Kangaroo Mother Care (KMC) services (4,350 seats in the government level), one
are being provided in 192 facilities. Government Armed Forced Medical College
(125 seats) and 5 Army Medical Colleges (250
The government is laying emphasis on ensuring
seats), 9 Government Dental College (545 seats),
provision of health services to adolescents. A
28 postgraduate Medical Institutions (1,541), 11
total of 603 Adolescent Friendly Health Corners
Medical assistant training institutions (922 seats),
have been opened at Union Health and Family
15 Institute of Health Technology (IHT) (3,100),
Welfare Centers and Maternal and Child Welfare
14 nursing colleges and 70 Non-government
Centers for the physical and mental development
Medical Colleges (6,348 seats), 26 Dental
of adolescents, through which services and
College (1,405 seats), 200 Medical Assistant
information are being provided to them. Under
Training Institutions (13,642 seats), 97 Institute
the ongoing sector program, a total of 979
of Health Technology (8,940 seats) are working
adolescent-friendly corner will be established by
to create skilled manpower. Besides,
2022. Adolescent website (www.adoinfobd.com)
administrative approval has been given to
has been developed to provide adolescent
establish an Institute of Health Technology in
healthcare.
Gopalganj and Gazipur districts. Apart from this
Health in Private Sector to encourage alternative medical service, 7
alternative medical care colleges are functioning.
Providing demand base health service for all
people by government alone is not possible Nursing Services
although various effective step taken. For this, to
Nursing directorate has been upgraded to Nursing
flourish private health sector, government is
and Midwifery Directorate on 16 November 2016
providing monetary and other support. In private
in order to strengthen nursing education and
sector through registered hospital, clinic and
services. The main objective of this directorate is
diagnostic centres health service delivery is
to frame policy for improvement in the health
carried out. NGO‟s are playing significant role on
services, produce adequate number of
health service like sanitation, supply of pure
nurse/midwife/nurse graduates and send proposal
drinking water and elimination of contagious
to the government for establishing nursing
diseases like diarrhea. Besides, lots of NGO‟s are
institutes besides assisting the government in
working actively in HIV/AIDS, nutrition and other
implementing development and welfare
programmes under health, population and
activities. At this moment, 38,000 nurses are
nutrition sector development programme. Scope
serving in government health service and nursing
for investment in the projects run by Public
institutes.
Private Partnership (PPP) has been created. Under
the Public Private Partnership strategy In order to improve the quality of nursing and
midwifery education and services, Bachelor of

Science in Nursing (4 Years‟ Course) has been Prevention Rules-2018‟, „Shishu Academy Act-
started in 13 government nursing colleges where 2018‟ and „Deoxyribonucleic Acid (DNA) Act-
1,200 seats exist. Diploma in Nursing Science 2014‟ and Deoxyribonucleic Acid (DNA) Rules-
and Midwifery (3 years‟ course) is being 2018‟, „Women and Child Abuse Suppression
conducted in 47 government nursing institutes (Amendment) Act-2020‟, Women and Child
where 2,630 seats exist. Diploma in Midwifery (3 Abuse Suppression (Amendment) Ordinance-
years‟ course) is being conducted in 41 2020‟ and „Sewing Machine Purchase, Allocation
government nursing institutes where 1,050 seats and Management Policy -2021‟ has been enacted.
exist. The administrative approval has been given Two national action plans have been formulated
to 10 nursing colleges to start masters courses in for the implementation of the National Women's
nursing and midwifery subjects. Along with Development Policy and the prevention of
existing post basic nursing colleges, 5 nursing violence against women and children.
colleges have been given administrative approval
An incentive package has been implemented for
to start the post basic B.Sc. in Nursing course.
women to enable them to address the ongoing
5,045 senior staff nurses have been recruited to
impact of COVID-19 and facilitate economic
address global corona pandemic and more 4,000
recovery. Maternity allowances and working and
senior staff nurses are in the process of being
lactating mother allowances have been provided
recruited. A proposal to create 6,000 nurse posts
to meet the health and nutritional needs of poor
has been accepted. Another proposal to send 500
pregnant women in rural and urban areas and
ICU nurses to Kuwait and 60 ICU nurses to
ensure complete development of the child, and
Maldives has been accepted.
micro-credit activities have been running to
Programmes for Women and Child ensure self-employment of women. The
Development government has been implementing activities
under the Multi-sectoral Program for Prevention
Ministry of Women and Children Affairs is
of Violence against Women. In addition, One-
working for total socio-economic development of
Stop Crisis Centers for women and children
women. Important activities of the ministry
victims of violence in divisional districts and
include women empowerment, taking steps for
medical college hospitals in 6 districts have been
self-employment of women through bringing the
set up. A total of 67 One-Stop Crisis Cells
products of the grass root level women
including 47 in district sadar hospitals and 20 in
entrepreneurs in the business, stop women abuse,
Upazila health complexes has been established.
stop women trafficking, facilitate safety of
Besides, instant support is being provided
women in work place and ensure women‟s
through the mobile app 'Joy'.
participation in the mainstream economic
activities etc. „Domestic violence (prevention and The government is running a total of 9 working
security) Act-2010‟ has been enacted as well as women's hostels (kormojibi Mohila Hostel) for
rules have been framed under this Act for working women. Construction of working
establishing equal rights and elimination of women's hostels is underway in Dhaka's Nilkhet
discrimination against women at all levels of and Kaliganj, Araihazar, Sonaimuri and
state and public life. „National Women Mathbaria Upazilas. The Child Daycare Act
Development Policy-2011, „National Child 2021 has been drafted and awaits enactment. A
Policy-2011‟ and „Comprehensive policy on total of 120 child day care centers are being run
Initial Care and Development of Child- 2013‟, under the Ministry of Women and Children
„Dowry Prevention Act-2018‟, „Child marriage Affairs, including 64 in the Department of

Women's Affairs, 16 in the Jatiyo Mohila rehabilitation of the neglected segment of

Songstha and 40 in the Bangladesh shishu population along with the Persons with
Academy. Working mothers are being assisted by Disabilities (PWDs), orphans, destitute, poor and
providing day care to 5,730 children through 120 helpless.
child daycare centers for children aged 1-6 years.
The Social Security Programme is a successful
Government is conducting various activities for programme of the ministry. Currently, different
psychological and cultural development as well types of allowances and food assistance activities
as flourishing the latent genius of the children are running under social security programmes of
with an objective to developing them as the MoSW. Old age allowance, destitute women
competent citizens of the country. There are six allowance, widow and husband deserted women
Shishu Bikash Kendro (child development centre) allowance, insolvent disability allowace,
in the country including one for female children education stipend for students with disabilities,
in Azimpur and two for male children in development projects of the marginalized people,
Keraniganj and Gazipur and also three in financial support programmes for patient with
Rajshahi, Khulna and Chattogram divisions. One cancer, kidney and liver cirrhosis, stroke
Shishu Bikash Kendro and one pre-primary paralysis, congenital heart diseases and
education centre has been established in 71 thalassemia, Rehabilitation of Beggars and
offices including 64 districts and 6 Upazilas. Alternative Employment Program etc.
Children of 4-5 years of age are being developed programmes are the most notable social security
for admission to primary schools through these programmes of MoSW.
centres. More than 900 books for children have
The Department of Social Services is conducting
been published by Shishu Academy for
various activities for the mental development,
developing reading habit in children.
nurturing, education, training and rehabilitation
Significant activities have been undertaken for of orphans, risky and abandoned children. 85
ending child labour and child abuse, providing Sarkari Shishu Paribar are being run in the
education to children with health, education, country for the upbringing of the non-parental
nutrition and vocational training include children, creating a sense of responsibility and
implementation of social awareness and discipline among them, rehabilitation through
parenting activities for development. Among training and education. Of these, there are 43
them- safety and social security of child from institution for boys, 41 for girls and 1 is mixed.
embryo to 8 years of age, Establishment and The total number of seats in these establishments
operation of Shishu Bikash Kendro for children is 10,300 and the total number of rehabilitations
of 4 years of age, Expansion of activities of is 59,990. There are 6 institutions in 6 districts of
Shishu Bikash Kendro for the ultra-poor and the country (Dhaka, Chittagong, Rajshahi,
separated children, vocational training for student Sylhet, Khulna and Barisal) for nurturing,
of qawmi madrassas in the rural areas, maintenance, sports and general education of the
establishment of day care centres for female abandoned children from 0-7 year old without
workers of tea garden and garments, safe parent. The total number of seats in these
internet, safe children etc. are significant. institutions is 600 and the number of
beneficiaries is 1 thousand 500 baby who are
Social Welfare
transferred to Sarkari Sishu Paribar as a part of
The Ministry of Social Welfare (MOSW) is rehabilitation program. Three institutions are
working for poverty reduction, human resource being run for the purpose of rehabilitating
development and other activities for

distressed children aged 6-18 years through Persons with disabilities are an integral part of
general education, religious education and society. The government is committed to
vocational training. improving their quality of life. The Department
of Social Services is conducting various
Activities are being conducted in 3 centers to
programmes to protect the welfare, development
correct the disobedient children of parents due to
and rights of persons with various types of
various problems including family unrest, strict
disabilities and to rehabilitate them. The
discipline, neglect, mal-administration, lack of
important programmes are- integrated visionary
recreation and modern education and availability
education programme, schools for the visually
of firearms and drugs, as well as social
impaired, institution for children with mental
deterioration. There are one Child Development
disabilities, vocational training, employment and
Centers in Tongi, Gazipur, one in Pulherhat,
rehabilitation center for physically handicapped
Jessore and one in Konaabari, Gazipur. 6
and so on.
Government shelter Homes are being operated to
provide food, clothing, medical, education and Poverty is a major obstacle to the social and
vocational training to those who are vagrant and economic development of Bangladesh. The
homeless. 6 Training and rehabilitation centers in Department of Social Services is implementing
6 division are being operated to provide for the the five poverty reduction programmes for the
maintenance, education, training and purpose of socio-economic development through
rehabilitation of girls with disabilities, immoral providing micro credit to the poor, helpless,
and non-social professions. Safe home operations neglected, backward and backward people living
are being conducted in Barisal, Sylhet, Rajshahi, in rural / urban areas of the country. These are-
Chittagong, Bagerhat and Faridpur districts for rural social services, rural mothers certer, urban
the nurturing, training, treatment, recreation and community programme, rehabilitation
rehabilitation of women and children detained in programme for the burnt and people with
the police station / jail. disabilities and loan programme in asrayan
Hospital Social Services, Integrated Blind project.
Education Programs, Schools for Visually
Activities taken during Covid-19
Challenged and Speech Challenged Children are
other notable welfare and services activity of In Covid-19 situation, the collection of
MoSW. Apart from these, Destitute Children installments of interest free micro-credit program
Training and Rehabilitation Centers, Stipend conducted under Rural Social Services Program
Program for the Persons with Disable Students (RSS) was carry over for 3 months. This facility
and Vocational Training Centers and has been provided to 9,68,276 borrowers. In
Rehabilitation for Physically Persons with addition, in order to revive the stagnant rural
Disability programs are being run through this economy due to COVID-19, an additional Tk. 100
Ministry. Integrated blind education program crore has been Keep resources for interest free
being conducted over 64 districts Headquarters in micro-credit in FY 2020-21. Already, Tk 25 crore
order to disburse education among visually has been allocated for interest free micro credit
impaired children in their own environment. In Programs.
addition of the above programs the Social During Covid-19, hospital social services
security services are being provided to the street programs distribute nutritious food, masks and
children through „Drop in center‟ under project hand sanitizers of Tk. 8,96,24,254 along with
of Child Sensitive Social Protection in regular medical assistance to 2,65,471 helpless
Bangladesh. patients. The Head Office of Department of

Social Services, District, Upazila and Urban female participants in various disciplines in
Social Services Office in collaboration with the educational institutions, sports club and sports
National Social Welfare Council provided institutions. Directorate of Sports is also
emergency food and financial assistance of Tk. arranging different competitions for assessing the
9,31,47,990 to 2,80,343 poor and unemployed capability in sports and also to develop that
persons. capability. Directorate of Sports is also
contributing in raising national and international
Youth Development
level players, extension of social security in
Youth Directorate is implementing various sports arena, prevention of abuse of drugs, health
programmes for converting youth force to skilled consciousness, environment consciousness,
human resource through training, technology and empowerment of women and increase the social
technical knowledge. „National Service‟ status of the sportsmen. Awareness is being
programme is being implemented through youth raised through annual sports competition for
directorate for creating job opportunities for the people with autism and other disorders related to
educated and unemployed youth. Young male neuro-development. Sports items are being
and females having secondary and upper level of supplied for free to educational and sports
education are being given the chance to institutions for arranging sports events. Bachelor
contribute in nation building activities following of Physical Education (BPED) programme is
the policy of the programme. being conducted through 6 government physical
Youth directorate is working for the development training institutes.
and expansion of information technology. Cultural Affairs
Educated but unemployed youths are being
17 organisations under the Ministry of Cultural
trained through 77 centres in 64 districts in
Affairs is conducting various activities for the
internet, networking, computer basic course,
development, preservation, expansion and
graphic design and video editing course. 63.62
extension of Bangladeshi culture and provides
lakh male and female youths were trained skill
necessary patronage to Bangla language and
development in different trades till February
literature, music, fine art, drama, film and
2021 for providing them the chance for
creative publication.
employment and self-employment. Among them,
22.68 lakh male and female youths became self- Renovation, preservation, survey and excavation
reliant through self-employment. 17.31 of the archaeological sites of the country is going
beneficiaries were given loan facility worth on in order to properly preserve the
Tk.2,066.38 crore from principal and revolving archaeological resources and artifacts of the
loan fund for taking up and extension of projects. country. In 2008, the number of antiquities
preserved in the country was 391. At present, it
Furthermore, to implement National Youth
has increased to 521. Under the South Asian
Policy 2017, Youth Action Plan has been
Tourism in Structure Development project at a
prepared and preparation of Youth Development
cost of Tk. 101.23 crore, cultural monuments
Index is in final stage.
have been developed in Paharpur Buddhist
Sports Development Monastery area of Naogaon, Mohasthangarh
Directorate of Sports is playing an effective role area of Bogura, Kantjiu Temple of Dinajpur and
in motivating the children, juvenile and youth sixty dome mosques of Bagerhat and adjoining
towards sports at grass root level. Comprehensive area. Renovation of Lalbagh fort and light and
training is being imparted to both male and sound show have been started at a cost of Tk.

13.32 crore. Baliati Palace in Manikganj has Libraries is to collect, organize, arrange and
been converted into a museum and opened to the supply books and textbooks as per the demand of
public. Memorial centers / collections of three the readers, and to provide e-books, periodicals
eminent personalities have been set up in 3 and other textbooks to the readers. 7 mobile
districts at a cost of Tk.8.93 crore. libraries are providing mobile library services at
the doorsteps of readers across the country.
Bangla Academy is working for cultural
enlightenment and conducts important activities To commemorate, congratulate and inspire those
including compilation of dictionary, research and who are fighting from the front against covid-19
publication in different areas as well as arranges in the country at the initiative of the Ministry of
book fair in the month of February and celebrates Cultural affairs, there is a TVC titled 'hobe Joy,
different significant days every year. Bangladesh Hey Nirbhay' in collaboration with Channel I and
Shilpakala Academy works for the development, a TVC titled 'Ke Acho Joan' has been built by
preservation, expansion and patronization of fine Bangladesh Shilpakala Academy under this
art, dramatic art, music etc. Syllabus-based ministry. Arrangements have been made to create
training workshops on vocal music, dance, and disseminate corona virus warning videos of
dramatic art, fine art and rhythm instruments is 14 prominent artists and drama personalities at
being conducted in Shilpakala Academy of 64 the initiative of the Ministry of Cultural affairs
districts. for awareness campaign.
Bangladesh National Museum is devoted to Religion
archaeological, classical, decorative and
Hajj pilgrimage to Saudi Arabia will be kept on
contemporary art, history, natural history,
hold this year like last year due to the
ethnography and world civilization. It has
continuation of the COVID-19 pandemic.
continued to collect different kinds of important
However, Hajj management is being ensured
archaeological artifacts from the remote areas of
through information technology including the
the country for the purpose of exhibiting
introduction of e-Hajj system to complete all the
hundreds of thousands of visitors to the museum.
functions of Hajj in the coming years. Upward
A project titled '1971: Construction of Genocide-
expansion and renovation of the Hajj Camp
Torture Archive and Museum Building' is
building are progressing fast to accommodate all
running at an estimated cost of TK.2,783.28 lakh.
service providers. 1,000 Imams have been
Nazrul Institute is working on art and literature of provided interest-free loans and 4,000 distressed
National Poet Kazi Nazrul islam. Nazrul Institute imams have got financial assistance in FY 2020-
published 37 books till now. 21 under the Imam and Muazzin Welfare Trust.
Welfare activities are being carried out in a
The main function of the Copyright Office is to
coordinated manner through Hindu, Buddhist and
preserve, prevent piracy and resolve copyright
Christian Welfare Trusts for the people of
disputes created by creative individuals in the
respective religions to ensure communal
country and internationally. The copyright
harmony and peaceful social order. A grant of
registration process has been automated.
Tk. 3.66 crore from the profits of the endowment
The Department of Public Libraries is the highest fund has been provided to 747
body for controlling government public libraries. churches/cemeteries/places of worship and
The main goal and objective of this department is religious institutions since the establishment of
to build a knowledge based society. One of the the trust.
major functions of the Department of Public

Development of Chattogram Hill Tracts years, the Ministry of Information and

Broadcasting has implemented 21 projects at a
The Chattogram Hill Tracts is an integral part of
cost of Tk. 81,073.60 lakh. The number of
our culture and heritage. The government is
ongoing projects of the Ministry of Information
working heartily for the development of the
and Broadcasting in the FY 2010-11 is 12. All
marginal people of the hill tracts. In FY 2010-11,
these activities were aimed of bringing about the
a total of 2,011 projects/ schemes have been
„unprecedented development of communication
taken in the three hill districts at a cost of Tk.
networking, including global media, in keeping
700.67 crore. The government arranges different
with the technological advancement and
types of development and technical projects for
excellence in the context of globalisation and that
the betterment of hilly people and their glorious
Bangladesh is going ahead in this development.
culture.
Sangsad Bangladesh Television started
Broadcast broadcasting on March 29, 2020 under the
Ministry of Information is one of the most headline „Amar ghore amar school' and „Amar
important publicity coordination departments of ghore amar madrasa' with the aim of continuing
the government. Information on all the the educational activities of secondary level
development activities of the government is students in covid situation. In addition, the
being sent to the top level of the government Ministry of Information and Broadcasting
including different print and electronic media broadcasts various awareness TVC /
from this ministry. The government is taking advertisements in various media on the Covid
various projects/activities for the modernisation situation.
and development of the media. In the last 10

CHAPTER THIRTEEN
POVERTY ALLEVIATION
Bangladesh has achieved an outstanding development in poverty alleviation during last decade as
a result of the dedicated efforts of the government and the proper and effective implementation of
various public and private development activities. According to household income and
Expenditure Survey (HIES) 2016, poverty rate declined to 24.3 percent in 2016, which was 40.0
percent in 2005. The Government has been working diligently to adopt and implement bold,
strong, people-centric and inclusive policies in poverty reduction. Bangladesh’s success in poverty
reduction through the pursuit of appropriate poverty reduction strategies, such as expanding
social safety nets for people vulnerable to poverty, financial incentives, encouraging micro-
savings, effective disaster risk reduction programmes and building resilience against the effects of
climate change, etc. has attracted the attention of global poverty alleviation experts. Besides,
different government and non-government institutions, autonomous bodies carry out various
activities including providing microcredit to accomplish the government’s efforts of poverty
reduction. In addition, the government offers allowances for widows, destitute women, old aged
people and so on. In FY 2020-21 a total of TK. 95,683 crore has been allocated in the revised
budget for ensuring social safety of the poor population. At present, the stagnation, though
temporary, caused by the ongoing corona pandemic, in global economic activity including that in
Bangladesh, has brought challenges to progress in reducing poverty reduction. A sum of TK.2,500
each has been provided to protect the selected 35 lakh poor families nationwide who faced sudden
unemployment and income loss due to the pandemic. Therefore, the poverty situation in
Bangladesh did not worsen to a scale of catastrophe during the pandemic. On the other hand, the
government is also taking effective and deliberate steps to address the potential impact of the
recent second wave of the COVID-19 pandemic on the country's poverty situation.
Poverty Situation in Bangladesh poverty line. The preferred scale of socio-

economic development may not be possible by
Poverty alleviation is one of the major
keeping a large portion of population below the
indications of the socio-economic development
poverty line. For this reason, poverty reduction is
of a state and society. As a result of collective
a major concern on the policy and development
efforts of the government and non-government
issues of the country. At present, the stagnation,
sectors, Bangladesh has achieved tremendous
though temporary, caused by the ongoing corona
development in poverty alleviation during the last
pandemic, in global economic activity including
few years by the government and private sectors.
that in Bangladesh, has brought challenges to
According to Household Income and Expenditure
progress in reducing poverty. However, the
Survey (HIES) 2016. Poverty rate declined to
timely incentive packages announced by the
24.3 percent in 2016, which was 40.0 percent in
government, such as payment of wages to export-
2005, According to the latest estimate poverty
oriented industry workers, provision of low
rate stood at 20.5 percent in 2019. The
interest working capital with interest subsidy to
government has set up a target to 8th Five Year
affected industry and services sectors including
Plan (2020-2025). Though, Bangladesh is ahead
the CMSMEs, cash support to the extremely
of many developing countries in poverty
poor, distribution of free and low cost food items,
alleviation, still approximately one-fifth portion
expansion of social safety net programs and
of total population of the country lives below the
Chapter 13- Poverty Alleviation | 209

providing housing facilities for the homeless 96 and renamed the title of the survey as
people, and job creation activities through Household Income and Expenditure Survey
specialised banks and Palli Karma Sahayak (HIES). The same method applied in the HIES‟
Foundation, have protected the working people in 2000-2016. This method also considered non-
from losing their jobs and the helpless poor from food consumption items for compiling poverty
starvation. index.
Measurement of Poverty Incidence in Trends of Poverty
Bangladesh
The latest HIES was conducted in 2016.
The first Household Expenditure Survey (HES) According to the result of this survey, with in
in Bangladesh was conducted in FY1973-74 and half an era, the incidence of income poverty
up to FY1991-92, few HES were carried out (measured by CBN considering the upper poverty
following the same strategies. HES‟ were line) declined almost 7.2 percentage points (from
accomplished by Food Energy Intake (FEI) and 31.5% in 2010 to 24.3% in 2016). During this
Direct Calorie Intake (DCI) method. According period, the compound poverty reduced per year
to this method, a man having calorie intake of 4.23 percent. On the contrary, the rate of income
less than 2,122 kilo-calories per day is considered poverty declined from 40.0 percent to 31.5
as absolute poor. Conversely, a man having an percent from 2005 to 2010. At that time,
intake of below 1,805 kilo-calories is measured compound poverty annually reduced by 4.67
as hard-core poor. The Bangladesh Bureau of percent. In rural areas poverty reduction rate is
Statistics (BBS) has adopted „Cost of Basic higher (4.68%) than urban areas (1.97%). The
Needs (CBN)‟ for HES for the first time in 1995- trends of poverty are depicted in Table 13.1.
Table 13.1: Trend of Income Poverty
Annual Change (%) Annual Change (%)

