TABLE OF CONTENTS

INTRODUCTION...........................................................................................................................................2
ECONOMIC HISTORY OF BANGLADESH.......................................................................................................3
ECONOMIC SECTOR.....................................................................................................................................5
INVESTMENTS..............................................................................................................................................8
GOVERNMENT ROLE................................................................................................................................8
INTERNATIONAL TRADE.............................................................................................................................10
WHAT IS INTERNATIONAL TRADE?........................................................................................................10
INTERNATIONAL TRADE ON BANGLADESH’S ECONOMY...........................................................................12
AN ANALYSIS OF MACROECONOMIC TRENDS IN BANGLADESH................................................................12
PRE-LIBERATION MACROECONOMIC MANAGEMENT (1947-1971):......................................................13
INTERMEDIATE POST-LIBERATION MACROECONOMIC MANAGEMENT AND ITS STRUGGLES:.............13
CURRENT MACROECONOMIC SITUATION: ECONOMIC GROWTH (2022):.............................................14
CURRENT ECONOMIC SITUATION..............................................................................................................14
GOVERNMENT’S ROLE IN THE ECONOMY OF BANGLADESH.....................................................................17
INDUSTRIALIZATION:.............................................................................................................................18
INFRASTRUCTURAL DEVELOPMENT:.....................................................................................................18
Manpower:............................................................................................................................................19
FUTURE PROSPECTS & CHALLENGES:........................................................................................................19
GROWING INFLUENCE OF WOMEN IN THE ECONOMY OF BANGLADESH.................................................21
CONCLUSION.............................................................................................................................................23

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INTRODUCTION
Bangladesh is a country situated in southern Asia, in the northeastern part of the Indian
subcontinent. After gaining independence from Pakistan in 1971, Bangladesh was considered as
a Least Developed Country (LDC) and has now gained the status of a Developing country (DC).
The major characteristics of Bangladesh would be that it is commonly known as one of the most
densely populated areas in the world with high levels of unemployment, income inequality and a
reliance in imports. As of now, Bangladesh is mostly reliant on its primary sector, namely
agriculture. Although this trend is on a downward trajectory, agriculture remains a vital part of
the country’s overall output. This is a relatively new economy and a small player compared to
the industrial and economic giants like the USA and China. Over its fifty plus years of
independence, Bangladesh has emerged as an economy relying mostly on agriculture for a large
portion of its yearly income. Reasons for such a trend can be traced back to the fact that this
country has had political instability and poor decision making which has led to poor living
standards. Due to the lack of skilled labor and meaningful investments, it seems obvious why
this country relies so much on its primary sector. A lack of labor skills, poor infrastructure, etc.
make it hard for the country to move away from the primary sector and make strides in the
secondary or tertiary sector. For Bangladesh, such a move can prove to be difficult as machinery
equipment will be needed and labor skills to operate them. Overall, it lacks both of these which
hinders the possibility of rapid industrialization.
On the flip side, Bangladesh is considered the 33rd largest economy in the world and has been
experienced a balanced economic growth over the last two decades having a remarkable growth
in annual GDP (over 6%) based on compatible trade and macroeconomic track record. It is
classified among the next eleven emerging economies and a frontier market. In the first quarter
of 2019, Bangladesh's was the world's seventh fastest-growing economy with a real annual GDP
growth rate of 8.3%. Considering such progress and resilience in the economy, the World Bank
has recently recognized Bangladesh as a middle-income country. The impetus to this economic
growth emerged mainly from liberalization of trade and financial sector, favorable demographic
factors, financial inclusion, and macroeconomic stability. Alongside, a stride in labor-intensive
manufacturing exports, led by readymade garment (RMG) also contributed to achieving
country’s remarkable economic growth, creating employment and reducing poverty.

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-Everyone

ECONOMIC HISTORY OF BANGLADESH

“Every single piece of economic theory is a piece of crystallized history. And you have a much
deeper and sophisticated form of knowledge if you know the history, the events, what happened
… if you just do the theory, if you just do the crystallized history stuff, there is a sense in which
your thought processes are on crack – you are doing the crystal stuff rather than the lines.”-
Professor Brad DeLong
Economic History: Economic history is a historical social science discipline that explores
economic and social phenomena over time. It offers tools based on historical and social scientific
research to better understand the past and the contemporary world.
Economic History of Bangladesh: Economic History of Bangladesh can be classified into 3
major parts; they are as follow:
1. Ancient Time:
The World’s largest Delta known as The Ganges delta consisting in Bangladesh provided a lot of
advantages in the economy of the country during ancient time. It provided advantages of a mild,
almost tropical climate, fertile soil, ample water, and an abundance of fish, wildlife, and fruit.
Ancient Bengal was the site of several major Janapadas (kingdoms), while the East Bengal,
eastern segment of Bengal was a historically prosperous region, and the standard of living is
believed to have been higher compared with other parts of South Asia. The Silk Road trade
played a significant role in opening economic relations between China, Korea, Japan, India, Iran,
Europe, Africa and Arabia and Bengal was the junction of trade routes on the Southeastern Silk
Road. So, it played a significant role in Bengal’s Economy in ancient times to do trade
internationally with the rest of the world.
2. Medieval Bengal:
This period can be classified into 2 parts, and they are:
I. Economic history during Bengal Sultanate
II. Economic history during Mughal Rule
Economic history during Bengal Sultanate: The Bengal economy in the beginning of the 15th-
century is attributed to the end of tribute payments to Delhi, which ceased after Bengali
independence and stopped the outflow of wealth. Ma Huan’s testimony of a flourishing
shipbuilding industry was part of the evidence that Bengal enjoyed significant seaborne trade.

