Bangladesh Investment Hand Book 2007

Ba ngla des h Inves tment
HANDBOOK
Board of Investment
Bangladesh Investment Handbook
3rd Edition, May 2007
© Board of Investment, Bangladesh
Printing & Design in Dhaka, Bangladesh by Dot Net Limited www.dotnet-bd.com

Photography by Ron/Ikon Photo, Rafique/Prism, Hafizur Rahman/Dot Net Ltd.
Citations from and references to this Handbook is permissible, but must be properly acknowledged.
ISBN 984-32-3656-4
For detailed and further information:
Board of Investment
Chief Adviser’s Office, Government of the People’s Republic of Bangladesh
Jiban Bima Tower (19th Floor), 10 Dilkusha C/A, Dhaka 1000, Bangladesh.
Phone: (880-2) 955 9378, 956 1430-1, 956 1433 Fax: (880-2) 956 2312
Email: ecboi@bdmail.net, bdboi@bdmail.net Web: www.boi.gov.bd
Online version of this Handbook is available at www.boi.gov.bd/publications.htm
Disclaimer
This Handbook provides a roadmap and necessary information guidance to the intending private investors
in Bangladesh. However, prior to taking any investment decision, investors are encouraged to make
further independent check from BOI and other relevant authorities to be sure of the up-to-date information
and legislation. BOI does not accept any liability in relation to the contents of this Handbook.
II
BOARD OF INVESTMENT
Chief Adviser’s Office
Executive Chairman’s Message

Bangladesh has been experiencing a transitory stage from an agrarian economic
composition towards an industrial economic structure. Industry has gradually been taking
up the major share of the national income. In the last two and half decades, contribution
of industry in the GDP nearly doubled to 29.01% while agricultural contribution declined
by one-third to 21.77% during the same period. Private sector investment rose significantly
to 18.7% of GDP. FDI has got the momentum and experienced the highest inflow of US$
845 million in 2005.
Recognizing the rising role of private sector as a key actor in the economy, Bangladesh is
keen to ensure a sustained conducive business climate. Implementation of private sector
led growth strategies, undertaking pragmatic reforms and enhancing the facilitative role of
the regulatory agencies and institutions are the prime agenda of government. We envision
raising private investment to 25% of GDP, driving industry's contribution to 40% of GDP,
quadrupling FDI inflows, increasing GDP growth to 10% attaining 100% literacy rate and
reducing the percentage of population below the poverty line to 20% by 2015.
Bangladesh offers a competitive location for doing business in terms of costs, inputs,
human resources, market access, facilitation etc. Investing in the appropriate sector in
Bangladesh would yield higher returns than many other competing locations with lesser
risks.
Finally, I am indeed delighted to reiterate that BOI as institution has now transformed to a
true facilitator of private investment. I would like to invite you to invest in Bangladesh and
participate in our united efforts to build a prosperous economy for the future generation.
Md. Nazrul Islam, ndc

