General Profile of Bangladesh

The Country : The people's Republic of Bangladesh
Geographical location : South Asia; between 20° 34´ and 26° 38´ north
latitude and between 88° 01´ and 92° 41´ east longitude; consists of flat fertile alluvial land.
Boundaries : North - India (West Bengal Meghalaya)
West - India (West Bengal)
East- India (Tripura & Assam) & Mayanmar
South - Bay of Bangal

Area : 147,570 square km. (Territorial water - 12 nautical miles)
Capital City : Dhaka
Metropolitan Area 1528 sq.km

Standard time : GMT+ 7 hours.
Climate : Sub-tropical monson.
Winter (December- February) temperature
average maximum 26.5 C, average minimum 13.9 C, Summer (March-May) temperature : average minimum 32.6 C, average minimum 22.4 C : Rainy Season (June-September).
Rainfall :1194 mm to 3454 mm (average during monsoon, June-August)
Humidity : Highest :99 percent (July), Lowest :36 percent (December and January)
Population : 144.50 Million (1^st July 2008 (P))
Population Growth Rate : 1.39 percent
Population Density : 979 Person per sq km
Total fertility rate : 2.74 Children born/woman (2009 est.)
Life expectancy : 66.7 years (1^st July 2008 (P))
Birth Rate : 24.68 (2009 est.)
Mortality rate : 8 (2008 est.)

Adult literacy rate : 48.8 Per sent (15 years +)
Language : 95 percent Bangla and 5 percent other dialect. English is widely spoken.
Religion : Muslim (88.3%), Hindu (10.5%), Buddhist (0.6%) Christain (0.3%), & Animists and believers in tribal faiths (0.3%)
Food : Rice, Vegetables, pulses, fish and meat.
Mineral resources : Natural gas, limestone, hard rock, coal,
Lignite, silica sand white clay, radio active
Sand etc. (There is a strong possibility of
oil deposit)
Human resources : A substantial manpower reserve, trained From 27 public government and technical University along with 51 Private University 18 media.
Skilled : Engineers, technicians, physicians economists, Accountants, administrative and managerial, personal abundance of low cost, easily trained and adaptable, hardworking, intelligent and Youthful l abourforce.
(Source: Bangladesh Bureau of Statistics, UNESCO Institute for Statistics, Data Centre, June 2007. & www.cia.gov)



Economy of Bangladesh


Basic Information

Currency : Taka (Tk.)
GDP at Current Price : Tk. 6149.43 billion (US$ 89.04 billion)
Annual per capital GDP : US$ 621
GDP growth rate at (1995/96) constant price : 5.88 per cent
Agricultural growth rate at constant price : 4.81 per cent
Industrial/Mfg growth rate (% of GDP) : 5.92 per cent

Large & Medium scale Industry : 5.65 percent
Small scale Industry : 6.59 percent

Service sector growth rate of GDP at current price: 49.67 per cent
Inflation rate (12 month average) : 7.69 per cent
Domestic savings rate of GDP: 20.00 per cent
National savings rate of GDP: 32.40 per cent
Investment rate of GDP: 24.20 per cent
Exports (2008-09): US$ 12,816.11mn (July to March)
Imports (2008-09): US$ 19,209.10 mn (July to March)
Trade Deficit : US$ 6,392.99 mn
Foreign Exchange Reserve : US$ 6,562.93 mn
Remittances : US$ 8,770.16mn

Foreign Investment

Direct : US$ 900 mn (July to Apr)
Portfolio : US$ -123 mn (July to Apr)
Bank rate : 5.0 per cent
Broad Money (M2) : 281,902.00 Tk.crores

Total No. of Limited Co.

Public Limited Co : 35,000
Private Limited Co. : 23,000

Principle Industries :
Garments, Pharmaceuticals, Textiles, Paper, Manufacturing, Newsprint, Fertilizer, Leather and Leather goods, Sugar, Cement, Fish processinf, Steel & Chemical industries etc.

