Economy Of Bangladesh

The economy of Bangladesh is classified as a major developing mixed economy, characterized by the coexistence and active participation of both private and public sectors. This dual-sector framework enables the country to harness the dynamism of private enterprise alongside strategic government intervention, fostering balanced economic growth and development. As a result, Bangladesh has emerged as the second-largest economy in South Asia, trailing only India, and holds a significant position globally. In nominal gross domestic product (GDP) terms, Bangladesh ranks as the 35th largest economy worldwide, while its ranking improves to 25th when measured by purchasing power parity (PPP), reflecting the relative cost of living and inflation rates that affect the real value of goods and services produced. International financial institutions and economic analysts have recognized Bangladesh as one of the Next Eleven economies, a group identified for their potential to become some of the world’s largest economies in the 21st century. This designation underscores Bangladesh’s promising trajectory in terms of economic growth, demographic advantages, and increasing integration into global markets. Over recent decades, Bangladesh has been transitioning from a frontier market—a term used to describe less accessible and less developed markets—to an emerging market status. This shift reflects substantial improvements in economic stability, governance, regulatory frameworks, and the investment climate, which have collectively enhanced investor confidence and expanded the country’s participation in international trade and finance. Bangladesh’s membership in key regional and global trade organizations further facilitates its integration into the world economy. The country is an active member of the South Asian Free Trade Area (SAFTA), which promotes trade liberalization among South Asian Association for Regional Cooperation (SAARC) countries by reducing tariffs and non-tariff barriers. Additionally, Bangladesh’s accession to the World Trade Organization (WTO) has provided it with a platform to engage in multilateral trade negotiations, adhere to global trade rules, and access dispute resolution mechanisms. These memberships have been instrumental in expanding Bangladesh’s export markets and attracting foreign direct investment. In the fiscal year 2021–2022, Bangladesh achieved a remarkable GDP growth rate of 7.2%, a significant accomplishment in the aftermath of the global COVID-19 pandemic that severely disrupted economies worldwide. This growth rate positioned Bangladesh among the fastest-growing economies globally during that period, highlighting the resilience and adaptability of its economic structure. The rapid expansion was driven by various structural reforms, including improvements in infrastructure, digitalization, and diversification of the industrial base, which collectively contributed to sustained economic momentum. The acceleration of industrialization in Bangladesh has deep historical roots, intensifying notably after the partition of India in 1947. During this period, labor reforms and the emergence of new industries laid the groundwork for economic transformation. East Bengal, which later became Bangladesh, played a vital economic role within Pakistan, contributing between 50% and 70% of Pakistan’s exports from 1947 to 1971. This substantial contribution underscored the region’s industrial and agricultural productivity, as well as its strategic importance in the broader economic framework of the country prior to independence. Following its independence in 1971, modern Bangladesh began implementing significant economic reforms in the late 1970s aimed at promoting free markets and attracting foreign direct investment (FDI). These reforms marked a departure from the earlier state-controlled economic policies and sought to liberalize trade, deregulate industries, and create a more conducive environment for private sector growth. The policy shifts facilitated the emergence of new industries and the expansion of existing ones, setting the stage for accelerated economic development. By the 1990s, Bangladesh had developed a booming ready-made garments (RMG) industry, which rapidly became a cornerstone of its export sector and a major driver of economic growth. The RMG sector capitalized on the country’s abundant low-cost labor and favorable trade agreements, enabling Bangladesh to become one of the world’s leading apparel exporters. This industry not only generated substantial foreign exchange earnings but also created millions of jobs, particularly for women, thereby contributing to poverty alleviation and social development. As of 16 March 2024, Bangladesh holds the distinction of having the highest number of green garment factories globally, certified under the Leadership in Energy and Environmental Design (LEED) standards by the US Green Building Council (USGBC). This achievement reflects the country’s strong commitment to sustainable manufacturing practices within its apparel sector. The green garment factories in Bangladesh include 80 platinum-rated, 119 gold-rated, 10 silver-rated, and four without any rating, showcasing a broad spectrum of adherence to environmental and energy efficiency criteria. This extensive adoption of green building standards positions Bangladesh as a global leader in eco-friendly apparel manufacturing. Further emphasizing its global leadership, as of 6 March 2024, Bangladesh hosts 54 of the top 100 LEED Green Garment Factories worldwide. Among these, nine are ranked within the top ten, and eighteen fall within the top twenty, underscoring the country’s dominance in sustainable garment production. This prominence not only enhances Bangladesh’s reputation in international markets but also aligns with global trends toward environmental responsibility and corporate sustainability. The pharmaceutical industry in Bangladesh is another rapidly growing sector, expanding at an average annual rate of 12%. The country has achieved near self-sufficiency in medicine production, meeting approximately 98% of domestic demand through local manufacturing. This level of self-reliance is unique among the 48 least-developed countries, where dependence on imported pharmaceuticals is typically high. Bangladeshi pharmaceutical companies dominate the domestic market, producing a wide range of generic medicines that are both affordable and accessible, thereby contributing significantly to public health and economic resilience. Remittances from the Bangladeshi diaspora constitute a vital source of foreign exchange reserves, playing a crucial role in supporting the country’s balance of payments and overall economic stability. Millions of Bangladeshis working abroad send substantial sums back home, which not only bolster household incomes but also provide a steady inflow of foreign currency. These remittances help finance imports, stabilize the exchange rate, and contribute to domestic consumption and investment. Agriculture remains a foundational sector of Bangladesh’s economy, supported by government subsidies aimed at ensuring food self-sufficiency and national food security. The government’s interventions include input subsidies, price supports, and investment in rural infrastructure, which collectively enhance agricultural productivity and resilience. This focus on agriculture sustains the livelihoods of a significant portion of the population and underpins the country’s efforts to maintain stable food supplies amidst population growth and climatic challenges. Bangladesh has pursued an export-oriented industrialization strategy as a means to promote economic growth and diversification. This approach emphasizes the development of manufacturing industries geared toward international markets, leveraging competitive advantages such as low labor costs and strategic geographic location. Export-oriented policies have facilitated the expansion of sectors like textiles, pharmaceuticals, and information technology, thereby broadening the economic base and increasing foreign exchange earnings. In the post-pandemic period, Bangladesh experienced robust economic growth characterized by macroeconomic stability, improvements in infrastructure, the emergence of a burgeoning digital economy, and increased trade flows. These developments have enhanced the country’s competitiveness and resilience, enabling it to navigate global economic uncertainties effectively. Infrastructure projects, including transportation networks and energy supply, have supported industrial expansion, while digitalization has fostered innovation and improved service delivery across sectors. Despite these positive trends, tax revenues in Bangladesh remain relatively low, constituting only 7.7% of GDP. This low tax-to-GDP ratio indicates ongoing challenges in tax collection, compliance, and fiscal policy implementation. Efforts to broaden the tax base, improve administration, and enhance transparency are critical to increasing government revenues and funding public services and development initiatives. The banking sector in Bangladesh faces concerns related to a significant volume of non-performing loans (NPLs) or loan defaults, which impact financial stability and the efficient allocation of credit. High levels of NPLs constrain banks’ ability to extend new loans, increase the cost of borrowing, and pose risks to the overall financial system. Addressing these challenges requires strengthened regulatory oversight, improved risk management practices, and reforms to enhance the health of financial institutions. The private sector plays a dominant role in Bangladesh’s economy, accounting for approximately 80% of GDP. This dominance reflects the extensive participation of private enterprises in manufacturing, services, trade, and agriculture. The vibrancy of the private sector is a key driver of employment generation, innovation, and economic diversification, supported by a growing consumer market and improving business environment. The Dhaka Stock Exchange and the Chittagong Stock Exchange serve as the two primary stock markets in Bangladesh, providing platforms for capital mobilization, investment, and corporate governance. These exchanges facilitate the trading of equities and debt instruments, contributing to the development of the country’s financial markets and offering investment opportunities to domestic and international investors. Most businesses in Bangladesh are privately owned small and medium-sized enterprises (SMEs), which constitute about 90% of all business entities in the country. SMEs are critical to the economy, generating employment, fostering entrepreneurship, and supporting local supply chains. Their predominance underscores the importance of policies aimed at improving access to finance, technology, and markets to enhance their productivity and growth potential.

The Bengal region’s participation in early long-distance trade networks is exemplified by the remarkable importation of an African giraffe around the year 1415. This giraffe, originating from Malindi on the East African coast, was brought to Bengal and subsequently re-exported to China as a diplomatic gift from the Sultan of Bengal to the Chinese emperor. This event not only highlights Bengal’s active engagement in intercontinental trade but also underscores the region’s role as a nexus of cultural and economic exchange spanning Africa, South Asia, and East Asia. The movement of such an exotic animal across vast maritime routes illustrates the sophistication and reach of Bengal’s trade networks during the precolonial period. The strategic position of Bengal in regional and international commerce was further emphasized by the major maritime trade routes that traversed the Bengal Sultanate. Situated along the Bay of Bengal, Bengal served as a vital hub connecting South Asia with Southeast Asia, the Middle East, and East Asia. These maritime routes facilitated the flow of goods, ideas, and people, integrating Bengal into a complex web of trade that included the Silk Road and the Indian Ocean trade network. The Bengal Sultanate capitalized on this advantageous location to establish itself as a dominant mercantile power, with its ports bustling with merchants and ships from diverse regions. Monetary systems in Bengal have a deep historical lineage, as evidenced by the discovery of punch-marked coins dating back to the Iron Age and the first millennium BCE. These coins represent the earliest known form of currency in the region, indicating an established economic framework that supported trade and commerce. The use of punch-marked coins reflects the sophistication of early monetary practices and the existence of market economies in ancient Bengal. Such artifacts provide crucial insights into the economic activities and trade relations of the region during prehistoric times. Further evidence of Bengal’s extensive trade connections is found in the excavation of Roman coins from the 1st century CE, which bear images of Hercules. The presence of these coins in Bengal suggests direct or indirect trade links with the Roman world, highlighting Bengal’s integration into transcontinental trade networks that extended from Europe to South Asia. These coins not only signify the exchange of goods but also the transmission of cultural and artistic influences across vast distances. The discovery of Roman currency in Bengal underscores the region’s importance as a commercial crossroads in antiquity. The ancient ruins at Wari-Bateshwar are believed to correspond to the emporium of Sounagoura, a city mentioned by the renowned Roman geographer Claudius Ptolemy. This identification points to the existence of a significant trading center in Bengal during ancient times, which functioned as a hub for commerce and cultural exchange. The archaeological site reveals evidence of urban planning, fortified structures, and trade-related artifacts, underscoring its role as a thriving emporium. Sounagoura’s mention in classical texts and its archaeological remains collectively attest to Bengal’s prominence in ancient maritime and overland trade networks. The eastern segment of Bengal historically enjoyed considerable prosperity, largely due to its favorable geographical and climatic conditions. Situated in the fertile Ganges Delta, this region benefited from a mild, almost tropical climate that supported abundant agricultural production. The rich alluvial soil, plentiful water sources, and diverse natural resources such as fish, wildlife, and fruit contributed to a thriving agrarian economy. These environmental advantages fostered a high degree of economic stability and growth, enabling the region to sustain dense populations and complex social structures. Living standards among Bengal’s elite were notably higher compared to those in other parts of the Indian subcontinent, reflecting the region’s economic prosperity. The wealth generated through agriculture, trade, and artisanal industries allowed the upper classes to enjoy a comfortable lifestyle characterized by elaborate architecture, patronage of the arts, and active participation in regional and international commerce. This elevated standard of living also facilitated the development of sophisticated cultural and political institutions, which further reinforced Bengal’s status as a prosperous and influential region. Bengal’s integration into broader regional and international markets was facilitated by key trade routes such as the Grand Trunk Road, Tea Horse Road, and Silk Road. The Grand Trunk Road connected Bengal to the northwestern parts of the Indian subcontinent, enabling the movement of goods and people across vast distances. The Tea Horse Road linked Bengal with regions in Tibet and China, while the Silk Road connected it to Central Asia and beyond. These routes formed a comprehensive network that allowed Bengal to engage in extensive commerce, exchanging commodities such as textiles, spices, and precious metals with distant markets. Between 400 and 1200 CE, Bengal maintained a well-developed economy characterized by diverse economic activities including land ownership, agriculture, livestock rearing, shipping, trade, commerce, taxation, and banking. The agrarian base was complemented by a flourishing mercantile sector that managed both inland and maritime trade. Taxation systems were established to support administrative functions, while banking and credit mechanisms facilitated commercial transactions. This multifaceted economic structure enabled Bengal to sustain growth and maintain its position as a significant economic center in South Asia during the early medieval period. Following the fall of the Sasanian Empire and the subsequent Arab control over Persian trade routes, Muslim trade with Bengal increased significantly. Much of this trade activity was concentrated east of the Meghna River in southeastern Bengal, where Muslim merchants established vibrant commercial communities. The shift in control of key trade corridors redirected commerce toward Bengal, integrating it more deeply into the Islamic world’s economic sphere. This period saw the expansion of Muslim maritime and overland trade networks, which enhanced Bengal’s connectivity with the Middle East, Central Asia, and Southeast Asia. After 1204 CE, the Muslim conquerors who established rule in Bengal inherited the gold and silver reserves accumulated by pre-Islamic kingdoms. This transfer of wealth bolstered Bengal’s economic resources, providing the financial foundation necessary for the consolidation of political power and the expansion of trade. The availability of precious metals facilitated the minting of new coinage and supported the growth of commercial activities. The accumulation of these reserves reflects the continuity and adaptation of economic institutions amid political transitions in the region. The Bengal Sultanate emerged as a formidable mercantile empire, with Bengali ships recognized as the largest in the Bay of Bengal and across the Indian Ocean trade network. The naval and commercial dominance of Bengal’s fleet enabled the Sultanate to control key maritime routes, protect its trading interests, and project power across the region. Bengali shipowners and merchants played pivotal roles in organizing and financing voyages that connected Bengal with ports in Southeast Asia, the Middle East, and East Africa. This maritime strength underpinned the Sultanate’s economic prosperity and political influence. Ship-owning merchants from Bengal often served as royal envoys of the Sultan, illustrating the close intertwining of commerce and political authority. These merchants not only managed extensive trading enterprises but also represented the Sultan’s interests abroad, facilitating diplomatic relations and securing trade agreements. Their dual roles as commercial agents and political emissaries highlight the integration of economic and governmental functions in Bengal’s precolonial statecraft. This symbiotic relationship contributed to the Sultanate’s ability to maintain control over its vast and diverse territories. A significant number of wealthy Bengali merchants and shipowners established residences in Malacca, a major Southeast Asian trading hub. Their presence in Malacca underscores Bengal’s extensive maritime influence and the transregional nature of its commercial networks. These merchants engaged in the exchange of textiles, spices, precious metals, and other commodities, linking Bengal to the broader economic systems of Southeast Asia. The diaspora of Bengali traders in Malacca reflects the cosmopolitan character of precolonial Indian Ocean trade and Bengal’s central role within it. Bengal’s vessels were instrumental in transporting embassies from Brunei and Sumatra to China, demonstrating the region’s active participation in diplomatic and trade relations across Asia. These voyages facilitated the exchange of gifts, information, and commercial goods, strengthening political alliances and economic ties. The ability to project diplomatic missions over such distances attests to the advanced maritime capabilities of Bengal’s shipbuilders and navigators. This network of embassies and trade missions contributed to the interconnectedness of Asian polities during the precolonial era. Bengal and the Maldives jointly operated the largest shell currency network in history, showcasing advanced monetary practices based on the use of shells as a medium of exchange. This system facilitated trade by providing a standardized and widely accepted form of currency that complemented metal coinage. The shell currency network exemplifies the innovation and adaptability of Bengal’s economic institutions in accommodating diverse commercial needs. It also reflects the integration of Bengal into regional monetary systems that extended across the Indian Ocean. The shipment of a Masai giraffe from Malindi, Africa, to Bengal, and its subsequent gifting to the Emperor of China by the Sultan of Bengal, exemplifies the extensive cross-continental exchanges that characterized the region’s trade and diplomatic relations. This extraordinary event highlights the role of Bengal as an intermediary in the movement of exotic goods and diplomatic gifts between Africa and East Asia. The giraffe’s journey underscores the interconnectedness of precolonial trade networks and the cultural significance attributed to such rare and prestigious items. The rulers of Arakan, located to the southeast of Bengal, looked to Bengal for economic, political, and cultural capital, indicating Bengal’s regional influence beyond its immediate borders. Bengal’s prosperity and political power attracted the attention of neighboring polities, which sought to emulate its administrative models, engage in trade, and participate in cultural exchanges. This dynamic contributed to the diffusion of Bengali language, art, and governance practices throughout the eastern frontier of the Indian subcontinent. The Sultan of Bengal extended his influence beyond South Asia by financing projects in the Hejaz region of Arabia, reflecting Bengal’s involvement in broader Islamic and regional affairs. Such patronage demonstrated the Sultanate’s commitment to the Islamic world and its participation in religious and cultural networks that transcended geographical boundaries. Financial contributions to the Hejaz, which includes the holy cities of Mecca and Medina, enhanced Bengal’s prestige among Muslim polities and reinforced its identity as a significant Islamic state. Under Mughal rule, Bengal evolved into a global center for the muslin, silk, and pearl trades, boasting significant export and domestic markets. The region’s textile industries produced some of the finest muslins and silks, which were highly sought after in markets across Asia and Europe. Pearl fisheries along Bengal’s coast further diversified its export portfolio. The Mughal administration supported these industries through policies that encouraged production and trade, integrating Bengal into the empire’s vast economic network. Bengal supplied India with essential commodities such as rice, silks, and cotton textiles, while European powers depended heavily on Bengali products including cotton textiles, silks, and opium. Notably, Bengal accounted for 40% of Dutch imports from Asia, underscoring its critical role in global trade. This export dominance was facilitated by Bengal’s advanced manufacturing capabilities and extensive trade networks that connected it to Europe, Southeast Asia, and beyond. The region’s economic output significantly influenced international markets and consumption patterns during the Mughal era. Bengal’s export economy extended to saltpeter, which was shipped to Europe, and opium, which was sold in Indonesia. Additionally, raw silk was exported to Japan and the Netherlands, while cotton and silk textiles were produced for export to Europe, Indonesia, and Japan. These diverse trade flows highlight Bengal’s integration into multiple regional and global markets, reflecting the adaptability and breadth of its economic activities. The export of strategic commodities such as saltpeter, essential for gunpowder production, further illustrates Bengal’s importance in global supply chains. In the 18th century, Bengal’s real wages and living standards were comparable to those in Britain, which at the time had the highest living standards in Europe. This parity indicates a high level of economic development and prosperity within Bengal, challenging Eurocentric narratives of economic history. The region’s wealth was supported by its productive agriculture, thriving textile industry, and extensive trade networks. Such living standards allowed for a vibrant urban culture and a relatively high quality of life for many inhabitants. During the Mughal era, Bengal was the most important center of cotton production, particularly around Dhaka. The region’s muslin textiles were so renowned that they became known as “daka” in distant markets such as Central Asia, signifying their origin and quality. This specialization in fine cotton fabrics contributed to Bengal’s reputation as a premier textile producer and exporter. The production techniques and craftsmanship developed in Bengal set standards that influenced textile industries across Asia. Bengali agriculturalists rapidly adopted mulberry cultivation and sericulture techniques, establishing Bengal as a major silk-producing region globally. The integration of sericulture into local agriculture diversified the economy and enhanced the region’s export capabilities. Silk production complemented the existing textile industries, allowing Bengal to meet the demands of both domestic and international markets. This agricultural innovation reflects the dynamic nature of Bengal’s precolonial economy and its responsiveness to global trade opportunities. Bengal produced over 50% of the textiles and approximately 80% of the silks imported by the Dutch from Asia, underscoring its dominance in textile exports. The scale and quality of Bengal’s textile production made it indispensable to European trading companies, which relied on these goods for their Asian trade ventures. This dominance also contributed to the wealth of Bengal’s merchant class and the region’s overall economic strength. The Dutch East India Company’s dependence on Bengal textiles highlights the region’s central role in early modern global commerce. The region boasted a large shipbuilding industry, producing approximately 223,250 tons of shipping annually during the 16th and 17th centuries. This output vastly surpassed the 23,061 tons produced in the nineteen North American colonies from 1769 to 1771, illustrating Bengal’s preeminence in maritime construction. The shipyards of Bengal supplied vessels not only for local trade but also for international voyages, supporting the region’s extensive commercial networks. This industrial capacity was a critical factor in Bengal’s economic and naval power. Bengal was also a center for ship repair and innovation, introducing advanced shipbuilding techniques such as the flushed deck design in Bengal rice ships. This design innovation resulted in stronger, less leaky hulls, enhancing the seaworthiness and durability of vessels. The technological advancements developed in Bengal’s shipyards contributed to safer and more efficient maritime trade. These innovations reflect the region’s sophisticated understanding of naval architecture and its commitment to maintaining maritime dominance. The European East India Company later adopted Bengal’s flushed-deck and hull designs in the 1760s, significantly improving the seaworthiness and navigation of their ships during the Industrial Revolution. This transfer of technology from Bengal to Europe exemplifies the influence of indigenous maritime knowledge on global naval practices. The adoption of these designs enhanced the operational capabilities of the East India Company’s fleet, facilitating the expansion of European colonial and commercial enterprises. Bengal’s contributions to shipbuilding technology thus had lasting impacts beyond its immediate geographic region. One of the enduring commercial legacies from the precolonial and Mughal periods is exemplified by Fakhruddin’s restaurant, which traces its history back to the era of the Nawabs of Bengal. As one of the oldest continuously operating businesses in the region, Fakhruddin’s reflects the continuity of Bengal’s mercantile traditions and the cultural importance of commerce in everyday life. The establishment’s longevity illustrates the stability and prosperity of Bengal’s economic institutions over centuries. It also serves as a tangible link connecting contemporary society with the region’s rich commercial past.