Executive Chairman
III
w w w . b o i . g o v. b d
IV
Preface
Preface
The Third Edition of Bangladesh Investment Handbook presents most updated
information and data relating to investment. New inclusions in this edition are
permission process of Branch/Liaision/Representative Offices, procedure of listing
Private Sector Infrastructure projects at PICOM, New Industrial Policy of 2005,
Revised Visa Policy etc.
Investment promotion and facilitation are, among others, the two key functions of
Board of Investment (BOI). As the apex national Investment Promotion Agency (IPA),
BOI has been offering comprehensive services to the investors starting from initial
counseling even to product marketing advices. Publication of handbooks, newsletters,
statistical results and sectoral briefs is an effective tool for disseminating necessary
information on such services. “Bangladesh Investment Handbook” is an all-
inclusive information kit and first-hand guide for the investors.
This Handbook contains eight chapters. Chapter 1 and 2 present basic country facts,
investment scenario and detail information on investment climate and incentives. BOI
functions and services are detailed in Chapter 3, while Chapter 4 describes
step-by-step procedures for setting up businesses in Bangladesh. Cost of doing
business and brief profiles of the competitive sectors are illustrated in Chapter 5 and
6 respectively. Chapter 7 exhibits information regarding settling industries in
Bangladesh. Important contacts and relevant information sources are listed in Chapter
8. At the end, relevant forms, regulations and policies annexed as Appendices for
ready references.
BOI welcomes constructive comments and suggestions from the readers, specially
investors, for improvement of this Handbook.
V
Board of Investment 2 0 0 7
VI
Acronyms
Acronyms
ADB : Asian Development Bank CDS : Central Depository System
ADP : Annual Development Program CEPZ : Chittagong Export
AOA : Article of Association Processing Zone
ASEAN : Association of South CIF : Cost-Insurance-Freight
East Asian Nations CIFE : Chief Inspector of Factories
BAS : Bangladesh Accounting and Establishments
Standards CP : Clearance Permit
BBS : Bangladesh Bureau of CPA : Chittagong Port Authority
Statistics CRF : Clean Report of Findings
BCIC : Bangladesh Chemical CSDC : Chittagong Skill
Industries Corporation Development Centre
BEPZA : Bangladesh Export CSE : Chittagong Stock Exchange
Processing Zones Authority DA : Documentary
BGFCL : Bangladesh Gas Fields Acceptance
Company Limited DEG : Deutsche Investitions und
BGSL : Bakhrabad Gas System Ltd. Entwicklungsgesllschaft
BIDS : Bangladesh Institute of Gmbh (German Investment Bank)
Development Studies DEPZ : Dhaka Export Processing Zone
BIMSTEC : Bangladesh, India, DESA : Dhaka Electricity Supply
Myanmar, Sri Lanka and Authority
Thailand Economic DFID : UK Department For
Co-Operation International Development
BIN : Business Identification Number DSE : Dhaka Stock Exchange
BITs : Bilateral Investment Treaties DTA : Domestic Tariff Area
BMPP : Barge Mounted Power Plant DTTs : Avoidance of Double
BOI : Board of Investment Taxation Treaties
BOT : Build Operate Transfer DOE : Department of Environment
BPDB : Bangladesh Power ECA(s) : Export Credit Agency(ies)
Development Board EIU : Economist Intelligence Unit
BR : Bangladesh Railway EPB : Export Promotion Bureau
BSCIC : Bangladesh Small and EPZ(s) : Export Processing Zone(s)
Cottage Industries EXIP(s) : Export Insurance Policy(ies)
Corporation FDI : Foreign Direct Investment
BTRC : Bangladesh Telecom FMO : Nederlandse Financierings-
Regulatory Commission Maatschappij voor
BTTB : Bangladesh Telegraph Ontwikkelingslanden
and Telephone Board GDP : Gross Domestic Product
BTV : Bangladesh Television GIS : Geographical Information
C&F : Cost and Freight
System
CBI : Confederation of British
GNP : Gross National Product
Industry
GOB : Government of Bangladesh
CDC : Commonwealth
Development GSM : Global System for Mobile
Corporation
VII
GSP : Generalised System of MOPT : Ministry of Post and
Preferences Telecommunication
GTZ : GmbH Deutche Gesellschaft NBR : National Board of Revenue
fuer technische Zusammenarbeit NCB(s) : Nationalized Commercial
ICAB : Institute of Chartered Bank(s)
Accountants of Bangladesh NCID : National Council for Industrial
ICC : International Chamber of Development
Commerce NEMAP : National Environment
ICSID : International Center for Management Action Plan
Settlement of Investment NIE : Newly Industrialized
Disputes Economies
IDA : International Development NRB : Non-Resident Bangladeshi
Agency OECF : Overseas Economic
IDCOL : Infrastructure Development Cooperation Fund
Company Limited OPIC : Overseas Private Investment
IFC : International Finance Corporation
Corporation PCs : Personal Computers
IIFC : Infrastructure Investment PICOM : Private Infrastructure Committee
Facilitation Center PSIG : Private Sector Infrastructure