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The expansion of muslin production, sericulture and the emergence of several other crafts were
indicated in Ma Huan's list of items exported from Bengal to China. Europeans referred to
Bengal as "the richest country to trade with"
Economic history during Mughal Rule: During the Mughal era, the most important center of
cotton production was Bengal, particularly around its capital city of Dhaka, leading to muslin
being called "daka" in distant markets such as Central Asia. Bengali agriculturalists rapidly
learned techniques of mulberry cultivation and sericulture, establishing Bengal as a major silk-
producing region of the world. Bengal accounted for more than 50% of textiles and around 80%
of silks imported by the Dutch from Asia, for example. Bengal also had a large shipbuilding
industry. Indrajit Ray estimates shipbuilding output of Bengal during the sixteenth and
seventeenth centuries at 223,250 tons annually, compared with 23,061 tons produced in nineteen
colonies in North America from 1769 to 1771. He also assesses ship repairing as very advanced
in Bengal. Bengali shipbuilding was advanced compared to European shipbuilding at the time.
3. Modern Time:
This period can be classified into 3 parts, and they are:
I. British Period: The British East India Company, which took complete control of Bengal
in 1793 by abolishing Nizamat (local rule), chose to develop Calcutta, as their
commercial and administrative center for the Company-held territories in South Asia.
The development of East Bengal was thereafter limited to agriculture. The administrative
infrastructure of the late eighteenth and nineteenth centuries reinforced East Bengal's
function as the primary agricultural producer—chiefly of rice, tea, teak, cotton, sugar
cane and jute.
II. Pakistan Period: West Pakistan was in a better position in comparison with East Pakistan
due to the discriminatory policy of the Pakistan government. For example, East Pakistan
received taka 113 crore 3 lakh and 80 thousand at the budget allocation from 1955-56 to
1959- 60, on the other hand West Pakistan got taka 500 crore in the same period. Taka
6,480 million from 1960-61 to 1964-65, was allocated for the East Pakistan and West
Pakistan received taka 22,230 million in the same period. The foreign exchange earned
through export of Jute, tea, hide etc., used to be spent for the development of West
Pakistan. As a result, East Pakistan started lagging in the fields of trade and commerce,
industry, and agriculture, and in economy.

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III. Modern Bangladesh: Since Bangladesh followed communist economy by nationalizing
all industries after its independence, it underwent a slow growth of producing. They faced
a lot of problems and tried to decentralize the industry and from there the theme of
capitalism comes. From then, Bangladesh become a country of socialist economic
system. Bangladesh has an impressive track record of growth and development. It has
been among the fastest growing economies in the world over the past decade, supported
by a demographic dividend, strong ready-made garment (RMG) exports, remittances, and
stable macroeconomic conditions. Bangladesh is currently the 41st largest economic
country of the world with a developing country status and a mid-level income-based
country. By the year 2041 Bangladesh shall become a developed country if she can
achieve Her SDG goals. Although she achieve Her MDG goals by following the co-
existence Socialist System.
-Saalim Sakib Wrivu (2221141127)

ECONOMIC SECTOR
Bangladesh is a relatively new economy and a small player compared to the industrial and
economic giants like USA and China. Over its fifty plus years of independence, Bangladesh has
emerged as an economy relying mostly on agriculture for a large portion of its yearly income.
Reasons for such a trend can be traced back to the fact that this country has had political
instability and poor decision making which has led to poor living standards. Although things are
slowly but surely improving, people in Bangladesh still to this day suffer from poor sanitation,
lack of education and restricted employment opportunities. Due to the lack of skilled labor and
meaningful investments, it seems obvious why this country relies so much on its primary sector.
Such a problem can be seen in other developing countries where a reliance in primary production
has led to severe consequences when unprecedented occurrences cut production short, and a lack
of an industrial sector meant there was no back up for generating income. Some Important
sectors of our economy is discussed below:
1. Agriculture: For most people here, the primary choice of occupation is agriculture and
currently this sector boasts the highest employment numbers of all industries in the country.
The biggest driving force for this trend is the fact that there are plentiful fertile lands from
which different crops can be cultivated. As of now, there are 90,990 square kilometers of

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 arable land where cultivation can take place. Rice, tea, jute, fruits, wheat and countless other
crops are cultivated day in day out. This also helps to feed the innumerable number of people
in this densely populated country. The large pool of labor has also helped the economy to
increase production despite frequent floods. Growing tea is the 2nd most important
occupation for the agricultural sector. By exporting tea, it helps to grow our economy.
2. Industry: The industrial sector plays an indispensable role in the development and prestige of
any economy. Before diving straight in, we must first know what an industry is. An industry
can be defined as that sector of the economy where a group of businesses are involved in
producing the same types of goods and services. In almost any country, there are countless
industries with only a few major ones. The major four Industry of the country are Textile,
Leather, Pharmaceuticals and Shipbuilding, they are discussed below:
 Textile Industry: The textile and clothing industries provide a single source of growth in
Bangladesh's rapidly developing economy. Exports of textiles and garments are the
principal source of foreign exchange earnings. By 2022 exports of textiles, clothing, and
ready-made garments (RMG) accounted for 77% of Bangladesh's total merchandise
exports. Bangladesh is 2nd in world textile exports, behind China, which exported $120.1
billion worth of textiles in 2009. The industry employs nearly 3.5 million workers.
Current exports have doubled since 2004.
 Leather Industry: Industry analysts believe that Bangladesh's over one billion footwear
industry has the potential to grow to a 15-billion-dollar vibrant industry within a decade.
According to EPB data, the leather industry has crossed the record $1-billion mark in
2012–13. Bangladesh earned $1.29 billion from exports of leather, leather goods and
footwear in 2013–14 fiscal. The export target for 2014–15 has been set with an increase
of 4.2 per cent. This rate of growth needs to be progressively accelerated to attain the
target of $5 billion in 2020. Exports of leather and leather goods crossed $1 billion for the
second year in fiscal 2019–20, according to data from the Export Promotion Bureau. The
leather industry is a major industry in Bangladesh and the Government of Bangladesh has
declared it as a priority sector. The industry was the second largest export sector of
Bangladesh in FY 2020. The industry also plays a role in creating employment.
 Pharmaceuticals: The LDC status of the economy propelled the industry to unforeseen
heights. This meant Bangladesh was able to export its medicine without having to worry