2016 2010 2005
(2010 to 2016) (2005 to 2010)
Head Count Index
National 24.3 31.5 -4.23 40.0 -4.67
Urban 18.9 21.3 -1.97 28.4 -5.59
Rural 26.4 35.2 -4.68 43.8 -4.28
Poverty Gap
National 5.0 6.5 -4.28 9.0 -6.30
Urban 3.9 4.3 -1.61 6.5 -7.93
Rural 5.4 7.4 -5.12 9.8 -5.46
Squared Poverty Gap
National 1.5 2.0 -4.68 2.9 -7.16
Urban 1.2 1.3 -1.33 2.1 -9.15
Rural 1.7 2.2 -4.21 3.1 -6.63
Source: BBS, HIES-2016
Household Income, Expenditure and consumption is that „consumption‟ excludes

Consumption lumpy expenditures like durable goods purchases
and some other expenditure such as payment of
The statistics of household nominal income,
tax, insurance, expenses of pilgrimage/hajj,
expenditure and consumption from the surveys
marriage and so on. However, „expenditure‟
1995-96 to 2016 have been provided in Table
includes all such expenses.
13.2. The difference between expenditure and

Table 13.2: Monthly Household Nominal Income, Expenditure and Consumption Expenditure by
Residence
Average Monthly (Taka)
Year of Survey Residence Consumption
Income Expenditure
Expenditure
National 15988 15715 15420
2016 Rural 13398 14156 13868
Urban 22600 19697 19383
National 11479 11200 11003
2010 Rural 9648 9612 9436
Urban 16475 15531 15276
National 7203 6134 5964
2005 Rural 6095 5319 5165
Urban 10463 8533 8315
National 5842 4881 4537
2000 Rural 4816 4257 3879
Urban 9878 7337 7125
National 4366 4096 4026
1995-96 Rural 3658 3473 3426
Urban 7973 7274 7084
Source: BBS, HIES-2016.
The Table 13.2 expresses that: level. In 2016 rural expenditure was Tk.
14,156 which is higher than rural income
 Household nominal income, expenditure and (Tk. 13,398). This incidence occurred for
consumption expenditure have been the first time in the history of Bangladesh.
increased gradually  In a general analysis it is found that since
 In 1995-96, the monthly household nominal 1995-96 the increase rate of expenditute and
income was Tk. 4,366; which boosted up consumption expenditue is higher than that
3.66 times and rose to Tk. 15,988 in 2016. of income.
Like income, expenditure and consumption
expenditure have also raised to a continuous Deciles Distribution of Income and Gini Co-
speed. In 1996, household monthly efficient
expenditure was Tk. 4,090 which increased
According to the surveys conducted in 2010 and
to Tk. 15,715 in 2016. The increase has been
3.84 times. 2016, the ratio of income by deciles groups and
 The average monthly household expenditure Gini co-efficient in rural and urban areas are
was also increased both at rural and urban presented in Table 13.3.
Table 13.3: Percentage Distribution of Income Accruing to Households in Groups (Deciles) at
National Level and Gini Co-efficient
Household Income Group 2016 2010
National Rural Urban National Rural Urban
100.00 100.00 100.00 100.00 100.00 100.00
Lower 5% 0.23 0.25 0.27 0.78 0.88 0.76
Decile-1 1.02 1.06 1.17 2.00 2.23 1.98
Decile-2 2.83 2.99 3.04 3.22 3.53 3.09
Decile-3 4.05 4.36 4.1 4.10 4.49 3.95
Decile-4 5.13 5.52 5.00 5.00 5.43 5.01
Decile-5 6.28 6.58 6.15 6.01 6.43 6.31
Decile-6 7.48 7.89 6.88 7.32 7.65 7.64
Decile-7 9.06 9.52 8.88 9.06 9.31 9.30
Decile-8 11.25 11.80 10.4 11.50 11.50 11.87
Decile-9 14.86 15.51 13.47 15.94 15.54 16.08
Decile-10 38.09 34.78 41.37 35.85 33.89 34.77
Top 5% 27.82 24.19 32.09 24.61 22.93 23.39
Gini Co-efficient 0.482 0.454 0.498 0.458 0.431 0.452
Source: HEIS, 2016.

Through a common analysis of Table 13.3, it is 2016 compare to 2010. It was 0.23 percent in
observed that- HIES 2016 whereas 0.78 percent in 2010. The
income share of top 5 percent households
 Despite 50 percent of the total population increased 3.21 percent in 2016. Above all,
belongs to decile-1 to decile-5, the income Gini co-effcient increased in 2016 than in
share of the households jointly shares only 2010.
19.27 percent of total income, Conversely, the
share of these five deciles was together 20.33 Deciles Distribution of Consumption and Gini
percent of total income in 2010. This points Co-efficient
out that share of income by the lower five The Table 13.4 points out deciles distribution of
deciles comprising lower 50 percent people is
1.06 percent lower in 2016 than that of 2010. consumption of HEIS 2016 and 2010 by
 The percentage share of income of the lowed residence for the surveys.
5 percent households slightly decreased in
Table 13.4: Deciles Distribution of Consumption by Residence HIES 2016 and 2010
Household Expenditure Group 2016 2010
National Rural Urban National Rural Urban
Total/ Deciles 100.00 100.00 100.00 100.00 100.00 100.00
Decile-1 3.7 4.00 3.44 3.85 4.36 3.40
Decile-2 4.94 5.28 4.75 5.00 5.57 4.66
Decile-3 5.80 6.14 5.67 5.84 6.41 5.54
Decile-4 6.64 6.96 6.55 6.63 7.22 6.42
Decile-5 7.51 7.81 7.51 7.48 8.03 7.37
Decile-6 8.54 8.79 8.60 8.48 8.97 8.48
Decile-7 9.84 9.94 10.07 9.73 10.01 10.01
Decile-8 11.59 11.58 11.91 11.49 11.63 12.03
Decile-9 14.61 14.15 15.26 14.59 14.07 15.06
Decile-10 26.83 25.35 26.23 26.90 23.63 27.03
Gini Co-efficient 0.324 0.300 0.330 0.321 0.275 0.338
Table 13.4 discloses that- 2016). On the other hand, in the urban area
a small reduction of Gini co-efficient
 Consumptions of families belonging to occurred in 2016 compared to 2010 (0.330%
deciles 1, 2, 3 and 10, reduced a little in in 2016 whereas 0.338% in 2010).
2016 than 2010. Conversely, consumptions
of other deciles groups increased slightly. Head Count Ratio (HCR) on the Basis of CBN
 There is slight increase but not significant Method in 8 Divisions
change of Gini co-efficient of consumption
The head count ratio of incidence of poverty in
in 2016 with respect to 2010.
 In the rural area, Gini co-efficient increased eight administrative divisions using CBN method
a little (0.275% in 2010 whereas 0.300% in is described in Table 13.5
Table 13.5: Division wise Incidence of Poverty (HCR) by CBN Method (in percentage)
Divisions 2016 2010

Using the Upper Poverty Line
Total Rural Urban Total Rural Urban
Dhaka 16.0 19.2 12.5 30.5 38.8 18.0
Sylhet 16.2 15.6 19.5 28.1 30.5 15.0
Chattogram 18.4 19.4 15.9 26.2 31.0 11.8
Barishal 26.5 25.7 30.4 39.4 39.2 39.9
Khulna 27.5 27.3 28.3 32.1 31.0 35.8
Rajshahi 28.9 30.6 22.5 29.8 30.0 29.0
Mymensing 32.8 32.9 32.0 - - -

Divisions 2016 2010

Using the Upper Poverty Line
Total Rural Urban Total Rural Urban
Rangpur 47.2 48.2 41.5 42.3 44.5 27.9
Using the Lower Poverty Line
Dhaka 7.2 10.7 3.3 15.6 23.5 3.8
Chattogram 8.7 9.6 6.5 13.1 16.2 4.0
Sylhet 11.5 11.8 9.5 20.7 23.5 5.5
Khulna 12.4 13.1 10.0 15.4 15.2 16.4
Rajshahi 14.2 15.2 10.7 21.6 22.7 15.6
Barishal 14.5 14.9 12.2 26.7 27.3 24.2
Mymensing 17.6 18.3 13.8 - - -
Rangpur 30.5 31.3 26.3 27.7 29.4 17.2
Table 13.5 indicates that,  Urban poverty in Sylhet and Chattogram

division increased in 2016 though the average
 Except Rangpur division poverty rate reduced
poverty rate decreased compare to 2010.
in all other division in 2016 compare to 2010.
 Rangpur division has the highest incidence of Projection of Poverty Alleviation
poverty at 47.2 percent. On the other hand, According to „House Hold Income Expenditure
Dhaka division has the lowest incidence of
Survey (HIES)-2016, the country‟s poverty rate
poverty at 16.0 percent.
is 24.3 percent. According to the 8th Five Year
 Incidence of poverty has appreciably declined
Plan, it has been projected to reduce poverty at
in Dhaka division compared to other
15.6 percent by 2025 on the basis of upper
divisions. The reduction rate is almost half
poverty rate and 7.40 percent on the basis of
(16% in 2016 from 30.5% in 2010).
extreme poverty rate. The Table 13.6 depicts the
 In Barishal, Khulna and Sylhet division,
projection of decreasing poverty rate during the
poverty rate is higher in urban areas than rural
areas and 8th Five Year Plan.
Table 13.6: Projection of Poverty Alleviation during 8th Five Year Plan
Poverty Line 2021 2022 2023 2024 2025
Reduction of Moderate Poverty
Poverty Elasticity to GDP - - 1.20 1.20 1.20
Upper poverty line
23.0 20.0 18.5 17.0 15.6
(% of population)
Reduction of Extreme Poverty
Poverty Elasticity to GDP - - 1.40 1.40 1.40
Upper poverty line 12.0 10.0 9.10 8.30 7.40
(% of population
Source: General Economics Division. Planning Commission.
Sustainable Development Goals (SDGs) and Chief Co-coordinator of SDGs Affairs has been
Bangladesh appointed in the Prime Minister‟s Office in order
to effective review of this agenda. General
The United Nations declares „Sustainable
Economics Division (GED) of Planning
Development Goals (SDGs) for 2016-2030
Commission plays the secretarial role of all types
period. It is also known as „Agenda 2030‟. A
of SDGs programmes.

For effective implementation of SDGs, GED has targets of SDGs during the 8th FYP and until
preparing „Mapping of Ministries by Targets in 2030. The latest publication about SDGs is
the Implementation of SDGs aligning with 8th Sustainable Development Goals: Bangladesh
Five Year Plan‟. According to this publication 40 Progress Report 2018 and 2020. This book is the
Ministries/Divisions including PMO and Cabinet first formal report on implementation progress of
Division have been identified as lead SDGs in Bangladesh. In this report the goal wise
Ministries/Division to 169 targets of SDGs. progress has been described. On the contrary, the
Another book „Data Gap Analysis for measuring challenges on implementing the targets have been
the performance of Sustainable Development identified with way forward.
Goals‟ to identify the data gap required for
On-going Social Safety-net Programmes
implementing and monitoring the SDGs.
The government has been continuing the social
A book titled „SDG Financing Strategy:
safety net programmes with a view to alleviating
Bangladesh Perspective‟ has been published to
poverty through improvement of socio-economic
estimate the resources needed for implementing
condition of the ultra-poor.
SDGs. In addition to that, „National Monitoring
and Evaluation Framework of SDGs: Bangladesh The government has adopted the life cycle
Perspective‟ has been formulated for monitoring approach of social safety net. In FY 2020-21 a
and evaluating the implementation of SDGs. total of Tk. 95,683 crore has been allocated in the
Moreover, „National Action Plan of Ministries/ revised budget for social safety net programmes.
Divisions by Targets for the Implementation of The allocation is 17.75 percent of the budget and
SDGs‟ has been published by GED. The plan 3.10 percent of GDP of the same fiscal year. The
will act as a guideline for the Ministries/ budget allocations of FY 2019-20 and FY 2020-
Divisions to determine the types of projects/ 21 depict in the Table 13.7.
programmes which will be needed to achieve the
Table 13.7: Allocation Pattern of Social Safety-net Programmes and Social Empowerment
(In Crore Taka)
Programmes 2019-20 (Revised) 2020-21 (Revised)
Various allowances 33047.81 33191.15
Food Security and Employment Generation Programmes 15564.11 14822.48
Stipend Programmes 2526.08 6761.64
Cash/Transfer of Materials (Special Programmes) 9154.40 13494.70
Credit Support Programmes 1086.50 9286.82
Assistance for Special Communities 514.90 558.14
Various Funds and Programmes 3098.50 1833.33
Ongoing Development Projects/programmes 16583.97 12452.37
New Projects/Programmes 288.39 3282.30
Total 81865 95683
The current situation, the total budget allocation  A total of TK. 2,500 each has been provided
under 23 incentive packages announced by the to protect the selected 35 lakh poor families
government to address the covid-19 fallout TK. nationwide who faced sudden unemployment
1,28,441 crore and the number of beneficiaries and income loss due to the pandemic. In
addition, To protect the livelihood of the poor
are 5,81,15,211 (up to April,2021). Notable
during the second wave of the virus-surge,.
activities undertaken for the implementation of 2,500 Tk. has been provided to each family
incentive package under social safety net who were previously identified during the
activities are as follows: first wave.

 Food has been provided for the poor who have Old Age Allowance Programme
suddenly become unemployed due to the
This programme is initiated in 1997-98. In the
outbreak of the corona virus. To this end, a
total of TK. 4 lakh MT of rice and 1 lakh MT beginning, 5 men and 5 women per ward were
of wheat has been distributed free of cost paid Tk. 100 the number of beneficiaries and
across the country as assistance. Besides, rice allowance rate has been increased gradually. Poor
has been sold to low income people at TK. 10 and risky elderly people, in case of men who are
per kg. 65 and in case of women who are 62 will be
 Initiatives has been taken to construct 81,643 under this programme. The number of
houses for the homeless across the country, beneficiaries has been increased from 44 lakh to
out of which a total of 66,898 houses has been
49 (lakhs) in the FY 2020-21, who will receive
completed by April, 2021.
Tk. 500 as monthly allowance.
 In the poorest 112 upazilas in the country, the
coverage of Old Age Allowances Programme, Allowance Programme for Widow, Deserted
Disability Allowances Programme and and Destitute Women
Widow Deserted and Destitute Women
Programme has been increased 100 percent. In order to protect and empower the poor, risky
 A total of TK. 60 crore has been paid to 132 and disadvantaged women, the government of
families of those who were directly engaged Bangladesh introduced the 'Widow and Husband
in enforcing government‟s covid-19 measures. Deserted Women Allowance' programme in
 The target was to provide interest subsidy of 1998-99. Initially, under this programme, 4.03
TK. 2,000 crore against loans distributed by lakh women received Tk. 100 as monthly
all commercial banks to various affected allowance. The number of beneficiaries has been
business. As of April 2021, TK. 1,390 crore
increased from 17 lakhs people to 20.50 lakhs in
has been disbursed.
FY 2020-21, who are receiving Tk. 500 as
A total of TK. 3,936 crore has been disbursed till monthly allowances.
April, 2021 under the TK. 5,000 crore Maternity Allowance for Poor Mother
agricultural refinancingscheme set up to facilitate This programme introduced as social safety-net
farmers to get loans. Another refinancing scheme programme in FY2007-08 in order to provide
of TK. 3,000 crore has been launched for small financial assistance to the poor mother. It not
income farmers and traders in the agriculture only gives allowance facilities but also arranges
sector and as of April 2021, TK. 1,772 crore has different types of awareness building training
been disburse related to health and nutrition. Earlier, a poor
Cash Transfer under Social Safety-net mother gets Tk. 500 each month under this
Programmes programme. From the FY2018-19, the allowance
increases into Tk. 800 per month. The number of
The government provides cash transfer under beneficiaries are 7.20 lakh in FY 2020-21.
social safety-net programme along with food
assistance, food for work, OMS and so on. In FY Working Lactating Mother Assistance Fund
2020-21 an amount of Tk. 33191.15 crore has This programme started since FY2010-11 with a
been allocated in the revised budget for Various view to providing financial assistance to the
allowances programmes. Some selected cash urban poor working lactating mothers.
transfer programmes under the overall social
Under this program, activities are underway to
safety-net programmes are described in brief
increase the awareness and nutritional status of
below:
low-income working mothers and their infants in
the urban areas and to get involved to the
mainstream of development through socio-

economic self-sufficiency. By providing an amount of Tk. 444.68 crore has been allocated
allowances and awareness training under the for this programme. Those programmes will play
program, beneficiaries have largely been able to a significant role in improving the quality of
avoid maternal mortality risk and meet nutritional living standard and health care of the war
deficiencies. Under this programme a total of wounded and martyrs freedom fighters‟ families.
7,58,402 person‟s has been provided to
Training and Microcredit Programme for the
allowances and awareness training in FY2020-
Freedom Fighters and their Dependents’ Self-
2021.
employment
Honorarium Programme for Freedom
This programme has been implemented to
Fighters
provide skill development training to the
The government has been working relentlessly insolvent freedom fighters and their dependents.
for improving the lifestyle of freedom fighters, It improves the living standards and creates
the heroes of the nation. At present, a freedom employment opportunities for them. Microcredit
fighter gets Tk. 12,000 per month as honorarium. is delivered to them with a view to creating self-
Moreover, the government also increases the employment by utilising the training skill. From
honorarium of the title holder freedom fighter. FY 2003-04 to FY 2019-20, a total of Tk. 39.00
Currently, the government provides Tk. 35,000 to crore allocated for this programme as revolving
the Birshrestha, Tk. 25,000 to Biruttom, Tk. fund. In FY 2019-20, Tk. 1 crore earmarked for
20,000 to Birbikram and Tk. 15,000 to the this programme. Moreover, it has been estimated
Birprotik per month as honorarium. to distribute Tk. 7.00 crore as loan and to recover
Tk. 10.00 crore during the current fiscal year
Furthermore, in FY2018-19, every Freedom
under this programme.
Fighter who is alive has been given Tk. 5,000 as
Victory Day Allowance and for all Freedom Allowance for the Financially Insolvent
Fighters, 20 percent of the honorarium has been Disabled Citizens
given as Bangla New Year allowance. In FY
The Government of Bangladesh is implementing
2020-21, a total of Tk. 3,294.16 crore has been
a multi-faceted programme under the Social
allocated for this programme. Presently a total of
Security Programme through the Ministry of
1,92,080 Freedom Fighters or their dependents
Social Welfare to establish the constitutional
from all districts have been given the monthly
rights of persons with disabilities and to
honorarium being distributed electronically
implement national and international
through G2P.
commitment. Under this programme, an
Honorarium and Medical Allowance for allowance was given at the rate of Tk. 200 to
Injured Freedom Fighters and Shaheed 1,04,166 disabled people. The number of
(Martyr) Families beneficiaries has increased from 15.45 lakh to 18
lakh in FY2020-2021 who are receiving 750 tk.
The government is also working for the welfare
as monthly allowance.
of the family of martyrs and war-wounded
freedom fighters. Separate programmes have Stipend for the Disabled Students
been initiated for the treatment and honorarium
With the aim of ensuring education for the
of martyr‟s family and war-wounded freedom
children with disabilities that they can participate
fighters. This programme was introduced with a
in national development through higher
view to improving living standards and retains
education, the Government launches 'Education
the sound health of the wounded freedom fighters
Scholarship Programme for Students with
and member of shaheed families. In FY 2020-21,
Disabilities' through the Ministry of Social