ILO : International Labor Guidelines
Organization PSCs : Production Sharing Contracts
IMF : International Monetary Fund PSI : Pre-Shipment Inspection
IPA : Investment Promotion Agency REB : Rural Electrification Board
IP : Import Permit RGSC&F : Registrar of Joint Stock
IPDC : Industrial Promotion and Companies & Firms
Development Company of RMG : Ready Made Garments
Bangladesh Ltd. ROI : Return on Investment
IPO(s) : Initial Public Offering(s) ROO : Rules of Origin
IPP(s) : Independent Power Producer(s) SAARC : South Asian Association for
IPR : Intellectual Property Rights Regional Cooperation
IRC : Import Registration Certificate SAPTA : South Asian Preferential
ISO : International Organization for Trading Arrangement
Standardization SAFTA : South Asian Free Trade Area
IT : Information Technology SEC : Securities and Exchange
JBC : Jiban Bima Corporation Commission
JGTDSL : Jalalabad Gas Transmission SOE(s) : State-Owned Enterprise(s)
and Distribution System Ltd. SRO : Statutory Regulatory Order
JICA : Japanese International TIN : Tax Identification Number
Cooperation Agency TGTDCL : Titas Gas Transmission and
JV : Joint Venture Distribution Company Ltd.
km : Kilometer Tk. : Taka
L/C : Letter of Credit TNC(s) : Transnational Corporation(s)
LCAF : Letter of Credit Authorization TRIPs : Trade Related Aspects of
Form Intellectual Property Rights
LIBOR : London Interbank Offered Rate UNCTAD : United Nations Conference on
MFA : Multi-Fibre Agreement Trade and Development
MIGA : Multilateral Investment VAT : Value Added Tax
Guarantee Agency VSAT : Very Small Aperture Terminals
MNC(s) : Multinational Corporation(s) WIPO : World Intellectual Property
MOA : Memorandum of Association Organization
MOU : Memorandum of Understanding WTO : World Trade Organization
VIII
Contents
Contents
1. Bangladesh: Country Information 1-31
1.1 Country Overview 3
1.2 People and Society 8
a. Population and Demographics
b. Health and Education
c. Governance and Policies
d. Social Development Indicators
1.3 Economy and Business 12
a. Economic Performance
b. Trade and Investment
1.4 Major Sectors of the Economy 14
a. Agriculture
b. Industry
c. Power and Energy
d. Banking and Finance
e. Transport and Communication
1.5 Private Sector Investment Scenario 20
2. Investment Climate and Incentives 32-53
2.1 Investment Climate 35
a. General Features
b. Legal Framework for Foreign Investment
c. Bilateral Investment Agreements
d. Credit Rating and Country Risks
2.2 Infrastructure Readiness 38
a. Utilities
b. Transportation
c. Communication
2.3 Facilitation and Promotion 41
a. BSCIC
b. BEPZA
c. Privatization Commission
d. Board of Investment
2.4 National Taskforce for Investment Facilitation 44
2.5 Investment Incentives 45
2.6 CIP Policy 52
3. Board of Investment : Profile & Procedures 54-61
3.1 Structure and Objectives 57
a. Formation of BOI
b. Objectives of BOI
3.2 Functions and Facilities 58
a. Functions of BOI
b. Services Available from BOI
IX
3.3 Procedural Mapping : First Contacts 60
3.4 BOI Partnerships with Private Sector 61
a. Advocacy for Private Sector Development
b. Institutional Partnership Initiative: CSDC
4. Business Setup Roadmap 62-86
4.1 Business Set up at a Glance 65
4.2 Info Searching 65
4.3 Physical Verification 68
a. Immigration Procedures
b. BOI Counseling
4.4 Getting Structured 69
a. Selecting a Business structure
b. Incorporating a Company
c. Opening Branch/Liaison/Representative Offices
d. Securing Trade License
4.5 Operational Set up for Industries 72
a. Registering with BOI
b. Obtaining Industrial Plot
c. Registration/Approval for Foreign Loan,
Suppliers' Credit, PAYE Scheme etc.
d. Obtaining Utility Connections
e. Import of Machinery & Raw Materials
f. Obtaining Work Permit
g. Registering with Factories Act
h. Registering with Environmental Legislation
i. Remittance of Royalty, Technical Know-How
and Technical Assistance Fees
4.6 Commercial Operation 79
4.7 Human Resources and Employment 79
4.8 Listing Private Infrastructure Project 80
4.9 Exchange Control 83
5. Costs of Doing Business 88-105
5.1 Typical Costs of Doing Business in Bangladesh 91
5.2 Taxation in Bangladesh 102
5.3 Customs Tarrif 104
5.4 Comparative Costs in competing locations 104
6. Competitive Sectors for Investment 106-135
6.1 Textiles 109
6.2 Spinning 111
6.3 Frozen Foods 117
6.4 Leather 118
6.5 Electronics 120
6.6 Agro-based Industry 122
X
6.7 Information Technology 123
6.8 Ceramics 125
6.9 Light Engineering 127
6.10 Natural Gas-based Industries 128
6.11 Steel 131
6.12 Pharmaceuticals 134
7. Settling in Bangladesh 136-145
7.1 Harmonious Living 139
7.2 Cultural Shock 139
7.3 Adapting to Life 140
7.4 Affordable Living Costs 141
7.5 Schooling & Healthcare 142
7.6 Entertainment and Recreations 142
7.7 Tours and Travels 143
7.8 Workdays and Business Hours 144
7.9 Flight Schedules 144
7.10 Useful Bangla Words 144
8. Important Contacts and Information Sources 146-176