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 about trade restrictions such as patents. Therefore, they could sell at competitive prices
due to lower costs and this massively helped the industry to grow. Currently, the market
is estimated to be valued at US$ 3 billion and about 90% of home demand is met by
domestic firms.
 Shipbuilding: The shipbuilding industry is relatively new in Bangladesh but one which
holds enormous promise to become an industrial giant in the future. As of now, the
industry is booming, and this can be traced back to the fact that prices are low, and
demand is high. Currently, there are about 200 different shipbuilding companies with
most of them operating in Chittagong, Dhaka and Khulna.
3. Service: The Bangladesh economy is dominated by the service sector. According to
Bangladesh Economic Review (2008), Bangladesh's major service sub-sectors contain
wholesale and retail, transportation, storage and communications, real estate, rental,
commercial and community activities etc. In Bangladesh perspective, the contribution of
service sector to the GDP is about 55.89 percent while the growth of this sector is 11.95
percent holding the position of second fastest growing employment sector in Bangladesh
serving 40 percent of the total employment.
The Contribution of 3 major sectors in Bangladesh's GDP are shown below:
Sector Shares of GDP 2016-2017 2017-2018 2018-2019
Agriculture 14.17 13.82 13.32

Industry 29.32 30.17 31.15

Service 56.5 56 55.53

-Maniza Mourin Rodoshi (2221141113)

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INVESTMENTS
GOVERNMENT ROLE
The government of Bangladesh has encouraged a growth strategy which comprises exports and
the private sector. The aim is to create a thriving private sector with increasing investments both
domestically and abroad, in which the government is to merely facilitate rather than dictate. As
of now, Bangladesh offers a multitude of incentives for private investments into its various
sectors and industries. Some of these are discussed below:
 THE WORKFORCE: Bangladesh offers a large pool of labor which can be used by firms
in their operations. So, firms benefit from a young and low-cost labor force. These workers
are also adaptable and can provide the firms with a competitive edge internationally. Thus,
investors can benefit from this as firms in Bangladesh can make good use of this resource.
 LOCATION: The geographic location of the country can be considered as a strategic upside
as it can act as a gateway to countries in the Asia-Pacific region. It is located next to India,
China, the ASEAN countries, BCIM and BBIM. This has led to Bangladesh becoming a hub
of opportunity and has attracted considerable investments.
 OTHER INCENTIVES: Bangladesh enjoys tax exemptions in countries like Canada, Japan
and the EU. The benefits derived from this are most evident in the RMG sector where
Bangladesh has become one of the leading of exporters. The government also offers a
plethora of incentives to encourage growth of the private sector and boost investments.
Currently, it has been dubbed as the most liberal FDI regime in South Asia. It allows
complete foreign equity ownership without any restrictions on exit policy. Some of the
incentives are tax holidays, accelerated depreciation and double tax avoidance. It also
provides export processing zones (EPZs) which provide infrastructural facilities and
logistical support.
CLOSER LOOK INTO THE INVESTMENTS IN BANGLADESH
Stock market capitalization of Bangladesh was about US$ 89.8 billion in 2020. Although the
value lacked consistency in the prior years, it has generally been on the upward trajectory over
the last two decades. When compared to GDP, it amasses to about 24%. Although these numbers
may look unimpressive when compared to the economic giants like the USA, they are
nonetheless impressive compared to other developing countries. As of now, Bangladesh has two

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stock exchanges, the DSE and the CSE, where investments and trade can be conducted. Out of
the numerous enlisted companies, here is a list of some of the largest and most influential ones:
 SQUARE GROUP: This group consists of several companies among which Square
Pharmaceuticals and Square Textiles stand out as clear market giants. Being one of the oldest
and largest groups, Square has amassed incomparable prestige and a huge chunk of
Bangladesh's investments over the years. The net asset value of the pharmaceuticals and
textiles combined accumulates to about taka 75 million. 91,436,679 ordinary Shares of Tk.
10 for textiles and 199,750 and ordinary Shares of Tk. 1,000/-each in Square Hospitals Ltd.
These outstanding numbers have prompted investments from all over the country and from
abroad.
 BEXIMCO GROUP: Beximco is currently a multinational and one of the largest companies
in Bangladesh with an export-oriented mindset (it exports is pharmaceuticals to over 45
countries). One of its most impressive achievements was being enlisted as the first
Bangladeshi company in the London Stock Exchange. Currently, its export and import,
pharmaceuticals and ceramics have a market capitalization of about Taka 200 million and
about 8 million shares traded in total. Needless to say, Beximco has set a benchmark for large
scale success in Bangladesh, accounting for almost 75% of the country's industrial exports,
being the largest employer in the private sector and accumulating over US$ 2 billion in
annual revenue.
 PRAN-RFL GROUP: As of now, PRAN is the largest food and beverage manufacturing
company of Bangladesh and RFL is the market leader in CVC, plastic and cast-iron items.
Their success story is undeniable due to the countless achievements they boast. RFL's first
shipment was worth US$ 2 million, PRAN exported $231 million in 2017 and together they
employ almost 300 thousand employees both directly and indirectly. They also won Best
Employer Brand Award, Top VAT Payers Award, National Export Trophies, etc.
 FIRMS IN RMG INDUSTRY: RMG has become a staple of Bangladesh exports over the
years, generating US$ 31.5 billion in exports and generating investments locally and
internationally. Some noteworthy companies are Square, Beximco, DBL, Hameem, Epyllion,
etc. These companies have employed countless domestic workers and have been a consistent
and reliable source of investments in the country.
-Radeeyal Kabir (2221141111)

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INTERNATIONAL TRADE
If you walk into a supermarket and find Costa Rican bananas, Brazilian coffee, and a bottle of
South African wine, you're experiencing the impacts of international trade.