The Barkentine Linnet was a notable vessel constructed in Chittagong, a prominent shipbuilding center located in the eastern part of Bengal, near the Bay of Bengal. Built around the year 1890, this ship was launched off the coast of Hong Kong, reflecting the extensive maritime connections that Bengal maintained within the broader British colonial trade network. Chittagong’s shipyards were renowned for producing various types of vessels, and the construction of the Barkentine Linnet exemplified the region’s capabilities in maritime engineering during the late nineteenth century. This ship not only served commercial purposes but also symbolized the integration of Bengal’s coastal economy into the global maritime routes dominated by British imperial interests. The British East India Company solidified its control over Bengal in 1793 by abolishing the system of Nizamat, which had previously allowed local rulers limited autonomy under the Mughal Empire. The Nizamat system had functioned as a form of decentralized governance, where Nawabs exercised administrative authority over Bengal and its surrounding territories. However, the Company’s assumption of direct control marked a significant shift in governance, centralizing authority and enabling the British to implement policies that aligned with their economic and political objectives. This move effectively ended the semi-feudal structure of local rule and integrated Bengal more tightly into the British colonial framework, setting the stage for profound changes in the region’s economy and administration. Following the British East India Company’s consolidation of power, Calcutta (now Kolkata) was developed as the primary commercial and administrative center for the Company-held territories in South Asia. The city’s strategic location on the Hooghly River made it an ideal hub for trade, governance, and military operations. Throughout the late eighteenth and nineteenth centuries, Calcutta grew rapidly, becoming the capital of British India until 1911. The British invested heavily in infrastructure, including administrative buildings, ports, and transport networks, to facilitate the extraction of resources and the administration of their vast territories. Calcutta’s emergence as the imperial capital also attracted a diverse population of merchants, bureaucrats, and laborers, further cementing its role as the economic heart of colonial Bengal and beyond. During the colonial period, the development of East Bengal was predominantly confined to agriculture, reflecting the British emphasis on the region’s role as a supplier of raw materials and foodstuffs for the empire. Unlike Calcutta, which experienced industrial and commercial growth, East Bengal’s economy remained largely rural and agrarian. The fertile alluvial plains of the region were ideal for cultivating staple crops, and the British administration focused on expanding agricultural production to meet the demands of both domestic consumption and export markets. This agricultural emphasis shaped the socio-economic landscape of East Bengal, influencing patterns of land ownership, labor relations, and rural livelihoods throughout the nineteenth and early twentieth centuries. The administrative infrastructure established in East Bengal during the late eighteenth and nineteenth centuries was primarily designed to support its function as an agricultural producer within the British imperial economy. The region specialized in the cultivation of rice, tea, teak, cotton, sugarcane, and jute, which were critical commodities for British industries and markets. Rice served as the staple food crop, while tea plantations, particularly in the Sylhet region, became an important source of export revenue. Teak and other timber resources were harvested for shipbuilding and construction, cotton and jute were cultivated for textile production, and sugarcane contributed to the sugar industry. The colonial government implemented land revenue systems and established trade networks to facilitate the efficient collection and export of these products, often prioritizing the interests of British processors and traders over those of local producers. The British colonial administration introduced railways to Bengal as part of its broader strategy to improve transportation and integrate the region’s economy into the imperial system. One of the most significant infrastructural projects was the construction of the Hardinge Bridge, completed in 1915, which spanned the Padma River. This railway bridge was a critical link connecting the eastern and western parts of Bengal, enabling faster and more reliable movement of goods and passengers. The introduction of railways facilitated the expansion of agricultural markets, allowed for greater mobility of labor, and enhanced the export capacity of commodities such as jute and tea. The rail network also played a strategic role in consolidating British control over the region by improving communication and military logistics. In the early twentieth century, the British government established Eastern Bengal and Assam as a separate administrative region in 1905, a move intended to promote employment, education, and investment in East Bengal. This partition of Bengal was motivated by administrative convenience and the desire to foster economic development in the eastern provinces, which had historically lagged behind the western parts of Bengal in terms of infrastructure and institutional growth. The new province aimed to stimulate local industry and agriculture by attracting investment and expanding educational opportunities. However, the partition was met with significant political opposition and was eventually annulled in 1911. Despite this, the period saw some improvements in public services and economic activities in East Bengal, laying groundwork for future development. In 1928, the Port of Chittagong was officially declared a “Major Port” of British India, underscoring its growing importance as a maritime gateway for trade in the eastern part of the subcontinent. Chittagong’s deep natural harbor and strategic location on the Bay of Bengal made it an ideal center for the export of goods such as jute, tea, and timber. The port’s elevation to major status facilitated increased investment in port infrastructure, including the expansion of docking facilities, warehouses, and customs operations. This development enhanced the capacity of Chittagong to handle larger volumes of trade, contributing significantly to the economic integration of East Bengal with global markets and reinforcing its role within the British colonial economy. East Bengal’s rice economy expanded beyond its traditional boundaries into the Arakan Division of British Burma, reflecting the interconnectedness of agricultural production across colonial territories. The fertile lands of Arakan, located along the western coast of Burma, provided additional opportunities for rice cultivation, which was a staple food and a key export commodity. This agricultural expansion was facilitated by colonial policies that encouraged the movement of capital and labor across provincial borders to maximize production. The integration of East Bengal’s rice economy with neighboring regions helped to stabilize food supplies and supported the broader imperial trade networks that linked South Asia with Southeast Asia. The river and sea ports of East Bengal, including Goalundo Ghat, the Port of Dhaka, the Port of Narayanganj, and the Port of Chittagong, functioned as vital entrepots that facilitated trade between Bengal, Assam, and Burma. These ports were strategically located along major waterways and served as hubs for the collection, storage, and transshipment of goods. Goalundo Ghat, situated at the confluence of the Padma and Brahmaputra rivers, was a key inland river port connecting eastern Bengal with Assam and northern India. The ports of Dhaka and Narayanganj supported the movement of jute, textiles, and other commodities, while Chittagong handled larger ocean-going vessels. Together, these ports enabled the efficient flow of raw materials and finished products within the British Empire, underpinning the commercial vitality of the region. Several of Bangladesh’s oldest and most prominent companies trace their origins to the British colonial period, reflecting the entrepreneurial activities that emerged under imperial rule. A K Khan & Company, founded in the early twentieth century, became a major industrial and trading conglomerate involved in shipping, textiles, and manufacturing. M. M. Ispahani Limited, established in 1820, grew into one of the leading business houses specializing in tea production and export, as well as other commercial ventures. James Finlay Bangladesh, a subsidiary of the British company James Finlay & Co., played a significant role in the jute industry, managing plantations and processing facilities. The Anwar Group of Industries, founded in the early 20th century, diversified into various sectors including textiles, chemicals, and consumer goods. These companies not only contributed to the economic development of East Bengal but also laid the foundations for the modern industrial landscape of Bangladesh.

In 1949, the industrial landscape of East Bengal witnessed a significant development when tannery owners collaborated closely with members of the Directorate of Industries, Government of East Bengal. This cooperation marked one of the earliest organized industrial activities in the region, reflecting an emerging recognition of the importance of industrialization for economic progress. The tannery sector, which utilized locally available raw materials such as leather, began to establish itself as a vital component of the regional economy, laying a foundation for future industrial expansion. This collaboration also demonstrated the government’s early efforts to foster industrial growth by working directly with private entrepreneurs and industrialists to enhance production capabilities and stimulate economic activity. Throughout the 1950s and 1960s, the jute industry emerged as a cornerstone of East Pakistan’s economy, with Adamjee Jute Mills standing out as the largest jute processing plant in the world. Located strategically in the Port of Narayanganj, Adamjee Jute Mills symbolized the region’s industrial prowess and its pivotal role in the global jute market. The mill not only contributed significantly to employment and industrial output but also underscored the economic importance of jute as a raw material native to East Pakistan. The prominence of the jute industry during this period was a reflection of the region’s natural resource endowments and the government’s industrial policies that prioritized the processing of local commodities to generate export revenue and stimulate economic development. The partition of India in 1947 had a profound impact on the economic geography of the region, fundamentally altering trade patterns, resource distribution, and industrial priorities. East Bengal, which became East Pakistan, was compelled to realign its economic focus towards industries that could capitalize on the abundant local raw materials such as jute, cotton, and leather. This shift was necessitated by the new geopolitical boundaries that disrupted traditional markets and supply chains, compelling East Pakistan to develop a more self-reliant industrial base. The emphasis on these raw materials not only shaped the industrial structure of the region but also influenced the patterns of export and domestic consumption, positioning East Pakistan as a major supplier of jute and related products on the international stage. The outbreak of the Korean War from 1950 to 1953 had a notable impact on the global demand for jute products, which in turn benefited East Pakistan’s jute industry. The conflict increased the need for jute sacks and other packaging materials used for transporting military supplies, thereby boosting export orders and industrial production in the region. This surge in demand contributed to a period of industrial growth and economic expansion in East Pakistan, as jute mills operated at higher capacities to meet international requirements. The Korean War thus acted as an external catalyst that temporarily enhanced the economic fortunes of East Pakistan’s jute sector, reinforcing its position as a vital contributor to the country’s export earnings and industrial development. Adamjee Jute Mills, constructed in the Port of Narayanganj, served as a key symbol of East Pakistan’s industrialization efforts during the mid-twentieth century. The mill’s establishment was a major industrial milestone, reflecting the government’s commitment to developing large-scale manufacturing infrastructure in the region. Its location in Narayanganj, a strategic port city near Dhaka, facilitated efficient export logistics and access to raw materials, thereby enhancing the mill’s operational efficiency. Adamjee Jute Mills not only became a significant source of employment for thousands of workers but also represented the aspirations of East Pakistan to industrialize and modernize its economy in line with global trends. Living standards in East Pakistan began to improve gradually during the 1950s and 1960s, a development that was partly attributable to industrial growth and labor reforms implemented during this period. The expansion of industries such as jute processing, leather tanning, and textiles created new employment opportunities, raising incomes and contributing to better living conditions for many workers and their families. Additionally, labor reforms enacted in 1958 played a crucial role in establishing a legal framework that protected workers’ rights, regulated working hours, and improved workplace safety. These reforms laid the groundwork for a more equitable industrial environment, fostering social stability and enabling further economic development that would eventually support the region’s aspirations for greater autonomy. The labor reforms introduced in 1958 were instrumental in shaping the future trajectory of industrial development in what would later become Bangladesh. These reforms provided a foundation for improved labor relations by formalizing workers’ rights and introducing mechanisms for dispute resolution. By addressing issues such as wage regulation, working conditions, and collective bargaining, the reforms enhanced the productivity and morale of the industrial workforce. This legal and institutional framework not only supported the immediate needs of East Pakistan’s growing industries but also contributed to the longer-term capacity of the region to sustain industrial growth, which became particularly important after Bangladesh’s independence in 1971. The government of East Pakistan generally adhered to free market principles, promoting an industrial policy aimed at rapidly producing consumer goods to reduce reliance on imports. This approach sought to stimulate domestic manufacturing by encouraging private enterprise and minimizing state intervention in most sectors of the economy. The focus on consumer goods production was intended to meet the growing demands of an expanding population and to foster economic self-sufficiency. By supporting industries that could supply essential products locally, the government aimed to decrease the outflow of foreign exchange and strengthen the region’s economic base, thereby contributing to overall economic stability and growth. Despite the predominance of free market policies, certain sectors, particularly public utilities, remained under state ownership, reflecting a mixed approach to economic management. The government maintained control over critical infrastructure such as electricity, water supply, and transportation services to ensure their reliable provision and to regulate prices in the public interest. This dual strategy allowed the government to balance market-driven industrial expansion with the need to manage essential services that were vital for economic development and social welfare. The state’s involvement in these sectors also provided a degree of economic stability and facilitated coordinated planning in areas where private investment was insufficient or impractical. A significant development in East Pakistan’s natural resource sector occurred in 1955 when the Burmah Oil Company discovered natural gas deposits in Sylhet. This discovery marked an important milestone, as it introduced a new energy resource that had the potential to support industrialization and economic diversification. The availability of natural gas offered opportunities for the development of energy-intensive industries and contributed to reducing dependence on imported fuels. The Sylhet gas fields became a strategic asset for East Pakistan, providing a foundation for future exploration and exploitation of hydrocarbon resources that would play a critical role in the region’s energy security and industrial growth. By the late 1960s, East Pakistan’s share of Pakistan’s total exports had declined from 70% to approximately 50%, signaling growing economic disparities within the country. This reduction in export contribution reflected a combination of factors, including slower industrial growth in East Pakistan relative to West Pakistan and the diversion of resources and investments to the western wing. The decline highlighted the uneven development and structural imbalances that characterized the economic relationship between the two regions. The diminishing export share not only affected East Pakistan’s economic standing but also exacerbated political tensions by fueling perceptions of economic neglect and exploitation by the central government based in West Pakistan. In response to economic challenges, Pakistan’s rulers launched a “Decade of Development” initiative aimed at accelerating economic and social progress across the country. While this program resulted in notable infrastructure projects and increased investment in various sectors, it also produced numerous economic and social contradictions, particularly between East and West Pakistan. The development efforts often favored West Pakistan, leading to disparities in resource allocation, industrial growth, and social services. These contradictions intensified regional grievances and contributed to the mounting tensions that eventually culminated in the separation of East Pakistan and the creation of Bangladesh in 1971. Economic discrimination against East Pakistan was documented by institutions such as the World Bank, which highlighted several mechanisms through which the region was disadvantaged. These included the diversion of foreign aid and other financial resources to West Pakistan, effectively limiting East Pakistan’s access to capital for development projects. Additionally, East Pakistan’s foreign-exchange surpluses were frequently used to finance imports for West Pakistan, depriving the eastern wing of funds that could have been reinvested locally. The central government also routinely refused to release funds that had been allocated to East Pakistan, further constraining its economic growth and reinforcing perceptions of systemic bias and neglect. Economist Rehman Sobhan articulated the economic divergence between East and West Pakistan through what he termed the Two Economies Theory, a paraphrase of the political Two-Nation Theory. Sobhan argued that East and West Pakistan functioned as two separate economies within a single country, each with distinct economic structures, resource endowments, and development trajectories. This theory emphasized the fundamental economic disparities and lack of integration between the two regions, which undermined national unity and fueled demands for greater autonomy. The recognition of these economic differences played a crucial role in shaping political discourse and mobilizing support for the eventual independence movement in East Pakistan.

Following its independence from Pakistan in 1971, Bangladesh adopted a socialist economic model that was intended to guide the nation’s development for a five-year period. This approach was championed by the Awami League government led by Sheikh Mujibur Rahman, who envisioned a centrally planned economy to rebuild the war-ravaged country and establish economic self-sufficiency. However, in retrospect, this strategy was later regarded as a strategic mistake, as it hindered economic dynamism and growth during a critical phase of nation-building. The government’s commitment to socialism was deeply rooted in the desire to restructure the economy along equitable lines, but the practical implications of this model revealed significant challenges. During Sheikh Mujibur Rahman’s tenure, the development strategy heavily emphasized protectionism, resulting in extensive state intervention across various sectors of the economy. The government sought to insulate domestic industries from foreign competition by imposing high tariffs and import restrictions, thereby fostering an environment where state-owned enterprises could dominate. This protective stance was intended to nurture infant industries and reduce dependence on foreign goods, but it also limited exposure to global markets and technological advancements. The pervasive role of the state extended into regulatory frameworks that tightly controlled private enterprise, reflecting the administration’s commitment to socialist principles. Private companies operating in Bangladesh during this period faced stringent regulations and restrictions, particularly concerning profit margins. The government imposed limits on the profits that private firms could earn, and any company exceeding these thresholds risked nationalization. This policy was designed to prevent excessive accumulation of wealth and ensure that economic benefits were more evenly distributed among the population. However, it also created an atmosphere of uncertainty and disincentivized entrepreneurial risk-taking, as business owners were wary of losing control over their enterprises. The threat of nationalization loomed over many sectors, curbing private investment and innovation. In line with its socialist agenda, the government undertook widespread nationalization of key economic assets. All banks and insurance companies were brought under state ownership, consolidating financial institutions into government control to facilitate centralized planning and resource allocation. Additionally, the government nationalized approximately 580 industrial plants, many of which had been abandoned by West Pakistani owners who fled during the Bangladesh Liberation War. This massive transfer of ownership was intended to stabilize the industrial base and prevent economic collapse, but it also introduced inefficiencies associated with bureaucratic management. The nationalization drive extended beyond abandoned enterprises to include many Bengali businesses and pro-Awami League enterprises, which suffered losses of property and industrial holdings as the state asserted control over the economy. Despite the overarching socialist framework, the Awami League government initiated the construction of several key industrial projects aimed at boosting domestic production capacity. Notable among these were the Ghorashal Fertilizer Factory and the Ashuganj Power Station, both of which were envisioned as foundational infrastructure for agricultural and energy sectors, respectively. The Ghorashal Fertilizer Factory was intended to reduce dependency on imported fertilizers and support increased agricultural productivity, while the Ashuganj Power Station sought to address chronic electricity shortages that hampered industrial and residential development. These projects reflected the government’s recognition of the need for strategic investments in heavy industry and infrastructure to underpin economic growth. Despite the restrictive policies and nationalization efforts, several prominent Bangladeshi companies emerged during this period, demonstrating resilience and entrepreneurial spirit within the constraints imposed by the state. Among these were BEXIMCO (Bangladesh Export Import Company Limited), which grew to become one of the country’s largest conglomerates, and Advanced Chemical Industries (ACI), a major player in the chemical and pharmaceutical sectors. These companies managed to establish themselves by navigating the regulatory environment and capitalizing on emerging market opportunities, contributing to the nascent industrial landscape of Bangladesh. Their success stories underscored the potential for private enterprise even within a predominantly state-controlled economy. Agricultural policy under the socialist regime also reflected the government’s interventionist approach. Land ownership was subject to restrictions, with a ceiling set at less than 25 bighas (approximately 8.1 acres). Landowners possessing more than this amount were subjected to taxation aimed at redistributing land and curbing feudalistic landholding patterns. This policy was part of broader agrarian reforms intended to promote equity and increase land access for small farmers. Furthermore, farmers were required to sell their agricultural products at government-set prices rather than through free market mechanisms. This pricing control was designed to stabilize food supplies and protect consumers from price volatility, but it also reduced incentives for farmers to increase production or improve quality, as their earnings were effectively capped by state mandates. The socialist economic framework had significant implications for the development of human capital and institutional capacity. The emphasis on state control and regulation resulted in a slow pace of development in entrepreneurial talent, managerial expertise, administrative capacity, as well as engineering and technical skills. The limited role of the private sector and the absence of competitive market forces hindered the emergence of a robust business class and constrained opportunities for skill acquisition and innovation. Consequently, the economy struggled to build the necessary human resources to support industrialization and modernization, which in turn affected productivity and economic performance. Foreign investment during this period was minimal or virtually absent, reflecting both the inward-looking economic policies and the broader geopolitical context. The socialist orientation and nationalization policies deterred foreign investors who were wary of expropriation and limited profit potential. Additionally, the global economic environment of the early 1970s, marked by Cold War tensions and shifting alliances, contributed to the reluctance of international capital to flow into Bangladesh. The lack of foreign direct investment deprived the country of much-needed capital, technology transfer, and market access, further constraining economic development. The country faced critical shortages of essential food grains and staples in the immediate post-independence years, a situation exacerbated by the disruptions caused by the Liberation War. Agricultural production had been severely affected by the conflict, with damaged infrastructure, loss of labor, and disrupted supply chains contributing to food insecurity. The government’s control over agricultural pricing and marketing, while aimed at stabilizing supplies, was insufficient to address the underlying production deficits. These shortages led to widespread hardship and necessitated reliance on food aid and imports to meet basic nutritional needs. Bangladesh also lost its traditional export markets for jute, which had been a cornerstone of the country’s economy during the Pakistani period. The instability of supply due to war-related disruptions, combined with the rising popularity of synthetic substitutes such as polypropylene, led to a significant decline in global demand for jute products. This loss of export revenue further strained the economy, reducing foreign exchange earnings and limiting resources available for development. The decline of the jute sector underscored the vulnerability of Bangladesh’s export base and the need for diversification. Foreign exchange reserves were extremely limited during this period, reflecting the country’s trade imbalances and constrained export earnings. The banking and monetary systems were unreliable and underdeveloped, hampering effective financial intermediation and economic management. The nationalization of banks, while intended to centralize control, often resulted in inefficiencies and politicization of credit allocation. These financial weaknesses impeded investment, trade, and overall economic stability, complicating efforts to stimulate growth and development. Although Bangladesh possessed a large labor force, the majority of workers were undertrained, underpaid, illiterate, unskilled, and underemployed. The educational and vocational training systems were inadequate to equip the population with the skills needed for industrial and technological advancement. Low wages and poor working conditions further limited labor productivity and economic contribution. This human capital deficit was a significant obstacle to the country’s industrialization ambitions and broader economic progress. The country’s industrial resources were limited, with natural gas being the primary exploitable resource. Other industrial commodities were scarce, constraining the development of a diversified industrial base. The reliance on natural gas for energy and industrial inputs highlighted the narrow resource endowment and the challenges of building a broad-based manufacturing sector. This scarcity of raw materials necessitated imports, which were difficult to finance given the limited foreign exchange reserves. Inflation rates for essential consumer goods during this period were extraordinarily high, ranging between 300% and 400%. This hyperinflation eroded purchasing power, exacerbated poverty, and created economic instability. The inflationary pressures were driven by supply shortages, fiscal deficits, and inefficiencies in production and distribution. High inflation undermined confidence in the economy and complicated planning for both consumers and producers. The Liberation War had inflicted severe damage on Bangladesh’s transportation infrastructure, with hundreds of roads and railroad bridges destroyed or damaged. Rolling stock was inadequate and poorly maintained, further limiting the capacity of the transportation network to support economic activity. The destruction of infrastructure disrupted internal trade, movement of goods and people, and access to markets and services. Rebuilding the transportation system was a critical but challenging task in the post-war recovery process. In addition to war-related devastation, Bangladesh was still recovering from a devastating cyclone in 1970 that had resulted in approximately 250,000 deaths. This natural disaster had compounded the country’s humanitarian and economic challenges, destroying crops, homes, and infrastructure, and contributing to widespread poverty and displacement. The cyclone’s aftermath placed additional burdens on the government and society as they sought to rebuild and stabilize the country. India played a crucial role in providing immediate and substantial economic assistance following Bangladesh’s independence. Between December 1971 and January 1972, India extended aid totaling US$232 million, which was sourced from politico-economic assistance provided by the United States and the Soviet Union. This aid was instrumental in meeting urgent needs for food, medicine, infrastructure repair, and institutional support. The assistance reflected India’s strategic interest in supporting Bangladesh’s emergence as a sovereign state and stabilizing the region in the aftermath of the Liberation War.