8.1 Government Bodies 149
8.2 Trade and Chamber Bodies 153
8.3 Specialized Associations 156
8.4 Foreign Missions in Bangladesh 162
8.5 International Organizations 168
8.6 Bangladesh Missions Abroad 171
8.7 Board of Investment 177
Appendices 180-219
I. Application Forms for BOI Services
a. Application for Registration of Foreign/Joint Venture Investment 183
b. Application for Employment of Foreign Nationals in the Industries 185
c. Application for Registration of Foreign/Joint Venture Commercial Offices 189
d. Application for Employment of Foreign National in Commercial Offices. 191
e. Visa Application 193
f. Application for Approval of Foreign Borrowing Agreement 195
II. Relevant Legislation & Highlights/Policies
a. Foreign Private Investment 198
(Promotion and Protection) Act 1980
b. Investment Board Act 1989 201
c. Baggage Rules 2000 209
d. Application for Visa Policy 214
III. Bangladesh Industrial Policy 2005 219
XI
Th
The e World
World
150 120 90 60 30 0
1 BOSNIA AND HERZEGO VINA

2 CR OA TIA
Greenland 3 SERBIA AND MONTENEGR O
(Denmark) 4 SLO VENIA
5 THE FORMER YUGOSLA V REPUBLIC OF
Alaska
(U.S.A.) ICELAND
NORWAY
UNITED
KINGDOM DENMARK
CANAD A IRELAND NETHERLANDS
BELGIUM GERMAN
LUXEMBOURG CZEC
FRANCE A
St. Pierre
SWITZERLAND
and Miquelon (Fr .) LIECHTENSTEIN
ANDORRA
SAN
MONA CO MARINO
POR TUGAL SP AIN HOLY
UNITED S TA TES OF AMERICA
TUNISIA
Berm uda (U .K.)
MOROCCO
ALGERIA
B AHAMAS
Western
MEXICO Sahara
Turks and Caicos Islands (U .K.)
CUB A
Hawaii DOMINICAN REPUBLIC
(U.S.A.) HAITI
CAPE VERDE MAURITANIA
BELIZE J AMAICA Puer to Rico (U .S.A.) MALI NIGER
ANTIGU A AND B ARBUD A
ST . KITTS AND NEVIS
GU ATEMALA HONDURAS
DOMINICA ST . VINCENT AND THE GRENADINES SENEGAL
ST . LUCIA B URKINA
EL SAL VADOR NICARA GU A B ARB ADOS GAMBIA FASO
GRENAD A
TRINID AD AND TO BA GO
GUINEA-BISSA U GUINEA BENIN
COST A RICA PANAMA
VENEZUELA SIERRA LEONE GHANA NIGERIA
GUYANA
SURINAME LIBERIA CÔ TE
D'IV OIRE TOGO CAMERO
COLOMBIA French Guiana (Fr. )
EQ UA T ORIAL GUINEA
ECU ADOR SA O T OME AND PRINCIPE GABO
ANGOLA
Ascencion (U.K.) (Cabinda)
Marquesas (Fr .)
PERU BRAZIL
Frenc h BOLIVIA St. Helena (U .K.)

Society
Po lynesia Gambier Is. (Fr .)
Ar ch .
(Fr .)
Cook (Fr .)
Islands PARAGUAY
(N.Z.) Pitcairn
Austral Is. Islands
(U.K.)
(Fr .)
CHILE UR UGU AY
ARGENTINA
Tristan da Cunha (U . K.)
Gough (U.K.)
Falkland Islands (U .K.)