Welfare in the FY 2007-08. Initially, Under this Programme for Improving the Livelihood of
programme allocation was for 12,209 person, Transgender (Hizra) People
stipends is being provided at the primary,
The government works for the transgender
secondary, higher- secondary and higher levels at
(Hizra) people, the neglected community of the
monthly rates of Tk. 750, 800, 900 and 1300.
society. In FY2012-13, the government started
The number of beneficiaries are 1 lakh in the FY
this programme at seven districts as pilot basis.
2020-21.
Now, the programme is executing whole of the
Capitation Grant for Non-government
country. In FY 2020-21, a total of Tk. 5.56 crore
Orphanage
has been allocated for this programme. It is
The government allocates capitation grant for the estimated that 5,745 transgender people directly
non-government orphanages. Capitation grant is benefited through this programme.
provided for up to a maximum of 50 percent
Programmes under Food Assistance:
orphans in a private orphanage registered by the
Department of Social Services. A grant of Tk 120 Food Friendly Programme: In 2016, the
crore is provided to 1 lakh residents during FY branding program of Honorable Prime minister
2020-21. ''Food Friendly Programme'' was launched.
Under this programme, 50 lakh ultra-poor
Development of the Living standards of the
families (Widows, elderly, women led family,
gypsy community:
women led downstream poor families) living in
During the period 2012-13, the programme the union level are enlisted. The families enlisted
started to improve the standard of living of the in this programme are distributed 30kg rice per
people of Gypsy, Dalits and Harijans by month in the workless month/lean season at Tk.
transforming them into skilled manpower. The 10/kg. In the current FY 2020-2021, 4.87 lac MT
programme was implemented in seven districts of of rice have been distributed under this
Dhaka, Chattogram, Dinajpur, Patuakhali, programme.
Jessore, Naogaon and Habiganj districts as a
Initiatives Open Market Sale (OMS)
pilot project, respectively. Now this programme
is being implemented in 64 districts. The amount This programme is initiated to ensure the food
allocated in FY 2020-21 is about 9.23 crore and security of the low income people. As a result,
the total number of beneficiaries are 10,098 . people of low and limited income can purchase flour
and rice. In FY2020-2021 (February, 2021), 0.79
Development of the Living standards of the
lakh MT of rice and 2.16 lakh MT of flour have been
backward community:
distributed.
The present government has taken various
Distribution of Fortified Rice under
activities to improve the quality of life of the
Vulnerable Group Development: Ministry of
backward people to integrate them into the
Food started the distribution of Pushti Chal or
mainstream of society. From the FY2012-13 to
fortified rice from the first half of 2014 in Five
the next FY2018-19, development programmes
(05) upazilas of three districts. Especially for the
of the Gypsy and the backward people were two
Distinguished Community Development as well
together. The programme is separated from the
as for the vulnerable people through Vulnerable
FY 2019-20 and is being run as a separate
Group Development (VGD) programme in
programme called „Living standards development
collaboration with Ministry of Women and
programme for the backward people‟. In FY
Children Affairs with the support of the World
2020-21, a total of Tk. 57.87 crore has been
Food Program. On the occasion of the golden
allocated for this programme.
jubilee of independence, Fortified Rice will be

distributed in 170 upazilas including 70 new programme 52,236 metric tons of food grains
upazilas under the VGD program in 2021. have been distributed. 4,67,550 packets dry food,
TK. 1, 60,000 for baby food and TK. 3,36,000
Besides, Fortified rice kernels are mixed with
for cattle fodder have been distributed.
powdered vitamin-A, vitamin-B-1, vitamin B-12,
folic acid, iron and zinc to meet the micronutrient Employment Programme for Ultra-Poor
requirement of vulnerable people. In 2021, On
In FY 2009-10, the activities started in the whole
the occasion of the golden jubilee of
country by giving preference to the poorest and
independence, fortified Rice will be distributed in
workable people of rural areas. The objective of
150 upazilas including 50 new upazilas in Food
the programme is to: (a) Increase employment
Friendly Program (FFP).
and purchasing power for the poorest
Food For Work (Kabikha) and Taka For unemployed people in Bangladesh; (b) Create
Work (Kabita) Programmes: wealth for the population and the country in
general; and (c) Improve infrastructure and
Ministry of Disaster Management and Relief
communication development, proper
conducts these programme. This programme has
maintenance and development of environment. In
been operating for rural infrastructure renovation.
FY 2020-21, allocation of Tk. 1,650 crore has
A total of Tk. 660.03 crore has been allocated for
been received of which TK. 825 has been
this programme in the FY 2020-21.
allocated to the field administration as first phase.
Vulnerable Group Feeding (VGF) Programme
Ongoing Programmes/Projects under the
Generally, this assistance is provided to the Social Safety-net
families affected by the disaster after the disaster
A total of 54 projects/programmes are
has been restored. This assistance is provided to
implemented in FY 2020-21 for poverty
every family for 20 to 40 kg monthly 2 to 5
reduction under social empowerment sector.
months. Poor people also get VGF help at
Among these 47 are running projects/
various religious festivals. In FY 2020-21,
programmes, the rest 7 are new projects/
1,00,068.69 MT food grains have been
programmes. An amount of Tk. 12,276.01 crore
distributed for this programme.
has been allocated to implements these projects.
Test Relief (TR) programme Brief descriptions of some projects/ programmes
In FY 2020-21, an amount of Tk. 556 crore has of social safety-net are given below:
been allocated under this programme. Out of this, Ashrayan-2 (Poverty Alleviation and
a total of Tk. 278 crore in the first phase and Tk. Rehabilitation) Project
278 crore in the second phase has been allocated.
Ashrayan project was commenced in 1997 for
Emergency Humanitarian Assistance rehabilitating the landless, homeless and rootless
Programme (GR, Blanket, Coriander, Dry families. A number of 1,67,548 landless, rootless
Meal and Dates: Under this programme, in FY and homeless people have been rehabilitated
2020-21 a total of 29,192 bundle C.I. sheet and through Ashrayan project through construction of
Tk. 8,75,76,000 have been distributed for the barrack houses and a number of 1,53,815 houses
construction of houses of the distressed and have been built on one‟s own land. A total of
helpless family members. A total of TK. 3,64,346 families have been rehabilitated through
42,52,50,000 has been allocate for purchase of Ashrayan project. On the occasion of Mujib
blanket for prevention of cold in winter season. Year, in the first phase, a two-room semi-pucca
Under GR (Cash) programme, a sum of Tk. house for 66,189 families have been constructed
18,64,32,562 was provided and under GR (Rice) (title deed jointly in the name of both husband

and wife) allocating of 2(two) dcml of programme among the disaster affected loan
government khas land. At the same time, 3,715 receivers.
families have been rehabilitated in 743 barrack
Poverty Alleviation Activities of Rural
houses. Providing homes for 69,904 families has
Development and Co-operative Division
become a rare history.
The Rural Development and Cooperative
According to future plan a massive work of
Division (RDCD) has formulated short and
constructing houses for the landless and homeless
medium term action plans for poverty reduction.
families will be started just after the list of
These are formulated according to the guidelines
landless and homeless families are finalised.
of „National Rural Development Policy-2001‟.
Grihayan Tahabil Activities of few projects relate to poverty
alleviation and social safety-net as well as
Grihayan Tahabil was launched in FY1997-98
actions of few Departments/Foundations under
considering the housing problem along with
Rural Development and Co-operatives Division
reducing poverty of homeless poor and low
are discussed describe below:
income rural people. Bangladesh Bank
coordinates the whole activities of the Amar Bari Amar Khamar
programme. Grihayan Tahobil provides Tk.
‘Amar Bari Amar Khamar’ (My House My
1,30,000 as housing loan for each house.
Farm) is a permanent poverty model. The project
Bangladesh Bank allows loan to the
is being implemented to build every home as a
implementing NGOs at a simple interest rate of
center of economic activity. People having land
1.50 percent and the NGOs provide loans to the
up to 50 decimal, those who live in the
beneficiaries at the rate of 5.50 percent interest.
hilly/char/backward localities having maximum
The recovery period is 3 to 10 years. 616 NGOs
one acre of land are the target group of the
are executing this programme at 404 upozilas of
project. The objective of sustainable development
64 districts. Up to February, 2021, Tk. 417.24
goals is to reduce all types of poverty
crore has been disbursed under this programme.
everywhere, as part of SDG‟s „Mission-1 and
In total 88,105 houses have been built and
„Mission-2‟ to free from hunger, food security
4,40,525 rural poor people have directly
and improved and expansion of sustainable
benefitted through this programme.
agriculture' and 'Mission-5' 'Gender Equality,
The project not only constructs home for the Empowerment of women and girls‟. The project
homeless people but also finances to build is being implemented in every ward of all unions
dormitory/ hostel for female workers especially of all the districts of the country.
for the garment workers. A 12 storied hostel for
The special feature of the project is to increase
the poor female workers has been constructed at
agricultural and non-agricultural production,
with a cost of Tk. 24.61 crore at Ashulia, Savar
income and employment opportunities by the
through financial assistance of Grihayan Tahabil.
beneficiaries and their sustainable use of
As many as 744 women workers will get
sustainable capital. Up to February, 2021, in total
residential facility in this hostel. Moreover,
12,0465 Village Development Organizations
Grihayan Tahabil has sanctioned Tk. 2.00 crore
(VDOs) has been formed under this project.
to the „Ghore Phera Kormosuchi’ implemented
Almost 56.79 lakh poor people directly or
by Bangladesh Krishi Bank. Meanwhile, Tk. 25
indirectly have been benefitted through these
crore is sanctioned in favor of Ministry of Labor
VDOs.
for the construction of Labor Hostel/Dormitories
by Department of Labor. Moreover, a total of Tk. As a result of successful implementation of this
29.92 crore has been donated from this project, the project will play a vital role in

promoting poverty-free, middle-income crore and the working capital is Tk. 14,473.14
countries, by 2021, by ensuring permanent and crore.
sustainable poverty reduction of 56.78 lakh poor
Bangladesh Co-operative Insurance Limited‟ is
families of 2.83 crore beneficiaries.
established to ensure economic development and
The government has established and set up Palli security of the members of the co-operative
Shanchoy Bank (PSB) for managing and societies. At present, the number of members of
mobilizing permanent fund developed by the this association is 501. With a view to making
Village Development Organizations earlier co-operative activities fruitful and dynamic in the
formed under „Amar Bari Amar Khamar’ project. country the Department of Co-operative
Banking operation is being conducted through implement different projects/ programmes time
485 branches of 485 upazilas of the country. to time. At this moment two projects tilled
„Improved Breed dairy farming for livelihood
Comprehensive Village Development
development of disadvantage women‟ and
Programme (CVDP) 3rd Phase
„Expansion of Dairy Co-operative in
The project “Comprehensive Village Gangachara upazila for employment generation
Development Programme (CVDP)-3rd phase” is through milk and meat production‟ are
being implemented under Rural Development implementing by the department.
and Cooperative Division to reduce the level of
Bangladesh Rural Development Board
poverty and to improve the quality of life of the
(BRDB)
people in the poverty stricken area of rural
Bangladesh. During the project period (January, Poverty alleviation through the development of
2018 to December, 2021), a total of 14,30,163 the rural economy is one of the pledges in the
members of the cooperatives (both men and present government. To achieve this goal,
women) will be trained for different duration. Bangladesh Rural Development Board (BRDB)
Targeted output/physical targets of the project is working in the rural development programme.
are respectively: number of Society formation BRDB has successfully implementing 118
10,035 and number of member enrolment projects/ programmes.
14,50,000 Till February 2021, about 7,845
At present, BRDB is operating 5 ADP listed
Societies have been formed and 7,08,497
projects/ programmes regarding to poverty
members have been enrolled. A total of 1,49,412
alleviation and social empowerment. These are:
people have become self-employed under this
(a) Participatory Rural Development Project-3,
project.
(b) Employment Guarantees Scheme for the Poor
Department of Co-operatives of Northern Region (UDKONIK)-2nd phase; (c)
Comprehensive Village Development
Cooperative is a worldwide tested and recognized
Programme; (d) Poverty Reduction through high
medium for poverty alleviation and economic
valued nutritious Minor Crops production and
development. At present, the total number of
Marketing programme and (e) Gaibanda
registered cooperatives in the country is
Integrated Rural Poverty Alleviation Project. In
1,93,750. Among them, the number of primary
addition, BRDB implements 15
co-operative societies are 1,92,528, the central
projects/programmes related to poverty
co-operation number are 1,200 and the national
reduction, women empowerment and microcredit
association has 22. The total number of members
through its own fund. Up to February 2021,
of the cooperative societies are 1,15,38,665
BRDB cumulatively disburses Tk. 18,561.08
people, the share capital is about Tk. 1,801.39
crore. On the contrary, a total of Tk. 16,966.18
crore, the savings deposit amount is Tk. 8,444.88
crore has been recovered at the same period.

Bangladesh Academy for Rural Development the main land. Two GoB funded projects in the
(BARD) name of „Livelihood Improvement of the Poor
People in the Char Islands of Sariakandi and
Bangladesh Academy for Rural Development
Sonatola Upazilas under Bogura District‟ and
(BARD) Cumilla is the pioneer institution for
Project on „Poverty Reduction of Marginalised
training, research, action research and innovation
People of Kurigram and Jamalpur Districts‟ is
for rural development in Bangladesh. Since its
being implemented by the Academy to graduate
inception up to February 2021, BARD has
from poverty and ensure sustainable rural
conducted 8,697 training courses where 2, 96,368
livelihoods and food security of 41,000 people by
participants participated.
increasing the household income. And also
Since its inception in 1959 to December 2021, another action research project for restoration of
BARD has been carried out 739 researches. At agricultural land, ‘livelihood improvement of the
present BARD has been implement 14 projects rural community and construction of multi-stored
regarding to poverty alleviation, microcredit, building with modern urban facilities Palli
women education, nutrition development, Janapad’ Project is being implemented by RDA,
agricultural development and technology Bogura.
transfer.
On the other hand, in order to reduce
Rural Development Academy (RDA) Bogura groundwater depletion and water saving in
Rural Development Academy (RDA), Bogura agricultural production technology project is
established in 1974. The mission of the being implemented in 200 areas of 40 districts of
academy is to provide training, conduct the country with the funding of the entire
research, action research and offer advisory Government of Bangladesh. For increasing of
services. The academy arranges training agricultural cropping intensity through two-layer
courses on modern technology transfer, skilled agriculture with solar-powered irrigation system
development and human resource development. projects is being expanded in 32 districts of the
From March, 2020-February, 2021, RDA has country. In order to achieve the sustainable
accomplished training for 121 batches and a development goals of the government, two
total of 5,996 participants attended the training. separate rural development academies are being
From inception to February, 2021, the academy constructing in Rural Development Academy,
has organized attended by 5,74,873 Rangpur and Sheikh Hasina Rural Development
participants. Academy, Jamalpur under the supervision of
RDA, Bogura.
RDA in collaboration with Bangabandhu
Sheikh Mujibur Rahman Agricultural Palli Daridro Bimochon Foundation (PDBF)
University has launched a one year post PDBF operates 403 offices in 357 upazilas in 55
Graduate Diploma in Rural Development. districts. In order to create self-employment and
Already, 92 students have completed this increase financial capacity through income-
course. From March, 2020-February, 2021, the generating activities, loan assistance of Tk.
academy has done 16 research projects. On the 12,866 crore has been provided to the
other hand, until February, 2021 altogether 492 beneficiaries. PDBF's activities have directly and
research and 43 actions research projects have indirectly provided employment to approximately
been executed by RDA. 22 lakh people and about 65 lakh people have
Apart from those RDA has special focus on been benefited. About 97% of the beneficiary
Char Peoples. Because they are more vulnerable members of PDBF are women.
in all respect as the sandbars are isolated from

Small Farmers Development Foundation executes training on various income generating

(SFDF) activities on farming and off-farming sector for
self-employment of small and marginal farmers
The Foundation commenced in 2005 but started
and landless unemployed people. BAPARD
its activities in February 2007. At present the
conducted training for 43,372 participants of
activities of the Foundation and its project are
stakeholders as well as officials from its
being implemented through 173 upazila offices
inception on FY 2001-2002 to till FY 2020-2021
of 36 districts of the country. At the end of the
(up to February, 2021).
month of February, 2021 a total of 2,14,235
members have been enrolled through the 6,841 Bangabandhu Youth Credit programme
village centers of SFDF where women members
'Bangabandhu Youth Credit' programme has been
are 94 percent. The enrolled member is providing
adopted to generate employment opportunities
Microcredit and Microenterprise loan and trade
and to poverty alleviation on the occasion of the
based training to strengthen their income
birth centenary of the father of the nation the
generating activities. As SFDF providing strong
great Bangabandhu Sheikh Mujibur Rahman.
monitoring, loan and training support the
beneficiaries are being coming out from the Hon'ble Prime Minister Sheikh Hasina has
poverty level. Among the members an amount of termed the 'Bangabandhu Youth Credit'
Tk. 1,247.94 Crore has been disbursed programme as a startup programme. Under this
cumulatively as collateral-free credit support and programme, a detailed action plan has been
against that an amount of Tk. 1075.00 Crore has adopted and is being implemented to provide
been recovered through weekly and monthly loans to 2.00 lakh trained unemployed youth in
installment basis during the period. The recovery 2020 and 2021. Under this programme, an
rate of credit stands to 97 percent. The weekly amount of Tk. 685.97 crore have been disbursed
savings of the enrolled beneficiaries of the in favor of 45,281 entrepreneurs till February,
Foundation have been accumulated at Tk. 92.80 2021.
Crore as their own capital. Own Loan Programme of the Bank:
Bangabandhu Academy for Poverty Under the own loan programme, up to February
Alleviation and Rural Development 2021, the bank distributed an amount of Tk.
(BAPARD) 6,081.97 crore among 5,96,096 beneficiaries. On
Bangabandhu Poverty Alleviation Training the other hand, Tk. 5,984.37 crore has been
Complex established at Kotalipara upazila of recovered during this period.
Gopalgonj district in 1997. The mission of the  Microcredit Programme for Self-
complex is to improve livelihood by getting rid retired/Retrench Worker/Employees of
of poverty of rural people especially living in the Mills/Industries and Establishment
south-western part of the country. Later on, it According to the memorandum of
was renamed as `Bangabandhu Academy for understanding sign with the Ministry of
Poverty Alleviation and Rural Development Labour and Employment, the
(BAPARD)‟ in 2012. Karmasangsthan bank operates this
programme for reemployment of self-
BAPARD mainly conducts training and research retired/retrench workers/ employees of mills/
and arranges training programmes for industries. Up to February, 2021, a total of
government and non-government officials. It Tk. 111.03 crore has been distributed among
organises workshops, conferences and seminars 20,008 beneficiaries At the same time, the
related to rural development and poverty Tk. 102.18 crore has been recovered.
alleviation as well. Moreover, BAPARD

 Employment Programmes of 2,393 entrepreneurs who are involved in agro-

Karmasangsthan Bank: based industry directly benefited.
The government established Karmasangsthan
Bangladesh Bank Loan Programme
Bank in 1998 to create self-employment
opportunities for unemployed youths Karmasangsthan Bank has been operating this
especially, educated unemployed youths. The programme with the loan assistance of
bank provides loans to the youths with a view Bangladesh Bank since FY2015-16. Later on,
to involving them in productive and income
from FY2016-17, the bank commenced milk
generating programmes. At present, the bank
runs its activities through 255 branches across production and artificial insemination refinance
the country. scheme. Up to February, 2021 Tk. 771.75 crore
 Credit Programme for Agro-based has been distributed among 33,545 young
Industries entrepreneurs under this programme. Information
With the financial support of the Ministry of regarding to loan distribution and recovery of
Finance Karmasangsthan Bank has been Karmasangsthan Bank is presented in Table 13.8
conducting this programme. An amount of
Tk. 69.04 crore has been disbursed among
beneficiaries till February, 2021. As a result,
Table 13.8: Disbursement of Loan by Karmasangsthan Bank
(In Crore Taka)
Name of The Rate of Employment
Disbursed Recoverable Recovered Beneficiary
Programmes Recovery Creation
1 Bangabandhu Youth
685.97 71.78 70.50 98% 45281 163464
Credit programme
2 Covid-19 Credit
Assistance Programme
for proverty Alleviation 283.44 22.46 22.12 98% 17154 61926
and Employment
Generation
3 Own Credit Programme
(including SECP,
6081.97 6323.94 5984.37 95% 596096 2151907
Consumer and
Bangabandhu Juba Rin)
4 Special Programmes
a) Credit programme for
Self-retired/ retrenched
workers/ employees of 111.03 109.41 102.18 93% 20008 72229
Mills, Industries and
Establishment
b) Credit programme
for Agro-based 69.04 79.86 77.47 97% 2393 8639
Industry
c) Fisheries and
Livestock Loan
771.75 399.72 386.87 97% 33545 121097
Assistance Programme
of Bangladesh Bank
d) Staff loan and other
27.43 406.28 402.34 99% 5599 20212
loans
Total 8030.63 7319.21 6953.43 95% 720076 2599474
Source: Karmsangsthan Bank (up to February 2021)
Palli Karma Sahayak Foundation (PKSF) executes activities all over the country through its
278 Partners Organisations (POs). Nearly, 91
Palli Karma-Sahayak Foundation (PKSF) works
percent members of the POs are female. In the
for poverty alleviation, social safety-net and
first six months of the current financial year,
women empowerment in 1990. The foundation
PKSF disbursed BDT 2,179.09 crore to its POs

for various financial services. At the same time the important safety net programme of the
the borrowers level financial services of the POs present government. To create the opportunity
amounted to BDT 27,368.71 crore. Up to for women in employment sector or in productive
December 2020, cumulative financial assistance role, this programme is well recognized and
from PKSF to POs and POs to borrowers is BDT practicing in the country. This programme is
40,792.50 and 4,31,796.10 crore respectively. continuing from FY 2003-04 to FY 2020-21 up
PKSF approaches poverty eradication and to January, 2021 the total allotment is 53.53 crore
beyond poverty development in a manner that taka only and total Tk. 144.59 crore has
essentially invokes the basic tenets of the UN- distributed from the revolving fund among
adopted sustainable development approach. 1,42,174 poor women of 489 Upazila Women
PKSF has established a platform titled „People‟s Affairs offices in 64 District.
Voice: Strengthening the Implementation of
Microcredit Programme Monitoring through
SDGs in Bangladesh‟ to review the challenges
Microcredit Regulatory Authority (MRA)
pertaining to the attainment of SDGs. To attain
objectives, PKSF provides demand-driven The Microcredit Regulatory Authority (MRA)
financial and non-financial services to the poor was established in 2006. The prime
through its Partner Organizations (POs). At responsibility of the authority is to ensure
present IFAD Executive Board has approved an transparency and accountability of the
extension of the PACE project for two years (up microfinance institutions of the country. It also
to December 2022) and additional finance of regulates the microfinance institutions which are
USD 18.0 million under the project to mitigate operating their activities in the country.
negative impacts of the COVID-19 pandemic on MRA provides permission to run microcredit
the worst affected microenterprise sector. An activities. It also collect and preserve information
additional 1,68,000 entrepreneurs will be regarding microcredit programmes of all
receiving technical, technological and marketing government and non-government organisations.
assistance along with financial services in the National Database of microcredit is going to be
extended PACE project period. prepared in order to modernise the activities of
Besides, To cope the challenges posed by the MRA.
Covid-19 pandemic, the prime minister has Up to February, 2021, MRA issued licenses to
announced various stimulus packages to support 880 institutions to carry out microfinance
the affected people of the country–key among activities. On the other hand, the authority has
them is a fund worth BDT 500 crore sanctioned cancelled the certificate of 134 institutions for
in favour of PKSF. Using the fund, PKSF and its their failure of doing satisfactory function. Up to
partner organisations across the country have June 2020, the amount of loan and outstanding
been implementing a special and flexible credit savings of these institutions are Tk. 888.64 crore
programme titled „Livelihood Restoration Loan‟ and Tk. 373.9 crore respectively.
(LRL) to revive the lives and livelihoods of the
Covid-19 affected small and marginal farmers, Microcredit Activities of Major NGOs
entrepreneurs related to small and cottage The Non-govenment organisatons (NGOs)
industries, trained youth, unemployed youth and execute microcredit programmes along with the
migrant workers who returned home having lost government organisations.The NGOs mainly
their jobs. work for poverty alleviation, education, health,
Microcredit for Women Self-employment human resource development and so on. The
overall microcredit activities of 8 major NGOs
Micro-Credit activities for self- employment of are described below:
poor and distress Women programme is one of