Following the series of coups in 1975, Bangladesh underwent a significant shift in its economic policy direction under new military leadership. The incoming rulers moved decisively away from the socialist-oriented economic framework that had characterized the early years of independence. This initial model, which emphasized state control and central planning, had led to widespread inefficiency and economic stagnation, undermining efforts to rebuild the war-torn nation. Recognizing these shortcomings, the military leaders prioritized the promotion of private industry as a means to stimulate industrial capacity and rehabilitate the economy. This strategic pivot aimed to harness the dynamism of the private sector to generate growth, create employment, and improve productivity, thereby reversing the economic malaise that had set in under the previous socialist policies. Beginning in late 1975, the government gradually increased private sector participation in the economy, marking a departure from the earlier dominance of state-owned enterprises. This shift was not abrupt but evolved through a series of policy adjustments designed to encourage private investment and entrepreneurship. The trend toward liberalization and market-oriented reforms initiated during this period has persisted in various forms ever since, laying the groundwork for Bangladesh’s subsequent economic development. By fostering an environment conducive to private enterprise, the government sought to attract both domestic and foreign capital, stimulate industrial diversification, and reduce the fiscal burden imposed by inefficient public sector undertakings. The consolidation of this new economic strategy became particularly evident after Lieutenant General Ziaur Rahman assumed power in 1975. His administration articulated a clear focus on maximizing Gross National Product (GNP) growth by developing private enterprise. This approach reflected a pragmatic recognition that sustainable economic expansion required active participation from the private sector, which could operate more efficiently and respond more flexibly to market demands than state-run entities. Under Zia’s leadership, the government sought to create an economic environment that incentivized investment, innovation, and export-oriented production, thereby integrating Bangladesh more effectively into the global economy. In line with these objectives, Zia’s government undertook a comprehensive revision of the First Five-Year Plan (1973–1978), which had been originally formulated by the Mujib administration. The revised plan acknowledged the limitations of the earlier socialist framework and introduced a “Three Year Hard Core Plan” to cover the remaining three years of the initial plan period. This interim plan emphasized pragmatic economic management, focusing on stabilizing the economy, fostering private sector growth, and addressing immediate developmental challenges. It represented a transitional blueprint designed to recalibrate economic priorities and lay the foundation for subsequent medium-term planning. Following the completion of the Three Year Hard Core Plan, the government implemented a Two-Year Plan spanning 1978 to 1980, which continued to emphasize private sector development and export promotion. This plan was succeeded by the Second Five-Year Plan covering 1980 to 1985, which further consolidated the shift toward market-oriented reforms. These successive plans reflected an evolving policy framework that sought to balance growth objectives with fiscal discipline and structural adjustment. They underscored the government’s commitment to creating an enabling environment for private investment, improving infrastructure, and expanding the industrial base, particularly in sectors with export potential. A key initiative during this period was the establishment of Export Processing Zones (EPZs), which were designed to attract foreign direct investment and promote export-oriented industries. These zones offered investors various incentives, including tax exemptions, streamlined customs procedures, and infrastructure support, thereby creating competitive advantages for export manufacturers. The EPZs played an instrumental role in integrating Bangladesh into global supply chains and diversifying its export base beyond traditional agricultural commodities. Over time, these zones became central to the country’s export economy, facilitating the growth of industries such as textiles, garments, and light manufacturing, which contributed significantly to foreign exchange earnings and employment generation. Concurrently, the government embarked on a program of de-nationalization and privatization of state-owned enterprises. Many industries that had been nationalized during the early years of independence were either returned to their original private owners or sold to new private investors. This process aimed to reduce the fiscal burden on the government and improve operational efficiency by transferring management to the private sector. However, the transition was not without challenges; some public sector units experienced increased inefficiency during this period due to inadequate regulatory frameworks, managerial weaknesses, and political interference. Nevertheless, the privatization efforts marked a decisive move away from state dominance in the economy and underscored the government’s commitment to market liberalization. The export of natural gas became a contentious issue during this era, provoking growing opposition from left-wing political groups and segments of the domestic population. Critics expressed concerns over the management and exploitation of natural resources, arguing that exporting gas could undermine national interests and deprive the country of vital energy supplies needed for domestic development. This opposition reflected broader tensions regarding resource sovereignty, economic policy priorities, and the equitable distribution of benefits derived from Bangladesh’s natural endowments. The debate over natural gas exports highlighted the complexities of balancing economic liberalization with social and political considerations in a developing country context. The 1980s witnessed the emergence of prominent local brands such as PRAN, which signified the growing strength and diversification of domestic industry. PRAN, in particular, became a household name, symbolizing the rise of indigenous entrepreneurship and the expansion of agro-processing and consumer goods sectors. The success of such brands demonstrated the capacity of local enterprises to compete effectively in both domestic and international markets. This period marked a transition from reliance on foreign imports toward the development of homegrown industrial capabilities, contributing to economic self-reliance and employment creation. Parallel to industrial development, innovative approaches to poverty alleviation and financial inclusion began to take root. Muhammad Yunus pioneered experiments with microcredit in the late 1970s, seeking to provide small loans to impoverished individuals who lacked access to traditional banking services. His work culminated in the establishment of the Grameen Bank in 1983, which institutionalized the microcredit model and positioned Bangladesh as a global pioneer in this field. The Grameen Bank’s success demonstrated the potential of microfinance to empower marginalized populations, particularly rural women, by enabling them to engage in income-generating activities and improve their livelihoods. Alongside Grameen Bank, other leading microcredit organizations such as BRAC and Proshika emerged as significant contributors to social and economic development. These institutions expanded the reach of microfinance services, combining credit provision with capacity building, education, and health initiatives. Collectively, they played a transformative role in reducing poverty, enhancing human capital, and fostering grassroots entrepreneurship. The growth of the microcredit sector during this period reflected a broader trend toward innovative, community-based approaches to development that complemented traditional economic policies. In the mid-1980s, the government introduced two key policy innovations aimed at supporting exporters and enhancing the competitiveness of the burgeoning garment industry. The first was the back-to-back letter of credit system, which allowed garment manufacturers to finance imports of raw materials and intermediate goods through letters of credit issued by domestic banks, referencing the letters of credit from foreign buyers. This mechanism alleviated liquidity constraints by enabling manufacturers to secure financing without requiring substantial upfront capital. The second innovation involved duty-drawback facilities through bonded warehouses, permitting exporters to recover customs duties paid on imported inputs stored in these warehouses, provided the goods were used in export production. These measures significantly reduced the cost of production and improved cash flow for exporters. The implementation of these policies catalyzed the rapid expansion of Bangladesh’s textile sector, which grew to become the world’s second-largest exporter of textiles. The garment industry, in particular, benefited from the improved access to imported inputs and financing, enabling manufacturers to scale up production and meet international demand. This sector emerged as a cornerstone of the national economy, generating substantial foreign exchange earnings and creating millions of jobs, especially for women. The success of the textile and garment industries underscored the effectiveness of targeted policy interventions in fostering export-led industrialization. During the mid-1980s, economic policies increasingly focused on fostering private enterprise and investment, privatizing public industries, reinstating fiscal discipline, and liberalizing imports. These measures aimed to create a more dynamic and competitive economic environment by reducing state intervention, controlling inflation, and encouraging trade openness. The government sought to enhance macroeconomic stability while promoting structural reforms that would support sustained growth and integration into the global economy. This policy orientation reflected a broader international trend toward market liberalization and structural adjustment during the period. In the context of regional financial integration, the International Finance Investment and Commerce Bank was established as a multinational bank serving Bangladesh, Nepal, and the Maldives. This institution played a pivotal role in facilitating cross-border trade and investment within South Asia, providing financial services that supported regional economic cooperation. By promoting financial connectivity among neighboring countries, the bank contributed to the development of regional markets and the diversification of financial resources available to businesses and governments. Its establishment marked an important step toward enhancing the financial infrastructure necessary for economic growth and integration in the subcontinent.

The Jamuna Bridge, inaugurated in 1998, represented a landmark achievement in Bangladesh’s infrastructure development, significantly enhancing national connectivity by linking the eastern and western parts of the country. This bridge, spanning the Jamuna River, facilitated the movement of goods and people, thereby integrating previously isolated regions into the broader economic framework. The improved accessibility contributed to regional development, reduced transportation costs, and stimulated trade and commerce across Bangladesh. Prior to this, the rural road network had already seen substantial expansion; between 1988 and 1998, the government increased feeder roads from approximately 3,000 kilometers to 15,500 kilometers. This dramatic growth in rural infrastructure transformed the accessibility of remote areas, enabling year-round transportation and fostering greater integration of rural communities into national markets. Further advancing the country’s transport infrastructure, the construction of the Padma Bridge was completed in 2022. This major development project further facilitated transportation and economic growth by connecting the southwestern region with the rest of Bangladesh, thus opening new avenues for trade and mobility. The Padma Bridge is expected to have a profound impact on the national economy, with projections estimating an increase in GDP by approximately 1.23%. Its completion marked a milestone in Bangladesh’s efforts to modernize its infrastructure and support sustained economic expansion. In the early 1990s, Bangladesh undertook significant economic reforms under the auspices of the International Monetary Fund (IMF). From 1991 to 1993, the government engaged in an Enhanced Structural Adjustment Facility (ESAF) program with the IMF, which laid the groundwork for liberalizing the economy and implementing policy reforms aimed at stabilizing macroeconomic conditions. These reforms included measures to reduce fiscal deficits, liberalize trade, and encourage private sector development. The 1990s also witnessed a series of economic liberalization initiatives spearheaded by Finance Minister Saifur Rahman. His policies opened key sectors such as telecommunications to foreign investment and led to the establishment of the Chittagong Stock Exchange, fostering a more dynamic and competitive economic environment. During this decade, Bangladesh’s private sector experienced notable growth, with expansion in banking, telecommunications, aviation, and tertiary education sectors. This growth catalyzed increased competition and private participation, contributing to a more diversified and resilient economy. The pharmaceutical industry, in particular, developed robustly, eventually meeting 98% of domestic demand, which marked a significant advancement in healthcare manufacturing and reduced reliance on imported medicines. Similarly, the ceramics industry evolved to satisfy local demand for 96% of tableware ceramics, 77% of tiles, and 89% of sanitary ceramics, reflecting a diversification of manufacturing capabilities within the country. The steel industry, centered in Chittagong, capitalized on scrap steel sourced from ship-breaking yards and expanded its role to include shipbuilding activities, further contributing to industrial growth. Despite these positive developments, the government struggled to sustain reforms due to domestic political instability. Tensions among major political parties—the Awami League, Bangladesh Nationalist Party (BNP), and Jatiya Party—resulted in frequent hartals (strikes) and political unrest that disrupted economic activities. This political volatility hindered consistent policy implementation and contributed to a decline in foreign direct investment (FDI) during 2000 and 2001. Nevertheless, the banking sector expanded as several new private commercial banks received licenses, enhancing financial services and access to credit. Between 2001 and 2006, Bangladesh’s economy maintained steady growth, with annual GDP increases averaging between 5% and 6%. In June 2003, the IMF approved a three-year, $490 million plan under the Poverty Reduction and Growth Facility (PRGF) to support ongoing economic reforms, with an immediate disbursement of $70 million. Concurrently, the World Bank extended $536 million in interest-free loans, providing vital financial assistance to bolster development projects and poverty alleviation programs. Since 2009, Bangladesh has experienced continuous real GDP growth of at least 6%, positioning it among the fastest-growing economies globally. Economist Syed Akhtar Mahmood emphasized the government’s proactive role in this economic transformation, highlighting investments in infrastructure, liberalization of regulations, and promotion of high-yield crop varieties in agriculture as key drivers of growth. The expansion of feeder roads from 3,000 kilometers in 1988 to 15,500 kilometers by 1997 played a crucial role in enhancing rural connectivity, allowing for improved access to markets and services throughout the year. Historically, Bangladesh ran large trade deficits financed through foreign aid and remittances. However, foreign reserves experienced significant fluctuations, dropping sharply in 2001 before stabilizing in the range of US$3 to US$4 billion, sufficient to cover approximately three months of imports. By January 2007, foreign reserves had increased to $3.74 billion, rising further to $5.8 billion in January 2008. This upward trend continued, with reserves surpassing $10 billion in November 2009 and exceeding $12 billion by April 2011, as reported by the Bank of Bangladesh. Over time, Bangladesh reduced its dependence on foreign aid and imports, with foreign aid constituting only 2% of GDP by the early 2010s. Poverty reduction has been a significant achievement over the last few decades. Since 1992, more than 15 million people have moved out of poverty, with the poverty rate declining dramatically from 80% in 1971 to 44.2% in 1991, and further down to 12.9% by 2021. This progress has been accompanied by notable improvements in human development indicators, including increased literacy rates, longer life expectancy, and higher per capita food consumption. These improvements reflect concerted efforts to enhance social welfare and economic inclusion. Bangladesh has also prioritized regional trade and transport integration. The country is a participant in the Bangladesh-Bhutan-India-Nepal Motor Vehicles Agreement, which facilitates hassle-free cross-border road transport, promoting regional commerce and connectivity. Additionally, a coastal shipping agreement with India has been established to enhance maritime trade routes, further integrating Bangladesh into South Asian economic networks. The export sector has witnessed substantial growth, particularly in processed food products, which now exceed US$1 billion in exports. This expansion is supported by a robust agricultural supply chain and the proliferation of supermarkets across urban and semi-urban areas. Bangladesh has emerged as the world’s second-largest textile exporter, employing approximately 4.4 million workers, predominantly women. The textile industry contributes about 11% to the country’s GDP, underscoring its critical role in economic development. However, the sector faced international scrutiny following the 2013 Rana Plaza factory collapse, which raised concerns over industrial safety standards. In response, the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety were established to improve workplace conditions and enforce safety regulations. The domestic clothing industry also features competitive local brands such as Aarong, Westecs, Ecstasy, and Yellow, which have gained recognition for quality and design. The World Bank has acknowledged Bangladesh’s remarkable transformation since its independence in 1971, when it was ranked as the second-poorest country globally. The institution highlights that poverty has been halved at an unprecedented pace and that primary school enrollment is nearly universal. Progress has also been made in maternal and child health, female workforce participation, and enhancing resilience against climate change and natural disasters. Bangladesh’s development success is attributed to strategic investments in human capital, macroeconomic stability, infrastructure, urban development projects, energy expansion, inland connectivity, and climate change adaptation. As of 2022, the country held the second-largest foreign-exchange reserves in South Asia, surpassing both India and Pakistan in per capita income in 2021. Additionally, Bangladesh achieved 100% electricity coverage for households in 2022, marking a significant milestone in energy access. Major infrastructure projects, including the Padma Bridge, Dhaka Metro, Matarbari Port, and Karnaphuli Tunnel, are either completed or underway, aimed at stimulating economic activity and supporting long-term growth. The completion of the Padma Bridge, in particular, is expected to have a substantial impact on the economy by improving connectivity and reducing transportation costs, thereby fostering increased trade and investment opportunities across the country.