WHAT IS INTERNATIONAL TRADE?

International trade is the purchase and sale of goods and services by companies in different
countries. Consumer goods, raw materials, food, and machinery are all bought and sold in the
international marketplace. And the importance of international trade was recognized early on by
political economists such as Adam Smith and David Ricardo.
International trade allows countries to expand their markets and access goods and services that
otherwise may not have been available domestically. As a result of international trade, the
market is more competitive. This ultimately results in more competitive pricing and brings a
cheaper product home to the consumer. Also, International trade was key to the rise of the global
economy. In the global economy, supply and demand and thus prices are both impacted by
global events. Suppose Political change in Asia, for example, could increase the cost of labor.
This could increase the manufacturing costs for an American sneaker company that is based in
Malaysia, which would then increase the price charged for a pair of sneakers that an American
consumer might purchase at their local mall.
Imports and Exports: A product that is sold to the global market is called an export, and a
product that is bought from the global market is an import. Imports and exports are accounted for
in the current account section of a country's balance of payments. Global trade allows wealthy
countries to use their resources, for example, labor, technology, or capital more efficiently.
Different countries are endowed with different assets and natural resources: land, labor, capital,
technology, etc. This allows some countries to produce the same goods more efficiently; in other
words, more quickly and at a lower cost. Therefore, they may sell it more cheaply than in other
countries. If a country cannot efficiently produce an item, it can obtain it by trading with another
country that can. This is known as specialization in international trade.
Bangladesh in International Trade: Based on Bangladesh's export & import statistics,
Bangladesh’s top exports are apparel & clothing, textile, footwear, fish, leather, tobacco, jute,
and labor. And it imports petroleum & oil, food, iron & steel, and a few other commodities that
are not readily available in the country. As of 2020-21, the total export of goods by Bangladesh

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amounted to $33.9 billion, and services amounted to $6.1 billion, according to Bangladesh Bank.
Whereas Bangladesh imported goods worth approximately $54.4 billion and services worth $7.2
billion.
Bangladesh's major exports around the world:
Garments industry: The garments industry started its journey in the 1980s. The pioneer was the
Late Nurool Qader Khan in 1978 he sent 130 trainees to south Korea where they learned how to
produce readymade garments and from then till now it conquered the post-MFA challenges. Now
the garments industry in Bangladesh is the biggest export earner with a value of over 279 billion
dollars of exports in the 2019-20 financial year. It supplies mainly to the USA and Europe
Cheap labor: One of the important sectors is cheap labor. Ever since independence Bangladesh
did not get any opportunities to find jobs at home so they went to other countries to work as
laborers. Especially in the 1970’s oil booms in the Middle East where billions of barrels of oil
were found in their lands. And ever since then they have needed workers to work in their fields.
Millions of Bangladeshis are migrating toward the Middle East, and they sent money as a form
of remittance even today 7.1% of the population of Bangladesh works overseas. And these
laborers are very cheap.
Fish, leather, tobacco, & jute: Bangladesh also exports these products to Southeast-Asia,
Russia & Europe and earns a lot of foreign currencies.
Bangladesh’s major imports from the world: Bangladesh imports petroleum & oil, food, iron
& steel, and a few other commodities that are not readily available in the country. As of 2020-21,
Bangladesh imported goods worth approximately $54.4 billion and services worth $7.2 billion.
Petroleum & oil: In 2020, Bangladesh imported $2.64B in Refined Petroleum, becoming the
42nd largest importer of Refined Petroleum in the world. In the same year, Refined Petroleum
was Bangladesh's 1st most imported product. Bangladesh imports Refined Petroleum primarily
from: Singapore ($856M), China ($769M), India ($415M), Malaysia ($369M), and Thailand
($76.8M).
Iron and Steel: Bangladesh imports Iron or steel articles primarily from: China ($575M), Russia
($219M), India ($155M), Thailand ($30.2M), and South Korea ($23.8M). The fastest-growing
import markets in Iron or steel articles for Bangladesh between 2019 and 2020 were Russia
($84.4M), South Korea ($11.9M), and Vietnam ($11.5M).

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INTERNATIONAL TRADE ON BANGLADESH’S ECONOMY
Bangladesh has an established track of progress and expansion, particularly during periods of
significant global turmoil. Over the past 20 years, rapid economic expansion has been backed by
a large demographic dividend, solid ready-made garment (RMG) exports, sustained remittance
inflows, and stable macroeconomic conditions. A strong recovery from the COVID-19 pandemic
continued in FY22, although a recent surge in commodity prices has presented new headwinds.
Bangladesh is also a remarkable story of poverty reduction and development. From being one of
the poorest nations at birth in 1971, Bangladesh reached lower-middle income status in 2015. It
is expected to leave the UN's list of least developed nations (LDC) in 2026. Based on the
international poverty line of $1.90 per day, poverty decreased from 43.5 percent in 1991 to 14.3
percent in 2022. (Using the 2011 Purchasing Power Parity exchange rate). Furthermore, there
was an improvement in many areas of human growth.
-Tahsin Siddiki (2221141115)

AN ANALYSIS OF MACROECONOMIC TRENDS IN BANGLADESH

Despite the sparse mineral resource's occurrence of natural disasters war famine coups and
political turmoil, Bangladesh has been able to transform from an impoverished country to one of
the fastest growing economies in the world today. Bangladesh in a few years could rise to
compete with the likes of Singapore and China as the country is steadily growing. How have
they become a successful thriving economic force that has refused to be crippled? This section
takes a look at the rise of Bangladesh and how the country has changed the status quo and
claimed her space as a player in international trade despite the odds and negative projections that
have been foreseen against her.
Bangladesh economy has made significant improvement in macroeconomic performance over
the last three decades. Acceleration of economic growth, gradual decline in budget deficit, high
rate of import and export growth, steady rise of foreign currency reserve at a stationary level are
some of the major achievements that Bangladesh attained during the past few years until fiscal
year 2021-2022. To better understand the macroeconomic trends of Bangladesh this section
looks in three time periods within the eight decades after the India-Pakistan partition in 1947.