Major export items :
Garments, Tea, Jute, Frozen shrimos, Leather products, Newsprint, pepar, Naphtha, Urea, etc.

Principle imports :
Fuel, Rice, Wheat, Cotton & Textile, Petroleum products, Fertilizer, Staple fibers, yarn etc.

The Country : The People's Republic of Bangladesh.

Geographical location :
South Asia; between 20º 34² and 26º 38² northlatitude and between 88º 01² and 92º 41² east longitude; consists of flat fertile alluvial land.

Boundaries :
North - India (West Bengal and Meghalaya)
West - India (West Bengal)
East- India (Tripura & Assam) & Mayanmar
South - Bay of Bangal.

Area : 147,570 square km. (Territorial water -12 nautical miles).

Capital City : Dhaka Metropolitan Area (1528 sq. km.)

Standard time : GMT+ 7 hours.

Climate : Sub-tropical monsoon
Winter (November- February) temperature average maximum 29º C, average minimum 11º C ; Summer (March-June) temperature : average minimum 32º C, average minimum 21º C ; Monsoon (July-October).

Rainfall : 1194 mm to 3454 mm (average during monsoon, June-August).

Humidity : Highest :99 percent (July), Lowest :36 percent (December and January).

Population : 144.50 Million (1^st July 2008 (P))

Population Growth Rate : 1.39 percent

Population Density : 979 Person per sq km

Total fertility rate : 2.74 Children born/woman (2009 est.)

Life expectancy : 66.7 years

Birth Rate : 24.68 (2009 est.)

Mortality rate : 8 (2008 est.)

Adult literacy rate : 48.8 Per sent (15 years +)

Language : 95 percent Bengali and 5 percent other dialect. English is widely spoken.

Religion : Muslim (88.3%), Hindu (10.5%), Buddhist (0.6%) Christian (0.3%), & Animists and believers in tribal faiths (0.3%).

Food : Rice, Vegetables, pulses, fish and meat.

Mineral resources: Natural gas, Limestone, Hard rock, Coal, Lignite, Silica sand, White clay, Radio active Sand etc.
(There is a strong possibility of oil deposit)

Human resources: A substantial manpower reserve, trained from 21 Public Government and technical Universities along with 52 Private Universities & a strong media.

Skilled : Engineers, Technicians, Physicians, Economists, Accountants, Administrative and Managerial personnel, Abundance of low cost, easily trained and adaptable, hardworking, Intelligent and Youthful labor force.

(Source: Bangladesh Bureau of Statistics, Economic Trends of Bangladesh Bank, Bangladesh Economic Review 2009, UNESCO Institute for Statistics, Data Centre, June 2007. & www.cia.gov)

Procedure for Making Portfolio Investment by Foreign Investors.

Foreigner investors and the Non Resident Bangladeshis (NRBs) can make investment into our securities market from any corner of the world. To exercise the investment as NRBs/foreigners, one must enter into an agreement with a brokerage house of their choice along with anyone of the following institutions:

Authorized Dealer of Foreign Exchange Custodian Bank Merchant Bank (Portfolio Manager) All NRBs/foreigners for the purpose of making investment in our market have to have a Beneficiary Owners (BO) account and a client account opened with any of the brokerage house as well as entering into agreement with the Authorized Dealer or Custodian Bank or Portfolio Manager and thus maintain the investment activities from abroad. List of Brokers together with regular market scenario, fundamental status of the companies listed on the Exchanges and many other relevant necessary information would be available at the website of DSE (www.dsebd.org). List of Brokers of the Exchanges, Merchant Bankers or Custodian Banks would be available at the web page of SEC (www.secbd.org).

Opportunity for Foreign Investors

Bangladesh has adopted a very liberal industrial policy to attract foreign investment - No limitations pertaining to equity participation i.e. up to 100 percent foreign private investment allowed.