BRAC contributes to establish justice and peace of the

society. Activities of SSS now spread out at 200
BRAC, the largest NGO of the world has great
upazilas of 32 districts of the country. 7.81 lac
contribution to the socio-economic development
are beneficiary families (among them 6.12 lakh
of Bangladesh. It is the biggest microcredit
families in financial service programme, 1.69
providing NGO of the country. It operates
lakh families in social programmes and 3.50
different types of programme through
thousand in disadvantaged children families)
microcredit. The activities which are being
cumulative credit disbursement of Tk. 25,924.67
implemented by BRAC relates to economic and
crore.
social development, health, education, human
rights and legal services, and disaster Shakti Foundation
management. In addition, Up to December, 2020,
This organization is engaged in providing
BRAC disbursed an amount of Tk. 2,86,879.81
microcredit facilities for the deprived women
crore. During this period in total 8,127,942
living in the slums of Dhaka, Chattogram,
people have been benefited out of which 84
Khulna, Cumilla, Bogura, Rajshahi and other
percent are female.
major cities and towns. Microfinance is the core
ASA programme of Shakti Foundation. Moreover, it
provides service for healthcare, business
ASA started its microcredit programme in 1991
entrepreneurship and social development of poor
as a specialised microcredit organisation. It’s
woman. Up to February 2021, an amount of Tk.
cost-effective and sustainable microfinance
11,573.56 crore has been disbursed and Tk.
programme has been recognised as a special
10,513.16 crore has been recovered by the
model of poverty alleviation. Up to February,
foundation.
2021, ASA distributed Tk. 2,40,471.99 crore
cumulatively among 6,955,551 beneficiaries TMSS
among them almost 90 percent are female.
TMSS has been implementing microcredit
BURO Bangladesh programme in order to make the poor people
self-employed by improving their socio-
BURO is implementing its activities through 482
economic conditions. It also works for expansion
upazilas of the country. It mainly works for
of business and increase the growth of
lower income groups. In FY 2020-21, BURO
production. TMSS implements credit programme
distributed Tk. 5296.5 crore as loan among
in 376 upazilas of 58 districts. Up to june 2020,
1,855,457 beneficiaries out of them 91 percent
Tk. 31,586.04 crore has been as microcredit
are female.
among 76,92,607 beneficiaries.
Caritas
Proshika
Caritas works for education and poverty
Proshika started its journey in 1976 from
reduction for marginal people. Up to December
Manikgonj with a view to removing poverty from
2020, Caritas disbursed Tk. 4,984.71 crore
society. Currently, it runs activities in 54
among 2,57,692 beneficiaries.
districts. Until February 2021, Proshika
Society for Social Services (SSS) distributes Tk. 7441.71 crore as loan and
Society for Social Service (SSS) works for 2,807,497 poor people get benefit from this
improving the socio-economic condition of NGO.The status of micro-credit programmes of
destitute and underprivileged people. It also the major NGOs is presented in the Table 13.9.

Table 13.9: Status of Microcredit programmes of Major NGO

Cumulative
NGOs 2014 2015 2016 2017 2018 2019 2020 ( Up to

December
2020)
BRAC
Disbursemen 15190.49 19298.28 24302.78 29317.13 35562.76 43171.58 38,426.29 286,879.81
t
Recovery 13281.72 171134.81 21563.66 26486.85 31551.41 38956.55 33,312.71 256,753.42
Beneficiaries 5510905 5957954 5957954 6483486 7114726 7496383 8,127,942 8,127,942
Female 4876445 5188206 5188206 5633121 6165119 6163392 6,827,96 6,827,496
Male 634460 769745 769745 850365 949607 1332991 1,300,446 1,300,446
*ASA
Disbursemen 14638.57 20905.68 26958.63 29681.42 29681.42 28368.31 25,215.57 240,471.99
t
Recovery 11795.32 17650.08 23515.37 28953.34 28953.34 29,104.35 24,262.06 226,650.51
Beneficiaries 6902024 7686255 7839119 7577355 7577355 6,828,698 6,766,906 6,955,551
Female 6319502 7033521 7171271 6930474 6930474 6,235,926 6,143,657 6,306,804
Male 582522 652734 667848 646881 646881 592,772 623,249 648,747
*BURO Bangladesh
Disbursemen 2362.85 2630.02 3951.54 5439.38 10460.50 9148.5 8220.4 5296.5
t
Recovery 2290.35 2355.88 3154.81 4604.82 8978.80 7095.3 717408 5414.9
Beneficiaries 1053035 1269411 1356572 1449085 1649923 1,662,689 1,963,060 1,855,457
Female 982474 1168945 1241687 1329719 1501564 - - -
Male 70561 100466 114885 119366 148359 - - -
Caritas
Disbursemen 297.35 317.16 380.45 448.52 483.20 542.16 458.49 4,984.71
t
Recovery 291.62 310.07 346.55 412.05 462.21 509.85 4,22.11 4,645.91
Beneficiaries 37897 29217 6619 2526 4070 2303 522 2,57,692
Female 22818 18421 7832 2429 2154 2619 153 223,263
Male 15079 10796 1213 97 1916 - 369 34,429
SSS
Disbursemen 1316.32 1686.26 1149.67 2762.50 3135.20 3354.17 3422.29 25924.67
t
Recovery 1229.33 1507.17 923.24 2317.68 3073.78 3089.0 3262.72 23361.27
Beneficiaries 473116 507295 579182 616585 600906 6,44,453 7,58,275 7,81,530
Female 462567 498518 568694 600529 585951 6,28,919 7,36,247 7,58,331
Male 10549 8777 10488 16056 14955 15,534 22,028 23,199
Male
SHAKTI Foundation
Disbursemen 618.65 745.79 1001.45 1175.03 1322.37 1765.68 1,214.19 11,230,72

Recovery
t 570.35 669.96 826.49 1017.02 1232.81 1507.48 1,226.60 10,245.48
Beneficiaries 496040 - - 521751 - - - 419,976
Female 47680 - - 507628 - - - 413,821
Male 16360 - - 14123 - - - 6,155
TMSS
Disbursemen 1894.49 2963.80 2623.98 3305.85 4245.03 4817.71 4391.31 35771.05
t
Recovery 1623.98 2540.42 2460.35 2918.28 3838.84 4480.41 4096.44 31948.72
Beneficiaries 564127 519118 459558 503942 576683 108360 861349 13491831
Female 544383 499910 441176 492722 568207 60972 784659 12891582
Male 19744 19208 18382 11220 8476 47388 76690 600249
Proshika
Disbursemen 222.42 219.51 178.02 255.75 351.18 539.52 6730.20 7441.71
t
Recovery 215.98 215.22 162.78 231.68 297.85 473.52 6446.21 7081.70
Beneficiaries 108590 92535 79119 110483 140471 240335 2807497 2,807,497
Female 76013 74215 53801 78443 103949 186266 1766529 1,766,529
Male 32577 18320 25318 32040 36522 54069 1040968 1,040,968
Source: Concerned NGOs. * Asa, *BURO Bangladesh, Tmss (According to Fiscal year), *Brac, *Caritas,*SSS (Acording to
calender year).*Asa ,*Buro Bangladesh,*SSS (Up to February, 2021),*Tmss(Up to March,2021).

Grameen Bank 2020, 93.37 lakh poor people of 81,678 villages

of 479 upzilas under 64 districts are involved in
Grameen Bank established as a specialised
the microcredit programme of Grameen Bank.
institution in 1983. Microcredit programme
The bank disbursed Tk. 236853.25 crore until
implemented by the bank for poverty reduction.
February, 2021 and recovered Tk. 222516.35
It works for poverty declination by creating self-
during the same period. The Table 13.10
employment of rural poor women through
describes the microcredit activities of the
providing microcredit to them. Up to December,
Grameen Bank.
Table 13.10: Microcredit Programmes of Grameen Bank
Cumulative
Item 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Up to February 2020
Disbursement 13890.24 16933.15 20789.11 24321.50 17044.92 20501.70 236853.25
Recovery 13534.36 15123.13 18270.13 22559.75 16694.02 20490.03 222516.35
Recovery Rate (%) 98.33 98.82 99.22 99.13 99.03 99.29 95.34
No. of Beneficiary 8681302 8853961 8915491 8986050 9132966 9313513 9394868
Female 8345610 8548060 860989 8689004 8834706 9013762 9090979
Male 335692 305901 305598 297046 298260 299751 303889
Source: Grameen bank
Microcredit Activities of Schedule Banks and 2 public sector specialised banks is presented
in Table 13.11.
The statistics of credit disbursement and recovery
of 4 State Owned Commercial Banks (SOCBs)
Table 13.11: Status of Microcredit Disbursement of SOCBs and Public Specialised Bank
( in crore Taka)
Cumulative
Name of the (Up to
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Bank February
2021)
Sonali Bank
Disbursement 668.99 1063.15 1041.00 1127.00 1187.30 1170.21 442.09 - 18756.48
Recovery 865.72 1166.91 1244.00 1178.00 1316.08 1267.90 552.33 - 20656.47
% of recovery 129.41 109.76 45.00 46.00 46.00 42.52 26.00 - 81.11
No of
245344 262149 229773 208432 291429 311058 109439 - 81,12,095
Beneficiaries
Agrani Bank
Disbursement 778.16 602.00 2120.50 1782.02 898 2748.77 3340.94 4159.00 3233.33
Recovery 830.35 528.00 3051.85 3007.86 996 1767.85 1429.30 3530.10 2034.67
% of recovery 104.03 87.71 74.00 67.00 88.00 64.31 62.00 72.11 58.77
No of
117236 132317 128850 92636 150139 30698 18780 23053 25712
Beneficiaries
Janata Bank
Disbursement 736.48 737.30 751.57 744.80 495.57 751.36 597.77 733.13 345.43
Recovery 525.54 641.35 698.91 691.23 490.23 678.57 570.85 722.42 276.44
% of recovery 71.36 86.99 93.00 58.00 99.00 48.00 51.48 61.07 36.64
No of
245288 548134 104563 551179 552392 753785 554545 547366 2117.20
Beneficiaries
Rupali Bank
Disbursement 16.63 12.17 11.44 19.95 105.50 612.31 44.11 1240.46 1319.40
Recovery 16.68 17.38 15.71 31.30 59.69 293.19 367.78 1299.28 1425.37
% of recovery 100.3 142.81 137.32 166.00 57.00 293.00 368.00 104.74 108.03
No of
13554 15849 15255 14886 30697 34731 35021 38323 42945
Beneficiaries

Cumulative
Name of the (Up to
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Bank February
2021)
Bangladesh Krishi Bank
Disbursement 73.70 100.49 96.56 57.61 31.15 72.11 44.80 37.82 2026.25
Recovery 51.38 109.37 106.77 52.04 21.13 66.49 27.50 31.35 1776.10
% of recovery 69.72 109.84 111.00 53.17 67.83 92.20 61.38 82.89 87.65
No of
28284 14919 16529 16044 7254 12080 7808 3240 1996725
Beneficiaries
*Rajshai Krishi Unnoyan Bank
Disbursement 39.04 38.23 24.88 12.73 25.67 22.94 22.94 2051.67 2105.11
Recovery 37.03 40.78 29.07 19.09 12.19 8.91 8.91 2142.40 1958.60
% of recovery 94.85 106.67 101.00 82.00 48.00 39.00 39.00 93 78
No of 1260
10480 3832 6695 6253 3930 3930 143168 129074
Beneficiaries 2
Total
Disbursement 2333.00 2553.34 4045.95 3697.22 2743.19 5377.70 4491.44 8222.08 27786
Recovery 2326.70 2503.79 5146.31 4996.51 2885.32 4082.91 2952.83 7725.55 28127.65
(%) of
99.73 98.06 96.22 84.80 105.18 75.92 65.74 93.96 101.22
recovery
Source: Concerned Banks.*Rajshahi Krishi Unnoyan Bank (Up to February, 21)
Microcredit Programmes of other microcredit programmes to reduce poverty and

Commercial and Specialised Banks create self-employment opportunities. The
information of eight commercial banks‟
Except the state owned banks other commercial
microcredit programmes is described in Table
and specialised banks are also carrying out
13.12.
Table 13.12: Microcredit Programmes of other Commercial and Specialised Banks
(in crore taka)
Number of Beneficiaries Disbursement

Commercial and Specialised (Cumulative progress Rate of
Banks Female Male Total up to February, 2021 ) Recovery (%)
Ansar-VDP Unnayan Bank 5,60,285 5,21,170 10,81,455 2409.65 96.47

*National Bank 3,568 77,409 80,977 32,346.63 76.00
Social Islami Bank Limited 11,485 25,568 37,047 207.17 98
*Uttara Bank Limited 1046 15318 16364 3261.22 57.36
BASIC Bank Limited 521972 130493 652465 1095.77 72.20
Total 1098356 769958 1868308 39320.44 -
Source *Uttara bank Limited (Up to February, 2020), * National Bank Limited (Up to December,2020).
Microcredit Programmes of Administrative the society. In order to sustaining the microcredit

Ministries/Divisions programmes for poverty reduction the
government emphasizes on developing small
The government has been implementing
entrepreneurs microcredit programmes of
microcredit programmes by different ministries,
different ministriess/divisions/departments are
divisions and agencies along with various social
presented in the Table 13.13.
safety net programmes to remove poverty from

Table 13.13: State of Microcredit of different Ministry/Division/Department
Cumulative
progress
Ministry Department/
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 (up to
/Division Division
February
2021)
BRDB
Rural
Development Disbursement 815.03 884.54 985.88 1065.73 1173.52 1252.26 1282.41 1055.31 18561.08
&
Cooperative Recovery 789.64 816.80 910.42 999.48 1106.12 1138.80 1241.32 1000.74 16966.18
Division Rate (%) 94.00 92.00 92.00 73.00 94.00 75.00 75% 67% 97%
PDBF
Disbursement 599.16 716.82 915.26 956.93 1156.28 1266.50 1309.73 1015.80 12866.04
Recovery 629.15 724.69 946.45 946.09 1178.35 1359.49 1379.86 1104.58 13442.78
Rate (%) 99.00 99.00 99.00 98.00 98.00 97.00 96% 96% 98%
Jatiyo Mohila
Ministry of Songstha
Women and
Disbursement 2.00 9.17 3.01 1.29 1.55 1.53 3.02 3.03 64.161
Children
Affairs Recovery 2.10 7.45 1.66 4.72 5.26 2.4 2.52 4.97 74.691
Rate (%) 105 81 55 365 337 158 133 164 -
*Ministry of Disbursement 3.4 5.56 7.00 7.98 8.61 9.33 9.00 9.00 92.36
Liberation Recovery 9.00 3.25 4.52 8.03 8.79 8.83 10.00 10.00 64.65
war Affairs
Rate (%) 264.70 58.48 64.57 100.62 102.09 59 50.00 50.00 84.00
SERWTCI
Ministry of Disbursement 11.94 10.40 9.35 8.65 7.82 6.42 3.43 2.97 9227.53
Industries
Recovery 11.18 10.46 9.33 105.6 7.81 6.53 3.70 3.10 9148.03
Rate (%) 93.00 100.00 99.00 99.00 100.00 101.00 - - -
Disbursement 7.32 3.02 7.50 6.70 6.79 6.62 - 167.42 3.25
Ministry of
Land Recovery 3.77 1.63 5.67 6.09 6.39 6.25 - 130.16 1.78
Rate (%) 51.50 53.97 75.58 90.90 94.11 94.41 76.10 77.74 65%
Bangladesh Handloom Board
Ministry of
Textile and Disbursement 1.84 2.65 4.03 3.42 4.10 3.60 3.51 0.57 74.593
Jute Recovery 2.66 2.39 3.16 3.43 4.23 3.25 3.56 2.11 60.38
Rate (%) 60.65 62.76 65.65 67.89 70.25 70.70 71.86 72.6 73.05
*Dept. of
Ministry of Youth
Youth and Disbursement - - 97.34 102.65 121.97 138.81 142.94 114.94 2066.38
Sports Recovery - - 89.73 99.29 109.94 117.16 132.91 105.08 1798.08
Rate (%) - - 92.18 96.74 90.12 84.40 92.98 84.75 87.02
*Cotton Development Board
Ministry of Disbursement 1.16 1.25 1.71 1.23 1.27 1.34 1.56 1.66 12.42
Agriculture Recovery 1.22 1.31 1.3 1.28 1.34 1,41 1.61 1.73 11.70
Rate (%) 105.06 104.77 103,96 104.46 104.92 104.59 103.07 104.35 94.20
*Cotton dept. board, Dept. of youth (Up to January,2021), *Ministry of Liberation War Affairs (Up to December 2020).
Source: Concerned Division/Department.