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PRE-LIBERATION MACROECONOMIC MANAGEMENT (1947-1971):
The partition of British India and the emergence of India and Pakistan in 1947 severely disrupted
the former colonial economic system that had preserved Bangladesh (then East Pakistan) as a
producer of jute and rice for the urban industrial economy around Kolkata. East Pakistan had to
build a new industrial base and modernize agriculture in the midst of a population explosion. The
federal government of Pakistan expanded the cultivated area and some irrigation facilities, but
the rural population generally became poorer between 1947 and 1971 because improvements did
not keep pace with rural population increase. Pakistan's five-year plans opted for a development
strategy based on industrialization, but the major share of the development budget went to the
then West Pakistan. The lack of natural resources meant that East Pakistan was heavily
dependent on imports, creating a balance of payments problem. Without a substantial
industrialization program or adequate agrarian expansion, the economy of East Pakistan steadily
declined. Blame was on the West Pakistani leaders who not only dominated the government but
also most of the fledgling industries in East Pakistan.

INTERMEDIATE POST-LIBERATION MACROECONOMIC

MANAGEMENT AND ITS STRUGGLES:
The economic situation faced Bangladesh as it emerged from the liberation war in 1971 included
the highest rural population density, chronic malnutrition for the majority of the people, and the
dislocation of between 8 and 10 million people who had fled to India and returned to
independent Bangladesh by 1972. The new nation state had few experienced entrepreneurs,
managers, administrators, engineers, or technicians. There were critical shortages of essential
food grains and other staples because of wartime disruptions. External markets for jute had been
lost because of the instability of supply and the increasing popularity of synthetic substitutes.
Foreign exchange resources were minuscule. Commercially exploitable industrial resources,
except for natural gas, were lacking. The liberation war crippled the transportation system.
Hundreds of road and railroad bridges had been destroyed or damaged. And rolling stock was
inadequate and in poor repair. The new country was still recovering from a severe cyclone that
hit the area in November 1970 and caused 250,000 deaths. After West Pakistani owners of
industrial enterprises fled in 1971, the government had to take over managing and operating
more than 300 medium- and large-scale industrial plants, which represented nearly 90 per cent of
the value of all such enterprises in the new nation. It organized public corporations to oversee the

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major industries. The main government institution responsible for coordinating national
rehabilitation and development was the Planning Commission, which prepared plans that
directed economic priorities for five-year periods. The First Five-Year Plan covered the period
July 1973 to June 1978. It was succeeded by a two-year plan, covering the period July 1978 to
June 1980, which was followed by a year-long hiatus. The Second Five-Year Plan (1981-85) and
the Third Five-Year Plan (1985-90) put the planning process back on track. The broad objectives
of the subsequent Fourth and Fifth Five-Year Plan and Poverty Reduction Strategy Papers
(PRSP), Sixth and Seventh Five Year Plans were to reduce poverty, bring down the rate of
population growth, increase exports, and domestic savings, attain self-sufficiency in food
production, and realize an annual growth of the gross domestic product. These ambitious goals
went well beyond the previous actual performance of the economy.

CURRENT MACROECONOMIC SITUATION: ECONOMIC GROWTH

(2022):
Bangladesh has been maintaining reasonable macroeconomic stability for the last two decades or
so, which served as the basis for higher economic growth trajectories in subsequent years. The
economic growth, along with other development interventions, provided a dividend for poverty
reduction. However, with higher growth rate, the pace of poverty reduction has slowed down and
income inequality is on a rising trend. Bangladesh economy was growing consistently high over
a decade crossing 7.0 percent milestone in FY 2015-16 and 8.0 percent milestone in FY 2018-19,
however, the COVID-19 pandemic reduced the growth rate to 3.45 percent in FY 2019-20. In
accordance with specific government regulations Bangladesh successfully managed COVID-19
pandemic and returned to high growth trajectory. The economy grew by 6.94 percent in FY
2020- 21. According to the provisional estimates of BBS, the GDP growth stood 7.25 percent in
FY 2021-22, 0.05 percent higher than the target rate and 0.31 percent higher than the previous
fiscal year. Medium-term forecasts for GDP growth rates are 7.5 percent in FY 2022-23, 7.8
percent in FY 2023-24 and 8.0 percent in FY 2024-25.
-Safwat Ridhwan Rashik (2221141123)

CURRENT ECONOMIC SITUATION

In recent years, the economy around the globe has been facing many challenges. The main things
that are now affecting the economy of Bangladesh are the Russia-Ukraine war, Energy crisis,