(Malvinas)
South
Geor gia (U.K.)
Map No. 4170 Rev. 4 UNITED NATIONS

A N T A R
January 2004
150 120 90 60 30 0
Source : www.un.org (color scheme partially modified)
XII
30 60 90 120 150 180
OF MA CEDONIA
SWEDEN FINLAND
R USSIAN FEDERA TION
EST ONIA
LA TVIA
R.F . LITHU ANIA
POLAND BELAR US
ANY
ECH REP . SLO VAKIA UKRAINE
AUSTRIA KAZAKHST AN
REP . OF MOLDO VA
4 2HUNGAR YR OMANIA MONGOLIA
1 3
N ITAL Y B ULGARIA GEORGIA UZBEKISTAN DEM. PEOPLE'S
O 5 KYRGYZST AN
AZERBAIJAN REP . OF K OREA
LY SEE ALBANIA ARMENIA
GREECE TURKEY TURKMENISTAN TAJIKIST AN
SYRIAN Jamm u and JAPAN
ARAB REP . REPUBLIC
CYPR US ISLAMIC Kashmir (*)
MAL TA LEB ANON AFGHANISTAN CHINA OF K OREA
IRA Q REP .OF
ISRAEL
JORD AN IRAN
LIBY AN KUW AIT PAKISTAN NEPAL BHUTAN
ARAB EGYPT B AHRAIN
J AMAHIRIY A SA UDI QA TA R UNITED ARAB
EMIRA TES
ARABIA INDIA BANGLADESH
LAO PEOPLE'S
MYANMAR DEM. REP.
OMAN Nor thern
R Mariana
Islands (U .S.A.)
ERITREA YEMEN THAILAND PHILIPPINES
CHAD VIET NAM
SUD AN Guam (U .S.A.)
DJIBOUTI CAMBODIA
MARSHALL
ETHIOPIA SRI LANKA ISLANDS
CENTRAL BR UNEI PALA U
ROON AFRICAN REP . DA R USSALAM
SOMALIA MALDIVES MALA YSIA
UGANDA FEDERA TED ST ATES OF MICR ONESIA
SINGAPORE
CONGO KENY A KIRIB AT I
BON DEMOCRA TIC RW AND A Tokelau (N.Z.)
REPUBLIC OF NA UR U
BURUNDI I N D O N E S I A
THE CONGO TUV ALU
UNITED REP. Chagos PAPU A
OF TANZANIA Ar chipelago/ NEW GUINEA SOLOMON
SEYCHELLES Diego Gar sia** Wallis and
Christmas TIMOR-LESTE ISLANDS
COMOR OS Agaleda Island (Austr .) Futune Islands
ANGOLA (Fr .) SAMO A
MALAWI Cocos (K eeling)
ZAMBIA Tr omelin Island Islands (A ustr .) American
Car gados Carajos Shoals VANU AT U FIJI Samoa (U .S.A.)
ZIMB ABWE MOZAMBIQUE Rodriges Island
Niue (N.Z.)
MADAGASCAR
NAMIBIA MA URITIUS T ONGA
BO TSW ANA R éunion New Caledonia
(Fr .) (Fr .)
AUSTRALIA
SW AZILAND
SOUTH
AFRICA LESO THO
The boundaries and names shown and the designations used

on this map do not imply official endorsement or acceptance
by the United Nations. NEW
ZEALAND
The boundaries of the nuclear-weapon-free areas on this map
are solely indicative.
*Dotted line represents approximately the Line of Control

in Jammu and Kashmir agreed upon by India and Pakistan.
The final status of Jammu and Kashmir has not yet been
agreed upon by the parties.
**Appears without prejudice to the question of sovereignty.
C T I C A Department of Peacekeeping Operations

Cartographic Section
30 60 90 120 150 180
XIII
Sou
South th
Asia Asia
UZB
60∞ E 70∞ Kashi
75∞ 80∞ 85∞ 90∞ 95∞
TAJIKISTAN
K
TURKMEN
IS
D uc
ISTAN
TAN
The boundaries and names shown and the designations used