CHAPTER FOURTEEN
PRIVATE SECTOR DEVELOPMENT
The private sector is one of the driving forces of the country's economy. Along with the
government, the private sector has been playing an important role in the expansion of industry,
expansion of export sector and creation of employment. In order to achieve sustainable
development goals (SDG), it is necessary to invest in economic sector especially in industrial and
productive projects. The government is working for the overall development of investment
environment for the purpose of increasing domestic and foreign investment which relates to
development activities. Now, the government is implementing different development projects under
Public-Private Partnership (PPP) model along with individual projects under government and
private sector. In FY 2019-20 the investment proposal for 905 private projects were of Tk.
10,52,26.00 crore. On the other hand, in the first eight months of FY 2020-21 (till February 2021),
the proposal stood at Tk. 4,49,38.00 crore for 805 private projects. In 2020 (January-December),
the total foreign investment inflow stood at US$ 2,563.58 million, compared to US$ 2,873.95
million in 2019. Private sector is also working for bringing 100 percent populations under
electricity coverage by 2021. In the first seven months of FY 2020-21 (up to January 2021), a total
of 44,439 million kilowatt-hours of electricity was produced, out of which 45.76 percent had been
generated by private sectors. Bangladesh has achieved stable credit rating by Moody's (Ba3) for
the eleventh consecutive time and S&P (BB-) for the tenth consecutive time. The government
undertakes the schemes for the development of information and communication technology and
provides proper support both to the public and private sector in this regard. The government has
undertaken various development projects and program in order to ensure the use and application
of information and communication technology by increasing digital literacy at all walks of life.
The government is working relentlessly to form modern and developed Bangladesh by creating
employment of youths through introducing e-governance and e-commerce in knowledge and
technology-based industries.
In maintaining the trend of socio-economic (BIDA) as well as undertaken extensive reform

development and high growth in Bangladesh, the program to create congenial environment for
private sector is playing a very positive and private sector investment. BIDA is working to
important role along with the government. In FY achieve overall economic growth encouraging
2020-21, the total investment of GDP was 29.92 domestic and foreign investment in the private
percent, out of which 21.25 percent was from sector. For that purpose, BIDA is providing
private sector. The government is mainly necessary facilities and assistance to set up and
executing the public investment including the development of industries, infrastructure, agro-
infrastructure sectors through the Annual based industries and services including
Development Program (ADP), also play an administrative coordination and business-friendly
important role in private development. However, environment for use of government industrial or
private investment is very much necessary for commercial enterprises and their unused land in
sustaining the economic growth and providing more useful economic activities.
services to the doorsteps of the people. For this
reason, now the government has established
Bangladesh Investment Development Authority
Chapter 14-Private Sector Development | 231

Investment Climate activities on each Indicator and the reform

proposal has been implemented. In this regard, a
Doing Business report jointly published by the
National Steering Committee and a Ministry-
World Bank and IFC mainly reflects the
level Task Force have been formulated. The
investment environment of the countries of the
reforms initiated to improve the investment
world. This report exhibits information regarding
environment in pursuit of the goal of the Prime
position of business, protection of investors, ease
Minister‟s special initiative „Investment
of getting loan, ease of starting a business,
Development‟ is continuing to be implemented.
taxation system of different countries.
On the way to accelerate economic growth, the
Bangladesh has been named as one of the top 20
country‟s economy and investment environment
countries by the World Bank in 2020 in
are facing challenges due to the global pandemic
reforming the Ease of Doing Business indicators.
caused by the novel Coronavirus (COVID-19).
Bangladesh advanced 8 notches in global Ease of
With the onset of Coronavirus in the country, the
Doing Business ranking to 168th from 176th
government has taken various decisions to
position in reforms initiatives out of 190
encourage investment in tackling the crisis.
countries according to the Doing Business Report
2020 of World Bank. Among the individual Sovereign Credit Rating
indicators Bangladesh ranked 72th in terms of
Two famous international credit rating
protecting investors, ranked 119th in getting
organisations, Standard and Poor‟s (S&P) and
credit, 131th and 151th in starting a business and
Moody‟s included Bangladesh for the first time
paying taxes respectively.
in their sovereign credit rating in 2010. In 2010
The One Stop Service (OSS) is an online Bangladesh has achieved Ba3 rating by Moody's
facilitation mechanism that brings relevant and BB- rating by S&P. The two organisations re-
government agencies together to provide efficient evaluate the ratings every year. Bangladesh has
and transparent services to domestic and foreign achieved stable credit rating by Moody's (Ba3) for
investors. Investors, both local and foreign, can the eleventh consecutive time and S&P (BB-) for
obtain necessary licenses and permits required the tenth consecutive time. Another credit rating
for investment in the country through this institution, Fitch Ratings, has provided BB-
automated, paperless, and cashless system. As rating in eighth consecutive years which indicates
the prerequisite of the OSS Act, 2018, the “One stable economic growth and strong external
Stop Service (Bangladesh Investment sector of the economy.
Development Authority) Rules, 2020” has been
Actual Investment (Local and Foreign)
published on 10th May 2020 with the aim to
provide more than 154 services of more than 35 Actual Foreign Direct Investment - FDI
organizations. BIDA started the OSS portal The actual FDI Inflow statistics are collected and
system from 24 February 2019. Now a total of 41 compiled by Bangladesh Bank through half-
services of 11 organizations (including BIDA) yearly Enterprise Survey. In 2020 (January-
have been integrated with BIDA online OSS December), the total foreign investment inflow
system through a total of 25 MoU‟s signed with amount of US$ 2,563.58 million. Of this, the
25 organizations. equity is US$ 842.29 million, the reinvestment is
In order to bring Bangladesh's position in the US$ 1,566.12 million and The Intra-Company
Ease of Doing Business Index below 100 by Borrowing is US$ 155.17 million. Major
2021, the concerned Ministries and components of Foreign Direct Investment (FDI)
Departments/Agencies have initiated their are presented in the Table 14.1. Figure 14.1

shows the trend in FDI inflows from 2011 to 2020.

Table 14.1: FDI Inflow to Bangladesh by Components
(In Million US$ )
Components 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Equity 431.85 497.63 541.06 280.30 696.67 911.38 538.90 1124.10 803.70 842.29
Reinvestment 489.63 587.53 697.11 988.81 1144.74 1215.39 1279.42 1309.10 1467.35 1566.12
Intra-Company 214.90 207.40 360.99 282.17 393.98 205.95 333.24 1180.10 602.90 155.17
Borrowing
Total 1136.38 1292.56 1599.16 1551.28 2235.39 2332.72 2151.56 3613.30 2873.95 2563.58
Source: Statistics Department, Bangladesh bank. *Provitional up to December 2020.
Figure 14.1: Trend in FDI Inflow in Bangladesh (In million US$)
4000
3613
3500
3000 2874
2564
2500 2235 2333
2152
2000
1599 1527
1500 1293
1136
1000
500
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Source: Statistics Department, Bangladesh Bank.

*data upto Decomeber 2020
Actual Local Investment Imports of Capital Machinery

Actual local investment can be identified from The trend of capital machinery import is
import of machineries, raw materials and considered as one of the major indicators of
increase of investment in the existing projects. industrialisation in near future. Capital equipment
Nearly 65 percent of local investment worth US$ 2,225 million has been imported in the
recommendations have been implemented or are FY 2020-21 (up to February 2021). In FY 2019-
at different stages of implementation. 20 this amount was US$ 3,581 million. The Figure
14.2 shows the trend of capital equipment import
from FY 2011-12 to FY 2020-21.

Figure 14.2: Trend in Capital Machinery Import (In million US$)
6000
5462 5413
5000
4000 3817
3556 3581
3321
3000
2332 2225
2005
1835
2000
1000
0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Source: Statistics Department, Bangladesh Bank.* Up to February 2021
Joint Venture Investment Registration (Local foreign were registered with BIDA and the
and Foreign) amount of these investment was Tk. 10,52,26
crore. In FY 2020-21 (up to February 2021) a
The primary step of any investment is to get
total of 805 projects worth Tk. 4,49,38 crore have
registered with the concerned authority which
been registered with BIDA. Private investment
examines the possibility of the project. In FY
proposals registered with BIDA during FY 2011-
2019-20 a total of 905 project both local and
12 to FY 2020-21 are presented in Table 14.2.
Table 14.2: Private Investment Proposals Registered with BIDA.
Fiscal Local Investment Foreign /JV Investment Total Investment Growth in
Year Proposals Registered Proposals Registered Proposals Registered Project
Projects Project Value Projects Project Value Projects Project Value
Value
(%)
(Crore Taka) (Crore Taka) (Crore Taka)
2011-12 1735 53476 221 34416 1956 87893 (-) 10.00
2012-13 1457 44615 219 22072 1676 66687 (-) 24.00
2013-14 1308 49759 124 18531 1432 68291 (+) 2.40
2014-15 1309 91273 120 8061 1429 99334 (+) 45.46
2015-16 1511 94585 151 15576 1662 110161 (+) 9.86
2016-17 1578 99672 167 85589 1745 185261 (+) 68.17
2017-18 1483 125799 160 81493 1643 207292 (+)11.89
2018-19 1198 70696 170 43399 1368 114095 (-)44.96
2019-20 739 63993 166 41233 905 105226 (-)11.84
2020-21* 733 37160 72 7778 805 44938 -
Source: Monthly Report (2020-21), Policy Advocacy, BIDA * up to February 2021

Local Investment Registration FY 2020-21 (up to February 2021). Table 14.3

presents the recent trend in annual statistics on
In FY 2012-13, the registered amount of local
the local investment registration projects
investment with the BIDA was Tk. 4,46,148.59
registered with BIDA.
million. This stood at Tk. 3,71,601.84 million in
Table 14.3: Sector wise Distribution of Local Investment Projects
(In million Taka)
Sector 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Agro based 54654.15 75105.26 113820.25 106571.14 66986.78 81774.23 45608.37 31339.27 69871.99
Food & 8837.51 18083.01 42792.26 26196.47 77723.35 37168.72 33121.37 23244.74 24390.90
Allied
Textile 172803.62 82296.51 176473.34 169117.05 189705.88 257792.52 137364.8 58935.98 25288.11
Printing & 5156.99 4300.75 7907.83 7049.74 26107.62 11618.38 24618.37 22286.88 6674.80
Publishing
Tannery & 2907.65 7161.60 5551.81 15052.40 15068.19 19385.05 19976.36 14417.60 14735.48
Leather
Chemical 75048.98 78685.29 230843.43 318240.64 229911.70 389925.40 223361.2 83364.95 129200.06
Glass & 1852.80 7735.63 19254.62 7650.48 23808.50 16405.96 26980.37 9820.99 15166.62
Ceramics
Engineering 31902.48 61294.17 89897.25 133847.14 160009.57 135287.24 94184.11 87062.76 53133.85
Service 87267.93 158683.22 209654.23 107512.75 134187.89 295403.67 98128.92 303048.55 30533.20
NEC 5716.49 4294.04 16535.70 54616.23 72695.12 13230.50 3497.16 6410.25 2606.79
Total 446148.59 497593.25 912730.71 945854.04 996725.75 1257991.67 706959.86 639932.02 371601.84
Source: BIDA * up to February 2021
It is observed that in FY 2020-21 (up to February Engineering (14%) and Service (8%). Figure 14.3
2021), chemical is the largest sector in the list discloses information on registered local
accounting for 35 percent investment. Other investment with the BIDA in FY 2020-21.
major sectors are Agro Industry (19%),
Figure 14.3: Sector-wise Local Investment Projects Registered with BIDA in FY 2020-21
Service 8.22% NEC 0.70%
Agro based 18.80%

Engineering 14.30%
Food & Allied

Glass & Ceramics 6.56%
4.08%
Textile 6.81%
Chemical Printing &
34.77% Publishing 1.80%
Tannery &
Leather 3.97%
Source: BIDA, * Up to February 2021.

Foreign and Joint Venture Investment been registered with BIDA amounting to Tk.
Registration 77,782 million. The highest number of projects
was registered in service sector. Table 14.4
In FY 2020-21 (up to February 2021), a total of
presents the sector wise distribution of foreign
72 foreign and joint venture new projects have
and joint venture investment projects.
Table 14.4: Registration of Foreign and Joint Venture Investment Projects
(In Million US$)
Sector Name 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Agro based 75.25 29.68 38.19 33.56 27.36 1160.33 27.32 1.96
Food & Aid 4.70 0.13 6.80 14.49 175.09 34.55 30.90 6.02
Textile 62.66 8.35 16.10 0.45 127.53 183.71 5.36 1.25
Printing & 0.00 0.00 1.85 - 7.17 0
5.14 1.54
Publishing
Tannery & Leather 32.55 17.49 11.36 3.33 55.25 16.64 89.50 2.50
Chemical 20.50 63.29 51.52 16.75 6065.22 72.90 26.44 28.59
Glass & Ceramics 0.79 0.20 7.00 12.76 0.00 - - 28.32
Engineering 237.74 244.04 222.24 2535.28 268.95 216.16 2971.64 104.04
Service 1687.08 54.38 107.98 7515.02 1349.78 213.45 122.32 660.28
Misc. 7.13 5.13 51.98 245.99 1667.98 3126.15 237.98 4.98
Total 2128.32 422.69 515.02 10377.63 9742.30 5025.44 3518.64 837.94
Source: BIDA. * up to February 2021.
It is observed that in FY 2020-21 (up to February (4%) and Glass and Ceramic (3%). Figure 14.4
2021), Service (79%) was the largest sector discloses information on registered Foreign and
registered during this period and other major Joint Venture Investment Projects with the BIDA
sector included Engineering (12%), Chemical in FY 2020-21
Figure- 14.4: Sector-wise Distribution of Foreign and Joint Venture Projects in FY 2020-
21
NEC Agro based

0.59% 0.00
Food & Allied
0.72%
Textile
0.15%
Printing & Publishing
Service 78.80% 0.00%
Tannery & Leather
0.30%
Chemical
3.41%
Glass & Ceramics

3.38%
Engineering 12.42%
Source: BIDA, * up to February 2021.

Country wise Joint Venture and Foreign Employment Opportunities

Investment
Creating ample opportunities of employment
The source of foreign and joint venture projects through industrialisation is a major objective of
registered in FY 2020-21 (up to February 2021) the National Strategy for Economic Development
were mostly from countries of European regions. and Accelerated Poverty Reduction. A large
The source-wise distribution of the BIDA number of managerial, technical, supervisory and
registered new Foreign and Joint Venture skilled-unskilled job opportunities are generated
investment projects from FY 2012-13 to FY through investment in the industrial sector. In FY
2020-21 is presented in the Annex 14.1 at the end 2020-21 (July-February) a total of 1,20,942 job
of the chapter. opportunities were created in the registered
projects of BIDA. Figure 14.5 shows employment
opportunities by the BIDA registered projects
from FY 2012-13 to FY 2020-21.
Figure- 14.5: Employment Opportunities by the BIDA-Registered Projects
350000 309709
287546
300000 266492
250000 224943 226411
191909
200000 166157
138177
150000 120942
100000
50000
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
Source : Bangladesh Investment Development Authority BIDA, * up to February 2021
Approval of Foreign Loan Table 14.5: Foreign Loan Approval from

In response to the application of the investors, FY 2009-10 to FY 2020-21 (July-
Bangladesh Investment Development Authority February).
has approved foreign loan proposals through the Financial Approved Loan Approved
decision of Scrutiny Committee. Table 14.5 year Appraisal Loan Amount
presents the details of Foreign loan approved (Million US$)
from FY 2009-10 to FY 2020-21 (July- 2009-10 16 175.93
February). 2010-11 26 431.46
2011-12 35 1047.93
2012-13 88 1795.28
2013-14 106 1453.38
2014-15 153 2295.51
2015-16 127 887.69

Financial Approved Loan Approved facilitating foreign and local investment in the
year Appraisal Loan Amount Export Processing Zones of the country. At
(Million US$) present, there are 8 EPZs in Bangladesh. These
2009-10 16 175.93 are Dhaka, Chattogram, Mongla, Cumilla,
2016-17 153 1600.17
Ishwardi, Uttara (Nilphamari), Adamjee and
Karnaphuli. Apart from that, BEPZA is setting up
2017-18 116 2112.13
an economic zone on 1,150 acres of land at
2018-19 99 4115.43 Mirsarai upazila under Chattogram district.
2019-20 46 2527.38
539 industrial plots will be constructed under the
2020-21* 26 636.86 project. In the first phase, from April 2021, 140
Total 991 19079.05 industrial plots are expected to be allotted to
Source: BIDA. *up to February 2021. domestic and foreign investors. The 350
industrial units in the economic zone have the
Approval of Foreign Commercial Office
potential to invest 4.5 billion and create
As per application of investors inter-ministerial employment for 5 lakh Bangladeshis. Besides,
committee of the Bangladesh Investment conversion of 1,819 acres land of Rangpur Sugar
Development Authority approved Branch Office, Mills into EPZ and set up of an EPZ in Jashore
Liaison Office, Representative Office and and near Payra seaport are under process.
extension of same offices in Bangladesh. Table
As on February 2021, the amount of cumulative
14.6 describes the recent trend in approval of
investment in the EPZs is US$ 5,516.45 million.
Branch, Liaison and Representative Offices (new
In the first 8 months of FY 2020-21, the amount
and extension) from FY2014-15 to FY 2020-21.
of actual investment stands at US$ 226.58
Table 14.6: Recent Trend in Approval of million.
Branch, Liaison and Representative Office As on February 2021, the amount of cumulative
Financial Branch Liaison Representati export from the EPZs is US$ 84.81 billion. In the
Year Office Office ve Office first 8 months of FY 2020-21, the amount of
(New & (New & (New & export from the EPZs stands at US$ 4,202.99
Extension) Extension) Extension) million. It may be mentioned here that the export
2014-15 120 249 11
made from EPZ during the financial year 2019-20
2015-16 102 222 15
contributed about 19.27 percent of national
2016-17 120 211 11
export.
2017-18 184 257 14
2018-19 146 212 18 Upto February 2021, a total of 4,23,501
2019-20 153 216 11 Bangladeshi nationals have been employed in the
2020-21* 125 162 15 enterprises in the EPZs, out of which 66 percent
Total 950 1529 95 is female.
Source: BIDA. * up to February 2021
Bangladesh Economic Zones Authority
Investment Scenario of Bangladesh Export (BEZA)
Promotion Zone (EPZ) Bangladesh Economic Zone Authority (BEZA)
In order to accelerate the development of the has been set up to establish economic zones to
industrial sector, the Bangladesh Export encourage rapid economic development, planned
Processing Zones Authority (BEPZA) has been industrialisation, employment generation,
providing overall cooperation in attracting and production, enhance and diversification of

export. BEZA has adopted a plan to establish 100 The number of online services provided at the
Economic Zones on about 30,000 hectares of One Stop Service Center of BEZA has increased
land by 2030 to facilitate investors to set up to 48. 11 new services were added online at the
industries. With the establishment of these One Stop Service Center on 22/10/2020. The
economic zones, it would be possible to create process of adding 6 more services online is
employment opportunities for about one crore progressing fast. At present about 125 types of
people directly and indirectly and to produce and services are being provided from BEZA OSS
export goods and services worth an additional Center. In this way, an investor can start
US$ 40 billion. production by completing all the formalities
within a maximum of 100 days.
BEZA Governing Board has already approved the
location and area of land in 97 economic zones, Economic zones are being set up on 436 acres of
of which 68 are public economic zones and 29 land in Jamalpur district, on 352 acres in Srihatta
are private economic zones. Among these in Moulvibazar district and on about 3,000 acres
economic zones, there are 2 public-private in Maheshkhali in Cox's Bazar district. This will
partnership economic zones, 4 G2G economic connect the backward areas of the country with
zones and 3 tourism parks. So far, more than the highway of economic development. Besides,
7,000 acres of land has been allotted for lease in three tourism parks are being set up in Cox's
favor of 168 investors in five economic zones Bazar district of the country under the
(Bangabandhu Sheikh Mujib Industrial Area, supervision of BEZA to enrich the tourism sector.
Maheshkhali, Shrihatta, Jamalpur Economic
Zone and Sabrang Tourism Park) with a To continue the trend of Japanese and Chinese
proposed investment of about 23.97 billion investment and to encourage technology transfer,
dollar. the Japanese Economic Zone at Narayanganj and
the Chinese Economic & Industrial Zone at
In addition, about 3.1 billion dollar investment Chittagong are being built. Besides, Indian
proposal has been approved in private economic Economic Zone is being constructed in
zones. As a result, the total investment proposal Bangabandhu Sheikh Mujib Industrial City for
stands at 27.07 billion dollar. The proposed Indian investors.
investment will create employment opportunities
for about 1 million people. Already, export- BEZA provides comprehensive incentives and
oriented products are being produced with direct support to investors on a variety of financial
employment of about 38,000 people in the issues. In this context, in order to expedite the
economic zones. disbursement of loan facilities from banks and
financial institutions, a joint collaboration
Products of the industrial enterprises of private between BEZA and Bangladesh Bank has
economic zones including Jumbo bags, introduced mortgage facility against leasehold
Carbonated Beverages, Noodles, Palm Oil, right of land for leasehold investors in the
Soybean Oil, Tissue Paper, NCR Paper, Hangers economic zones.
etc. are now being exported to different countries
of the world such as France, Belgium, Public Private Partnership (PPP)
Netherlands, United States, Qatar, India, Nepal, In order to fulfill the basic needs of the people of
Korea, Australia, Germany, China, Myanmar, Bangladesh and to improve the quality of their
Vietnam. lives, to promote socio-economic development,
to ensure comprehensive investment in

infrastructure sectors, to ensure private Small and Medium Enterprise (SME)

participation along with government and to
The importance of Small and Medium
include in the world economy, PPP Authority has
Enterprises (SMEs) as a potential sector is
been established to attract investment of local
indispensable in expediting the pace of
and foreign investors to ensure development. One
industrialization of the country, ensuring
of the key strategies of the government is to
everyone‟s active participation in the mainstream
develop projects based on Public Private
of the economy and solving unemployment
Partnership, especially the modern, dynamic
problem through generation of new quality
physical infrastructure development and building
employment. This sector has been playing a
an infrastructure capable of providing
significant role in achieving economic growth
uninterrupted service. By ensuring reliable and
and earning foreign currency by encouraging and
sustainable infrastructure the main focus of PPP
expanding the business activities. For the
is to create an environment for increased
expansion and development of the sector
investment maintaining economic growth. The
including various initiatives in loan disbursement
new development model is working to improve
to enhance the standard of lifestyle of low
the optimum utilisation of limited resources by
income people and ensure women empowerment
tapping the expertise of the private sector.
to diminish gender discrimination, Bangladesh
„Procurement Guideline for PPP Projects, 2018‟
Bank has been continuing its refinancing
was formulated to increase the confidence of
facilities in the year 2020 for Banks and Non-
private investors and capacity building of the
Bank Financial Institutions (NBFIs) against their
institution. Financial incentives are being given
financing to SMEs.
in this sector to encourage private investment in
In this regard, „Refinancing Scheme for Agro-
the infrastructure sector. “Rules for Viability Gap
based Product Processing Industry in Rural
for PPP Project, 2018” was issued to facilitate
Area‟; „Refinancing Scheme for Small
financial integration process through the
Enterprise‟; „Refinancing Fund for New
government. Under this policy, Viability Gap
Entrepreneurs in Cottage, Micro and Small
Fund (VGF) of Tk.400 crore has been allocated.
Industry‟; „Refinancing Fund against Islamic
The process of increasing the capacity of the
Shariah-based Financing in „Agro-based
implementing agencies in the planning and
Industries‟, „Small Enterprises (including women
management of the project is continuing. These
led SMEs)‟ and „New entrepreneurs in Cottage,
measures are expected to make visible progress
Micro and Small Enterprise‟ Sector‟; COVID-19
in building the country‟s infrastructure.
refinance scheme, Revolving Fund Account of
For implementation through PPP, 79 projects in JICA assisted Financial Sector Project for the
12 sectors have got in principle approval. An Development of SME (FSPDSME) Fund, JICA
estimated US$ 29.20 billion will be invested if assisted Urban Building Safety Project (UBSP),
these projects are implemented. Among these 79 Program to Support Safety Retrofits and
projects, agreements with private partners have Environmental Upgrades in the Bangladeshi
been signed for implementation of 16 projects Ready-Made Garment (RMG) Sector Project
with an estimated project cost of US$ 5 billion. (SREUP) have been active.
Apart from these, 13 projects are under tendering Banks and NBFIs have come forward for financing
process and 27 projects are in the feasibility and the development of SMEs sector under close
stage. The PPP projects that have already been monitoring and supervision of Bangladesh Bank.
approved are presented in the Annex 14.2 at the Total net outstanding loans & advances in SME
end of the chapter. sector at the end of September, 2020 is Tk.