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Inflation, Exchange rate devaluation, Decrease in export, Reduction in remittance, Trade deficit.
Along with these, COVID made a huge impact on the economy of our country.
COVID : Since March 2020, Bangladesh have been experiencing the impact of COVID. Many
people have lost their jobs due to COVID which was a big pressure on the economy of
Bangladesh . In a study, it was shown that 39% of firms reported that half of their employees
were not able to go to their workplace due to government restrictions . The shortage of cash flow
was reported as the biggest problem that businesses faced during COVID . The majority of firms
were reported to take loans from commercial bank or micro-finance institutions to reduce the
operating cost to offset the impact of cash flow shortage. Prior to the crisis , the economy of
Bangladesh had been growing 7% annually over the decade and due to COVID, it came down to
5.2%.
Russia-Ukraine war: Right when Bangladesh was recovering from the impact of COVID, the
Russia-Ukraine invasion broke out . Bangladesh is set to be affected economically as we import
a large quantity of products from Russia and Ukraine . According to Bangladesh Bank, in 2020-
2021 fiscal year, goods worth of 800 million dollar were imported from Russia and Ukraine .
Food shortage is not the only problem Bangladesh is facing as we also import fuel, fertilizers ,
chemicals , steel etc. from Russia . The price of fuel all around the globe is already in an upward
trend as Russia , one of the largest oil suppliers in the world who provides 45% oil, is now
engaged in battle with Ukraine . Apart from importing food items , we also import fertilizers
which is needed for cultivation . Now due to the Russia-Ukraine war , we are not able to get
sufficient amount of supply from Russia which will affect the economy of Bangladesh greatly .
Bangladesh not only imports from Russia and Ukraine but also exports a few products . But now
due to this invasion , the difficulties in transportation made it almost impossible to import-export.
This war plays a vital role in price hike nowadays . The biggest challenges of war is faced by the
import dependent countries like Bangladesh. From the prospective of someone who earns a fixed
amount of money, it is hard to lead a good life.
Energy crisis: An ongoing hindrance of Bangladesh in recent economy is energy crisis.
Although Bangladesh had access to electricity for all in March 2022, more than 50% of
electricity is generated using natural gas . Dwindling gas reserves , alongside a jump in global
prices of liquefied natural gas(LNG), have forced the Bangladesh government to resort to load-
shedding . Starting from July of this year , power supply has been shut for man hour or two

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daily . But in certain areas of the country, the power outage is happening for a long period of
time. Shop and malls were instructed to close by 8 pm. While government offices were ordered
to decrease power consumption by 25% due to energy crisis, factories around the country are not
being able to produce as much as products needed. According to Prothom Alo, the lack of gas is
the main reason behind Bangladesh’s current power disruption . Also, the global market of
energy prices has constantly been unpredictable. The instability in the energy sector makes a
direct impact on industrial growth and sustainability . Sustainable industrial growth can not be
achieved with energy crisis as most industries depend on energy to produce . Power outage and
energy price hikes is driving up production costs . Due to energy crisis, developing countries like
Bangladesh are facing a serious cost-of-living challenges . Bangladesh’s fuel import dependency
kept on increasing, putting the country at an international price and supply fluctuation risk.
Inflation : Inflation means an overall rise in price with time that reduces the purchasing power
of currency. It is widely believed that moderate and stable inflation rates promote the
development process of a country and economic growth. Inflation causes increase in the
production cost. Therefore, companies tend to cut off employees and the people become
unemployed . High inflation also led to higher borrowing costs for business and people needing
loans as financial markets seek to protect themselves against rising prices. Inflation causes the
purchasing power of currency to decline , making goods and service more costly . This affects
people with lower income . Lower income wage earners spend a large proportion of their money
on necessaries hard to go without when prices spike . For example , the daily necessaries that
were sold at TK 1 is now being sold at TK 8.This will increase the GDP , which means there will
be growth in economy but the growth will not be sustainable . The inherent value of money will
not be the same due to inflation.
Trade deficit : Trade deficit refers to a situation where a country’s imports exceed it’s exports
during a fiscal year . It is referred as a negative balance of trade . Many economist takes trade
deficit as a imbalance between countries savings and investment rates . Foreign direct
investment(FDI) and foreign ownership of government debt can be risky for a small country with
trade deficit . A Bangladesh Bank data shows that the amount of import increased and the trade
deficit of 2021-2022 fiscal year was 40% more than the previous fiscal year . Experts suggest
curbing imports , boosting exports and inflow of remittances to minimize trade deficit and
provide relief to country’s forex reserves.

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Exchange rate devaluation : Exchange rate is an important indicator for measuring the stability
and economic growth . The importance of exchange rate can be anticipated by considering it’s
influence on imports and exports . In recent time, exchange rate devaluation is a topic to discuss
as it is affecting the economy greatly . The devaluation of local currency against the US dollar
has provoked the government to count more Taka to repay debt to foreign creditors , creating
pressure on revenue expenditure . A report shows that Bangladesh has to pay almost 500 crore
taka to meet the debt obligation in 2022 fiscal year. This means local currency is losing it’s
value.
Decrease in export : Export plays a big role in Bangladesh’s economy . In recent time , we can
see decrease in export of our country’s economy . Bangladesh mainly exports apparel products to
Europe .
Right now due to higher inflation , Russia-Ukraine war , supply chain bottle neck , fall in
demand we are not exporting products as much as before . This has a impact on economy as we
are the largest apparel products exporter after China . The apparel products shipment of Europe
was low compared to previous months . Due to economic situation of Europe , people are now
using more money to buy daily necessary products like food items rather then buying apparel
products . The contraction in export earnings came as European and American buyers continue
to struggle amid higher consumer prices . Export earnings dropped 6.25 percent in September
2022 as the cost of living crisis in western countries took it’s toll on Bangladesh’s main foreign
currency earning sector.
-Tanjuma Nujhat Rayna (2221141125)

GOVERNMENT’S ROLE IN THE ECONOMY OF BANGLADESH

The government controls the economy of Bangladesh by doing some major works that is
imposing proper taxes on commodities, tariffs, earning remittance, controlling the monetary
policy, making fiscal policies every year. Some specific representatives of the government are
responsible for controlling specific fields in the economy.
Bangladesh has been registered as a Least Developed Country (LDC) and will be developed
country by 2026. This development is measured on the basis of the economic growth of
Bangladesh. Bangladesh government has done a lot for the economic development. Notables are