Following the Russian invasion of Ukraine in early 2022, Bangladesh encountered significant economic challenges, primarily stemming from increased pressure on its foreign exchange reserves. The conflict disrupted global supply chains and caused a sharp rise in the prices of imported goods, which Bangladesh heavily depended upon. As a result, the cost of imports surged, placing substantial strain on the country’s foreign currency reserves and adversely affecting the overall economic stability. This escalation in import expenses was particularly pronounced in sectors reliant on foreign fuel and raw materials, thereby amplifying the vulnerability of Bangladesh’s import-dependent economy. The electricity sector in Bangladesh, which depended extensively on imported fuel such as liquefied natural gas (LNG) and crude oil, was among the most severely impacted by these rising import costs. The surge in global fuel prices following the conflict led to increased production costs for electricity generation, which in turn resulted in higher electricity tariffs for consumers and industries. This situation not only raised operational expenses for power plants but also contributed to inflationary pressures across various sectors due to the increased cost of energy inputs. The dependence on imported fuel underscored the structural weaknesses in Bangladesh’s energy infrastructure and its susceptibility to external shocks. Concurrently, the rising import prices contributed to mounting inflationary pressures within the country. The International Monetary Fund (IMF) forecasted that the Consumer Price Index (CPI) in Bangladesh would increase to 5.9% by the end of 2022, reflecting the inflationary impact of higher import costs and supply chain disruptions. This forecast signaled a notable uptick compared to previous years, indicating that inflation was becoming a significant concern for policymakers. The inflationary trend was driven by the increased cost of essential commodities, including food, fuel, and manufactured goods, all of which were affected by the global price surges. Data from the Bangladesh Bureau of Statistics further confirmed the inflationary trend, reporting that general inflation in Bangladesh had risen to 6.17% by February 2022. This increase marked a departure from relatively moderate inflation rates in preceding periods and highlighted the immediate economic repercussions of the global geopolitical crisis. The rise in inflation eroded household purchasing power, particularly affecting low- and middle-income groups, and complicated the government’s efforts to maintain economic stability amid external shocks. The economic challenges intensified in mid-2024 when Bangladesh experienced widespread civil unrest marked by a nationwide curfew and protests during a mass uprising in July and August. These events resulted in significant disruptions to economic activities and inflicted substantial financial losses on the country. Estimates indicated that the Bangladeshi economy suffered losses exceeding $1.2 billion due to the curfew and associated violence. The unrest disrupted supply chains, halted industrial production, and deterred investment, thereby exacerbating the already fragile economic conditions. In response to the deteriorating economic environment, the World Bank revised its economic growth forecast for Bangladesh in its South Asia Development Update. Initially projected at 5.7% in April 2024 for the fiscal year 2025, the growth forecast was downgraded to 4% by October 2024. This downward revision reflected the compounded effects of political instability, inflationary pressures, and disruptions to economic activity caused by the civil unrest. The revised forecast underscored the challenges faced by the Bangladeshi economy in maintaining its previous growth trajectory amid mounting internal and external pressures. Political instability during this period further exacerbated preexisting inflationary issues. Under the interim government, food inflation surged to 14%, while overall inflation reached 11%. The political turmoil disrupted agricultural production and supply chains, leading to shortages and price hikes in essential food items. The heightened inflationary environment strained household budgets and contributed to social discontent, complicating efforts to restore economic stability. The interim government faced the difficult task of managing these inflationary pressures while navigating a volatile political landscape. A particularly sharp rise in inflation occurred in July 2024, coinciding with the peak of political turmoil. Inflationary pressures intensified as uncertainty and disruptions affected market confidence and supply dynamics. After a brief period of stabilization, inflation resumed its upward trajectory, reflecting the persistent challenges in controlling price increases amid ongoing political and economic instability. This pattern highlighted the vulnerability of Bangladesh’s economy to shocks and the difficulties in implementing effective monetary and fiscal measures under unstable governance conditions. By November 2024, the general inflation rate in Bangladesh had climbed to 10.87%, up from 9.92% recorded in September 2024. This increase indicated a sustained inflationary trend despite efforts to stabilize the economy. The rising inflation rate continued to erode consumer purchasing power and posed challenges for policymakers aiming to balance growth with price stability. The persistent inflation underscored the need for comprehensive economic reforms to address structural vulnerabilities and enhance resilience against external and internal shocks. In the same month, the International Crisis Group (ICG) provided an assessment of Bangladesh’s economic outlook, noting early signs that policymakers might avoid an economic collapse similar to that experienced by Sri Lanka. The ICG attributed this cautiously optimistic view to recent exchange rate reforms that had helped improve foreign exchange reserves and contributed to a decline in inflation from its peak levels. These policy measures were seen as critical in restoring some degree of macroeconomic stability and preventing a full-scale crisis. However, the ICG emphasized that despite these positive developments, serious economic risks remained, necessitating sustained and comprehensive reforms. The ICG further warned that long-term economic reforms would likely extend beyond the short-lived tenure of interim governments, which had primarily focused on immediate macroeconomic priorities such as controlling inflation, stabilizing foreign reserves, and maintaining overall economic stability. The group highlighted the importance of addressing structural issues, including fiscal management, energy sector reforms, and diversification of the export base, to ensure sustainable economic growth and resilience. The interim governments’ emphasis on short-term stabilization measures was seen as insufficient to tackle the deeper challenges facing Bangladesh’s economy. In April 2025, Bangladesh faced a significant external economic challenge when the Trump administration imposed a 37% “reciprocal” tariff on Bangladeshi exports. This tariff was the second highest in South Asia, trailing only Sri Lanka’s 44% tariff. The imposition of such a high tariff represented a major blow to Bangladesh’s export sector, particularly its garments industry, which constituted a substantial portion of the country’s export earnings and employment. The tariff was part of a broader trade policy stance aimed at addressing perceived trade imbalances and protecting domestic industries in the United States. The New York Times characterized the tariff as a severe setback for Bangladesh’s garments industry, noting that many U.S. buyers had halted orders in response to the increased costs associated with the import tariffs. This disruption in demand threatened to undermine the sector’s growth prospects and jeopardize the livelihoods of millions of workers employed in garment manufacturing. The tariff’s impact extended beyond immediate trade volumes, affecting investor confidence and the broader economic outlook. The industry faced considerable uncertainty as it sought to navigate the challenges posed by heightened trade barriers and shifting global market dynamics.

The gross domestic product (GDP) of Bangladesh at market prices, as estimated by the International Monetary Fund (IMF), reflects the formal sector of the country’s economy and is expressed in millions of Bangladeshi Taka. The data, spanning from 1980 to 2019, illustrates a remarkable trajectory of economic growth over nearly four decades. This long-term trend underscores the gradual expansion and structural transformation of Bangladesh’s economy, as well as the evolving macroeconomic environment characterized by changes in exchange rates, inflation, and relative income levels compared to the United States. In 1980, Bangladesh’s GDP stood at approximately 250,300 million Taka. At that time, the exchange rate was 16.10 Taka per US dollar, indicating a relatively stronger domestic currency compared to later years. The inflation index, with 2000 as the base year, was recorded at 20, reflecting the price level at that point in time. Per capita income in Bangladesh was only 1.79% of the per capita income of the United States, highlighting the significant income disparity and the low-income status of the country during the early 1980s. This period was marked by a predominantly agrarian economy with limited industrialization and low levels of foreign investment. By 1985, the GDP had more than doubled to 597,318 million Taka, signaling accelerated economic activity and growth. However, the exchange rate had depreciated to 31.00 Taka per US dollar, nearly doubling the number of Taka required to purchase one US dollar, which reflected domestic inflationary pressures and changes in monetary policy. The inflation index rose to 36, indicating a substantial increase in the general price level over the five-year period. Despite the growth in GDP, the per capita income relative to the USA declined to 1.19%, suggesting that population growth outpaced income growth and that the benefits of economic expansion were not evenly distributed or sufficient to raise average income levels significantly in international terms. By 1990, Bangladesh’s GDP reached 1,054,234 million Taka, continuing its upward trend. The exchange rate had further depreciated to 35.79 Taka per US dollar, a reflection of ongoing inflationary trends and currency adjustments in response to external economic conditions. The inflation index increased to 58, showing that price levels had nearly tripled since 1980. Per capita income as a percentage of the USA’s figure was 1.16%, a slight decline from 1985, indicating persistent challenges in closing the income gap with developed countries despite overall economic growth. This period coincided with gradual policy reforms aimed at liberalizing the economy and encouraging private sector development. In 1995, GDP expanded to 1,594,210 million Taka, marking continued economic progress. The exchange rate was recorded at 40.27 Taka per US dollar, demonstrating a steady depreciation trend that reflected both inflation and external sector dynamics. The inflation index rose to 78, indicating that prices had increased substantially since the base year 2000, though the index itself is a backward-looking measure with 2000 as the reference. Per capita income relative to the United States was 1.12%, showing a slight decline compared to 1990, which suggested that income growth in Bangladesh was still not keeping pace with that of developed economies. The mid-1990s were characterized by increased export activity, particularly in the ready-made garments sector, which became a key driver of economic growth. By the year 2000, Bangladesh’s GDP had grown to 2,453,160 million Taka. The exchange rate had depreciated further to 52.14 Taka per US dollar, reflecting ongoing inflationary pressures and adjustments to maintain export competitiveness. The inflation index was set at 100, as 2000 was the base year for this measure, providing a benchmark for subsequent inflation comparisons. Per capita income as a percentage of the USA’s was 0.97%, marking a decline below 1% and indicating that, despite nominal GDP growth, average income levels remained significantly lower than those in developed countries. The turn of the millennium saw Bangladesh beginning to benefit more substantially from globalization, with remittances from overseas workers becoming an important source of foreign exchange. By 2005, GDP had increased to 3,913,334 million Taka, nearly doubling in five years. The exchange rate was 63.92 Taka per US dollar, continuing the trend of gradual currency depreciation. The inflation index rose to 126, indicating that prices had increased by 26% since the base year 2000. Per capita income relative to the USA was 0.95%, showing a slight decline from 2000, which suggested that population growth and inflation were still factors limiting real income gains. During this period, Bangladesh saw improvements in infrastructure and social indicators, which contributed to a more conducive environment for economic growth. In 2008, GDP further expanded to 5,003,438 million Taka, reflecting ongoing economic development. The exchange rate was 68.65 Taka per US dollar, consistent with the pattern of gradual depreciation aimed at supporting export competitiveness. The inflation index increased to 147, indicating sustained inflationary trends. Per capita income data for this year is not provided, but given the trends in GDP and exchange rates, it is likely that income levels continued to rise slowly in absolute terms but remained low relative to developed countries. The global financial crisis of 2007-2008 had limited direct impact on Bangladesh’s economy, which was somewhat insulated due to its limited integration with global financial markets. By 2015, Bangladesh experienced a substantial rise in GDP, reaching 17,295,665 million Taka. This marked a significant acceleration in economic growth compared to previous decades. The exchange rate was 78.15 Taka per US dollar, continuing the trend of gradual depreciation. The inflation index stood at 196, indicating that prices had nearly doubled since 2000. Per capita income as a percentage of the USA’s was 2.48%, more than doubling from earlier decades and signaling an improvement in living standards and economic capacity relative to developed countries. This period was characterized by rapid industrialization, expansion of the garment export sector, and increased foreign direct investment, which collectively contributed to higher GDP growth rates. In 2019, GDP reached approximately 26,604,164 million Taka, reflecting sustained economic expansion. The exchange rate was 84.55 Taka per US dollar, consistent with the ongoing gradual depreciation policy. Although the inflation index for this year is not specified, inflation remained a key macroeconomic variable monitored by policymakers. Per capita income relative to the USA rose to 2.91%, indicating continued progress in closing the income gap, albeit slowly. The economy diversified further, with growth in services and manufacturing sectors complementing traditional agriculture, and improvements in infrastructure and human capital supporting the overall macroeconomic stability. The data also highlights that the mean wages in Bangladesh in 2009 were $0.58 per man-hour, reflecting the low average wage levels prevalent at that time. This wage level underscores the challenges faced by the labor market, including low productivity and limited skill development, despite the country’s steady economic growth. Low wages have been a factor in Bangladesh’s competitiveness in labor-intensive industries such as textiles and garments, which have driven export-led growth but also raised concerns about labor rights and income inequality. The wage data from 2009 provides important context for understanding the living standards and economic conditions of the workforce during a period of significant economic transformation.

The historical evolution of Bangladesh’s GDP per capita (nominal) from 1980 through 2030 reflects a dynamic economic trajectory shaped by various internal and external factors. Data compiled and analyzed by the International Monetary Fund (IMF) provides a comprehensive overview of this progression, encompassing both actual historical figures and forecasted estimates. This extensive dataset illustrates the gradual transformation of Bangladesh’s economy over the past five decades, highlighting periods of stagnation, acceleration, and sustained growth that have collectively contributed to the country’s changing economic landscape. In 1980, Bangladesh’s GDP per capita (nominal) stood at a markedly low level, indicative of the nation’s status as a developing economy emerging from the aftermath of its independence in 1971. The low GDP per capita reflected limited industrialization, a predominantly agrarian economy, and infrastructural challenges that constrained economic productivity and income generation. This baseline figure set the stage for subsequent decades of economic policy interventions and structural changes aimed at fostering growth and improving living standards. Throughout the 1980s and 1990s, Bangladesh experienced a period of gradual growth in GDP per capita. This steady increase was driven by a combination of economic reforms, demographic shifts, and the beginnings of industrialization. Government initiatives during this time focused on liberalizing trade policies, encouraging foreign investment, and promoting export-oriented industries, particularly in textiles and garments. Concurrently, demographic changes, including a growing labor force and urbanization trends, supported expanding economic activity. These factors collectively contributed to incremental improvements in nominal GDP per capita, signaling the initial stages of Bangladesh’s economic transformation. The early 2000s marked a significant turning point, characterized by accelerated growth in GDP per capita. This acceleration was fueled by increased domestic and foreign investment, rapid expansion of the export sector, and notable advancements in infrastructure development. The ready-made garment (RMG) industry, in particular, emerged as a critical driver of economic growth, positioning Bangladesh as one of the world’s leading garment exporters. Improvements in transportation, energy supply, and telecommunications infrastructure further facilitated economic activities and enhanced productivity. As a result, the nominal GDP per capita rose more rapidly during this period, reflecting a deepening and broadening of economic development. By 2010, Bangladesh’s GDP per capita (nominal) had increased substantially compared to the levels recorded in 1980. This marked improvement underscored the country’s notable economic development over three decades, as it transitioned from a primarily agrarian economy to one with a more diversified industrial base. The rise in GDP per capita also corresponded with improvements in social indicators such as health, education, and poverty reduction, which were supported by the expanding economic resources. This period highlighted the cumulative effects of policy reforms, sectoral growth, and demographic dividends that contributed to enhanced income levels. From 2010 onward, the upward trajectory of Bangladesh’s GDP per capita (nominal) continued unabated, with projections indicating sustained economic expansion well into the 2020s and beyond. The IMF’s forecasts suggested that the country would maintain its growth momentum, supported by ongoing structural reforms, increased investment in human capital, and continued expansion of key economic sectors such as manufacturing, services, and information technology. The projections also reflected expectations of improved governance, greater integration into global markets, and enhanced productivity driven by technological adoption. According to IMF forecasts, by 2025, Bangladesh’s GDP per capita (nominal) was expected to reach a significantly higher value than previous years, although the specific figure is not provided in the available data excerpt. This anticipated increase was indicative of the country’s ongoing economic progress and its potential to further elevate living standards. The forecasted growth was underpinned by optimistic assumptions regarding macroeconomic stability, export diversification, and infrastructural development, all of which were projected to contribute to sustained increases in nominal income per capita. Extending the projections to 2030, the data suggested that Bangladesh’s GDP per capita (nominal) would continue to grow, albeit potentially at a slower rate compared to the rapid gains observed in earlier decades. This deceleration in growth rate is consistent with the economic principle that as countries develop and their GDP per capita rises, the pace of growth typically moderates. The projections implied that Bangladesh would be entering a phase of more mature economic development, where incremental gains become more challenging but nonetheless critical for achieving upper-middle-income status and broader economic resilience. The data collectively underscores Bangladesh’s remarkable transition from a low-income to a middle-income economy over the analyzed period. The consistent growth in nominal GDP per capita reflects not only improvements in economic output but also enhanced capacity to generate income and improve the quality of life for its population. This transition has been facilitated by a combination of policy reforms, demographic advantages, and integration into the global economy, which together have transformed Bangladesh’s economic profile on the world stage. The role of the International Monetary Fund in providing authoritative economic data and forecasts has been instrumental in shaping understanding of Bangladesh’s economic development trajectory. The IMF’s rigorous analysis, standardized methodologies, and comprehensive data collection enable policymakers, researchers, and international stakeholders to monitor progress, identify challenges, and formulate strategies for sustained growth. By offering both historical data and forward-looking projections, the IMF contributes to a nuanced appreciation of Bangladesh’s evolving economic landscape and its prospects for the future.

Data from the International Monetary Fund (IMF) provides a comprehensive overview of Bangladesh’s gross domestic product (GDP) per capita, measured in purchasing power parity (PPP), spanning from 1980 through projections to 2030. This extensive dataset encompasses key economic indicators for the period 1980 to 2021, with IMF staff estimates extending from 2022 to 2027, thereby offering both historical context and forward-looking economic forecasts. The presentation of this data includes a detailed table that highlights inflation rates, marking those below 5% in green to emphasize periods characterized by relatively low inflation, which are often associated with economic stability. While annual unemployment rate figures are incorporated into the dataset, these are sourced from the World Bank but are regarded by the IMF as unreliable, reflecting challenges in accurately capturing labor market dynamics in Bangladesh. In 1980, Bangladesh’s economy was comparatively modest in size, with a GDP (PPP) valued at $40.7 billion. On a per capita basis, the GDP (PPP) stood at $511.2, reflecting the average economic output per person when adjusted for purchasing power parity. The nominal GDP, which does not adjust for price level differences, was recorded at $22.6 billion, with a corresponding nominal GDP per capita of $283.3. These figures illustrate the economic conditions of Bangladesh at the beginning of the 1980s, a period marked by developmental challenges and a predominantly agrarian economy. Throughout the 1980s, Bangladesh experienced steady economic growth, as evidenced by the increase in GDP (PPP) to $83.2 billion by 1989. This near doubling of economic output over the decade was accompanied by a rise in GDP per capita (PPP) from $511.2 in 1980 to $826.6 in 1989, indicating improvements in average living standards and productivity. This growth occurred despite various structural and infrastructural challenges, reflecting gradual industrialization and expansion in sectors such as textiles and agriculture. The 1990s continued this trend of economic expansion, with GDP (PPP) rising from $90.3 billion in 1990 to $145.7 billion in 1997. During this period, GDP per capita (PPP) increased from $875.5 to $1,212.5, signifying sustained improvements in economic output per person. The decade was marked by policy reforms aimed at liberalizing the economy, attracting foreign investment, and enhancing export-oriented industries, particularly in ready-made garments, which became a cornerstone of Bangladesh’s economic growth. A particularly notable period of economic growth occurred between 2003 and 2007. During these years, GDP (PPP) expanded significantly from $220.0 billion to $316.6 billion. Correspondingly, GDP per capita (PPP) rose from $1,632.0 to $2,219.5, reflecting accelerated improvements in economic well-being. This phase was characterized by increased industrialization, infrastructure development, and the strengthening of the service sector, alongside robust export growth and remittance inflows from the Bangladeshi diaspora. The global financial crisis of 2008–2009 had a discernible impact on Bangladesh’s economic growth trajectory, although the country managed to maintain an upward trend in GDP (PPP). Growth slowed compared to previous years but remained positive, with GDP (PPP) reaching $360.9 billion by 2009. GDP per capita (PPP) also increased to $2,473.2 during this period. Bangladesh’s relative insulation from the worst effects of the global crisis was attributed to its limited integration with international financial markets and the resilience of its domestic economy. The 2010s marked a period of significant economic expansion for Bangladesh. By 2018, GDP (PPP) had surged to $835.9 billion, while GDP per capita (PPP) rose to $5,370.4, reflecting rapid development and substantial improvements in average income levels. This decade saw diversification of the economy, with growth driven by manufacturing, services, and continued expansion in the garment sector. Investments in infrastructure, education, and health also contributed to enhanced productivity and human capital development. From 2019 onwards, despite the global disruption caused by the COVID-19 pandemic, Bangladesh’s GDP (PPP) continued to grow, reaching $1,170.1 billion in 2021. GDP per capita (PPP) similarly increased to $7,509.6, underscoring the country’s economic resilience and capacity to maintain growth under challenging circumstances. Government stimulus measures, robust domestic demand, and the adaptability of key sectors played crucial roles in sustaining economic momentum during this period. Projections from 2022 to 2027 indicate that Bangladesh’s economy is expected to sustain its growth trajectory. GDP (PPP) is forecast to rise from $1,348.6 billion in 2022 to $2,102.0 billion by 2027. This anticipated expansion reflects ongoing structural reforms, continued investment in infrastructure, and the strengthening of export markets. Correspondingly, GDP per capita (PPP) is projected to increase from $7,923.1 in 2022 to $11,851.0 in 2027, signaling ongoing improvements in individual economic well-being and living standards. The annual GDP growth rate in Bangladesh has exhibited fluctuations over the decades, with notable peaks such as an 8.2% growth rate recorded in 2019. In the mid-2020s, growth rates have generally stabilized around 6 to 7%, reflecting a maturing economy that continues to expand robustly while managing structural challenges. These growth rates have been supported by a combination of domestic consumption, investment, and export performance. Inflation rates in Bangladesh have varied considerably over the years. Periods of low inflation, defined as rates below 5%, have been particularly notable in recent years, especially from 2012 onward. In contrast, the early 1980s and mid-2000s experienced higher inflationary pressures. For instance, the inflation rate was 7.7% in 1980 and peaked at 14.9% in 1981, reflecting economic instability and external shocks during that period. Over subsequent decades, inflation generally declined, stabilizing around 5 to 6% in the late 2010s and early 2020s, indicative of improved macroeconomic management and monetary policy effectiveness. The unemployment rate in Bangladesh, while included in economic datasets, is regarded by the IMF as unreliable due to data collection and measurement challenges. Nonetheless, available figures suggest that unemployment was approximately 2.2% in 1991. In recent years, this rate has risen slightly to around 4.4%, reflecting demographic changes, labor market dynamics, and structural shifts in the economy. The relatively low unemployment rates, despite rapid population growth, highlight the importance of underemployment and informal sector employment in Bangladesh’s labor market. Government debt as a percentage of GDP has shown relative stability over the past two decades. In 2003, public debt stood at 44.3% of GDP, decreasing to approximately 41.9% by 2007. Since then, debt levels have fluctuated slightly, reaching 42.8% in 2023. This stability indicates prudent fiscal management and sustainable borrowing practices, which have helped maintain Bangladesh’s creditworthiness and fiscal space for development spending. The government’s ability to manage debt levels effectively has been critical in supporting continued economic growth and investment.