1,90,969.83 crore. In year 2020 (up to September), Private Sector Development Activities of Some
Banks and NBFIs altogether have disbursed an Selected Sectors
amount of Tk. 1,04,515.17 crore against 5,17,250
ICT Sector
SMEs. On the other hand, 43,636 women led SME
enterprises received financing of Tk. 3,553.47 Hi-Tech Park
crore during the same time period. Bangladesh High-Tech Park Authority has been
‘The National SME Policy 2019‟ has been established under „Bangladesh High-Tech Park
formulated with emphasis on increasing the Authority Act-2010‟ in order to development of
contribution of SME sector in the industry and hi-tech industries and information technology-
creating equal opportunities for all in this sector based industries in the country. Bangladesh Hi-
and increasing women's participation through tech Park Authority has been working for socio-
economic empowerment. economic development of the country by
ensuring the employment of huge youths of the
However, due to the Coronavirus, local small and
country through set up hi-tech park/ software
cottage industries are facing a crisis. In order to
technology park in different places of the
address this crisis, emphasis has been laid on
country. In the first phase, Bangladesh High-
cluster based development in the SME sector. To
Tech Park Authority is currently working to
combat the economic impact of COVID-19, the
establish 39 Hi-tech park across the country.
government is expanding low-interest credit
Meanwhile, construction of 13.15 lakh sq ft
facilities to poor farmers, recently repatriated
space have been completed in various parks
overseas workers and skilled but unemployed
including „Bangabandhu Hi-Tech City‟ in
youths in rural areas to enable them to take up
Kaliakair, „Sheikh Hasina Software Technology
self-employment ventures in sectors like
Park in Jessore‟, „Sheikh Kamal IT Incubation
agricultural production, agro-based service, small
and Training Center‟ in Natore and „Janata
business, cottage industries, SMEs, etc. Under
Tower Software Technology Park‟ in Dhaka.
this program, Tk. 2,000 crore will be distributed
Among the ready places 7.58 lakh sq ft has been
with low interest rate through three specialised
allocated. 120 local and foreign companies have
banks, namely Palli Sanchay Bank, Probashi
received allotment in the various parks
Kallyan Bank, Karmasangsthan Bank and one
established by Bangladesh Hi-tech Park
specialised institution, namely Palli Karma
Authority. They have already invested 50 million
Sahayak Foundation (PKSF), with each receiving
dollars of the proposed 1,200 million dollar.
Tk. 500 crore in FY 2020-21.
Telecommunication Sector
Again, to facilitate economic recovery of cottage,
micro, small and midium enterprises, the Private sector has a significant role in the
government has provided a stimulus package of development of telecommunication sector.
Tk. 20,000 crore to be distributed by banks at a Private sector investment has brought a
low interest (4%) with interest subsidies of 5 revolutionary change to the telecommunication
percent provided by the government. To sector. In 2004, there was a total number of 40
encourage banks to provided loans to micro, lakh users of mobile phone, whereas the number
cottage and small enterprises, Bangladesh Bank exceeded 17.33 crore in February 2021. The
has initiated a credit guarantee schieme of Tk. total number of internet subscribers has crossed
2,000 crore. About Tk. 2,497.16 crore has 11.27 crore at this time. As a result of the
already been allocated upto February 2021. business-friendly policy, many domestic
entrepreneurs have invested in the

telecommunications sector in the last few years. different types of incentives and opportunities.
In February 2018, Bangladesh entered the world The „Private University Act 2010‟ has been
of 4G mobile technology. Steps have been taken enacted to improve the standard of education in
for introducing 5G services for the development the private universities. As a result, 103 private
and expansion of information technology. The universities have been established in the country.
mobile phone sector is generating huge revenue, According to „the Private Universities Act-2010‟,
which is playing a huge role in increasing the the International Quality Assurance Cell (IQAC)
total revenue of the country. Mobile network has has been formed to ensure the quality of higher
also been constructed in three hill-districts. education in every private university. Initiatives
have been taken to set up Bangladesh Research
Power Sector
and Education Network (BdREN) to enhance the
With a view to attain the target of Vision- 2021 technical skills of students and teachers of
and Vision-2041 , the government has planned to universities and to connect foreign universities
generate 24,000 MW electricity by 2021, 40,000 and research institutes with local universities.
MW electricity by 2030 and 60,000 MW The modern laboratories, research centers and
electricity by 2041. It is a pledge of the institutes of the universities are being
government to bring all the people within consolidated and modernised.
electricity connectivity by 2021. In order to fulfill
Health Sector
this commitment, the government has taken
different initiatives not only to boost power Medical and health services are gradually
generation but also to expand distribution and increasing through participation of the private
transmission lines. sector. To encourage the private sector, the
government provides grants from revenue budget
At present 99 percent population of the country
to hospitals/clinics and organisations. At present,
has access to power including renewable energy.
there are 70 Medical Colleges, 12 Dental
In FY 2020-21 (up to February 2021) total grid
Colleges, 14 dental units, 13 post graduate
based installed capacity was 21,778 MW
institute, 200 Medical Assistant Training
including 9,990 MW in Public Sector, 1244 MW
Institutions and 97 Institute of Health
in JV, 9,384 MW in Private Sector and 1,160 MW
Technology in private sector.
power imported from India. Including captive
and renewable energy, total installed capacity is At present, special activities worth Tk. 5,500
24,982 MW. A total of 44,439 million kwh net crore is being implemented under the Health
electricity including public, private and import Services Division to address COVID-19. In
were produced up to January 2021. Out of this, addition, Tk. 10,000 crore has been allocated to
45.76 percent was generated by the private meet any urgent need to address COVID-19 in FY
sector. On the contrary, 38.69 percent was 2020-21 and it has been proposed to allocate Tk.
produced from public sector. The rest 4.94 10,000 crore in FY2021-22. It has been proposed
percent from JV power plants and 10.59 percent to set up an Integrated Health-Science Research
from power import. and Development Fund of Tk. 100 crore for the
development of research in the field of health
Education Sector
education and science and technology.
Like the government, private sector is also
working for the development of education at all
levels. In order to attract private investment in
education sector the government provides

Tourism country recovers from the severe loss that it

suffered due to the outbreak of COVID-19
Private sector along with the public sector is
pandemic.
working for the development of the tourism in
Bangladesh. For this reason, the government has Insurance Sector
declared different special facilities for inspiring
Insurance sector of Bangladesh is working
private entrepreneurs to invest in tourism. Private
persistently to reduce the risk of business and
sectors participation in tourism generates lots of
also to ensure financial security of the people.
employment in this sector which ultimately leads
There are 77 private insurance companies
to the poverty alleviation.
operating in Bangladesh, in addition to the two
The government is taking various steps to state owned enterprise „Jiban Bima Corporation‟
develop and enrich the tourism industry as an and „Shadharan Bima Corporation‟. Out of these,
economic sector. For example, plans have been 45 are private general insurance and 32 are
made to establish exclusive tourism areas for private life insurance companies. In recent times,
foreign tourists in locations that have high insurance sector has shown remarkable success in
tourism potentials, develop eco-tourism parks terms of growth and development. But Covid-19
keeping the natural beauty intact, build island- epidemic economic recession has also affected
based tourism parks and hotels, and establish the insurance sector in Bangladesh. The gross
international standard tourism centers with all premium income of state owned and private non-
facilities for incoming tourists. Besides, projects life insurance companies was Tk. 4,718.84 crore
have been taken up for modernisation and in 2019. In 2020 the gross premium income
capacity enhancement of existing establishments decreased to Tk. 4,366.00 crore. The rate of fall
of Bangladesh Tourism Corporation, and for was -7.48 percent for Covid-19 epidemic. Table
expanding modern tourism facilities in new 14.7 shows the status of premium income from
locations. The government will put on sincere state owned and private insurance companies.
efforts to ensure that the tourism industry of the
Table 14.7: Premium Income from Non-life Insurance Sector

(In Crore Taka)
Year Total Premium Growth Rate
Public Sector Private Total Public Private Public Private Total
Shadharan Sector’s Sector Sector Sector Sector’s (%)
Bima Non-life (%) (%) Shadharan Non-life
Corporation Insurance Bima Insurance
Companies Corporation Companies
(%) (%)
2011 231.41 1735.96 1967.37 11.76 88.24 39.41 16.39 18.69
2012 218.92 1948.35 2167.27 10.10 89.90 -5.40 12.23 10.16
2013 190.96 2101.84 2292.80 8.33 91.67 -12.77 7.88 5.79
2014 176.11 2269.60 2445.71 7.20 92.80 -7.77 7.98 6.67
2015 207.31 2435.70 2643.01 7.84 92.16 17.71 7.32 8.07
2016 223.49 2549.38 2772.88 8.06 91.94 7.81 4.67 4.91
2017 238.66 2742.77 2981.43 8.00 92.00 6.78 7.59 7.52
2018 348.90 3041.89 3390.79 10.29 89.71 46.19 10.91 13.73
2019 1300.17 3418.67 4718.84 27.55 72.45 272.65 12.39 39.17
2020* 1017.55 3348.45 4366.00 23.31 76.69 -21.74 -2.05 -7.48
Source: Insurance Development and Regulatory Authority.*provisional.

On the other hand, gross premium income of previous year. The rate of reduction was 1.50
„Jiban Bima Corporation‟ and 32 private life percent for Covid-19 epidemic. Table 14.8 shows
insurance companies was Tk. 9,455.45 crore in the status of premium income from state owned
2020, which is Tk. 144.18 crore less than the and private life insurance companies.
Table 14.8: Premium Income from Life Insurance Sector

(In Crore Taka)
Year Total Premium Growth Rate
Public Sector Private Total Public Private Public Private Total
Shadharan Sector’s Sector Sector Sector Sector’s (%)
Bima Life (%) (%) Shadharan Life
Corporation Insurance Bima Insurance
Companies Corporation Companies
(%) (%)
2011 307.88 5946.85 6254.74 4.92 95.08 -9.95 8.26 7.19
2012 343.20 6243.90 6587.10 5.21 94.79 11.47 5.00 5.31
2013 365.11 6474.60 6839.71 5.34 94.66 6.38 3.69 3.83
2014 389.93 6685.58 7075.51 5.51 94.49 6.80 3.26 3.45
2015 403.74 6909.06 7312.80 5.52 94.48 3.54 3.34 3.35
2016 412.51 7170.67 7583.19 5.44 94.56 2.17 3.79 3.70
2017 474.72 7716.25 8190.98 5.80 94.20 15.08 7.61 8.01
2018 513.08 8479.05 8992.13 5.71 94.29 8.08 9.78 9.68
2019 574.12 9025.51 9599.63 5.98 94.02 11.90 6.44 6.76
2020* 599.64 8855.81 9455.45 6.34 93.66 4.44 -1.88 -1.50
Source: Insurance Development and Regulatory Authority .*provisional

Annex-14.1
Sources of the Foreign and Joint Venture Projects
(In Million US$ )
Source of Joint & 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
100% Foreign
Investment
1. Saudi Arabia 0 0 2.363 5.500 2450.076 0.125 0 5.413 8.278
2. USA 110.492 85.005 120.842 17.246 178.680 494.509 643.378 13.476 301.618
3. Thailand 81.484 25.750 18.667 27.673 584.06 6.894 2.277 0.047 0.069
4. India 2120.647 169.623 34.038 33.763 212.911 327.744 40.937 23.128 14.493
5. South Korea 11.359 7.960 4.541 161.542 17.411 115.074 1.761 2.525 0
6. Malaysia 7.260 2.361 8.588 88.389 23.816 1.373 3.852 1200.244 5.294
7. The Netherlands 3.620 0.846 0.608 4.774 19.076 0 1720.402 41.25 1.172
8. China 164.732 1683.322 25.102 70.396 6211.351 416.361 943.647 1934.413 69.978
9. UK 60.679 0 58.157 5.082 3.698 386.224 0.262 6.506 0
10. Pakistan 0.915 0.648 0 0 1.986 0 0 0 0
11. Japan 35.424 16.779 7.223 59.791 15.628 49.752 248.549 18.291 33.471
12. Denmark 3.958 1.062 0.514 0.024 0 0.407 0 14.130 0
13. Sri Lanka 89.926 0.187 0 1.611 0.351 13.603 98.291 0.252 5.028
14. Canada 4.240 1.280 7.198 0.849 0 14.085 0.133 0 0
15. Taiwan 1.503 3.684 16.594 0.822 0.20 1.544 1.157 77.589 0
16. Singapore 16.298 29.328 9.605 1.977 657.853 382.973 1247.426 167.586 301.566
17. Turkey 4.465 0 2.271 0.288 1.096 14.288 0 2.770 0
18. Italy 0.838 2.392 1.127 0 16.376 0 0 0 0
19. Hong Kong 23.674 3.646 8.342 2.886 50.614 17.963 29.910 0.850 0
20. Africa 0 0 3.627 0 0 0 0 0.320 0
Armenia & 0 0 0 0 0 0 0 0
21. 0.239
Russia
22. Bermuda 0 0 0 0 0 0 0 0 0
23. France 2.326 0.806 0 0 3.117 0 0 0 3.934
24. Indonesia 0 0 0 0 0 0 0 0 0
25. Lebanon 46.430 0 1.136 0 0 0 0 0 0
26. Mauritius 0 5.128 54.126 9.653 0 340.000 0 32.545 0.999
27. Philippines 0 0 0 0 0 0 10.274 0 0
28. Sweden 0.086 0 16.276 1.831 1.229 1.551 2.377 0 1.962
29. Switzerland 1.781 0.589 14.824 0 0 0 17.900 0 0.121
30. Finland 0 0 0.556 0 0 0 0 0 0
31. UAE 1.036 52.160 0.301 1.117 15.287 7143.725 0.300 108.944 0
British Virgin 0 0 0 0 0 1.035 0 0
32. 8.988
Island
33. Germany 0.312 2.266 1.345 6.597 18.372 7.003 4.000 4.019 77.195

Source of Joint & 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21*
100% Foreign
Investment
34. Australia 0 6.182 1.016 1.047 5.763 0 0 2.582 2.133
35. Greece 0 0 0 0 0 0 0 0 0
36. Spain 0.984 0.028 1.696 0 12.014 0 1.71 0.395 0.114
37. Poland 0 0 0.894 0 0 0 0 0 0
38. Belgium 0 0 0 0 0 0 0.35 0 0
39. Egypt 1.151 0 0 0 0 0 0 0 0
40. Hungary 1.221 0 0 0 0 0 0 0 0
41. Norway 0.117 0 0 0 0 5.186 0 0 0
42. Vietnam 0 0 0 0 0 0 0 0 0
43. Jordan 0 0 0 0 0 0 0 0 0
44. Kuwait 0 0 0 0.885 0 0 0 0 0
45. Austria 0 0 0 0 0 0 0 0 0
46. Malta 0 0 0 0 0 0 0 0 0
47. USE 0 0 0 0 0 0 0 0 0
48. Guyana 1.165 0 0 0 0 0 0 0 0
49. Libya 1.167 0 0 0 0 0 0 0 0
50. Serbia 0.196 0 0 0 0 0 0 0 0
51. Yemen 0 27.289 0 0.308 0 0 0 0 0
52. Nigeria 0 0 0.614 0 0 0 0 0 0
53. Iran 0 0 0 1.244 0.592 0 0 0 0
54. Lithuania 0 0 0 0.500 0 0 0 0 0
55. Uzbekistan 0 0 0 0 2.713 0 0 0 0
56. Belarus 0 0 0 0 5.875 0 0 0 0
57. Nepal 0 0 0 0 0 1.347 0 8.14 0
58. Oman 0 0 0 0 0 0 0 0.117 0
59. Ireland 0 0 0 0 0 0 0 0.118 0
60. England 0 0 0 0 0 0 0 1.346 0
61. Korea 0 0 0 0 0 0 0 17.385 9.117
62. Bulgeria 0 0 0 0 0 0 0 0 0.164
63. Kazakhistan 0 0 0 0 0 0 0 0 0.411
Total 2800.11 2128.32 422.69 515.02 10510.92 9742.31 5019.91 3684.480 837.117
Source: Policy Advocacy, BIDA * up to February 2021.

Annex 14.2
List of PPP Funded Projects
S.L Sector Estimated Cost
(in million US$)
Transport Sector
01. Dhaka-Elevated Expressway. 1243
02. Upgrading of Dhaka Bypass to 4 Lane). 350
03 Improvement of Hatirjheel (Rampura Bridge). 300
04. Flyover from Santinagar to Mawa Road via 4th (New) Bridge over Buriganga River. 300
05. Construction of a New Inland Container Depot (ICD) near Dhirasram Railway Station. 70
06. Build and Construct Khulna Khan Jahan Ali airport and Special Tourism Zone (STZ) in 300
Khulna under PPP Mode.
07. Construction & Operation of Inland Container Terminal (ICT) at Khanpur. 30
08. Dhaka-Chattagram Access Controlled Highway. 3200
09. Comprehensive Non-Intrusive Inspection (NII) Project under PPP 100
10. Gabtoli - Nabinagar PPP Road. 340
11. Circular Railway Line 1000
12. Improvement of Chattogram to Cox's Bazar Highway through PPP 1462
13. 2nd Padma Multipurpose Bridge at Paturia-Goalundo. 1500
14. Mass Rapid Transit (MRT) Line-2 3479
15. Light Rapid Transit system for Narayanganj City 200
16. Multimodal Hub at Kamalapur Railway Station 500
17. Multimodal Hub at Bimanbandar Raiway Station 200
18. Construction of Outer Ring Road. 2705
19. Construction of Bridge on Bhulta-Araihazar-Bancharampur road over the river Meghna 878
20. Improvement of Dhaka (Joydebpur)-Mymensingh Highway (N3) into Expressway 395
Shipping Sector
21. 2 Jetties at Mongla Port through PPP. 53
22. Construction of Laldia Bulk Terminal. 300
23. Bay Terminal 2089
24. Payra Port Dredging 950
25. Payra Port Coal Terminal 660
26. Payra Port Container Terminal 300
Economic Zone Sector
27. Economic Zone 4: Mongla. 12
28. Economic Zone 2: Mirsarai. 735
29. Development of Economic Zone (EZ) at Jamalpur with Private Sector participation. 40
30. IT Village at Mohakhali. 20
31. Central Effluent Treatment Plant at Mirsarai EZ 22
Agricultural Sector
32. Construction of Composite Rice Mills 170
Tourism Sector
33. Development of Integrated Tourism and Entertainment Village at Cox’s Bazar. 100
34. Establishment of 5 Star Hotel with other Facilities at Existing Parjatan Motel Sylhet 20
Compound of BPC Sylhet.
35. Three Star Hotel at BPC land, Pashur, Mongla. 15
36. Establishment of Intl. Standard Tourism Complex at Existing Motel Upal 45
37. Five Star Hotel cum Training Centre at BPC land , Muzgunni, Khulna 30
38. Development of a Five Star Hotel at Zakir Hossen Road in Chattogram 50
Health Sector


(in million US$)
39. Hemodialysis Centre at Chattogram Medical College Hospital. 3
Hemodialysis Centre at National Institute of Kidney Diseases and Urology (NIKDU).
40. Oboshor: Senior Citizen Health Care and Hospitality Complex at Sreemangal, Sylhet 10
Division
41. Modernisation of Chattogram Medical College 30
42. Medical College & Nursing Institute and Modernization Railway Hospital of Kamlapur. 100
43. Medical College and Modernization of Railway Hospital at Saidpur in Nilphamary. 75
44. Medical College and Modernization of Railway Hospital at Paksey in Pabna. 75
45. New Modern Medical College & Hospital of 250 beds on the unused land in Khulna. 100
Social Infrastructure Sector
46. Development of Occupational Diseases Hospital, Labor Welfare Center and 35
Commercial Complexes at Chasara, Narayanganj, PPP Basis.
47. Development of Occupational Diseases Hospital, Labor Welfare Center and 35
Commercial Complexes at Tongi, Gazipur, PPP Basis.
Civil Accommodation and Urban Sector
48. Construction of High-rise Residential Apartment Building for Low- and Middle-Income 1174
Group of People at Jhilmil Residential Project Dhaka.
49. Construction of Satellite Township with Multi-storied Flat Building at Mirpur, Dhaka. 44
50. Development of Market, Residential Apartments and Resort on the Land of „No-view 22
Guesthouse‟ at Chattogram .
51. Construction of multistoried Commercial cum Residential Apartment complex with 200
modern amenities at Nasirabad, Chittagong Under PPP.
52. Construction of High-rise Apartment at Purbachal New Town Project 500
53. Mirpur Integrated Township Development (Phase-ll) 974
Urban Sector
54. Installation of Water Supply, Sewerage, Drainage System & Solid Waste Management 80
System in Purbachal New Town.
55. Development of Shopping Mall with Hotel-cum-Guest House at Bangladesh Railway 6
Land near Chattogram Railway Station, Chattogram.
56. Shopping Mall with Hotel-cum-Guest House on the unused Railway land in Khulna. 30
57. Development of Integrated Wastewater Management System for Gazipur City 64
Corporation
Energy Sector
58. Construction of LPG Import, Storage and Bottling Plant at Kumira Chattogram 50
59. Construction of Matarbari-Banshkhali-Madhunaghat 400k Transmission Line 183
Industry Sector
60. Development of Textile Mill at Demra, Dhaka. 40
61. Development of Textile Mill at Tongi, Gazipur. 50
62. Development of Cotton Mills project in Tangail 150
63. Development of BTMC Textile Mills: R R Textile Mills Limited, Sitakundu 50
64. Development of BTMC Textile Mills: Amin Textile Limited, Chattogram. 50
65. Development of BTMC Textile Mills: Dost Textile Limited, Feni 50
66. Development of BTMC Textile Mills: Rangamati Textile Mills Limited, Rangamati 50
67. Development of BTMC Textile Mills: The Asiatic Cotton Mills Limited, Chattogram. 50
68. Development of BTMC Textile Mills: Jolil Textile Limited, Chattogram. 50
69. Development of BTMC Textile Mills: Bengal Textile Limited, Jessore 50
70. Development of BTMC Textile Mills: Sundarbon Textile Mills Limited, Satkhira 50
71. Development of BTMC Textile Mills: Magura Textile Mills Limited, Magura 50
72. Development of BTMC Textile Mills: Rajshahi Textile Mills Limited, Rajshahi 50
73. Development of BTMC Textile Mills: Dinajpur Textile Mills Limited, Dinajpur 50


(in million US$)
74. Development of BTMC Textile Mills: Daroyani Textile Limited, Nilphamari 50
75. Development of BTMC Textile Mills: Afsor Cotton Mills Limited, Dhaka 50
IT Sector
76. Bangabandhu Hi-Tech City (Block 2 & 5) 210
77. Bangabandhu Hi-Tech City (Block 3) 25
78. Info Sarkar3 120
Education Sector
79. The Innovation & Innovator Cell (IIC) dev66elopment under Public Private Partnership. 10
Total 79 29207
Source: Public Private Partnership Authority.