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industrialization, establishing EPZ’s (Export processing zone), manpower supply, infrastructural,
gaining FDI’s (Foreign direct investment). Establishing EPZ’s
Establishing EPZ’s:
EPZ’s are maintained by BEPZA (Bangladesh Export Processing Zones Authority), which is an
agency of the Government of Bangladesh and is administered under the jurisdiction of the Prime
Minister’s Office. BEPZA currently maintains the operations of eight export processing zones of
Bangladesh. Bangladesh government has announced that within the next 15 years, a total of 100
EPZ and SEZ’s will be establish all over the country.
Below is the list of EPZ run by BEPZA:
1. Adamjee Export Processing Zone, Siddhirganj, Narayanganj
2. Chittagong Export Processing Zone, South Halishahar, Chittagong
3. Cumilla Export Processing Zone, Cumilla
4. Dhaka Export Processing Zone, Savar, Dhaka
5. Ishwardi Export Processing Zone, Ishwardi, Pabna
6. Karnaphuli Export Processing Zone, North Patenga, Chittagong
7. Mongla Export Processing Zone, Mongla, Bagerhat
8. Uttara Export Processing Zone, Nilphamari
9. BEPZA Economic Zone, Mirsharai, Chittagong
Bangladesh government has approved 37 new economic zones, which consists of governmental,
non-governmental and specialized economic zones. Government has also announced a 50% of
tax relief in high tech parks and in establishing private economic zones, which influences the big
industries and tech giants to establish economic zones and high-tech parks which will have a
great impact in developing country’s economic condition.

INDUSTRIALIZATION:
As we all know, garments product of Bangladesh has a huge popularity worldwide. By exporting
the garments products, Bangladesh earns a huge number of foreign currencies which plays a
major role in the economy of Bangladesh. Recently, pharmaceutical industries are also growing
in Bangladesh. Medicines and other pharmaceutical products are being exported overseas. So,
the government is giving leases on lands to establish more manufacturing plants. The tech
companies of Bangladesh are growing rapidly. Tech giants like Walton and Minister are

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producing tech products to meet the demand of our country. So, we don’t have to import tech
products which reduces the import tax and cost.
Last but not the least, Bangladesh government is establishing powerplants, most notable is
Ruppur Nuclear Powerplant, which will increase the electricity stability and help more in
industrialization.

INFRASTRUCTURAL DEVELOPMENT:
If we have a look at the roads and highway sectors of Bangladesh, in the last 10 years we can see
a big development. The Padma multipurpose bridge, Jamuna bridge, Mawa-Bhanga expressway,
and the ongoing elevated expressway, Karnaphuli tunnel, airports, seaports is making country’s
communication easier, saving a lot of time. Export and import became easier due to this airport
and seaports, roads and highways giving a small touchup to those.

Manpower:
The government is giving technical training to unskilled laborers to make them skilled in
technical lines. Governmental polytechnic institutes are giving practical training to a lot of
unskilled people, and they have become specific in some fields. Then, these personnel go abroad,
work there, send remittances, which plays an important role in the economy of Bangladesh. By a
report of The Daily Star, Bangladesh is 7th in ranking in receiving remittance. Our country has
received a total of 22 billion USD, increasing by 2.2% on the past year.
- Md. Mazharul Islam (2221141121)

FUTURE PROSPECTS & CHALLENGES:

 Introduction: In 1971, Pakistan was 70% richer than Bangladesh. Today, Bangladesh is 45%
richer than Pakistan (according to Bloomberg). This shows the rapid economic growth
Bangladesh has had after its emancipation, especially in the last decade. After decades of
strong growth, Bangladesh is seeking to move to the next level of prosperity. Bangladesh
attained lower-middle income classification in 2015 and it is expected to leave the UN's list
of least developed countries (LDC) in 2026. The country is projected to hold onto this trend.
By 2030, Bangladesh will be the 24th largest economy. By 2025, mobile internet penetration
will reach 41% of the population. By 2030, 48% of our population will live in towns and
cities.

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 Vision: Bangladesh has a vision for the future. Prime Minister of Bangladesh, Sheikh Hasina,
said, “My father, the father of our nation, Bangabandhu Sheikh Mujibur Rahman, dreamt of a
Sonar Bangla, an exploitation-free and just society. His vision gives us the confidence to
move with our vision to advance Bangladesh as a developing country by 2021 and a
developed country by 2041.” ~ India economic summit.
 Implementation: To fulfill its vision Bangladesh can take some measures. These include the
following:
o Bangladesh should expand beyond the RMG sector in exports, broaden the financial
sector, enhance the sustainability of urbanization, and bolster governmental
institutions, including fiscal changes to increase domestic income for development.
Growth would be accelerated if infrastructural deficiencies were filled. Bangladesh
must create jobs and employment opportunities through a competitive business
environment, increase human capital and develop a skilled labor force, build effective
infrastructure, and create a policy environment that encourages private investment in
order to realize its vision of reaching upper middle-income status by 2031.
 Challenges & how to tackle them: The garment industry, other exports, and overseas labor
all offer challenges in reaching this goal. Bangladesh’s economy is heavily dependent on
RMG, exports, & remittance. To overcome these obstacles Bangladesh should diversify. It is
necessary to establish strategies to lessen the economy's reliance on cheap exports like
clothing. This involves putting an emphasis on technical and vocational education as well as
higher education. By addressing its susceptibility to natural disasters and climate change,
Bangladesh can continue to develop its resistance to shocks in the future. It also needs to
more fully embrace technology, including increasing access to the internet, cell phone
banking, digital property registries, and other innovations. The country needs to move more
rapidly toward industrialization and shift workers into formal jobs, with more social
protections. To protect investments, Bangladesh needs to increase the availability of reliable
energy, review business regulations that impede the growth of non-garment exports and
enhance the systems for registering property and land rights.
 Pros & Cons of Bangladesh’s graduation from LDC status: Being LDC means we were
on the list of risky countries, which acted as a deterrent for the foreign investors. But
graduating from LDC status will result in more investments as it will mean the country is less