on this map do not imply official endorsement or acceptance
an by the United Nations.
h
be Hotan
Dotted line represents approximately the Line of Control
in Jammu and Kashmir agreed upon by India and Pakistan.
35∞ Gilgit The final status of Jammu and Kashmir has not yet been
agreed upon by the parties. 35∞
Hera- t Ka- bu l Chinese
Jammu Line Indian Line
AFGHANIS and Ind
TAN Peshawar
C H I N A
ad i
I sla m a blpin d
Kashmir us
-
Kandahar R aw a
Gujranwala
Zhob
N Lahore Amritsar Simla
30∞ Quetta A Multa 30∞
T n Ludhiana Chandigarh
Lhasa ian Line
S
IBah j Yarlung XigazÍ Ind
tl e
K awalpur S u Delhi Chinese Line
hu
P ASukkur N ( B ra h m aputra)
New Delhi Bareilly mp
u s E Mount Everest Dibrugarh
i
Th
tra
Ind
8848 m
Ga
G hag
Larkana P
Ya m u
ng Itanagar
A L
pu
es
Dadu
Jaipur n a du BHUTAN a
Lucknow r a Gorakhpur hm
ha
Turbad B ra
an
Jodhpur al Dispur
Hyderabad mb Kanpur K a t h m
25∞ ha Gwalior nge s Ga Shillong
25∞
C
Kota
Udaipur at
P
Karachi
Va(B
a na Imp hal
an n a BANG LA DE SH
r
Gandhinagar ar si Ag Aizawl
as a rt a
Ahmadabad Bhopal Jabalpur ) Kolkata Dhaka la
G. Indore
of Kutch Jamshedpur (Calcutta) Ch ittagong Mandalay
Vadodara Khulna
Raurkela es
Rajkot da Kharagpur ng
N ar ma Maha n adi
Ga
M f th e
Nagpur o u t h o
MYANMAR
h at
Surat Raipur
Cuttack Jaipu r
mb
20∞ Daman
20∞
I N D I A
ha
fK Silvassa
G .o Bhubaneswar Sittwe
Kalyan G ri
va oda
Mumbai Pune
(Bombay)
Bh Hyderabad
im
a Vishakhapatnam
Arabian Kolhapur Vijayawada
Bay of Bengal
Kakinada
Sea Belgaum Kri
s hna
Guntur Machilipatnam
15∞ Panaji Bellary 15∞
Andaman S
Bangalore Chennai
Mangalore Mysore (Madras) Port Blair
Vellore
Pondicherry Andaman
Salem Islands
Kozhikode
L a cavaratti
L a k s hNDIA)
(Calicut) (INDIA)
10∞ 10∞
(I
Madurai
ad w
ca
Cochin Jaffna
e
Tuticorin
ee
di
Trincomalee
ar
p
Trivandrum Nicobar
nn
a SRI LANKA
ve
M Negombo Islands
lf of (INDIA)
Gu
Sri Jayewardenepura-Kotte Kandy
Galle
e
S
5∞ MALDIVES a Matara
5∞
Maldive
Male
Islands
0 200 400 600 km I N D I A N O C E A N

0 200 400 mi
65∞ 70∞ 75∞ 80∞ 85∞ 90∞ 95∞
XIV
Bangladesh
Bangladesh
890 900 910 920
INDIA
(ASHAM) MAP OF BANGLADESH
PANCHAGARH
10 0 10 20 30 40 Miles
NILPHAMARI
260 THAKURGAON
10 0 20 40 60 Kilometre 260
LALMONIRHAT LEGEND
KURIGRAM International Boundary
Division Boundary
RANGPUR District Boundary
DINAJPUR Capital
Divisional Headquarters
District Headquarters
Rivers
GAIBANDHA
JAIPURHAT SHERPUR
NAOGAON
250 SUNAMGANJ SYLHET 250
JAMALPUR NETRAKONA
BOGRA
NAWABGANJ
MYMENSINGH
MOULAVIBAZAR
RAJSHAHI
SIRAJGANJ KISHORGANJ
NATORE HOBIGANJ
TANGAIL
GAZIPUR
PABNA NARSINGDI
240
KUSHTIA INDIA 240
DHAKA (TRIPURA)
BRAHMANBARIA
MEHERPUR MANIKGANJ
RAJBARI
CHUADANGA NARAYANGANJ
JHENAIDAH FARIDPUR MUNSHIGANJ COMILLA

MAGURA
KHAGRACHHARI
SHARIATPUR CHANDPUR HILL TRACTS
MADARIPUR
JESSORE NARAIL
GOPALGANJ
230 FENI 230
LAKSHMIPUR
INDIA
(WEST BENGAL) BARISAL NOAKHALI RANGAMATI
SATKHIRA HILL TRACTS
PIROJPUR
BHOLA
KHULNA JHALAKATI
BAGERHAT
PATUAKHALI CHITTAGONG
BARGUNA 0
220 22
BANDARBAN
HILL TRACTS
COX'S BAZAR
MYA
B AY O F B E N G A L
NMA
210 210
R
900 910 920