CHAPTER FIFTEEN
ENVIRONMENT, CLIMATE CHANGE AND

DEVELOPMENT
Bangladeshis one of the richest countries in world in terms of bio-diversity. However, environmental
degradation is a crucial challenge for Bangladesh like other developing countries. A number of policies
and development plans have been adopted and are being implemented to encounter environmental hazards
and to ensure a pollution-free eco-friendly environment. Strategies have also been developed to achieve the
environment related goals delineated in the Sustainable Development Goals (SDGs). The government
formulated ‘Bangladesh Climate Change Strategy and Action Plan (BCCSAP)’- 2009 to cope with the
adverse effects of climate change. In this plan, 44 programmes under six thematic areas were identified.
Bangladesh Climate Change Trust Fund (BCCTF) was created in 2010 from the Government’s own
revenue sources to combat climate change impacts as well as to implement Bangladesh Climate Change
Strategy and Action Plan (BCCSAP) 2009. All projects taken up under BCCTF are based on the thematic
areas mentioned in BCCSAP 2009. From the FY 2009-10 to FY 2020-21, BCCTF received a total
allocation of Tk. 3,900 crore and till August 2020, a total of 789 projects under BCCTF have been
approved of which 728 projects are implemented by the government Ministries/Divisions while the
remaining 61 projects were implemented by different NGOs. Taking into account the challenges of
environment, environment and biodiversity conservation and management, the government has finalised
the National Environment Policy 2018 and published it in 2019 with the aim of developing the overall
environmental conservation management of the country. In the newly adopted National Environmental
Policy 2018, out of 9 more sectors/areas including the previous 15 sectors, mountain environment,
biodiversity and environment conservation and life security, eco-friendly tourism, etc. sectors have been
included with special emphasis. The Ministry of Environment, Forest and Climate Change has also
undertaken different consciousness programmes and restructuring activities for environment conservation
along with pollution control. Besides, Ministry of Disaster Management and Relief is also implementing
various programmes in order to tackle eventualities emanating from natural disasters.
The concept of environmental protection as well landmark in the environment conservation. Later,
as its development received wider global 'Kyoto Protocol' was signed in 1997, which
attention from the early 1970s. The decision proposed lessening of carbon dioxide and
agreed upon at the UN conference on the human greenhouse gas emission.
environment held in Stockholm in 1972 worked
Table 15.1 shows the list of 10 highest emitting
as an eye-opener for international communities.
countries with the level of their Green House Gas
The ‘United Nations Environment Programme
(GHG) emissions, which accounts for almost 65
(UNEP)’ was formed by this conference. In
percent of global GHG emission. In 2018, the
1992, an Earth Summit was held at Rio De
global GHG emission stands at 48,939.71MtCO₂.
Jeneiro in Brazil, which is considered as a
Chapter 15: Environment, Climate Change and Development | 251

Table 15.1: Top Ten Greenhouse Gas COP 25 took place under the Presidency of the
Emitting Countries in the World Government of Chile and was held with logistical
support from the Government of Spain in 2019.
Sl. Country Annual CO2Emissions in % of
No 2018 Global The COP was intended to finalise the ‘rulebook’
(In millions ofmetric tonnes) Total in of the Paris Agreement- the operating manual
2018
needed when it takes effect in 2020 - by settling
1 China 11,705.81 23.92
on rules for carbon markets and other forms of
2 USA 5,794.35 11.84
international cooperation under ‘Article 6’ of the
3 India 3,346.63 6.84
deal. Ultimately, however, the talks were unable
4 Europe 3,333.16 6.81
5 Russia
to reach consensus in many areas, pushing
1,992.08 4.07
decisions into next year under ‘Rule 16’ of the
6 Brazil 1,420.58 2.90
7 Japan
UN climate process.
1,154.72 2.36
8 Iran 828.34 1.69 The UK will host the 26th UN Climate Change
9 Germany 776.61 1.59 Conference of the Parties (COP26) in Glasgow
10 Canada 763.44 1.56 on 1-12 November 2021. This COP summit
Source: CAIT Climate Data Explorer, 2021 intends to bring parties together to accelerate
International Efforts for Addressing Climate action towards the goals of the Paris Agreement
Change and the UN Framework Convention on Climate
The United Nations Climate Change Conferences Change.
are yearly conferences of the UNFCCC Parties Threats to Bangladesh due to Climate Change
(Conference of the Parties, COP) to assess
The rise in sea-level poses a big threat to the lives
progress in dealing with the climate change
and livelihood of the huge population living in
issues. Implementation status of UNFCCC is
the coastal areas of Bangladesh. About 60
mainly discussed in these conferences.
percent of land of the country is only 5 meters
The COP 21 was held in Paris in 2015 and a above from sea level. ‘Hadley Center for Climate
climate change agreement called ‘Paris Prediction and Research (HCCPR)’ estimates
Agreement’ was accepted by 195 countries. The that sea level in Bangladesh will rise about 40 cm
COP 22 was held at Marrakesh in Morocco. The by 2080.
first meeting of the apex body of implementing
Providing REgional Climates for Impact Studies
Paris Agreement ‘Conference of the Parties
(PRECIS) has projected that annual average
serving as the meeting of the Parties to the Paris
rainfall of Bangladesh will increase about 4
Agreement (CMA)’ was held during this
percent, 2.3 percent and 6.7 percent in 2030,
conference. The meeting decided to formulate the
2050 and 2070 respectively.
‘Paris Agreement Work Programme’ by 2018.
COP 23 took place in Bonn, Germany in 2017. Moreover, according to the projection of General
COP 24 held at Katowice, Poland, accepted a Circulation Model (GCM) the annual average
‘Paris Agreement Work Programme’. All the temperature of Bangladesh will increase by 2.4
participant countries agreed to reduce carbon degree Celsius and annual average rainfall will
emission in the conference. In addition, it was be increased by 9.7 percent within 2100. A study
decided that the countries would publish the of the World Bank noted that up to two-thirds of
progress report of carbon emission biennially Bangladesh is inundated by floods in every three
from 2024. to five years. As a result, infrastructure, housing,
agriculture, and livelihoods damaged extremely.

In addition, low-lying coastal areas are also at (a) ensure safety from floods and climate change
risk from cyclones and storm surges. ‘Inter- related disasters; (b) enhance water security and
governmental Panel on Climate Change (IPCC)’ efficiency of water usages; (c) ensure sustainable
predicts that by 2050, Bangladesh will lose 17 and integrated river systems and estuaries
percent of its land and 30 percent of its food management; (d) conserve and preserve wetlands
production because of negative impact of climate and ecosystems and promote their appropriate
change. use; (e) develop effective institutions and
equitable governance for in-country and trans-
The report ‘Economics of Adaptation to Climate
boundary water resources management, and (f)
Change in Bangladesh, 2010’ of the World Bank
achieve optimal and integrated use of land and
estimates that Bangladesh will be required US$
water resources. With a view to attaining these
5,516 million for investment and US$ 112 million
goals ‘Bangladesh Delta Plan 2100’ has taken
for recurrent cost until 2050 to protect against
‘Flood Risk Management Strategies’ and ‘Fresh
storm surge risk only.
Water Strategies’ at national level.
Bangladesh is developing a ‘National Adaptation
Internal Climate Finance
Plan (NAP)’ under UNFCCC in order to
formulate an integrated adaptation strategy and Bangladesh is pioneer among the developing
activities to meet long-term impact of climate countries regarding the enactment of climate
change. Meanwhile, a ‘NAP Road Map’ has also finance for adaptation and mitigation of climate
been prepared. In addition, Bangladesh has change that has been causing natural calamities
prepared ‘Nationally Determined Contribution and disasters. Finance Division published its first
(NDC)’ plan to manage growing emissions climate budget report titled ‘Climate Protection
without compromising the required development. and Development’ covering 6 most climate
According to this plan, it is estimated to reduce 5 relevant ministries in FY 2017-18. Inspired by
percent carbon emission voluntarily and the good response from every corner of the
additional 10 percent reduction if international government and international communities,
assistance is available by 2030. The government Finance Division brought out the second report
has also developed the ‘NDC Implementation ‘Climate Financing for Sustainable
Road Map. Development’ reflecting climate expenditure of
20 line-ministries in FY 2018-19. In its third and
Moreover, ‘Nationally Appropriate Mitigation
fourth report for FY 2019-20 and FY 2020-21,
Action (NAMA)’ is being formulated. A
the coverage was extended to 25 climate relevant
‘Climate Change Unit’ has also been established
ministries/divisions. The budget allocation of
at Ministry of Environment, Forest and Climate
these 25 ministries accounted for 56.69 percent
Change. Apart from this, various programmes
of the total national budget of FY2020-21and out
and projects are being implemented by the
of their total allocation 7.55 percent is climate
government to adapt climate change impact.
relevant. The climate relevant allocation for
A long-term integrated water sector mega plan development budget increased from 6.6 percent
‘Bangladesh Delta Plan 2100’ has been in FY 2015-16 to 7.55 percent in FY 2020-21. In
formulated to combat climate change impact. The absolute terms, over these six years the total
vision of the plan is to achieve upper middle- climate relevant allocation increased from Tk.
income status through eliminating extreme 12,163 crore in FY 2015-16 to Tk. 24,225.49
poverty by 2030 and to graduate to a prosperous crore, which is 0.8 percent of the estimated GDP
country beyond 2041. Furthermore, six specific of FY 2020-21.
goals have been fixed to this plan. The goals are:

The government formulated ‘Bangladesh Climate Engineering Department (LGED) and

Change Strategy and Action Plan’- 2009 to cope Bangladesh Climate Change Trust (BCCT), of
with the adverse effects of climate change. In this which IDCOL and PKSF have got accredited by
plan, 44 programmes under six thematic areas the GCF board. Bangladesh has received GCF
were identified. Bangladesh Climate Change Readiness support for strengthening NDA’s
Trust Fund (BCCTF) was created in 2010 from Secretariat, preparing GCF country programme
the Government’s own revenue sources to and accreditation GAP assessment for LGED- the
combat climate change impacts as well as to prospective entity selected by ERD to get NIE
implement Bangladesh Climate Change Strategy accreditation support. Now the NDA secretariat
and Action Plan (BCCSAP) 2009. All projects is actively working on creating a GCF country
taken up under BCCTF are based on the thematic programme and a strong project pipeline, which
areas mentioned in BCCSAP 2009. From the FY would enhance Bangladesh’s readiness for
2009-10 to FY 2020-21, BCCTF received a total accessing and utilizing GCF climate funds. Up to
allocation of Tk. 3,900 crore and till August March 2021, five climate change projects worth
2020, a total of 789 projects under BCCTF have GCF Financing of US$ 351.1 million. Projects
been approved of which 728 projects are are:
implemented by the government
 Promoting private sector investment through
Ministries/Divisions while the remaining 61
large scale adoption of energy saving
projects were implemented by different NGOs
technologies and equipment for Textile and
under the supervision of Palli Karma Sahayak
Readymade Garment (RMG) sectors of
Foundation (PKSF). Among the
Bangladesh (total project value US$ 340
ministries/divisions, Local Government Division
million).
received the highest allocation of Tk. 1,312.96
 Increasing the resilience of poor,
crore followed by Ministry of Water Resources
marginalised and climate-vulnerable
and Ministry of Environment, Forest and Climate
communities in flood-prone areas of
Change with allocation of Tk. 1,043.77 crore and
Bangladesh. (total project value US$ 13.3
Tk. 415.15 crore respectively. Annex. 15.1 to
million).
15.3 show the number and allocation of projects
 Global Clean Cooking Programme
finance by the Climate Change Trust Fund.
Bangladesh (total project value US$40
International Climate Finance million).
Green Climate Fund (GCF) is the largest source  Enhancing adaptive capacities of coastal
of climate finance globally which is governed communities, especially women, to cope with
by a 24-member board, comprised equally of climate change induced salinity (total project
developed and developing countries, representing value US$ 33 million).
the United Nations Regional Groups. In  Climate Resilient Infrastructure
Bangladesh the Economic Relations Division Mainstreaming (CRIM) (total project value
(ERD) is the National Designated Authority US $81 million).
(NDA) for GCF. Since ERD became the NDA of Green Banking and Sustainable Finance
Bangladesh in November 2014, it has identified 6
potential National Implementing Entities (NIEs)- In order to facilitate green products/sector
Infrastructure Development Company Limited financing such as solar energy, bio-gas plant,
(IDCOL), PKSF, Department of Environment, effluent treatment plant, Bangladesh Bank
Bangladesh Bank, Local Government and established a revolving refinancing scheme of
Tk. 200 crore in 2009 for green products/sector

from its own fund. The size of the fund has been A comprehensive ‘Air Pollution Control Rules,
increased Tk. 400 crore in view of the growing 2021’ has been drafted with a view to effectively
demand for financing of environment friendly controlling overall air pollution. Necessary steps
products/initiatives. At present, this scheme is are being taken to approve the draft very quickly.
known as ‘Refinance Scheme for Environment The government’s plan to control air pollution is
Friendly Products/Initiatives’. During FY2020- shown in Annex 15.4.
21, a total of Tk. 50.70 crore has been disbursed
Industrial Pollution Control
as refinance facility in green products/initiatives
 Issuance of Environmental Clearance: In
such as Biogas Plant, Green Industry, Vermi
accordance with Section 12 (1) of the
Compost, Solar Home System, Biological ETP,
Environmental Protection Act, 1995
Solar Mini Grid, Installation of Energy Auditor
(Amended 2010) in Bangladesh, it is
Certified Machineries, and Safety and Work
mandatory to obtain environmental clearance
Environment of Factory.
in the prescribed manner as per the
Removing Air Pollution Environmental Protection Rules, 1997.
Air pollution is increasing with rapid According to the rules, all types of industries
urbanisation and industrialisation. Emissions and projects are being forced to take
from brick kiln, construction activities, industrial environmental clearances.
operation and vehicle are considered the key  Establishment of ETP: The Department of
sources of air pollution. The Department of Environment is compiling a detailed database
Environment (DoE) works for establishing of all the industrial establishments generating
energy saving, effective in air pollution and liquid waste and compelling non-ETP
modern technology based environment-freindly industrial establishments to establish ETP.
brick kiln instead of traditional brick kiln to ETPs have already been ensured in most of
reduce brick kiln emision. ‘The Brick the industrial establishments including all the
Manufacturing and Kilns Establishment (Control) large industrial establishments. As of
Act, 2013’ has been enacted to manage brick February 2021, the number of ETP
construction industry in accordance with the establishable industrial units identified is
environment which has been effected from July 2,415 and the total number of industrial units
2014. The act realistically amended in 2019. A established by ETP is 2,063.
comprehensive 'Air Pollution Control Rules,  Implementation of Zero Discharge Plan:
2021’ has been drafted with a view to effectively Zero Discharge Plan is being implemented
controlling overall air pollution. by the DoE in the industrial establishments
discharging liquid waste under which the
For measuring air pollution levels regularly, a industrial enterprises are reusing the
total of 16 Continuous Air Monitoring Station generated liquid waste without discharging it
(CAMS) have been set up in the divisional and in nature. From 2014 to February 2021, the
industrial city of the country including Dhaka. In DoE has approved a Zero Discharge Plan in
addition, 15 more Compact Continuous Air favour of a total of 600 T-Waste Emitting
Monitoring Station (C-CAMS) have been set up Industries.
in different districts and important places. At
present, a total of 31 CAMS and C-CAMS are Pollution Control Enforcement Activities
being used to conduct air monitoring at various In order to prevent the destruction of the
places regularly. environment and the widespread pollution of the
environment, the DoE started enforcement

activities under the said section of the Act against 2018. Under the Act, a Union Biodiversity
polluters from July 13, 2010. Under the Management Committee has been formed
enforcement activities, the DoE takes other legal from the National Committee on Biodiversity
action including imposition of compensation to implement biodiversity conservation
against persons/institutions involved in pollution activities at the grassroots level.
and conducts regular monitoring activities of  Environmental Crisis Management Rules,
industries. According to Section 7 of the 2017: The Environmental Crisis
Bangladesh Environmental Protection Act, 1995, Management Rules, 2018 have been
there is a provision to collect compensation by promulgated on 25 September 2017 to
conducting enforcement activities against protect the environment with the powers
polluting industrial establishments. DoE has given in the Bangladesh Environmental
carried out operations against 6,491 river Protection Act, 1995. A notification has been
polluting industrial establishments for damaging issued by forming a national committee of
the environment from July 13, 2010 to February ECA management under the said rules.
2021.  The 6thNational Report on CBD: As a
Formulation of Biodiversity and Biodiversity signatory to the Biodiversity Charter,
Regulations Bangladesh submits a national report on
 National Environmental Policy, 2018: biodiversity to the CBD Secretariat every
Taking into account the challenges of four years. In 2015, the 5thNational Report on
environment, environment and biodiversity the Biodiversity Charter was prepared and
conservation and management, the submitted to the CBD Secretariat. Following
government has finalised the National this, the 6thNational Report has been
Environment Policy 2018 on 3 October 2017 prepared. The Report was submitted to the
and published it in 2019 with the aim of CBD Secretariat in November 2019.
developing the overall environmental National Biodiversity Strategy and Action
conservation management of the country. In Plan (NBSAP) 2016-2121: As a member country
the newly adopted National Environmental of the Convention on Biological Diversity
Policy 2018, out of 9 more sectors/areas (CBD), the DoE is working to fulfill
including the previous 15 sectors, mountain Bangladesh's commitment in the international
environment, biodiversity and environment arena. At the 10thCBD Conference of Parties in
conservation and life security, eco-friendly 2010, 20 Strategic Goals (Biodiversity Strategic
tourism, etc. sectors have been included with Planning 2011-2020) were set out under 5
special emphasis. In order to implement the Strategic Goals for the conservation of
activities included in the 24 sectors biodiversity, which are called Aichi Biodiversity
mentioned in the National Environmental Targets. The National Biodiversity Strategy and
Policy 2018, the concerned ministries/ Action Plan 2018-2021 (NBSAP) has been
divisions/agencies have been identified formulated in the light of the UN-announced
which will be implemented by their Biodiversity Strategic Plan 2011-2020, setting
respective ministries/divisions/agencies. targets for biodiversity conservation at the
 Bangladesh Biodiversity Act 2018: The national level.
Bangladesh Biodiversity Act 2018 has been
Biosafety
promulgated with the aim of conserving
biodiversity and ensuring its sustainable use Bangladesh, as a member of the Cartahena
and has come into force on 30 November Protocol on Biosafety in the Biodiversity Charter,

has enacted regulations on biodiversity. The  Ensure conservation and management of