- Except five reserve sectors, all industries are open for private investment. Industries earmarked for public sector investment are in the reserve sector namely :

(i) arms, ammunition and other defence equipment and machinery

(ii) Production of nuclear energy,

(iii) Forest plantation and mechanized extraction within the bounds of reserved forests,

(iv) Security printing (currency notes ) & minting and,

(v) Railways & air transportation (except certain domestic routes and air cargo)

- No permission of the government required to set up new industries.
- For obtaining industries facilities like procurement of land, electricity, gas and sewerage connection, importation of capital machinery and raw materials tax rebate, duty drawback facilities etc. industries need only to be registered with the board of investment (BOI) in a simple prescribed from.

Facilities for Non-Resident Bangladeshis 

· Non-resident Bangladesh investors enjoy facilities similar to foreign investors

· Allowed to buy newly issued shares/debentures of Bangladeshi companies

· 10 percent reserved quota for non-resident Bangladeshis in primary shares (IPO)

· Foreign currency deposits in the Non-resident Foreign Currency (NFCD) account 

Investment Guarantee  

· Foreign Private Investment (Promotion & Protection) Act1980 ensures legal protection to foreign investment in Bangladesh against nationalization and expropriation.

· It also guarantees repatriation of capital and dividend and equitable treatment with local investors.

· Adequate protection is available for intellectual property rights, such as patents, designs & trademarks and copyrights.

FACILITIES AND INCENTIVES  

· Tax holiday 5-10 years depending on location of Industries.

· 15 years tax holiday for private power generation companies.

· Facilities for repatriation of invested capital, profit & dividend.

· Exemption of tax on interest on foreign loan.

· Tax exemption on royalties, technical know- how & technical assistance fees.

· Avoidance of double taxation on the basis of bilateral agreements.

· Six month multiple 

Financial & Economical Updates  

GDP at Current Price : Tk. 6149.43 billion , US$ 89.04 billion

GNI at current price : 6832.31 billion

Annual per capital GDP : US$ 621
GDP growth rate at constant price : 5.88 per cent
Agricultural growth rate at constant price : 4.81 per cent
Industrial growth rate at constant price : 5.92 per cent

Manufacturing Sector growth rate of GDP at current price

Large and Medium Scale : 5.65 per cent
Small Scale : 6.59 per cent
Service sector growth rate of GDP at current price : 49.67per cent
Inflation rate (12 month average) : 7.69 per cent
Domestic savings rate : 20.00 per cent
National savings rate : 32.40 per cent
Investment rate : 24.20per cent
Exports : (2008-09) US$ 12816.11mn (July to Mar)
Imports : (2008-09) US$ 19209.10 mn (July to Mar)

Trade Deficit : US$ 6392.99 mn
Foreign Exchange Reserve : US$ 6562.93 million
Foreign Investment
Direct : US$ 900 mn (July to Apr)
Portfolio : US$ -123 mn (July to Apr)
Bank rate : 5.0 per cent
Board Money (M2 : 281,902.00 Tk.crores
Total No. of Limited Co.
Public Limited Co : 35,000
Private Limited Co. : 23,000
Principle Industries : Jute, tea, textiles, garments, paper, newsprint, fertilizer, leather and leather goods, sugar cement, fish processing, pharmaceuticals, chemical industries etc.
Traditional export items : Raw Jute, Jute manufacturing (Hessain, sacking, carpets), Jute products, tea, leather & leather products.
Non-traditional export product items : Garments, frozen shrimps, other fish, Products, newsprint, paper, naptha, furnace oil, urea, etc.
Principle imports : Rice, wheat, oil seeds, crude petroleum, raw cotton, edible oil, petroleum products, fertilizer, cement, staple fibers, yarn, steel industrial management capital and other goods etc.

(Source: Bangladesh Bureau of Statistics, Economic Trends of Bangladesh Bank, Bangladesh Economic Review 2009, UNESCO Institute for Statistics, Data Centre, June 2007. & www.cia.gov)