Sectorial information & summary

Agriculture:

1. Agriculture accounts for 19.49% of GDP and employs over 63% of work force.
2. Government is keen to implement National Agricultural Policy.
3. In 2000-2001, agriculture experienced a growth of 6.04%.
4. Government, as part of the investment policy is promoting agro-based industry and declared it as a priority sector.

The Government continues to support the agricultural sector through a number of policy interventions, with the ultimate view to promoting food self-sufficiency as envisaged in the Fifth Five Year Plan (1997-2002).
However, the non-crop sector, which includes livestock and fisheries, seems to have performed much better, on account of private sector initiatives. Bangladesh is in the process of a transition from a predominantly agrarian economy to an industrial and service economy. The private sector is playing an increasingly active role in the economic life of the country, while the public sector concentrates more on the physical and social infrastructure.

Industries:

1. Government is keen to expand industry base and encourage both domestic and foreign investment in the sector.
2. In 2000-2001, GDP growth in industrial sector was about 9%.
3. The Quantum Index of Production in medium and large industries stood at 235.20 in 2001 from 179.30 in 1997.

Based on the philosophy of market economy, since 1991, Government has tried to pursue an industrial strategy, which has been defined in the Industrial Policy 1991 and subsequently revised in 1999. Particular attention is given following categories of industries:

• * Export oriented;
• * Technology intensive operation;
• * Import substitution industry;
• * Labor intensive industries that can take advantage of indigenous natural resource or raw material;
• * Investments in quality improvement and marketing of local products and capacity building of existing industries

Energy:

1. Energy sector is the largest recipient of all foreign investment in Bangladesh.
2. The combined share of gas and power sectors in total FDI was about 60% during the period 1994/95 through 1998/99.
3. Out of total 130 million population, about 100 million have no access to commercial forms of energy like power and gas.

The key objective of the energy policy is to increase the availability of sustainable sources of commercial energy.

Banking & Finance:

1. The banking system dominates the financial sector accounting for about 97% of the market in terms of assets.
2. Government has undertaken major reform initiatives to improve the regulatory and legal environments for banks.
3. Several specialist development financial institutions have been providing long-term debt, equity financing and leasing.

Transport & Communication:

1. Almost all parts of Bangladesh, even the remote ones are today connected by a road network
2. Bangladesh has the best water transport system in the region, which accounts to two-thirds of cargo transport within the country
3. Government has been encouraging private sector investment in telecommunication sector

Improving transportation and communication is a major goal of Bangladesh Government.

Ref: BOI, BD