The Bangladesh Bureau of Statistics classifies the nation’s economy into nineteen broad sectors, each playing a distinct role in the overall economic framework and contributing specifically to the gross domestic product (GDP) for the fiscal year 2023-24. This detailed categorization allows for a nuanced understanding of the economic composition and the relative importance of various activities in the country’s development trajectory. The GDP contributions from these sectors are systematically aggregated into three primary categories: Agriculture, Industry, and Services, which collectively provide a comprehensive picture of Bangladesh’s economic structure. In the fiscal year 2023-24, the Agriculture sector, encompassing agriculture, forestry, and fishing, accounted for 11.55% of Bangladesh’s GDP. This sector, while no longer the dominant contributor as in earlier decades, continues to hold a vital place in the economy due to its role in providing employment to a significant portion of the population and supplying raw materials for agro-based industries. The inclusion of forestry and fishing within this sector highlights the diverse natural resource base that supports rural livelihoods and contributes to food security. Despite the gradual shift towards industrialization and service-oriented activities, agriculture remains a foundational pillar, particularly in rural areas where it sustains millions of households. The Industry sector contributed a substantial 35.27% to the GDP, reflecting Bangladesh’s ongoing industrial development and diversification efforts. This sector is further subdivided into several key components, each with distinct economic functions and growth dynamics. Mining and quarrying, though a relatively small segment, contributed 1.53% to the GDP, indicating the extraction of minerals and raw materials that support other industrial activities. Manufacturing emerged as the most significant sub-sector within Industry, accounting for 22.65% of GDP. This dominance underscores the importance of manufacturing industries such as textiles, garments, pharmaceuticals, and food processing, which have been central to Bangladesh’s export-led growth and employment generation. The electricity, gas, steam, and air conditioning sub-sector contributed 1.23%, reflecting the critical role of energy supply and utilities in supporting industrial and residential needs. Water supply, sewerage, and waste management, though a minor component at 0.10%, represent essential public health and environmental services that underpin sustainable urban and rural living conditions. Construction, with a contribution of 9.77%, highlights the rapid expansion of infrastructure development, including residential, commercial, and public works projects, which drive economic activity and employment across the country. The Services sector accounted for the largest share of GDP at 53.18%, illustrating Bangladesh’s transition towards a more service-oriented economy. This sector is diverse, encompassing a wide range of activities that facilitate economic transactions, provide public services, and contribute to human capital development. Wholesale and retail trade, along with repair activities, formed the largest sub-sector within Services, contributing 15.10% to GDP. This reflects the extensive commercial networks and market activities that connect producers and consumers across urban and rural areas. Transportation and storage services accounted for 7.43%, underscoring the importance of logistics, freight movement, and passenger transport in supporting trade and mobility. Accommodation and food service activities contributed 1.23%, representing the hospitality industry’s role in domestic consumption and tourism. Information and communication services, with a 1.04% share, indicate the growing significance of telecommunications, media, and digital services in the modern economy. Financial and insurance activities contributed 3.32%, highlighting the expanding banking, insurance, and financial markets that facilitate investment, savings, and risk management. Real estate activities made up 8.48% of GDP, reflecting the dynamic property market driven by urbanization, commercial development, and housing demand. Professional, scientific, and technical activities accounted for 0.20%, indicating the presence of specialized services such as legal, accounting, engineering, and research that support business and innovation. Administrative and support service activities contributed 0.92%, encompassing services such as employment agencies, security, cleaning, and facility management that facilitate organizational operations. Public administration and defence services, with a 3.34% share, represent government functions, including policy implementation, governance, and national security, which are essential for maintaining social order and public welfare. The education sector contributed 3.04%, reflecting investments in human capital development through schools, colleges, universities, and vocational training institutions. Human health and social work activities comprised 3.85%, highlighting the provision of medical care, public health services, and social support systems critical for population well-being. Arts, entertainment, and recreation, though a minimal component at 0.16%, represent cultural, leisure, and creative industries that contribute to social enrichment and tourism. Finally, other service activities accounted for 5.07%, encompassing a variety of miscellaneous services that support the economy’s overall functioning and cater to diverse consumer needs. Together, these nineteen sectors provide a detailed and multidimensional view of Bangladesh’s economic landscape, illustrating the interplay between traditional and modern activities, the balance between rural and urban economies, and the ongoing structural transformation towards a more diversified and service-driven economic model. The precise quantification of each sector’s contribution to GDP for the fiscal year 2023-24 offers valuable insights into the country’s development priorities and the sectors that are driving growth and employment.

The development of major agricultural products in Bangladesh has been intrinsically linked to the expansion and management of watercourses, including both natural and manmade canals, as well as the extensive network of rivers that traverse the country. These waterways serve as vital sources of irrigation, enabling the cultivation of a wide range of crops across diverse agro-ecological zones. The strategic utilization of water resources has historically underpinned agricultural productivity, facilitating multiple cropping cycles and improving crop yields. This reliance on irrigation infrastructure reflects the country’s adaptation to its deltaic geography, where the availability and control of water are critical for sustaining agricultural activities throughout the year. The spread of irrigation infrastructure is widely regarded as a key determinant of the economic and geographic extent of agriculture in Bangladesh. By enabling the expansion of arable land and reducing dependence on erratic rainfall, irrigation has allowed farmers to intensify production and diversify crop patterns. The development of irrigation systems has also contributed to regional disparities in agricultural output, with areas benefiting from reliable water supply demonstrating higher productivity and economic vitality. This infrastructural growth has been supported by government initiatives and local community efforts, which have collectively enhanced the resilience of the agricultural sector to climatic variability and seasonal water shortages. A notable example of irrigation development can be observed in the Comilla district, where a pump installed on the Gumti River extracts water to facilitate agricultural activities in the surrounding areas. This localized irrigation project exemplifies how harnessing river water through mechanical means has expanded cultivation possibilities beyond traditional floodplain farming. The pump enables timely water delivery to fields, supporting the growth of high-value crops and improving overall farm incomes. Such interventions have been replicated in various parts of the country, reflecting a broader trend towards mechanized and controlled irrigation methods that complement natural water availability. Agriculture remains the largest employment sector in Bangladesh, underscoring its central role in the nation’s economy and social fabric. In 2017, the sector accounted for 14.2 percent of the country’s gross domestic product (GDP) while employing approximately 42.7 percent of the workforce. This significant share of employment highlights agriculture’s function as a primary source of livelihood for a substantial portion of the population, particularly in rural areas where alternative employment opportunities are limited. The sector’s contribution to GDP, although declining in relative terms due to structural economic shifts, continues to be vital for sustaining rural incomes and ensuring food security. By the financial year 2022–2023, the agricultural sector contributed more than 12 percent to Bangladesh’s GDP, reflecting ongoing structural changes and diversification within the economy. Despite the gradual decrease in agriculture’s share of GDP, the sector maintains a crucial role in underpinning macroeconomic objectives such as employment generation, poverty alleviation, human resource development, and food security. Its influence extends beyond direct economic output, impacting broader social development through the provision of raw materials for agro-based industries and the stabilization of rural livelihoods. The majority of Bangladeshis derive their livelihoods from agriculture, which remains a predominantly labor-intensive sector. Smallholder farmers and landless agricultural laborers constitute the backbone of this sector, engaging in a variety of farming activities that include crop cultivation, livestock rearing, and aquaculture. The labor-intensive nature of agriculture reflects both the limited mechanization in many rural areas and the traditional farming practices that persist. This reliance on manual labor has implications for productivity, income levels, and the capacity of the sector to absorb a growing rural workforce. Despite often unfavorable weather conditions, including periodic floods, droughts, and cyclones, Bangladesh’s agriculture has achieved steady increases in food grain production over recent decades. This progress has been attributed to several interrelated factors, including improved flood control measures such as embankments and drainage systems, expanded and more efficient irrigation networks, the judicious use of fertilizers, and enhanced distribution and rural credit systems. These advancements have collectively contributed to stabilizing production, reducing vulnerability to climatic shocks, and enabling farmers to adopt modern inputs and practices that boost yields. While rice and jute have traditionally been the primary crops in Bangladesh, recent years have seen maize and vegetables gaining importance, largely due to the expansion of irrigation networks. The increased availability of water has allowed farmers to diversify cropping patterns, moving beyond the traditional dominance of rice and jute to include crops that offer higher economic returns or meet changing market demands. This diversification has also been driven by shifts in dietary preferences and the growing demand for poultry feed, which has stimulated maize cultivation. Some wheat producers have shifted to maize cultivation, reflecting a broader trend of crop diversification facilitated by irrigation expansion. Maize is primarily used as poultry feed, supporting the growth of the poultry industry, which has become an important component of Bangladesh’s agricultural economy. This shift indicates adaptive responses by farmers to market signals and input availability, as well as the suitability of maize to irrigated conditions. The transition from wheat to maize cultivation also highlights the dynamic nature of crop selection in response to economic incentives and resource constraints. Tea cultivation is concentrated in the northeast region of Bangladesh, where climatic and soil conditions are favorable for its growth. The country hosts 166 tea estates covering nearly 280,000 acres, making tea an important cash crop in this area. The tea industry provides employment to thousands of workers and contributes to export earnings. Bangladesh ranks as the ninth largest tea producer globally, accounting for approximately 2 percent of the world’s tea production. This position reflects the significance of tea cultivation within the national agricultural portfolio and its integration into international markets. The country’s fertile soil and ample water supply enable rice to be grown and harvested three times annually in many areas, a practice known as triple cropping. This intensive cultivation system maximizes land use efficiency and contributes to Bangladesh’s status as one of the world’s leading rice producers. The ability to produce multiple rice crops per year is supported by irrigation infrastructure, favorable climatic conditions, and improved crop varieties, all of which have enhanced food production and rural incomes. Bangladesh ranks among the top global producers of several key agricultural commodities. It is the third largest producer of rice, the seventh largest producer of potatoes, the sixth largest producer of tropical fruits, the second largest producer of jute, and the fifth largest producer of farmed fish. These rankings underscore the diversity and scale of Bangladesh’s agricultural output, which spans staple crops, cash crops, and aquaculture products. The prominence of these commodities reflects both natural resource endowments and targeted development efforts aimed at increasing production and market competitiveness. Rice remains the principal crop in Bangladesh, with a production volume of 35.8 million metric tons recorded in the year 2000. Projections indicate that rice production is expected to exceed 37.7 million metric tons in 2024, representing an increase of nearly 700,000 tons from the previous year. This growth trajectory highlights ongoing improvements in yield, area under cultivation, and cropping intensity. The steady increase in rice production is critical for ensuring national food security and meeting the demands of a growing population. The country produces approximately 5 metric tons of rice per hectare, a yield level that supports self-sufficiency in rice production. This productivity is the result of advances in agricultural technology, including the adoption of high-yielding rice varieties, improved irrigation, and better crop management practices. Achieving self-sufficiency in rice has been a major policy goal for Bangladesh, given the crop’s central role in the national diet and economy. In contrast to rice, wheat production in Bangladesh has historically been on a smaller scale. In 1999, wheat production amounted to about 1.9 million tonnes, reflecting limited cultivation primarily in the northwest regions. Wheat has not attained the same level of prominence as rice, partly due to agro-climatic constraints and competition from more profitable crops. Consequently, wheat production has often been insufficient to meet domestic demand, necessitating imports and foreign assistance to bridge the gap. Population pressure exerts a severe burden on Bangladesh’s productive capacity, sometimes leading to food deficits, particularly in wheat. The country’s high population density and limited arable land create challenges for expanding agricultural output sufficiently to meet growing food requirements. This situation has made Bangladesh reliant on foreign assistance and imports to supplement domestic food supplies, especially for wheat and other non-rice staples. Addressing these pressures remains a critical concern for ensuring long-term food security. Underemployment remains a critical issue within the agricultural sector, raising concerns about its capacity to absorb additional labor. Approximately half of the rural labor force consists of landless peasants who depend on agricultural wage labor for their livelihoods. The increasing number of landless workers intensifies competition for limited employment opportunities, contributing to underemployment and poverty in rural areas. This structural challenge highlights the need for diversification of rural economies and the creation of non-farm employment opportunities. Environmental challenges significantly impact agriculture in Bangladesh, including issues related to insecticide use, water management, pollution, and land degradation. The intensive use of pesticides and fertilizers has raised concerns about soil health and environmental sustainability. Water management problems, such as salinity intrusion, waterlogging, and inefficient irrigation practices, affect crop productivity and resource availability. Pollution from industrial and domestic sources further exacerbates these challenges, while land degradation through erosion and nutrient depletion threatens the long-term viability of agricultural land. Bangladesh is highly vulnerable to the effects of climate change, with extreme weather events and temperature fluctuations exerting significant impacts on agricultural conditions. The country frequently experiences floods, cyclones, droughts, and erratic rainfall patterns, all of which disrupt planting and harvesting cycles, reduce yields, and increase the risk of crop failure. Rising temperatures and changing precipitation patterns also affect pest and disease dynamics, further complicating agricultural management. Adaptation strategies for the agricultural sector have become a major policy concern in Bangladesh as the government and stakeholders seek to mitigate the adverse effects of climate change. Efforts include the development and dissemination of climate-resilient crop varieties, improvement of water management systems, promotion of sustainable farming practices, and enhancement of early warning and disaster response mechanisms. These strategies aim to build the resilience of farmers and agricultural systems, ensuring sustainable productivity and food security in the face of ongoing environmental challenges.

The private ready-made garment (RMG) industry in Bangladesh experienced rapid growth throughout most of the 1990s, characterized by double-digit annual growth rates that significantly transformed the country’s industrial landscape. This expansion generated numerous new jobs, predominantly for women, marking a pivotal shift in the nation’s labor market and contributing to a substantial increase in female workforce participation. By the late 1990s, approximately 1.5 million people were employed in the garments sector, the vast majority of whom were women. Alongside the garments industry, employment in leather products, especially footwear manufacturing, also grew, providing additional opportunities within the manufacturing sector. During the fiscal year 2001–2002, export earnings from Bangladesh’s ready-made garments reached $3,125 million, accounting for 52% of the country’s total exports. This milestone underscored the sector’s dominant role in the national economy and its critical contribution to foreign exchange earnings. The country’s apparel exports continued to expand rapidly in the following years. In 2009, Bangladesh surpassed India in apparel exports, with exports valued at $2.66 billion, overtaking India’s $2.27 billion. This achievement highlighted Bangladesh’s emergence as a leading player in the global textile market. By 2014, monthly apparel exports had risen to $3.12 billion, reflecting sustained growth and increased production capacity. In the fiscal year 2018, Bangladesh earned $36.67 billion from exports of manufactured goods, with 83.49% of this revenue derived from the apparel manufacturing sector. This statistic illustrates the overwhelming importance of the garment industry to Bangladesh’s export economy and its role as a key driver of industrial development. The apparel sector’s dominance has been supported by a combination of low labor costs, a large and growing workforce, and government policies aimed at promoting export-oriented industrialization. Historically, the region of Eastern Bengal was renowned for its fine muslin and silk fabrics before British colonization. The dyes, yarn, and cloth produced in this area were highly valued globally, with Bengali muslin, silk, and brocade fabrics worn by aristocrats across Asia and Europe. This rich textile heritage established Eastern Bengal as a center of exquisite craftsmanship and luxury textiles. However, the advent of machine-made textiles from England in the late 18th century led to the decline of traditional handloom industries. The influx of cheaper, industrially produced textiles caused cotton cultivation in East Bengal to diminish, and the local textile industry became increasingly dependent on imported yarn. As a result, only remnants of the once-thriving cottage industry remained, marking a significant transformation in the region’s industrial profile. Beyond textiles and garments, other sectors in Bangladesh have experienced rapid growth, including pharmaceuticals, shipbuilding, information technology, leather, steel, and light engineering industries. These sectors have diversified the industrial base and contributed to broader economic development. As of 27 April 2024, Bangladesh’s pharmaceutical industry is nearly self-sufficient among the 48 least-developed countries, with local companies meeting 98% of domestic demand. The industry comprises 213 pharmaceutical companies and has maintained an average annual growth rate of 12%, reflecting robust expansion and increasing capacity to serve both domestic and international markets. Nine Bangladeshi drug manufacturers have received regulatory approvals from major international bodies, including the United States Food and Drug Administration (FDA), the European Union, Australia, and the World Health Organization (WHO). This recognition has enabled the sector to export pharmaceutical products to approximately 150 countries worldwide, enhancing Bangladesh’s reputation as a reliable supplier of quality medicines. The pharmaceutical industry’s growth complements the country’s broader industrial development and export diversification efforts. Bangladesh’s textile industry, encompassing knitwear, ready-made garments, and specialized textile products, remains the country’s leading export sector. In 2013, the industry earned $21.5 billion, constituting 80% of total exports valued at $27 billion. Globally, Bangladesh ranks second in textile exports, following China, which exported $120.1 billion worth of textiles in 2009. The textile industry employs nearly 3.5 million workers, underscoring its role as a major source of employment. Since 2004, exports from this sector have doubled, demonstrating rapid growth and increasing integration into global supply chains. However, wages in Bangladesh’s textile sector were the lowest worldwide as of 2010, reflecting ongoing challenges related to labor compensation. Bangladesh was considered a significant competitor to China in textiles due to its low wages and currency stability. Despite this competitive advantage, wages remained low for the approximately 3 million workers employed in the sector in 2012. This low wage environment contributed to increasing labor unrest, as workers demanded better pay and improved working conditions. The government made efforts to address these issues, but tensions persisted amid ongoing disputes between labor and management. The urban garment industry has created over one million formal sector jobs for women, significantly contributing to high female labor participation rates. Employment in this sector provides women with earning opportunities that enable them to send remittances to their families and improve their social status. Despite concerns about unsafe working conditions and low wages, the garment industry offers women more reliable income compared to alternative occupations. This economic empowerment has had broader social implications, including shifts in family dynamics and gender roles. The passage of the 1993 Harkins Bill, also known as the Child Labor Deterrence Bill, led to the dismissal of approximately 50,000 children from factories. While the legislation aimed to eliminate child labor in formal industrial settings, many of these children were pushed into unregulated informal sectors such as brick-breaking, domestic work, and rickshaw pulling. This outcome highlighted the complexities of addressing child labor within the broader socioeconomic context, where alternative employment opportunities were limited and often exploitative. Although working conditions in garment factories have not been ideal, employment in the sector provides women with more reliable income than other available occupations. This economic independence allows women to increase their spending, saving, and investment, contributing to improved household welfare. Employed women, both married and unmarried, tend to marry later, have lower fertility rates, and attain higher levels of education compared to women working in other sectors. These demographic and social changes reflect the transformative impact of formal employment on women’s lives in Bangladesh. Following significant labor unrest in 2006, the Bangladeshi government established a Minimum Wage Board comprising representatives from both business and labor sectors. In 2006, the minimum wage was set at 1,662.50 taka (approximately $24) per month, an increase from the previous rate of Tk950. This adjustment represented a government response to growing demands for better wages and improved labor standards. In June 2010, amidst widespread protests involving 60,000 workers, a proposal was considered to raise the minimum wage to approximately $50 per month. However, this figure remained below workers’ demands of 5,000 taka (approximately $72), while textile manufacturers advocated for wages below $30, illustrating the ongoing tension between labor and industry interests. On 28 July 2010, the minimum entry-level wage was officially increased to 3,000 taka (approximately $43), marking a significant policy shift aimed at improving workers’ earnings. This wage adjustment was part of broader efforts to address labor unrest and enhance the competitiveness of the garment sector by balancing cost considerations with social responsibility. Ex-Prime Minister Khaleda Zia, during the inauguration of the Bangladesh Textile Expo (BATEXPO) on 21 September 2006, urged textile firms to ensure worker safety by complying with international labor laws. Her call underscored the government’s recognition of the importance of labor standards in sustaining the industry’s growth and international reputation. Western multinational companies have capitalized on Bangladesh’s low-cost labor, where wages are around 30 euros per month, compared to 150–200 euros in China. This significant wage differential has attracted global textile brands seeking to reduce production costs. However, the disparity in earnings is stark: a CEO of a top five global textile brand can earn in four days what a Bangladeshi garment worker earns in her lifetime. This contrast highlights the profound inequalities within the global garment supply chain and raises questions about labor rights and equity. The Rana Plaza factory collapse in April 2013 was a tragic industrial disaster that resulted in at least 1,135 deaths, drawing international attention to the unsafe working conditions prevalent in Bangladesh’s garment industry. Other major industrial accidents have also occurred, including a factory collapse in 2005 that killed 64 people, fires in 2006 that killed 85 and injured 207, and fires in 2010 causing about 30 deaths. These incidents exposed systemic safety issues and prompted calls for improved regulatory oversight and enforcement of labor protections. In 2006, a large-scale strike movement involved tens of thousands of workers across nearly all of Bangladesh’s 4,000 garment factories. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) responded with police repression, resulting in three worker deaths and hundreds wounded or imprisoned. Similarly, in 2010, after another major strike, nearly 1,000 workers were injured due to government repression efforts. These episodes of labor unrest and state response underscore the ongoing challenges in balancing industrial growth, labor rights, and social stability within Bangladesh’s manufacturing sector.