National Biosafety Policy, Monitoring and coastal and marine environment and
Enforcement Manual, Lab Safety Manual, Risk biodiversity.
Analysis Framework has been drafted under the  Prevent the marine pollution and conserve
marine environment by implementing
project titled Implementation of National
international conventions and protocols on
Biosafety Framework (INBF). Biosecurity marine conservation.
Rules2012 under the Bangladesh Environmental  Strengthen the legal framework to control
Protection Act, 1995 (Amended 2010) to ensure marine pollution.
the safety of life in research, development,  Monitor the effects of various pollutants on
transfer and cross-border transportation of the marine ecosystem.
Genetically Modified Organisms (GMOs) has  Monitor the impact of climate change on the
been formulated. Drafts of National Life Security marine environment.
Policy, update of Life Safety Rules, update of DoE has developed some project documents to
Biosafety Guidelines have been prepared. A implement the action plan such as
state-of-the-art GMO Detection Lab has been set ‘Comprehensive database of coastal and marine
up by the DoE to ensure the safety of life. A Web resources and the environment and biodiversity
Based Networking System (biosafetybd.org/ in the context of adverse effects of climate
Home/Index) has been established to establish a change’ and ‘Monitoring the impact of various
mutual network of scientists, researchers, pollutants on the marine ecosystem’.
research institutes and concerned government
Ecologically Critical Area (ECA)
officials involved in research and regulation
activities on biotechnology. To protect the important environment and
biodiversity of the country and to preserve and
Blue-Economy Implementation Activities improve the natural environment, the government
The DoE has adopted a blue-economy action under the Bangladesh Environmental Protection
plan to conserve marine environment, prevent Act 1995 to cut or extract natural forests and
marine pollution, ensure marine resource plants for the conservation of biodiversity, killing
extraction and environmental management, and all kinds of prey and wildlife, oysters, corals,
conserve marine and coastal biodiversity and turtles and other wildlife The government has
mainstream development activities. The action already declared 13 important areas as
plan includes the following activities: Ecologically Critical Areas (ECA) by banning all
activities such as collection, destruction of
 Include the marine biodiversity conservation
and management activities in the mainstream animal and plant habitats, etc.
of development. Sustainable Development Goals (SDGs) and
 Increase the capacity of the DoE for the Bangladesh
management of coastal and marine resources.
 Create an integrated database of coastal and The government is working for the
marine resources and the environment and implementation of the environment and climate
biodiversity in the context of the adverse related goals and targets of SDGs. Among 17
effects of climate change. goals of SDGs, 3 goals are directly linked with
 Determine strategic environmental impact on environment and climate. The Goal 13 declares
coastal and marine resource extraction and
management. ‘Take urgent action to combat climate change
and its impacts’. According to the first indicator
of goal 13 ‘Number of deaths, missing persons
and directly affected persons attributed to

disasters per one lakh populations reduce to  In order to conserve the forests effectively,
6,500 by 2020 and 1,500 by 2030.’ According to the amended Forest Act 2019 is under the
‘SDGs: Bangladesh Progress Report- process of ratification.
2020’currently in Bangladesh the number of  ‘Prime Minister's National Award for
affected persons is 4,352 in 2019. plantation’ and ‘Bangabandhu Award for
The goal 14 says ‘Conserve and sustainably use Wildlife Conservation’ has been announced
the oceans, seas and marine resources for in order to inspire people and organisation to
sustainable Development’. One of the key targets conserve the forest and wildlife/biodiversity.
of this goal is ‘Coverage of 2.5 percent of marine  The area of 1,738sq km has been declared as
areas of Bangladesh as protected area’. ‘SDGs: Marine Protected Area (MPA) (Swatch of No
Bangladesh Progress Report- 2020’ discloses that Ground) in the South Bay of Bengal. Another
at present, 2.05 percent of marine of Bangladesh MPA of about 1,743 sq.km around the St.
is protected. Martin Island is under the process of
approval.
The goal 15 states that ‘Protect, restore and
 Forest Department gradually formulating the
promote sustainable use of terrestrial ecosystem,
master plans for the Protected Areas along
sustainably manage forests, combat
with management plans to conserve the
desertification, and halt and reserve land
forest and wildlife/biodiversity.
degradation and halt biodiversity loss’. SDGs:
Bangladesh Progress Report-2020’ reveal that the  Formulation of co-management committees
forest coverage of the country now stands at 17.5 has been started since 2004 for protected
percent which is targeted to increase to 20 areas co-management to ensure the
percent by 2030. participation of local people in the
conservation of forests and
Conservation of Forest wildlife/biodiversity. Legislative basis has
Bangladesh Forest Department (BFD) been provided through the approval of co-
implemented different development projects to management Rules-2017.Therefore, the
increase forest resources, conserve wildlife and activities of the co-management are
biodiversity to support the overall development strengthened and the jurisdiction of social
of the country. According to available forestry has been expanded.
information, between FY2018-19 total forest land National Herbarium
is 25,75,196 hectares which is 17.45 percent of
Bangladesh National Herbarium (BNH) conducts
total area of the country. BFD is responsible for
taxonomic research on the plant species of the
conservation and management of 18,80,494
country. Collecting, identifying, preserving and
hectares forests. Activities taken by the BFD to
developing database of agricultural, woody,
conserve forest and biodiversity during FY2020-
medicinal, threatened and economically
21are given bellow:
important plants through field surveys is the main
task of BNH. The institute publishes in a regular
 Forestry Master Plan (2016-2035) has been
basis booklet series called 'Flora of Bangladesh'
prepared for the next 20 years to conserve the
which includes information about plant species of
forest and biodiversity and sustainable
the country. NH has already implemented a
management of forests which is under
project entitled ‘Survey of Vascular Flora of
processing for approval.
Chattogram and the Chattogram Hill Tracts’ to
collect the plant samples through botanical

survey and to publish a pictorial flora of five and local planning, protection of life,
districts of Chattogram and the Chattogram Hill property and fundamental rights of the
Tracts areas (Chattogram, Cox’s Bazar, people at risk of disaster.
Bandarban, Khagrachari and Rangamati).  Standing Orders on Disaster (SOD) 2019 has
Bangladesh Forest Research Institute been published for proper implementation of
the responsibility and duties of all ministries,
'Bangladesh Forest Research Institute' is the only divisions, departments, organisations and
national research institute for forest and forest individuals related to disaster management
resources. The main task of the institute is to and to prepare their own action plans. Such
develop innovative technology for increasing permanent orders also include disasters such
production of forest resources and better as earthquake, tsunamis and fire incidents
utilisation of these resources. In addition, the alongside other common disasters. SOD has
institute works for development and expansion of been modified including thunderbolt as
nursery and forestry strategies to retain some disaster and incorporating Ward Disaster
extinct plants. At present, the institute carrying Management Committee.
out 54research programmes.  Cyclone Shelters Construction, Maintenance
Natural Disaster Management and Management Policy, 2011 is approved to
keep the cyclone shelters built by different
Bangladesh is one of the most disaster-prone
departments/agencies/authorities at various
countries in the world. These disasters include
times in coastal areas useable and maintain
the devastating cyclone of 1970 and 1991,
and manage them.
cyclone Sidar of 2007, Aila of 2009 the Mahasen
 Bangladesh has been a member of the Asian
of 2013and Amphan of 2020 and the horrific
Disaster Reduction Center (ADRC),
floods of 1988, 1998, 2004 and 2007. The 'vision'
Regional Integrated Multi-Hazard Early
of the government in disaster management is to
Warning System (RIMES), Asian Ministerial
strengthen the overall capacity of disaster
Conference on Disaster Reduction
management, to create a disaster-tolerant country
(AMCDR) and INSARAG (International
in addition to establishing an emergency response
Search and Rescue Advisory Group).
system capable of dealing with risk reduction of
 National Disaster Management Policy 2015
the people especially the poor and the vulnerable.
has been published.
With this aim in view, The Ministry of Disaster
Management and Relief has been contributing  Post Disaster Dead Body Management
importantly to the country's disaster risk Guideline, 2016 is published.
reduction and the implementation of disaster  Draft Post-disaster Waste Management
response rehabilitation programmes. Some Guideline has been finalized.
important measures taken by the ministry has Steps Related to Planning
been shown briefly as follows:  ‘Sendai Framework for Disaster Risk
Reduction’ was adopted in the presence of
Steps for Action, Laws, Rules and Regulations 187 countries in the World Conference on
 Disaster Management Act 2012 has been Disaster Risk Management in March 2015 in
formulated to provide proper legal Sendai city of Japan. According to the
framework for ensuring the effective framework, preparation of action plan for
management of disaster and institutional Bangladesh has been completed.
recognition of management of disaster risk,  Based on the evaluation of the National
preparation and implementation of national Disaster Management Plan (2016-2020) the

next National Disaster Management Plan being circulated in the public understandable
(2021-2025) has been formulated. language through IVR system.
 Ministry of Disaster Management and Relief  Damage and Need Assessment (DNA)
is helping to prepare the SAARC Plan of Software: A web based DNA software has
Action for Disaster Management by been developed for online transmission and
coordinating disaster management policy and analysis of disaster related information.
planning of SAARC member countries. Besides, Citizen Reporting is included in the
 National contingency plan has been created software and the public can send their
for rapid transition from the post-disaster disaster information and photos online. At
situation including earthquake. Contingency present, the work of providing training to
plans of rapid responding organisations like district relief and rehabilitation officers,
Fire Service and Civil Defense Department, Upazila executive officers and Upazila
Armed Forces' Division, Department of project implementation officers is going on
Disaster Management, Cyclone Preparedness in this field. Through this software, the
Program (CPP), Dhaka, Chattogram and information can be sent from the Upazila.
Sylhet City Corporation and various health  Establishment of the Multi Hazard Risk
services providing organisations like Power, and Vulnerability Assessment, Modeling
Titas, T & T and of WASA have been done. and Mapping (MRVA) Cell: MRVA Cell
has been established under the ECRRP 2007-
Awareness and Educational Steps/Measures
D1 project in Disaster Management
 Lesson on Disaster management has been Department. This cell has prepared a map of
included from 3rd grade to 12th class in various calamities, risks and hazards. Using
order to increase disaster awareness among these maps can be taken to reduce the risk of
the students. Disaster management and disaster planning, and if it is implemented
climate change has been included in the properly, further disaster damage will be
curriculum of 41 educational and training reduced in the future. The products of
institutes in Curriculum for creating skilled MRVA have been published on the Disaster
manpower for disaster management and Management Department's website.
climate change.  Cyclone Shelter Database: Detailed
 A Harmonised Training Module for trainers information about the cyclone shelters
and trainees has been developed in order to created in coastal areas has been preserved in
achieve equality and coordination in the website based database. In this database, the
training program of government and non- shelter centers have structural and
governmental organisations (NGOs). accessories information such as geographical
 Under the National Disaster Management location (latitude/longitude), usage utility,
Research and Training Institute (NDMRTI), retention capacity, etc. Information to
training has been given to 2,378 persons up determine the proper location of the new
to December, 2020 of FY2020-21. cyclone shelter, determining the appropriate
Use of Information and Communication path for bringing people to the shelter during
Technology to reduce the risk of disaster cyclone and managing the repair and
maintenance needs of the shelters can be
 Use of Interactive Voice Response (IVR)
done by using this database. In addition,
Technology on Mobile Phones for Sending
every year the southern coastal areas of
Disaster Messages: Disaster message is
Bangladesh are flooded by the storm surge

with cyclones, resulting in massive loss of Setting up National Emergency Operation

life and livelihoods. This database can be Center (NEOC)
viewed through DNA software.
Initiatives have been taken to set up a state-of-
 Inundation Depth Map: The location based the-art National Emergency Operation Center
depth information of the flood-related (NEOC) to combat earthquake and other Mega
flooding in the southern coastal region of the Disasters. Different donor agencies have been
country is based on the data base of the contacted to build this building with a capacity to
Inundation Map/Risk Map for Storm Surge, bear earthquake on the Richter scale 7.0. Soon,
how high it will be to build the houses of the this will be implemented by a project.
houses in these areas, how high the shelter
center, the roads or other infrastructure To do Programmes of Water Development Board to
it, its ideas can be found. Combat Climate Change Risk
 E-Library: Electronic Libraries have been Bangladesh Water Development Board is giving
created so that all publications related to importance to environmental protection in
disaster and disaster management are adopting and implementing various development
available from one place. There are about projects and is following the existing
1,000 disaster related publications related to environmental laws and policies. Various climate
disaster in the e-library. change support infrastructure construction and
 Risk Atlas: Disaster Map or Risk Atlas is a environment friendly projects will play an
map of risk of a place, a summary of the risk important role in the development of our nature
index, a collection of information on risk and environment. To address the effects of
organisations, infrastructure, etc. Risk Atlas climate change, the Bangladesh Water
helps in the analysis of the zigzag map of a Development Board, with funding from the
specific district, which is your condition Climate Change Trust Fund, has completed 118
(flood depth and circumference, depth of projects from FY 2009-10 to February, 2021 at a
borax and circumference, drought image and cost of Tk. 995.77 crore. Implementation of 16
peripheral and danger information). projects at a cost of Tk. 97.94 crore is in
progress.

Annexure
Annex 15.1
Ministry/Division wise Projects and Allocation from BCCTF
Ministry/Division Approved Projects Allocation (In Crore Taka)

Ministry of Water Resources 132 1043.76
Local Government Division 441 1,312.96
Ministry of Environment, Forest and Climate Change 68 415.15
Ministry of Agriculture 21 135.54
Ministry of Disaster Management and Relief 8 125.51
Ministry of Power, Energy and Mineral Resources 3 56.02
Ministry of Shipping 3 51.76
Ministry of Education 29 76.66
Ministry of Defence 9 45.21
Ministry of Health and Family Welfare 3 22.12
Ministry of Science and Technology 2 19.31
Ministry of Women and Children Affairs 2 8.00
Ministry of Chittagong Hill Tracks Affairs 3 8.53
Ministry of Fisheries and Livestock 1 2.00
Ministry of Home Affairs 1 2.00
Ministry of Civil Aviation 1 1.00
Ministry of Public Administration 1 0.19
Total 728 3,325.75
Source: Bangladesh Climate Change Trust Fund

Annex15.2
Division-wise Projects and Allocation from BCCTF
Division Projects Allocation (In CroreTaka)

Dhaka 122 540.72
Chattogram 131 618.60
Barishal 134 687.59
Khulna 79 282.71
Rajshahi 75 197.43
Rangpur 58 168.27
Sylhet 41 138.97
Mymensingh 31 114.51
Across
57 576.90
Divisions
Total 728 3325.75
Annex 15.3
BCCSAP Thematic Area-wise Projects and Allocation from BCCTF.
Thematic Area Projects Allocation Percent (%) of

(In CroreTaka) Total Allocation
Food Security, Social 104 358.80 10.78
Protection and Health
Comprehensive Disaster 12 158.80 4.80
Management
Infrastructure 395 2025.95 60.91
Research and Knowledge 35 131.56 3.95
Management
Mitigation and Low Carbon 173 608.62 18.30
Development
Capacity Building and 9 42.01 1.26
Institutional Strengthening
Total 728 3325.75 100.00

Annex 15.4
Green Banking and Sustainable Finance
In FY2020-21 (up to December 2020) Banks and Financial Institutes have disbursed Tk. 6304.67 crore in
Green Finance. In this fiscal year, banks and FIs have financed Tk. 1,127.45 billion in 32,803 projects out
of 39,497 Environmental and Social Due Diligence (ESDD) rated projects. In FY 2020-21 (Up to
December 2020), Tk. 68.95 crore has been disbursed by banks and financial institutions from their own
climate risk fund.
In order to facilitate green products/sector financing such as solar energy, bio-gas plant, effluent treatment
plant, Bangladesh Bank established a revolving refinancing scheme of Tk. 200 crore in 2009 for green
products/sector from its own fund.The size of the fund has been increased Tk. 400 crore in view of the
growing demand for financing of environment friendly products/initiatives. At present, this scheme is
known as ‘Refinance Scheme for Environment Friendly Products/Initiatives’. During FY21, under this
scheme as refinance against Bank and Financial Institution's financing, total of Tk. 50.70 crore has been
disbursed as refinance facility from the fund in green products/initiatives such as Biogas plant, Green
Industry, Vermi Compost, Solar Home System, Biological ETP, Solar Mini Grid, Installation of Energy
Auditor Certified machineries, and Safety and Work Environment of Factory.
Asian Development Bank (ADB) supported revolving relending facility–Financing Brick Kiln Efficiency
Improvement Project was established in Bangladesh Bank in June 2012 with a view to improving the
brick sector especially environment friendly brick kilns through efficient use of technology and energy
resulting in reduced Green House Gas and Suspended Particulate Matter. The total amount of this
relending facility is US$ 50.00 million (equivalent about Tk. 400 crore). The project has two parts: Part-A
(ADB Ordinary Capital Resources) conversion of Fixed Chimney Kiln (FCK) to Improved Zigzag Kiln
(USD 30.00 million/equivalent Bangladeshi currency) and Part-B (ADB’s Special Funds Resources)
establishment of new Vertical Shaft Brick Kiln (VSBK), Hybrid Hoffman Kiln (HHK) and Tunnel
Kiln(USD 20.00 million/equivalent Bangladeshi currency). Total USD 50.00 million equivalent to Tk.
407.97 crore relending facility has been disbursed to 19 subprojects through 20 Participating Financial
Institutions till December 2019. The tenure of the project ended in December 2019 with full
disbursement.
Steps have been undertaken during FY 2020-21:
 ‘Sustainable Finance Policy’ and Methodology of Sustainability Rating for Banks and Financial
Institutions have been issued.
 Instruction has been given to establish ‘Dedicated Sustainable Finance Help Desk’ in the
potential office/branches of Banks/FIs.
 To enhance the competitiveness and sustainability of export oriented industries in the
international market; a refinancing fund of Tk.1000 (one thousand) crore has been formed in the
light of ‘Export Policy 2018-2021’ by Bangladesh Bank which is named as ‘Technology
Development/Up-gradation Fund’.
 ‘Green Transformation Fund (GTF)’ was introduced for widening the scope to manufacturer-
exporters irrespective of sectors against import of capital machinery and accessories for
implementing specified green/environment-friendly initiatives. US$ 105.32 million and Euro 3.93
million have been disbursed from GTF as of February, 2021.
 Till February, 2021 total Tk. 40.35 crore to 215 Projects has approved as grant from the
‘Bangladesh Bank Disaster Management and Social Responsibility Fund’ which was formed
under CSR activities

Annex 15.5
Government's Plan to Control Air Pollution
Air pollution is a cross-cutting issue, so the government will take the following steps in collaboration with
all ministries, departments, agencies and institutions:
Short Term
 To ensure the emission level of the vehicle while issuing the fitness certificate of the vehicle;
 To take appropriate measures to control air pollution caused by ongoing development and
construction activities;
 To control the transportation of construction materials such as soil / sand / cement etc. in open
trucks;
 Rapid repair of all damaged and broken roads;
 Ensure management of all municipal waste and stop burning of waste;
 continue the campaign against all illegal brick kilns around Dhaka;
 Conduct mobile courts and strict enforcement campaigns against the persons or organizations
concerned for air pollution;
 Uncovered spaces on the side of the road are covered with concrete and emphasis is placed on
raising awareness;
Mid-term
 To control the pollution caused by vehicles, to remove more polluting vehicles from the roads of
Dhaka;
 increase the number of public transport by reducing the use of private cars;
 Increase imports and use of hybrid / electric vehicles;
 Reviewing all types of fuel and vehicle emissions levels and vehicle engine standards (Euro-3/4)
to determine the suitability;
 Closing all illegal brickfields in the vicinity of Dhaka;
 Establishment of modern sanitary landfills for waste management;
 Creating emissions inventory to formulate effective action plans on air pollution control;
 The government will install permanent High speed water sprinkler in air pollution prone areas of
Dhaka city which will control air pollution by water at high speed from far above.
 Installing Dust Soccer;
 Arranging vacuum sweeping trucks instead of manual sweepers for road cleaning.
Long Term
 These should be implemented expeditiously with emphasis on up-to-date transportation system in
Dhaka to control air pollution.
 To increase coordination and awareness among all concerned organizations to prevent air
pollution and to ensure accountability.
 To increase the manpower of the Department of Environment in air pollution control and to take
activities to increase the capacity and efficiency of the manpower.

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BANGLADESH

Finance Division, Ministry of Finance

Bangladesh Seeretariat, Dhaka-1000, Bangladesh

4^aa anu f-"."..-*

(A H M Mustafa Kamal FCA, MP)

Bangladesh Secretariat, Dhaka-1000, Bangladesh

Chapter No. Page No. Chapter

xi-xiv List of Tables

xv-xvi List of Figures

xvi List of Annexure

xvii-xx List of Statistical Appendices

xxi-xxxii List of Abbreviations and Acronyms

3. 21-34 Prices, Wages and Employment

4. 35-54 Fiscal Policy and Fiscal Management

5. 55-74 Monetary Management and Financial Market Development

Table Title Page

1.1 Overview of the World Output Growth Projections 2

3.1 Consumer Price Index and Inflation (Base year 2005-06) 22

4.1 Revenue Mobilisation Target 36

5.1 Growth Trends of Monetary Aggregates 57

6.1 World Trade Volume 76

6.6 Country-wise Import Payments 81

7.1 Food Grains Production 92

9.1 Non-Financial Public Enterprises 129

10.1 Installed Capacity and Maximum Generation 137

10.9 Physical Target and Achievement of BREB 142

12.1 HDI Position of Bangladesh 186

13.1 Trend of Income Poverty 210

13.9 Status of Micro-Credit Programs of Major NGO 226

14.1 FDI Inflow to Bangladesh by Components 233

3.1 Rate of Inflation at National Level 22

4.1 Comparative Statement of Item wise Revenue Mobilisation 37

5.1 Composition of Broad Money (Year-on-Year Percentage Change) 57

6.1 Trade Balance 76

7.1 Food Grains Production 93

9.1 Financial Performance of SoEs 133

10.1 Installed Capacity (By Fuel Type) 136

14.1 Trend in FDI Inflow in Bangladesh (In million US$) 233

Annex Title Page

5.1 Reforms in the Bangladesh Bank 72

6.1 Summary of major changes in foreign exchange regulations during FY2020- 88

8.1 Steps Taken for the Development of SMEs 127

14.1 Sources of the Foreign and Joint Venture Projects 245

15.1 Ministry/Division wise Projects and Allocation from BCCTF 261

ACU Asian Clearing Union

General Geographical Location/Characteristics Gross Domestic Product (GDP), 2020-21 (Prov.)

Executive Summary | xxxv

Executive Summary | xxxvi

Executive Summary | xxxvii

Executive Summary | xxxviii

Executive Summary | xxxix

Global Economy Economic recoveries are diverging across

Chapter 1: Macroeconomic Situation | 1

Chapter 1: Macroeconomic Situation | 2

Chapter 1: Macroeconomic Situation | 3

Chapter 1: Macroeconomic Situation | 4

Chapter 1: Macroeconomic Situation | 5

Chapter 1: Macroeconomic Situation | 6

Chapter 1: Macroeconomic Situation | 7

Chapter 1: Macroeconomic Situation | 9

Chapter 1: Macroeconomic Situation | 10

FY 2020-21, up by 9.91 percent of the previous

Chapter 2-GDP, Savings and Investment | 11

Chapter 2-GDP, Savings and Investment | 12