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 risky for investment. But the benefits we used to get as an LDC in copyright, patent, ICT &
service sectors might no longer be available. The tariff benefits that we now enjoy in India,
China, and other developed countries may be lifted.
 Embracing Fourth Industrial Revolution: The Fourth Industrial Revolution coincides with
the period when Bangladesh transitions towards a developed country. There is no point in
debating whether the Fourth Industrial Revolution is good or bad, or whether it will benefit
Bangladesh or not. It’s not something for us to accept, reject, or regulate. It is time that we
join hands with everyone to embrace the 4IR robustly otherwise we will lag behind.
To embrace 4IR Bangladesh should focus on skill and ICT based education and engender skilled
labor. Industries should focus on digitalization & automation so that they can keep up with other
developed and developing countries.
- Juhaer Ishrak (2221141119)

GROWING INFLUENCE OF WOMEN IN THE ECONOMY OF

BANGLADESH
Through the tireless efforts of governments and non-governmental organizations, women’s
participation in the Bangladeshi economy and politics has changed drastically. In the last 30
years, Bangladesh has made significant progress in improving women’s roles in the country’s
economic landscapes. Although domestic violence and child marriage, other gender-related
issues, are still prevalent, the structural changes initiated by the country’s leaders have made it
easier than ever for women to contribute to the economy of their family and our country as a
whole.
The progress in women’s participation in the country’s politics has improved their economic role
and status as well. Bangladesh is one of the few South Asian countries where, in the last decade,
women’s employment rates significantly increased, while the gender wage gap diminished. For
example, between 2003 and 2016, female participation in the labor force has expanded from 26%
to 36%.
Progress can be observed in a number of social indicators concerning education, health and
empowerment. Indeed, this is a reflection of the increased participation of women in the labor
force. Notwithstanding the dynamics of change in labor market composition, the contribution of
women in official estimations of gross domestic product (GDP) is much lower than that of men.
Under-representation of women’s contribution in national income accounting can be explained

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by women’s disproportionate engagement in the informal sector, where there is no or little
monetary remuneration. Worldwide, according to the International Labour Organization (ILO),
women account for about one-third of the workforce in the informal sector. In Bangladesh, only
3.25 per cent of employed women work in the public sector and 8.25 per cent work in the private
sector. The remaining 89.5 per cent are employed in the informal sector with varying, and often
unpredictable, earning patterns. Many of them work without compensation. Unpaid work of
women in Bangladesh comes in many forms such as chores, childcare and care of the elderly,
sick and disabled people in the household, and volunteer work in the community.
Besides these, Bangladesh’s garment industry has been at the heart of the country’s export boom
ever since the first factory opened in 1976. It accounts for over 75 percent of the country's total
export earnings, provides employment of almost 5 million people, accounts for over 10 percent
of the country's GDP, and contributes around 40% of its manufacturing output. The industry has
grown dramatically over the past 35 years, and today accounts for 80% of Bangladesh’s total
exports. There are now 4,825 garment factories in Bangladesh employing over three million
people. Fully 85% of these workers are women.
The bulk of female labor is concentrated in the rural areas, mostly in agriculture. According to
the Labor Force survey of 2010 – the most up to date – about 65 percent of women work in
agriculture, close to 22 percent are in the service sectors, and 13.32 percent are in industry.
Women’s participation in agriculture has also grown exponentially during the past 10 years.
According to the bureau of statistics, women’s participation in that sector has grown 108%,
compared with a 2 percent-decline among men over the past decade. According to official
statistics, Bangladeshi women now are also making their mark through remittance incomes from
abroad, a sector long dominated by Bangladeshi men.
In 1991, for instance, a paltry 2,000 women went aboard annually as migrant workers.
Nowadays, their numbers exceed more than 300,000, accounting for 13 percent of the country’s
remittance sector, valued at around U.S. $26 billion.
Overall, the contribution of women in our economy is no less than the men. Referring to a study,
women's contribution to unpaid care work equals around 40% of the total GDP of Bangladesh if
it is given a monetary value. The percentage would probably even rise if the discrimination could
be terminated.
- Toki Tahmid Rizu (2221141117)

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CONCLUSION
Despite a few bumps in the road, Bangladesh has performed exceedingly well over the last two
decades. This can be evidenced in the fact that its GDP growth rate of about 8% per year, making
it one of the fastest growing economies in the world. At first, the country was mostly reliant on
its agricultural sector and remittances from abroad for income generation. Since then, several
export-oriented industries have emerged. RMG, Pharmaceuticals, Shipbuilding and Leather side
by side service sector of the country is also contributing highest to our economy. Bangladesh’s
growth over the last two decades is commendable but the economy still faces major challenges
which must be redressed. As mentioned, the country frequently faces political instability. A lot
of the time, the decisions made by the government are political based rather than economic
based. Side by side we should emphasize more in our industry sector and diversification of the
industry sector is needed for our economy. Also, a high level of bureaucracy exists which further
reduces the chances of FDI in the country. Although the export scene is improving, imports are
at an all-time high which is putting a strain on the economy which is getting inundated with
debts from not only imports but also excess government expenditure. The country clearly has a
big challenge to overcome if it is to sustain such impressive growth. However, the situation is not
that bleak as Bangladesh has gone through tougher times and will be expected to work its magic
again to awe the world. The emergence of young and talented individuals can pave the path
towards another success story for the country.
-Everyone

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