The construction of the naval vessel BNS Durgam marked a significant milestone in Bangladesh’s shipbuilding industry, exemplifying the nation’s emerging capabilities in this complex and technologically demanding sector. As a domestically built naval ship, BNS Durgam showcased the growing technical expertise and industrial capacity within Bangladesh, reflecting years of investment in shipbuilding infrastructure and human capital development. This vessel not only served as a symbol of national pride but also demonstrated the potential for Bangladesh to produce sophisticated maritime assets that meet stringent military standards. The successful completion and commissioning of BNS Durgam underscored the country’s transition from a primarily shipbreaking and repair hub to an active manufacturer of new vessels. Shipbuilding in Bangladesh has evolved into a rapidly expanding industry with considerable growth potential, positioning the country as an increasingly notable player on the global maritime stage. Over the past two decades, the sector has transitioned from modest beginnings to a vibrant industry supported by government initiatives, private investment, and a skilled yet cost-effective labor force. The expansion has been fueled by rising domestic demand for vessels, as well as growing export opportunities, particularly in the market for small to medium-sized ocean-going ships. This growth trajectory has attracted attention from international stakeholders, who recognize Bangladesh’s strategic advantages in terms of geographic location, labor costs, and improving technological capabilities. As a result, the shipbuilding industry has become a key contributor to national economic development, creating employment and generating foreign exchange earnings. Bangladesh’s shipbuilding industry has often been compared to those of established maritime manufacturing giants such as China, Japan, and South Korea, reflecting its rapid growth and increasing export success. While these East Asian countries have long dominated global shipbuilding through large-scale production and advanced technology, Bangladesh has carved out a niche by focusing on smaller vessels and leveraging its competitive labor market. The comparison arises not only from quantitative measures such as production volume and export value but also from qualitative aspects, including the ability to meet international standards and deliver customized vessels. This parallel highlights the transformative progress Bangladesh has made within a relatively short time frame, suggesting that the country is poised to become a significant competitor in the global shipbuilding arena. Industry experts emphasize that Bangladesh’s potential to emerge as a major competitor in the market for small to medium-sized ocean-going vessels is underpinned by increasing export deals and the availability of low-cost, skilled labor. The country’s workforce, characterized by a combination of technical proficiency and affordability, offers a distinct advantage in producing vessels at competitive prices without compromising quality. Moreover, the steady rise in export contracts from countries in Asia, Africa, and Europe reflects growing international confidence in Bangladeshi shipbuilders. These developments suggest that Bangladesh could capture a substantial share of the global market segment traditionally dominated by more established shipbuilding nations, particularly in specialized vessels such as cargo ships, passenger ferries, and patrol boats. This competitive edge is further enhanced by government policies aimed at supporting the industry through infrastructure development, financial incentives, and capacity-building programs. In addition to its burgeoning shipbuilding sector, Bangladesh hosts the world’s largest shipbreaking industry, which plays a critical role in the global maritime recycling market. The shipbreaking yards, primarily concentrated in the coastal city of Chittagong, employ over 200,000 Bangladeshis, making the industry a major source of employment and economic activity. Workers in these yards engage in the dismantling of decommissioned ships, recovering valuable materials such as steel, machinery, and other components for reuse or resale. The scale of this industry reflects Bangladesh’s strategic position as a hub for ship recycling, driven by its extensive coastline, favorable labor costs, and established infrastructure. The shipbreaking sector not only supports livelihoods for hundreds of thousands of workers but also contributes significantly to the country’s industrial supply chain. The shipbreaking industry in Bangladesh accounts for approximately 50% of all steel used within the country, underscoring its vital importance to the national economy. The steel recovered from scrapped ships provides a substantial portion of the raw material required by Bangladesh’s construction, manufacturing, and infrastructure sectors, thereby reducing dependence on imported steel. This recycling process contributes to cost savings and environmental sustainability by repurposing existing materials rather than relying solely on virgin resources. The economic impact of the shipbreaking industry extends beyond steel production, as it stimulates ancillary businesses such as transportation, logistics, and metal fabrication. Consequently, the sector is integral to Bangladesh’s industrial ecosystem and overall economic resilience. Among the shipbreaking facilities in Bangladesh, the Chittagong Ship Breaking Yard stands out as the second-largest shipbreaking facility in the world, highlighting the country’s prominence in this industry. The yard’s vast expanse along the coastline enables the simultaneous dismantling of numerous large vessels, including oil tankers, container ships, and bulk carriers. Its capacity to handle some of the world’s largest decommissioned ships has attracted international ship owners seeking cost-effective and efficient recycling solutions. The facility’s scale and operational expertise have positioned Bangladesh as a global leader in shipbreaking, competing closely with other major centers such as Alang in India and Gadani in Pakistan. The Chittagong Ship Breaking Yard’s significance extends beyond economic metrics, as it also shapes regional maritime industry dynamics and environmental management practices. Khulna Shipyard Limited (KSY), with a legacy spanning over fifty years, is recognized as the leading shipbuilding enterprise in Bangladesh, renowned for its extensive reputation and diverse ship production capabilities. Established as a state-owned enterprise, KSY has played a pivotal role in the development of the country’s shipbuilding industry, combining traditional craftsmanship with modern engineering techniques. Over the decades, the shipyard has expanded its infrastructure, workforce, and technical expertise to meet the evolving demands of both domestic and international clients. Its longstanding presence and consistent performance have made KSY a cornerstone of Bangladesh’s maritime industrial base, contributing to technological advancement and workforce skill enhancement in the sector. KSY has demonstrated remarkable versatility and capacity by building a wide range of ships tailored to the needs of both domestic and international customers. The shipyard’s portfolio includes cargo vessels, passenger ferries, fishing boats, and specialized ships designed for various commercial and governmental purposes. This diversity reflects KSY’s ability to adapt to different market requirements and deliver vessels that comply with international standards of safety, performance, and environmental regulations. The shipyard’s export activities have helped establish Bangladesh’s reputation as a reliable shipbuilding nation, while its domestic projects have supported the growth of the country’s maritime infrastructure and transportation networks. Through continuous innovation and quality assurance, KSY has maintained its competitive edge in a challenging global market. A significant aspect of KSY’s operations involves constructing vessels for key Bangladeshi defense forces, including the Bangladesh Navy, Bangladesh Army, and Bangladesh Coast Guard, under contracts awarded by the Ministry of Defence. These defense contracts have required the shipyard to meet stringent specifications related to durability, maneuverability, and operational capability, reflecting the strategic importance of these vessels for national security. The collaboration between KSY and the Ministry of Defence has facilitated the modernization of the country’s maritime defense assets, enabling greater self-reliance and reducing dependence on foreign suppliers. The shipyard’s successful delivery of military vessels has enhanced its credibility and opened avenues for further defense-related projects, thereby reinforcing its role as a critical component of Bangladesh’s defense industrial base.

The banking landscape in Bangladesh has undergone significant transformation over the past several decades, marked by a notable shift from state dominance to a more diversified ownership structure. Historically, until the 1980s, the financial sector was predominantly controlled by state-owned banks, which played a central role in channeling financial resources to various sectors of the economy. This dominance was reflective of broader economic policies during the post-independence period, which emphasized state control over key industries and financial institutions to support planned economic development. However, this model faced challenges related to inefficiencies, limited competition, and constrained financial services, prompting the government to initiate reforms aimed at liberalizing the financial sector. A pivotal moment in the evolution of Bangladesh’s financial system was the introduction of major reforms that facilitated the privatization of banks and the establishment of private commercial banks. This shift was part of a broader economic liberalization agenda that sought to enhance efficiency, increase competition, and expand financial inclusion. The privatization process allowed private sector participation in banking, leading to the creation of numerous private commercial banks that began to operate alongside state-owned institutions. These private banks introduced new products, services, and technologies, contributing to the modernization of the banking industry and better meeting the diverse needs of businesses and consumers. The period between 2000 and 2006 marked the launch of a second major reform program in Bangladesh’s financial sector, which aimed to strengthen the institutional framework and improve regulatory oversight. This reform initiative focused on the development of financial institutions, enhancing their capacity to manage risks effectively, and implementing risk-based regulations and supervision. The adoption of risk-based supervision represented a significant advancement in regulatory practices, as it prioritized the identification and mitigation of risks within banks, thereby promoting financial stability and resilience. This approach allowed regulators to allocate supervisory resources more efficiently and address vulnerabilities before they could escalate into systemic problems. Bangladesh Bank, the country’s central bank, played a crucial role during this reform period by spearheading the adoption of risk-based regulations and supervision. As the primary regulatory authority for the banking sector, Bangladesh Bank introduced comprehensive guidelines and frameworks to ensure that banks adhered to prudent risk management practices. The central bank’s efforts included enhancing the capacity of supervisory staff, improving the legal and institutional environment, and fostering transparency and accountability within financial institutions. These measures not only strengthened the regulatory framework but also helped build confidence among depositors, investors, and international partners. As of the current date, the banking sector in Bangladesh is characterized by a diverse composition of institutions that reflect the outcomes of these reform processes. The sector includes four State-Owned Commercial Banks (SCBs), which continue to play a significant role in the economy by providing banking services to various segments, including government projects and priority sectors. These SCBs maintain a substantial presence in the market, although their dominance has diminished relative to the past due to increased competition from private banks. In addition to the SCBs, the banking sector comprises four government-owned specialized banks that focus primarily on development financing. These specialized banks are tasked with supporting specific sectors such as agriculture, industry, and small and medium enterprises (SMEs), which are critical for economic growth and employment generation. Their mandate often involves providing long-term financing and concessional loans to promote development objectives that may not be adequately served by commercial banks. The private sector has emerged as a dominant force in Bangladesh’s banking industry, with 39 private commercial banks currently operating in the country. These banks offer a wide range of financial products and services, catering to retail customers, corporate clients, and international trade. The proliferation of private banks has contributed to increased competition, innovation, and improved customer service standards. Many of these institutions have expanded their branch networks and embraced digital banking technologies, thereby enhancing accessibility and convenience for consumers across urban and rural areas. Furthermore, the banking sector includes nine foreign commercial banks that operate within Bangladesh, bringing international expertise, capital, and global banking practices to the market. These foreign banks primarily serve multinational corporations, foreign investors, and facilitate international trade and remittances. Their presence underscores Bangladesh’s integration into the global financial system and provides additional options for customers seeking specialized banking services. Overall, the evolution of Bangladesh’s banking sector from a state-dominated system to a more pluralistic and competitive environment reflects the country’s broader economic development trajectory. The reforms implemented over the past four decades have contributed to the expansion and diversification of financial services, improved regulatory oversight, and strengthened the resilience of the banking system. This dynamic banking sector continues to play a vital role in supporting economic growth, financial inclusion, and the integration of Bangladesh into the global economy.

In 2013, the World Travel and Tourism Council (WTTC) reported that the travel and tourism industry in Bangladesh directly generated 1,281,500 jobs in the year 2012. This figure represented 1.8 percent of the country’s total employment, positioning Bangladesh at 157th place out of 178 countries worldwide in terms of direct employment generated by the travel and tourism sector. The relatively low ranking reflected the nascent stage of the industry within the national economy, highlighting both the challenges and potential for growth in this sector. The direct employment numbers included jobs created in sectors such as accommodation, transportation, entertainment, and other tourism-related services, which formed a critical component of Bangladesh’s labor market. When considering both direct and indirect employment, the travel and tourism industry’s impact was even more significant. The WTTC estimated that the sector supported a total of 2,714,500 jobs in 2012, which accounted for 3.7 percent of Bangladesh’s total employment. Indirect employment encompassed jobs generated in industries supplying goods and services to the tourism sector, such as food production, retail, construction, and other ancillary services. This broader employment footprint underscored the interconnectedness of travel and tourism with the wider economy, demonstrating how the sector contributed to livelihoods beyond the immediate tourism-related activities. Looking ahead, the WTTC projected substantial growth in employment within the travel and tourism sector. By 2023, it was forecasted that the industry would directly generate 1,785,000 jobs, an increase of over 500,000 from 2012. Moreover, the total employment supported by the sector, including both direct and indirect jobs, was expected to rise to 3,891,000. This would constitute approximately 4.2 percent of Bangladesh’s total employment, indicating a growing role for tourism in the national labor market. The forecasted annual growth rate for direct travel and tourism jobs between 2012 and 2023 was 2.9 percent, reflecting optimism about the sector’s expansion driven by improvements in infrastructure, increased domestic and international travel, and government initiatives aimed at promoting tourism. In terms of economic contribution, domestic spending played a dominant role in the travel and tourism industry’s direct gross domestic product (GDP) in Bangladesh. In 2012, an overwhelming 97.7 percent of the direct GDP generated by the sector came from domestic sources, indicating that the majority of tourism-related economic activity was driven by residents traveling within the country rather than by foreign visitors. This high proportion of domestic spending highlighted the importance of internal tourism for Bangladesh’s economy, while also suggesting that international tourism had yet to develop fully as a significant source of revenue. Globally, Bangladesh’s position in 2012 concerning the direct contribution of travel and tourism to GDP was relatively modest. The country ranked 142nd out of 176 nations in terms of the percentage of national GDP derived directly from the travel and tourism sector. This ranking reflected both the limited scale of the industry and its underdevelopment compared to other countries where tourism constitutes a larger share of economic output. Factors contributing to this included infrastructural constraints, limited international marketing, and challenges related to political stability and safety perceptions, which collectively influenced the sector’s growth potential. Tourism arrivals in Bangladesh remained low relative to the size of its population. In 2014, the country received only 125,000 tourists, a figure considered extremely low given the total population size. This low level of international tourist arrivals underscored the untapped potential of Bangladesh as a tourist destination, despite its diverse cultural heritage, natural beauty, and historical sites. The limited number of foreign visitors was attributed to factors such as inadequate tourism infrastructure, visa restrictions, and limited global awareness of Bangladesh’s attractions. As of 22 May 2019, Bangladesh’s total local population was approximately 166,594,000 inhabitants, making it one of the most densely populated countries in the world. When comparing this population size to the number of tourists, the ratio of tourists to locals was approximately one tourist for every 1,333 residents. This stark disparity illustrated the relatively minor role that international tourism played in the country’s social and economic landscape. The low tourist-to-local ratio further emphasized the need for strategic development and promotion of the tourism sector to harness its potential benefits for employment generation, foreign exchange earnings, and cultural exchange. Taken together, these data points paint a comprehensive picture of the travel and tourism industry in Bangladesh during the early 2010s and its anticipated trajectory. While the sector was a modest contributor to employment and GDP at the time, significant growth was projected, driven largely by domestic tourism. The relatively low levels of international tourist arrivals and Bangladesh’s global rankings highlighted areas for improvement, particularly in infrastructure development, marketing, and policy support, to elevate the sector’s importance within the national economy. The demographic context, with a large and growing population, presented both challenges and opportunities for expanding tourism’s economic and social impact in Bangladesh.

Bangladesh’s information technology sector has undergone remarkable growth and expansion over the past several years, particularly evident in the three years leading up to 2017. This period was marked by rapid development driven by increased infrastructure investment, government initiatives, and a growing pool of skilled IT professionals. The sector’s dynamism reflected the broader economic transformation of the country, positioning Bangladesh as an emerging player in the global information and communication technology (ICT) landscape. This growth was not only quantitative in terms of market size but also qualitative, with improvements in service delivery, software development capabilities, and the establishment of technology parks and innovation hubs. By June 2017, the digital footprint of Bangladesh had expanded significantly, with approximately 80 million internet users nationwide. This figure represented a substantial portion of the country’s population, underscoring widespread digital adoption and connectivity. The surge in internet users was facilitated by the expansion of broadband infrastructure and the increasing affordability of internet-enabled devices. The penetration of internet services extended beyond urban centers into rural and semi-urban areas, reflecting government efforts to bridge the digital divide. The growing internet user base also created new opportunities for e-commerce, digital education, and online entertainment, thereby contributing to the socio-economic development of the country. The growth rate of internet use in Bangladesh was estimated at 9% as of June 2017, a robust increase that was primarily driven by the proliferation of mobile internet services. Mobile internet adoption surged due to the widespread availability of affordable smartphones and the expansion of 3G and 4G networks by major telecommunications providers. This mobile-centric connectivity model allowed millions of users to access the internet for the first time, bypassing the limitations of fixed-line broadband infrastructure. The rapid uptake of mobile internet also spurred the growth of digital applications tailored to local needs, including mobile banking, health services, and government portals. Consequently, mobile internet became the principal conduit for digital engagement across diverse demographic segments. Social media platforms played a significant role in shaping the digital landscape of Bangladesh, with Facebook emerging as the most popular network. By mid-2017, the country had an active Facebook user base of approximately 23 million individuals. This substantial engagement reflected the platform’s penetration into everyday life, serving as a primary medium for communication, information sharing, and social interaction. The popularity of Facebook also influenced political discourse, marketing strategies, and community mobilization within Bangladesh. The platform’s widespread use highlighted the increasing importance of digital literacy and the need for policies addressing online privacy, misinformation, and cyber security. The mobile telecommunications sector in Bangladesh demonstrated extensive reach, serving approximately 143.1 million mobile phone subscribers by June 2017. This figure indicated that mobile connectivity had become nearly ubiquitous, with subscription numbers exceeding the total population due to multiple SIM ownership and business use. The sector’s expansion was supported by competitive service providers, regulatory reforms, and investments in network infrastructure. Mobile telephony facilitated not only voice communication but also data services, enabling the growth of mobile internet and related digital applications. The widespread availability of mobile services contributed significantly to economic activities, social inclusion, and emergency response capabilities across the country. In the fiscal period ending 30 June 2017, Bangladesh’s IT sector achieved notable success in international markets by exporting software, games, outsourcing, and IT services valued at $800 million. This milestone underscored the sector’s maturation and its ability to compete globally. The export portfolio included a diverse range of products and services, from custom software development and mobile applications to business process outsourcing and IT-enabled services. The growth in exports was supported by government incentives, participation in international trade fairs, and the establishment of IT parks that fostered innovation and collaboration. This export performance contributed to foreign exchange earnings and helped create employment opportunities within the country’s burgeoning IT workforce. The primary export destinations for Bangladesh’s IT sector were diverse and spanned multiple continents, reflecting a globalized market presence. Key markets included European countries, the United States, Canada, Russia, and India, each offering distinct opportunities and challenges. European clients often sought specialized software solutions and IT consulting services, while the United States and Canada represented large markets for outsourcing and software exports. Russia and India, as emerging technology hubs themselves, engaged in collaborative ventures and outsourcing partnerships with Bangladeshi firms. This geographical diversity in export destinations not only mitigated risks associated with market dependency but also facilitated knowledge transfer and the adoption of international best practices within Bangladesh’s IT industry. The expanding global footprint of Bangladesh’s IT exports signaled the country’s rising stature as a competitive player in the international technology services arena.

The Dhaka Stock Exchange (DSE) experienced remarkable growth in market capitalization during the late 2000s, reflecting the expanding economic landscape of Bangladesh. In November 2007, the total market capitalization of the DSE surpassed the significant milestone of $10 billion, marking a pivotal moment in the country’s financial sector development. This upward trajectory continued rapidly, with the market capitalization reaching $30 billion by 2009, demonstrating a threefold increase within a span of just two years. The momentum did not wane, as by August 2010, the DSE’s market capitalization further escalated to $50 billion, underscoring the robust investor confidence and the expanding scale of capital market activities in Bangladesh. This period of growth in Bangladesh’s stock market occurred against the backdrop of the global financial recession between 2007 and 2010, a time when many economies worldwide faced severe downturns and stock markets experienced significant volatility and declines. Despite these global challenges, Bangladesh’s stock market emerged as the best performing in Asia during this interval. This exceptional performance was largely attributed to the relatively low correlations between Bangladesh’s stock market and those of developed countries, which insulated it from the widespread contagion effects that impacted more globally integrated markets. Consequently, while many Asian markets suffered steep losses, Bangladesh’s stock market maintained resilience and delivered positive returns, attracting increased attention from both domestic and foreign investors. Parallel to the burgeoning capital markets, Bangladesh witnessed substantial investment in its real estate sector, driven by both domestic investors and Bangladeshis residing abroad. This influx of capital catalyzed a significant building boom, particularly in the major urban centers of Dhaka and Chittagong. The real estate surge was characterized by the development of residential complexes, commercial buildings, and infrastructure projects, reflecting the growing demand for urban housing and commercial space amid rapid urbanization and economic expansion. The involvement of foreign-resident Bangladeshis played a crucial role, as remittances and overseas investments contributed to the financing of numerous construction projects, thereby stimulating the real estate market and contributing to the overall economic growth. In 2011, strategic investment initiatives further highlighted Bangladesh’s appeal to international investors, particularly from the Middle East. Saudi Arabia, recognizing the potential of Bangladesh’s infrastructure and energy sectors, sought to secure both public and private investments in key areas such as oil and gas, power generation, and transportation projects. This interest was part of broader efforts to strengthen bilateral economic ties and leverage Bangladesh’s growing market and resource base. Concurrently, the United Arab Emirates (UAE) expressed a keen interest in Bangladesh’s emerging shipbuilding industry, attracted by its competitive cost advantages relative to other regional shipbuilding hubs. The UAE’s focus on this sector underscored the diversification of foreign investment interests in Bangladesh beyond traditional industries, highlighting the country’s potential as a cost-effective manufacturing and industrial base. India’s industrial giant Tata also planned significant investment in Bangladesh’s manufacturing sector during this period. Tata announced intentions to invest Taka 1500 crore (approximately $190 million) to establish an automobile industry within Bangladesh. This investment aimed to capitalize on Bangladesh’s growing domestic market and strategic location, while fostering industrial development and employment generation. The establishment of an automobile manufacturing facility by Tata represented a notable step in the country’s industrialization efforts and signaled confidence in Bangladesh’s economic prospects from a major multinational corporation. The World Bank contributed to Bangladesh’s development agenda by committing to invest in rural infrastructure, specifically targeting the improvement of rural roads. This investment was designed to enhance connectivity, facilitate market access for rural populations, and ultimately improve the quality of life in Bangladesh’s rural areas. Improved road infrastructure was expected to reduce transportation costs, increase agricultural productivity, and promote inclusive economic growth by linking remote communities to urban centers and markets. Interest in Bangladesh’s pharmaceutical sector extended beyond the immediate region, with entrepreneurs from Rwanda identifying the industry’s potential in the international market. Rwandan investors recognized Bangladesh’s growing capabilities in pharmaceutical manufacturing, which benefited from a skilled workforce, cost efficiencies, and compliance with international quality standards. This cross-continental interest highlighted the global reach of Bangladesh’s pharmaceutical sector and its capacity to attract diverse foreign investment aimed at expanding production and export opportunities. Samsung, the South Korean multinational conglomerate, pursued a major investment initiative in Bangladesh’s industrial sector by seeking to lease 500 industrial plots from the Export Processing Zones Authority (now known as the Bangladesh Economic Zones Authority). Samsung’s plan involved establishing an electronics manufacturing hub with an investment of approximately US$1.25 billion. This ambitious project aimed to position Bangladesh as a significant player in the global electronics supply chain, leveraging the country’s competitive labor costs and strategic location. The establishment of such a large-scale electronics hub was expected to generate substantial employment opportunities and contribute to technological advancement within the country. In the fiscal policy arena, the National Board of Revenue (NBR) announced plans to withdraw tax rebate facilities on investments in the capital market by individual taxpayers starting from the fiscal year 2011–12. This policy shift marked a significant change in the government’s approach to incentivizing capital market participation. The removal of tax rebates was intended to streamline tax administration and reduce revenue losses, although it also had implications for individual investor behavior and the attractiveness of equity investments. The decision reflected the government’s efforts to balance fiscal considerations with the need to maintain a vibrant and sustainable capital market. In the same year, the Japan Bank for International Cooperation (JBIC) ranked Bangladesh as the 15th best investment destination for foreign investors. This ranking underscored Bangladesh’s improving investment climate, driven by factors such as its large and youthful population, strategic geographic location, and ongoing economic reforms. JBIC’s recognition served to enhance Bangladesh’s profile on the global investment map, encouraging further foreign direct investment inflows and signaling confidence in the country’s long-term economic potential. The ranking also reflected the cumulative impact of Bangladesh’s efforts to attract diverse investments across multiple sectors, from manufacturing and infrastructure to services and technology.

During the year 2010, Bangladesh’s capital market underwent a dramatic transformation, shifting from a prolonged bullish phase to a pronounced bearish trend. Throughout much of 2010, the market had experienced strong upward momentum, driven by increased investor confidence and speculative trading activity. However, towards the latter part of the year, signs of instability began to emerge, culminating in a sharp reversal of market sentiment. This transition marked a critical turning point, as the optimism that had propelled stock prices upward gave way to widespread uncertainty and declining valuations. Between December 2010 and January 2011, the market index suffered a precipitous decline, losing approximately 1,800 points within this brief timeframe. This steep downturn reflected a rapid erosion of market capitalization and investor wealth, signaling the onset of a severe market correction. The index’s fall was not gradual but rather abrupt, underscoring the intensity of the sell-off and the fragility of the market conditions during this period. The sudden collapse in stock prices disrupted trading activities and heightened volatility, further exacerbating investor anxiety. The repercussions of the market crash were profound and far-reaching, as millions of investors found themselves facing financial ruin. The widespread nature of the downturn meant that not only speculative traders but also ordinary retail investors suffered significant losses, with many rendered bankrupt. The crash severely undermined public confidence in the capital markets, as the losses were not confined to a narrow segment but permeated across various layers of the investing community. This financial devastation had broader economic implications, affecting consumption patterns and investor behavior in the aftermath. Investigations and analyses of the 2010–11 market crash have widely suggested that the downturn was not solely the result of natural market forces but was artificially manipulated by a small group of influential market participants. These actors are believed to have engineered the crash to serve their own financial interests, exploiting the market’s vulnerabilities to orchestrate price movements that favored their positions. Such manipulation involved coordinated selling and other tactics designed to induce panic among investors, thereby accelerating the decline in stock prices. This alleged manipulation disproportionately harmed larger, more established investors, who were caught off guard by the sudden and engineered market collapse. These investors, often institutional players and experienced market participants, found their investments devalued through practices that distorted the principles of fair market competition. The situation suggested a breakdown in regulatory oversight and market integrity, as the actions of a few market players undermined the equitable functioning of the capital market. The episode highlighted systemic weaknesses and the need for stronger governance mechanisms to prevent similar occurrences in the future.

In 2018, the landscape of Bangladesh’s corporate sector was prominently illustrated by the trading values of its largest companies on the Dhaka Stock Exchange, measured in millions of Bangladeshi Taka (BDT). This data provided a clear reflection of the economic significance and market presence of these firms within the national economy during that year, underscoring their influence across various industries including pharmaceuticals, apparel, automotive, telecommunications, manufacturing, banking, agriculture, and financial services. The trading values served as a key indicator of investor confidence and market capitalization, highlighting the companies that commanded substantial attention and capital flow in the country’s financial markets. Square Pharmaceuticals Limited emerged as the largest company by trading value in 2018, with a total trading value of 449.8880 million BDT. Listed under the trading name SQURPHARMA, this company is headquartered in Dhaka and operates within the pharmaceuticals industry. Square Pharmaceuticals has long been recognized as a leading pharmaceutical manufacturer in Bangladesh, known for its extensive portfolio of generic medicines and commitment to quality healthcare products. Its dominant position in the stock market reflected both its robust operational performance and its pivotal role in the healthcare sector, contributing significantly to the availability of essential medicines domestically and in export markets. Following Square Pharmaceuticals, Dragon Sweater and Spinning Limited occupied the second position with a trading value of 129.4030 million BDT. Trading as DSSL, this company is also based in Dhaka and operates within the apparel industry, which is a critical sector of Bangladesh’s economy due to its substantial contribution to export earnings and employment. Dragon Sweater and Spinning Limited specializes in the manufacturing of knitwear and textiles, catering to both domestic demand and international buyers. Its strong market presence on the Dhaka Stock Exchange in 2018 underscored the ongoing importance of the garment sector as a driver of economic growth and industrial development in Bangladesh. The third largest company by trading value was Ifad Autos Limited, known by its trading name IFADAUTOS, which recorded a trading value of 117.5370 million BDT. Headquartered in Dhaka, Ifad Autos Limited operates within the automotive industry, a sector that has been gradually expanding in Bangladesh due to rising consumer demand and increasing industrialization. The company’s position among the top traded firms highlighted its significance in the automotive market, where it is involved in the assembly and distribution of vehicles, contributing to the diversification of the country’s industrial base and providing employment opportunities in manufacturing and sales. Grameenphone Private Limited, trading as GP, ranked fourth with a trading value of 106.8660 million BDT. As a telecommunications provider headquartered in Dhaka, Grameenphone has been a dominant player in Bangladesh’s telecom sector, offering a wide range of mobile and internet services across the country. Its substantial trading value reflected the company’s extensive subscriber base and its critical role in enhancing connectivity and digital infrastructure nationwide. Grameenphone’s market performance in 2018 demonstrated the growing importance of telecommunications in Bangladesh’s economic development and the increasing penetration of mobile technology among the population. Bangladesh Thai Aluminium Ltd, trading under the name BDTHAI, held a trading value of 99.7690 million BDT and was based in Dhaka. Operating within the manufacturing sector, this company is involved in the production of aluminium products, which are essential for various industries including construction, automotive, and packaging. The company’s significant trading value indicated its strong market position and the demand for aluminium materials in Bangladesh’s expanding industrial and infrastructure projects. BDTHAI’s performance on the stock exchange highlighted the vital role of manufacturing firms in supporting the country’s broader economic growth and industrialization efforts. City Bank Limited, a banking institution headquartered in Dhaka, recorded a trading value of 78.6010 million BDT under the trading name CITYBANK. As one of the prominent private commercial banks in Bangladesh, City Bank Limited offers a wide array of financial services including retail banking, corporate banking, and investment services. The bank’s notable trading value in 2018 reflected its solid financial standing, extensive branch network, and its contribution to the development of the country’s banking sector. City Bank’s presence on the Dhaka Stock Exchange underscored the critical role of financial institutions in mobilizing savings, facilitating credit, and supporting economic activities across various sectors. Golden Harvest, trading as GHAIL, registered a trading value of 76.6710 million BDT and is involved in the agricultural sector, with its headquarters in Dhaka. The company is engaged in agribusiness activities, including the production and distribution of agricultural products and inputs. Golden Harvest’s position among the top traded companies highlighted the importance of agriculture in Bangladesh’s economy, which remains a primary source of livelihood for a large portion of the population. The company’s market performance in 2018 reflected investor interest in agribusiness ventures and the ongoing efforts to modernize and commercialize agriculture in the country. IPDC Finance Limited, known by its trading name IPDC, ranked ninth with a trading value of 67.0430 million BDT. Headquartered in Dhaka, IPDC Finance Limited operates within the financial services sector, providing a range of products including leasing, loans, and other credit facilities to individuals and businesses. The company’s trading value indicated its growing role in offering alternative financing solutions beyond traditional banking, supporting entrepreneurship, and contributing to the expansion of Bangladesh’s financial markets. IPDC’s presence on the stock exchange in 2018 demonstrated the diversification of the country’s financial sector and the increasing demand for specialized financial services. Olympic Industries Limited, trading as OLYMPIC, recorded a trading value of 60.5570 million BDT and operates within the manufacturing sector. Based in Dhaka, Olympic Industries is involved in the production of consumer goods, including food products such as biscuits, snacks, and confectionery items. The company’s trading value reflected its strong brand recognition, extensive distribution network, and its contribution to the growth of the consumer goods industry in Bangladesh. Olympic Industries’ market performance in 2018 underscored the rising consumer demand and the expanding middle class in the country, which have driven growth in the manufacturing and retail sectors. Shahjalal Islami Bank Limited, trading under the name SHAHJABANK, recorded a trading value of 53.1710 million BDT and is a banking institution headquartered in Dhaka. As an Islamic bank, Shahjalal Islami Bank Limited provides Shariah-compliant banking services, catering to the financial needs of customers seeking interest-free banking products. The bank’s trading value on the Dhaka Stock Exchange in 2018 reflected its established presence in the Islamic banking sector and its role in promoting ethical financial practices in Bangladesh. Shahjalal Islami Bank’s market position highlighted the growing acceptance and expansion of Islamic finance within the country’s diverse banking landscape. Collectively, these ten companies represented a cross-section of Bangladesh’s dynamic economy in 2018, spanning critical sectors that drive growth, employment, and investment. Their trading values on the Dhaka Stock Exchange not only illustrated their individual market strengths but also provided insight into the broader economic trends and sectoral priorities shaping Bangladesh’s development trajectory during that period.

The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) projected a substantial increase in textile exports, forecasting growth from US$7.90 billion in the fiscal year 2005–06 to US$15 billion by 2011. This optimistic outlook reflected the sector’s confidence in its expansion potential and was rooted in several favorable developments within the global textile market. A significant factor underpinning this positive forecast was the robust performance of Bangladesh’s textile industry following the expiration of textile and clothing quotas under the Multifibre Arrangement (MFA) in early 2005. The MFA had imposed limits on the volume of textile exports from developing countries to developed markets, and its termination opened new opportunities for Bangladeshi exporters to increase their market share. The sector’s resilience and adaptability in the post-quota environment were highlighted in a United Nations Development Programme (UNDP) report titled “Sewing Thoughts: How to Realize Human Development Gains in the Post-Quota World.” The report emphasized Bangladesh’s strategic success in compensating for declining sales in European markets by cultivating new and expanding existing markets in the United States. This diversification of export destinations helped mitigate the adverse effects of reduced European demand and underscored Bangladesh’s ability to navigate shifting global trade dynamics effectively. In 2005, the textile industry experienced remarkable growth, with the quota-free regime providing a substantial boost to production facilities and export volumes. BGMEA president S.M. Fazlul Hoque noted that the removal of quotas had energized factories, enabling them to ramp up output and enhance competitiveness. This momentum translated into a 24 percent growth rate in the 2005–06 fiscal year, signaling a period of rapid expansion and increased foreign exchange earnings for the country. The growth was not uniform across all textile segments; however, it was particularly pronounced in the knitwear sub-sector. Md Fazlul Hoque, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), expressed similar optimism regarding the sector’s trajectory. He attributed the success of knitwear exports to the combination of high product quality and competitive pricing, which allowed Bangladeshi manufacturers to capture a larger share of the global market. Knitwear, in fact, recorded the strongest growth among textile products during 2005–06, with export earnings rising by 35.38 percent to reach US$2.82 billion. This surge reflected both increased production capacity and growing international demand for knitwear items produced in Bangladesh. Despite these gains, the textile sector confronted significant challenges, primarily due to sharp declines in global textile prices. The downward pressure on prices necessitated large volume increases to maintain profitability, compelling manufacturers to expand output aggressively while controlling costs. This price volatility underscored the competitive nature of the global textile market and the vulnerability of Bangladeshi exporters to fluctuations in international demand and pricing. Bangladesh’s efforts to expand its textile trade were further supported by import restrictions imposed by the United States and the European Union on Chinese textile products. These caps limited Chinese growth to 12.5 percent in the year following the quota removal and maintained restrictions between 15 and 16 percent in 2008 under U.S. limits, with similar constraints enforced by the EU until 2008. Such measures effectively curtailed China’s dominance in key markets, creating opportunities for Bangladesh to increase its exports and strengthen its position in the global textile industry. These import restrictions were expected to benefit Bangladesh over the subsequent two years, providing a window for the country to consolidate its gains. However, the continued decline in global textile prices shifted the industry’s focus toward increasing wages as a strategy to boost market share. Wage increases were seen as a means to improve worker productivity and product quality, thereby enhancing Bangladesh’s competitiveness despite the challenging pricing environment. To attract investment and stimulate growth, the Bangladeshi government implemented a range of incentives tailored to the textile and broader manufacturing sectors. These incentives included 10-year tax holidays, allowing companies to operate without corporate tax obligations for a decade, and duty-free importation of capital goods, raw materials, and building materials essential for production. Additionally, foreign nationals employed in Bangladesh were granted exemptions from income tax on their salaries for three years, and dividends earned during the tax holiday period were exempt from taxation. Such measures were designed to lower operational costs and encourage both domestic and foreign investors to expand their activities within the country. Export Processing Zones (EPZs) played a crucial role in Bangladesh’s export-oriented industrialization strategy. Goods produced within these zones could be exported duty-free, providing a significant cost advantage to manufacturers operating there. Bangladesh also benefited from preferential trade arrangements such as the Generalised System of Preferences (GSP) in the United States, European Union, and Japanese markets, which granted reduced tariffs or duty-free access to Bangladeshi products. Furthermore, the United States accorded Bangladesh Most Favoured Nation (MFN) status, ensuring that Bangladeshi exports received the same tariff treatment as those from other favored trading partners. The EPZs in Bangladesh operated under a regulatory framework that encouraged foreign investment by removing ceilings on investment amounts and allowing full repatriation of profits. These policies aimed to create an investor-friendly environment that would attract multinational corporations and stimulate industrial growth. However, labor unions were prohibited within EPZs, and strikes were not permitted, reflecting the government’s emphasis on maintaining uninterrupted production and export activities in these zones. Bangladesh established itself as a global leader in efforts to eliminate child labor within its garment factories. On 4 July 1995, the government signed a memorandum of understanding with the International Labour Organization (ILO) and the United Nations Children’s Fund (UNICEF) to address the issue systematically. By the end of 1999, these concerted efforts had virtually eradicated child labor in the garment sector, marking a significant achievement in improving labor standards and aligning the industry with international norms. Beyond textiles, Bangladesh’s shipbreaking industry emerged as a major contributor to the domestic steel supply, meeting most of the country’s steel requirements. This industry involved dismantling decommissioned ships to recover steel and other materials, providing a cost-effective source of raw materials for construction and manufacturing sectors. Other key industries in Bangladesh included sugar production, tea cultivation, leather goods manufacturing, newsprint production, pharmaceuticals, and fertilizer manufacturing. These sectors collectively contributed to the diversification of the country’s industrial base and supported economic development. The government actively sought foreign investment across various sectors, particularly emphasizing private power generation, gas exploration and production, cellular telephony, textiles, and pharmaceuticals. Recognizing the importance of foreign capital and technology transfer, Bangladesh pursued policies to attract international investors and facilitate their operations within the country. In 1989, Bangladesh signed a bilateral investment treaty with the United States and established a Board of Investment to streamline investment procedures. Despite these initiatives, the impact on increasing foreign investment remained limited, indicating ongoing challenges in improving the investment climate. The Bangladesh Export Processing Zone Authority (BEPZA) managed multiple EPZs located in Adamjee, Chittagong, Comilla, Dhaka, Ishwardi, Karnaphuli, Mongla, and Uttara, with plans to establish a new EPZ in Sylhet. These zones provided infrastructure and regulatory support to export-oriented industries, fostering industrial growth and employment generation. The government also authorized the private sector to develop and operate competing EPZs, exemplified by the commencement of construction on a Korean EPZ in 1999. This move aimed to increase capacity and introduce competitive dynamics within the EPZ framework. In June 1999, concerns over labor rights in Bangladesh’s EPZs surfaced when the American Federation of Labor and Congress of Industrial Organizations (AFL–CIO) petitioned the U.S. government to revoke Bangladesh’s access to the Generalized System of Preferences (GSP). The petition cited Bangladesh’s failure to uphold commitments made in 1992 regarding freedom of association within EPZs, highlighting ongoing tensions between economic liberalization and labor rights protections. This development underscored the complexities involved in balancing export growth with adherence to international labor standards.

Chittagong port has long been recognized as the busiest port on the Bay of Bengal, functioning as a pivotal maritime gateway for Bangladesh’s international trade. Its strategic location and extensive facilities have enabled it to handle the vast majority of the country’s import and export shipments, thereby playing an indispensable role in sustaining Bangladesh’s economic activities. The port’s capacity to accommodate large vessels and its connectivity to inland transportation networks have made it a critical node in the regional supply chain, facilitating the flow of goods not only for Bangladesh but also for neighboring landlocked countries. Over the years, the port has undergone various expansions and modernization efforts to cope with increasing trade volumes and to enhance operational efficiency, reinforcing its status as a cornerstone of Bangladesh’s maritime commerce. The onset of the COVID-19 pandemic in early 2020 exerted profound effects on Bangladesh’s economy, triggering widespread disruptions across multiple sectors including manufacturing, services, and trade. The global health crisis led to interruptions in supply chains, labor shortages due to lockdowns and social distancing measures, and a sharp decline in demand from key international markets. These factors collectively contributed to a contraction in economic activities, with the trade sector being particularly hard hit. The pandemic-induced slowdown affected both the export and import segments of Bangladesh’s economy, reflecting the interconnected nature of global commerce and the vulnerability of emerging economies to external shocks. During the fiscal year 2019-2020 (FY2019-20), Bangladesh experienced a significant downturn in its international trade performance. Exports declined by 16.93 percent compared to the previous fiscal year, marking a substantial reduction in the volume and value of goods shipped abroad. This decline was largely attributed to decreased global demand, disruptions in production and logistics, and temporary closures of factories, especially in the ready-made garment (RMG) sector, which constitutes the backbone of Bangladesh’s export economy. The contraction in exports not only affected foreign exchange earnings but also had ripple effects on employment and income levels within the country, underscoring the critical importance of trade to Bangladesh’s overall economic health. Imports during the same fiscal period also contracted sharply, decreasing by 17 percent. This notable reduction reflected a decline in domestic demand for foreign goods, partly driven by the economic slowdown and uncertainties surrounding the pandemic. The decrease in imports included raw materials, intermediate goods, and capital equipment, all of which are essential for sustaining industrial production and infrastructure development. The contraction in import activities further highlighted the challenges faced by Bangladesh’s economy in maintaining supply chain continuity and industrial output during a period of unprecedented global disruption. Together, the declines in exports and imports during FY2019-20 illustrated the severe impact of the pandemic on Bangladesh’s international trade dynamics. In 2015, Bangladesh’s export portfolio was dominated by textile and apparel products, which accounted for a significant share of the country’s foreign exchange earnings. Among the leading exports were Non-Knit Men’s Suits, which generated $5.6 billion in revenue, reflecting the country’s specialization in tailored garments. Knit T-shirts followed closely with exports valued at $5.28 billion, highlighting the strength of Bangladesh’s knitwear industry. Knit Sweaters contributed $4.12 billion, while Non-Knit Women’s Suits accounted for $3.66 billion, demonstrating the diversity within the garment sector. Non-Knit Men’s Shirts, valued at $2.52 billion, also represented an important export category, underscoring Bangladesh’s role as a global supplier of various types of apparel. These figures illustrated the critical role of the ready-made garment industry as the engine of Bangladesh’s export-led growth during that period. The composition of Bangladesh’s imports in 2015 reflected the country’s industrial and consumer needs, with a focus on raw materials and energy products. Heavy Pure Woven Cotton was the top import, valued at $1.33 billion, serving as a key input for the textile and garment manufacturing sectors. Refined Petroleum imports amounted to $1.25 billion, indicating the country’s dependence on imported energy products to meet its growing industrial and transportation demands. Light Pure Woven Cotton followed closely with imports worth $1.12 billion, further emphasizing the reliance on cotton for the textile industry. Raw Cotton imports, valued at $1.01 billion, complemented the supply chain for fabric production. Wheat, imported at $900 million, represented a significant food commodity essential for domestic consumption. This import structure highlighted Bangladesh’s integration into global supply chains and its dependence on both industrial inputs and essential commodities from abroad. In terms of export destinations in 2015, Bangladesh’s products reached a diverse range of international markets, with the United States emerging as the largest importer of Bangladeshi goods, accounting for $6.19 billion in exports. This strong trade relationship underscored the importance of the U.S. market for Bangladesh’s garment industry. Germany was the second-largest destination, receiving $5.17 billion worth of exports, reflecting Bangladesh’s penetration into the European Union’s consumer base. The United Kingdom followed with exports valued at $3.53 billion, while France and Spain imported $2.37 billion and $2.29 billion worth of goods respectively, further illustrating Bangladesh’s extensive trade ties within Europe. These export patterns demonstrated Bangladesh’s reliance on developed economies for market access and the significance of maintaining favorable trade relations with these countries. The main sources of imports for Bangladesh in 2015 were dominated by Asian economies, with China leading as the largest supplier, providing goods valued at $13.9 billion. China’s role as a key trading partner was driven by its capacity to supply a wide range of products, including machinery, raw materials, and consumer goods, which are vital for Bangladesh’s industrial and infrastructural development. India was the second-largest source of imports, contributing $5.51 billion worth of goods, reflecting the close geographical and economic ties between the two neighboring countries. Singapore supplied $2.22 billion worth of imports, serving as a regional trading hub and intermediary. Hong Kong and Japan were also significant suppliers, with imports valued at $1.47 billion and $1.36 billion respectively, providing Bangladesh with access to advanced technology, capital goods, and specialized products. This import composition highlighted Bangladesh’s integration into regional and global value chains, relying on a diverse set of partners to support its economic growth.

As of 2014, female participation in Bangladesh’s labour force stood at approximately 58 percent, according to data compiled by the World Bank. This figure, while indicative of significant female engagement in economic activities, remained notably lower than male participation, which was recorded at 82 percent during the same period. The disparity between male and female labour force participation rates reflected persistent gender-based differences in access to employment opportunities, social norms, and economic roles within the country. Despite these differences, the relatively high rate of female labour force involvement underscored the vital role women played in sustaining the Bangladeshi economy, particularly in rural and informal sectors where their contributions were often indispensable. The participation of women in both the political and economic spheres of Bangladesh experienced marked improvements over recent decades, driven by concerted efforts from government bodies as well as non-governmental organizations (NGOs) such as CARE International. These organizations implemented various programs aimed at empowering women through education, vocational training, and microfinance initiatives, which collectively enhanced women’s capacity to engage more actively in economic activities and decision-making processes. Government policies promoting gender equality and women’s rights further facilitated this progress, fostering an environment where women could increasingly assert their presence in traditionally male-dominated arenas. The synergy between governmental reforms and NGO interventions contributed to a gradual but significant transformation in the socio-economic status of Bangladeshi women. A World Bank report published in 2007 highlighted that the most substantial increases in women’s workforce participation were observed in specific sectors, notably agriculture, education, health, and social work. These sectors traditionally offered more accessible entry points for women due to their alignment with socially accepted gender roles and the availability of employment opportunities in rural and urban settings. In agriculture, women’s involvement was particularly pronounced, reflecting the sector’s dominance in Bangladesh’s economy and its reliance on family labour. Meanwhile, the expansion of educational and health services created new professional avenues for women, enabling them to contribute as teachers, nurses, and social workers. The growth of these sectors not only diversified women’s employment options but also enhanced their visibility and influence within the broader economic framework. Agriculture remained the predominant sector employing women in Bangladesh, with over three-quarters of the female labour force engaged in agricultural activities. This high concentration reflected the country’s agrarian economic base, where subsistence farming, crop cultivation, and livestock rearing were central to rural livelihoods. Women’s roles in agriculture encompassed a wide range of tasks, from planting and harvesting to post-harvest processing and marketing of produce. Despite their critical contributions, women in agriculture often faced challenges such as limited access to land ownership, credit facilities, and modern farming technologies, which constrained their productivity and economic independence. Nonetheless, their involvement in agriculture underscored the essential nature of female labour in sustaining food security and rural economies in Bangladesh. Between 2000 and 2005, the International Labour Organization (ILO) documented a notable increase in women’s participation in professional and administrative sectors, signaling a shift towards greater involvement in fields requiring higher education and specialized skills. This trend indicated that more women were accessing educational opportunities and entering occupations beyond traditional roles, such as clerical work, management, and professional services. The expansion of these sectors reflected broader socio-economic changes, including urbanization, increased demand for skilled labour, and policy initiatives aimed at promoting gender equality in employment. The ILO’s findings suggested a gradual transformation in the composition of the female workforce, with implications for women’s economic empowerment and social mobility. Despite these advances, labour force participation and employment statistics reported by the World Bank, United Nations, and ILO often underrepresented the true extent of women’s work in Bangladesh due to the prevalence of unpaid labour and employment within informal sectors. Many women engaged in domestic chores, caregiving, subsistence farming, and small-scale trading, activities that were rarely captured in official employment data. The informal economy, characterized by unregulated and unprotected work arrangements, constituted a significant portion of women’s economic activity, complicating efforts to accurately measure their contributions. This underreporting obscured the full scope of women’s economic involvement and posed challenges for designing policies aimed at addressing gender disparities in labour market outcomes. Women participating in the workforce generally occupied paid employment sectors but encountered markedly different working conditions compared to their male counterparts. Gender-based disparities manifested in various forms, including unequal wages, limited access to social security benefits, and fewer opportunities for career advancement. Women often held lower-status positions with less job security and faced discrimination in hiring, promotion, and remuneration practices. These conditions reflected entrenched societal norms and structural barriers that constrained women’s economic agency and perpetuated gender inequality within the labour market. The persistence of such disparities highlighted the need for targeted interventions to improve women’s working conditions and promote equitable treatment in employment. A significant dimension of gender inequality in the workplace was the substantial wage gap between men and women performing equivalent jobs. Empirical data indicated that women earned approximately 60 to 75 percent less than men for comparable work, underscoring the economic disadvantages faced by female workers. This wage disparity resulted from a combination of factors, including occupational segregation, differences in bargaining power, and discriminatory pay practices. The lower earnings of women not only affected their immediate economic well-being but also had long-term implications for poverty reduction, household welfare, and women’s ability to accumulate assets and invest in education and health. Addressing the wage gap remained a critical challenge for achieving gender equity in Bangladesh’s labour market. Non-governmental organizations played a pivotal role in enhancing the conditions of working women by promoting financial self-reliance and empowering them to depend on their own savings rather than external funds. Such initiatives aimed to increase women’s decision-making power within their families and communities by fostering economic independence and reducing vulnerability to exploitation. Microfinance programs, savings groups, and capacity-building activities facilitated women’s access to capital and financial literacy, enabling them to invest in income-generating activities and improve their livelihoods. By encouraging self-sufficiency, NGOs contributed to strengthening women’s agency and participation in both economic and social spheres, thereby supporting broader goals of gender equality and empowerment. While many NGOs concentrated their efforts on microeconomic issues at the family level, such as improving household income and financial management, they often faced limitations in addressing the broader macroeconomic barriers that impeded women’s full autonomy and advancement. Structural challenges, including discriminatory labour laws, inadequate social protection, limited access to formal credit markets, and entrenched patriarchal norms, required systemic policy reforms and institutional changes beyond the scope of localized interventions. The focus on micro-level empowerment, although valuable, sometimes overlooked the necessity of transforming the economic and social frameworks that sustained gender inequalities. Consequently, achieving comprehensive progress in women’s economic empowerment in Bangladesh necessitated a dual approach that combined grassroots initiatives with advocacy for macroeconomic policy reforms and gender-sensitive governance.

Since gaining independence in 1971, Bangladesh has experienced notable progress in its economic sector performance, marking a significant transformation from the devastation inherited at the end of the Liberation War. The nascent economy faced immense challenges, including widespread poverty, infrastructure destruction, and low industrial output. However, over subsequent decades, Bangladesh embarked on a path of gradual economic development characterized by diversification of production, expansion of export-oriented industries, and improvements in social indicators. The economic improvements became particularly pronounced during the 1990s, a decade that witnessed accelerated growth rates, increased foreign investment, and structural reforms aimed at liberalizing the economy. Despite these advancements, Bangladesh continued to face persistent challenges in foreign trade within the South Asian region, where intra-regional trade remained limited due to infrastructural bottlenecks, tariff barriers, and political complexities. Several major obstacles have impeded Bangladesh’s economic growth trajectory. One significant constraint has been the inefficiency of state-owned enterprises, which historically suffered from bureaucratic mismanagement, lack of competitiveness, and financial losses, thereby draining public resources and limiting industrial productivity. Concurrently, the country’s rapidly expanding labor force presented a dual challenge: while it provided a demographic dividend, the agricultural sector’s limited capacity to absorb this growing workforce led to underemployment and rural poverty. This demographic pressure necessitated a structural shift toward manufacturing and services to create sufficient employment opportunities. Additionally, inadequate power supplies have consistently hindered industrial expansion and economic diversification, as frequent power outages and insufficient generation capacity deterred investment and constrained productivity. The sluggish implementation of economic reforms further compounded these issues, as political resistance, institutional inertia, and vested interests slowed the pace of liberalization and modernization efforts. Despite these challenges, Bangladesh made considerable strides in creating a more favorable environment for foreign investors and in liberalizing its capital markets. Policymakers implemented regulatory reforms to improve the ease of doing business, including simplifying procedures for foreign direct investment (FDI), enhancing legal protections for investors, and developing financial infrastructure such as stock exchanges and banking reforms. Specific initiatives underscored this commitment to economic modernization. Negotiations with foreign firms for oil and gas exploration were undertaken to tap into the country’s hydrocarbon potential, aiming to reduce dependence on imported energy and improve energy security. Concurrently, the government improved the distribution network of cooking gas across the country, facilitating greater access to cleaner and more efficient fuel for households and industries. Infrastructure development projects were initiated, including the construction of natural gas pipelines and power stations, which were critical to addressing the chronic energy shortages that had constrained economic growth. These efforts reflected a strategic focus on energy sector development as a foundation for broader industrial expansion. Progress on broader economic reforms, however, remained inconsistent over time. The reform agenda faced significant opposition from entrenched bureaucratic structures, public sector unions, and other vested interest groups that resisted changes perceived to threaten their privileges or job security. This resistance manifested in delays in privatization programs, sluggish deregulation, and limited progress in improving public sector efficiency. The political economy of reform in Bangladesh thus reflected a complex interplay between reformist impulses and conservative forces, resulting in a gradual and uneven pace of economic transformation. Natural disasters also played a role in shaping Bangladesh’s economic landscape. The severe floods of 1998, which inundated large swathes of the country and caused widespread damage to infrastructure, agriculture, and livelihoods, significantly increased foreign aid inflows. International donors and multilateral agencies responded with substantial humanitarian assistance and reconstruction funding, which helped mitigate the economic impact of the disaster and supported recovery efforts. This influx of aid underscored Bangladesh’s vulnerability to climatic shocks but also highlighted its capacity to mobilize international support in times of crisis. In contrast to many economies, Bangladesh’s economy showed remarkable resilience during the 2008 global financial crisis. The crisis, which triggered recessions and financial turmoil worldwide, did not substantially impact Bangladesh’s economic growth or financial stability. This resilience was attributed to the country’s limited integration into global financial markets, a relatively insulated banking sector, and strong domestic demand supported by remittance inflows from overseas workers. The stability during this period reinforced confidence in Bangladesh’s economic fundamentals and its potential for sustained growth. Over recent decades, foreign aid to Bangladesh has gradually declined, a trend interpreted by economists as a positive sign of increasing self-reliance. The reduction in aid dependency reflects improvements in domestic revenue mobilization, export growth, and the accumulation of foreign exchange reserves. This shift has allowed Bangladesh to pursue more autonomous economic policies and reduce vulnerability to external conditionalities. Concurrently, the country has experienced dramatic growth in exports and remittance inflows, both of which have been critical drivers of steady economic expansion. The ready-made garment (RMG) sector emerged as a dominant export industry, employing millions and generating significant foreign exchange earnings. At the same time, remittances sent home by millions of Bangladeshi migrant workers provided a stable source of foreign currency, bolstered household incomes, and fueled domestic consumption. According to the latest Asian Development Bank (ADB) report, Bangladesh’s Gross Domestic Product (GDP) was projected to grow by 5.3% in 2023 and further accelerate to 6.5% in 2024. These growth projections reflect ongoing structural reforms, robust domestic demand, and continued expansion in key sectors such as manufacturing, services, and infrastructure development. The optimistic outlook also accounts for improvements in human capital, technological adoption, and macroeconomic stability, positioning Bangladesh as one of the fastest-growing economies in the region. Since 1975, Bangladesh has been classified as a Least Developed Country (LDC) by the United Nations, a designation reflecting its low income, weak human assets, and economic vulnerability. This status has provided Bangladesh with preferential trade access and development assistance aimed at supporting its economic progress. However, in March 2018, Bangladesh met the criteria to be recognized as a developing country, marking a significant milestone in its development trajectory. At that time, the country’s Gross National Income (GNI) per capita reached US$1,724, surpassing the threshold required for graduation from LDC status. Additionally, Bangladesh achieved a Human Assets Index (HAI) score of 72, indicating improvements in health, education, and living standards, and recorded an Economic Vulnerability Index (EVI) of 25.2, reflecting reduced susceptibility to external shocks. These indicators collectively demonstrated Bangladesh’s enhanced capacity for sustainable development and economic resilience. Looking ahead, Bangladesh’s GNI per capita is forecasted to reach approximately US$4,753.39 by 2030, signaling continued economic advancement and improvements in living standards. This projection is based on sustained economic growth, diversification of the industrial base, investments in human capital, and ongoing integration into global value chains. The anticipated rise in income levels is expected to facilitate poverty reduction, expand the middle class, and further integrate Bangladesh into the global economy as a developing country with increasing influence in regional and international affairs.

Bangladesh’s gross export, import, and foreign remittance earnings have been systematically recorded over multiple fiscal years, reflecting the country’s evolving economic landscape. These figures, expressed in billion US dollars, provide a clear quantitative measure of Bangladesh’s trade performance and the vital role of remittances in its economy. The data reveals patterns of growth, occasional contractions, and the interplay between external trade and inward financial flows, highlighting the dynamics of Bangladesh’s integration into the global economy. In the fiscal year 2007–2008, Bangladesh’s total exports were valued at $14.11 billion, marking a significant contribution to the country’s foreign exchange earnings. Imports during the same period stood at $25.21 billion, indicating a substantial trade deficit as the country relied heavily on imported goods to meet domestic demand and support industrial growth. Foreign remittance earnings, which constitute a crucial source of foreign currency inflow, amounted to $8.9 billion. These remittances primarily originated from the large Bangladeshi diaspora working abroad, especially in the Middle East and Southeast Asia, and played an essential role in supporting household incomes and national reserves. The following fiscal year, 2008–2009, witnessed an increase in export earnings to $15.56 billion, reflecting the resilience and expansion of Bangladesh’s export sectors, particularly ready-made garments, which dominate the export basket. Imports decreased to $22.51 billion, suggesting a moderation in the demand for foreign goods or possible adjustments in trade policies amid global economic uncertainties. Meanwhile, remittance inflows rose to $9.68 billion, underscoring the growing importance of migrant workers’ contributions to the national economy during a period of global financial volatility. In 2009–2010, exports continued their upward trajectory, reaching $16.7 billion, driven by diversification efforts and increased production capacity in key industries. Imports also increased, albeit at a slower pace, to $23.83 billion, reflecting ongoing demand for capital goods, raw materials, and consumer products necessary for economic development. Remittance earnings grew to $10.87 billion, indicating sustained migration trends and the strengthening of financial channels facilitating money transfers from abroad. The fiscal year 2010–2011 marked a significant jump in export earnings to $22.93 billion, representing one of the largest annual increases in recent years. This surge was attributed to enhanced competitiveness in global markets, improved trade facilitation, and favorable international demand. Imports rose sharply as well, reaching $32 billion, driven by the need to import machinery, fuel, and intermediate goods to support expanding industrial activities. Remittance inflows also increased to $11.65 billion, reflecting both the growing size of the expatriate workforce and improved efficiency in remittance transfer mechanisms. During 2011–2012, exports further increased to $24.30 billion, maintaining the positive growth trend and benefiting from diversification into non-traditional export products alongside the dominant garment sector. Imports climbed to $35.92 billion, indicating continued reliance on foreign goods to meet domestic consumption and industrial requirements. Remittance earnings rose to $12.85 billion, underscoring their role as a stable source of foreign currency and a buffer against external shocks. The 2012–2013 period recorded exports of $27.09 billion, demonstrating steady expansion and the gradual penetration of new markets. Imports decreased slightly to $34.09 billion, suggesting a modest rebalancing of trade flows or improved domestic production substituting some imports. Remittance earnings reached $14.4 billion, marking a significant increase that reflected both higher remittance volumes and possibly favorable exchange rate movements. In 2013–2014, exports reached $30.10 billion, continuing the upward momentum and reflecting Bangladesh’s growing reputation as a major exporter of textiles and other manufactured goods. Imports remained relatively stable, with a slight decrease to $34.08 billion, indicating a period of relative equilibrium in trade flows. Remittance earnings were recorded at $14.2 billion, showing a small decline from the previous year but maintaining their status as a critical component of the country’s foreign exchange earnings. The fiscal year 2014–2015 witnessed a marginal rise in exports to $31.014 billion, supported by ongoing improvements in production capacity and market access. Imports, however, increased significantly to $47.260 billion, reflecting a surge in demand for capital goods, fuel, and consumer products, which contributed to a widening trade deficit. Remittance earnings remained steady at $14.23 billion, highlighting the continued importance of remittances in balancing the country’s external accounts. During the 2015–2016 fiscal year, exports grew to $33.661 billion, driven by diversification efforts and increased competitiveness in global markets. Imports also rose to $49.436 billion, reflecting sustained demand for raw materials, machinery, and energy resources necessary for economic growth. However, remittance earnings experienced a slight decrease to $13.60 billion, possibly due to changes in global labor markets or shifts in migration patterns affecting the volume of funds sent home by expatriate workers. In 2016–2017, exports reached $37.966 billion, marking a substantial increase that underscored Bangladesh’s expanding industrial base and export diversification. Imports surged to $59.561 billion, indicating heightened demand for capital goods and intermediate inputs to support rapid economic development. Despite this growth, remittance earnings declined to $12.76 billion, reflecting challenges such as tighter immigration policies in key labor destination countries and fluctuating global economic conditions impacting migrant workers’ incomes. The fiscal year 2017–2018 saw exports slightly decrease to $37.612 billion, suggesting some volatility or adjustment in export performance amid changing global trade dynamics. Imports continued to rise, reaching $67.133 billion, driven by ongoing investment in infrastructure, energy, and industrial sectors. Remittance earnings rebounded significantly to $15.31 billion, reflecting renewed strength in migrant worker remittances and improved mechanisms for transferring funds back to Bangladesh. In 2018–2019, exports increased to $41.53 billion, marking a return to robust growth and highlighting Bangladesh’s strengthening position in international markets, particularly in textiles and apparel. Imports also rose to $68.103 billion, consistent with the country’s expanding industrial and consumer demand. Remittance earnings were recorded at $14.98 billion, slightly lower than the previous year but still constituting a vital source of foreign currency inflows. Overall, Bangladesh experienced a consistent upward trend in both exports and imports over the years, with notable increases reflecting the country’s growing integration into the global economy and its expanding industrial capacity. While exports steadily grew, driven largely by the ready-made garment sector and diversification into new products, imports increased at an even faster pace, reflecting the country’s dependence on foreign goods for industrial inputs and consumer needs. Remittance earnings, although showing some fluctuations, remained a significant and stable source of foreign income, playing a crucial role in supporting household consumption, investment, and the country’s balance of payments. This interplay between trade and remittance flows has been central to Bangladesh’s economic development and its ongoing efforts to achieve sustainable growth.