890 East of Greenwich
XV
Jatiya Sangshad Bhaban (National Assembly Building), Dhaka
National Assembly Building is one of the majestic public buildings. The Sangsad Bhavan complex is
located at Sher-e-Bangla Nagar of Dhaka city. National Assembly Building is an architectural
masterpiece for which the nation is proud of. Starting from the beginning of architectural history,
say from the time of the Pyramids till modern times, if a list of most significant buildings of the
world is made, the National Assembly building complex will feature very prominently among the
top few in that list. It can be said to be the culmination of the modern period of architecture and
the beginning of that of the post-modern era. This magnificent building stands as a silent evidence
of the creative devotion and poetic vision of its American architect, Luis Khan.
The first and foremost question arises before initiating foreign investment decision process is the country
information. This chapter would answer some very relevant queries on Bangladesh like:
demographic and social developments general economic conditions
infrastructural and environmental aspects reform agenda and government commitment
present investment scenario
1
Bangladesh:
Country Information
THIS CHAPTER INCLUDES

1.1 Country Overview
1.2 People and Society
b. Health and Education
1.3 Economy and Business
1.4 Major Sectors of the Economy
a. Agriculture
b. Industry
c. Power and Energy
d. Banking and Finance
e. Transport and Communication
1.5 Private Sector Investment Scenario
1
2
1.1CCountry
o u n Overview
try ...
a. Geography & Climate
Official Name : The People's Republic of Bangladesh
In Short: Bangladesh
Acronym: BD or BGD
Internet Domain : .bd
Geographical Location : North-Eastern part of South Asia Coordinates
0 0
Between 20 34' and 26 38' North latitude and
0 0
between 88 01' and 92 41' East longitude
International Boundaries : North - India (West Bengal & Meghalaya)
West - India (West Bengal)
East - India (Tripura & Assam) and Myanmar
South -The Bay of Bengal
Area : 147,570 square km.
(Territorial water - 12 nautical miles)
(Exclusive Economic Zone - 200 nautical miles)
Land Type : Mainly consists of flat fertile alluvial land.
Capital City : Dhaka (Metropolitan Area 522 sq km.)
Standard Time : GMT + 6 hours
Climate : Sub-tropical monsoon
Climate Variations : Winter : November - February
0
Temperature : Average maximum 29 C
0
Average minimum 11 C
Summer : March - June
0
Temperature : Average maximum 32 C
0
Average minimum 21 C
Monsoon : July - October
80% of rainfall occurs during monsoon
Rainfall : 1,194 mm to 3,454 mm
Humidity : Highest : 99 percent (July)
Lowest : 36 percent (December & January)
Vegetation : Grassland, mixed evergreen and evergreen.
3
b. Demographics (FY 2006)
Population : 138.8 million (Protected)
Male-Female Ratio : 105.4
Population Growth Rate : 1.43%
Population Density : 941/km2
Adult Literacy Rate : 65%
(15 years +)
Ethnic Groups : Predominantly mixed group of Proto
Austroloids / Drvidians, Mongoloids and Aryans.
Language : Bangla : 95%
Dialects : 5%
English : Widely spoken in all parts of Bangladesh
Religion : Muslim : 88.3%
Hindu : 10.5%
Buddhist : 0.6%
Christian: 0.3%
Animists and believers in tribal faiths : 0.3%
Human Resources : - A substantial trained and skilled human resource
with a lot of potentials.
- Professionals include engineers, technicians,
physicians, economists, accountants,
administrative and managerial personnel
- Low-cost, easily trainable and adaptable,
hard working, intelligent and youthful labor force.
Educational : Public Universities : 22
Institutions Private Universities : 54
Colleges : 1302
Polytechnic Institutes : 117
Medical Colleges : 40
Dental Colleges : 10
Secondary Schools : 19,766
Primary Schools : 82,864
Labor Force : Total Labor Force (million) : 44.30 million
(Labor Force Survey Male : 34.50 million
2002-2003) Female : 9.80 million
Sectoral Distribution of Labor Force:

Agriculture : 51.69%
Industry : 13.56%
Others : 34.75%
4
The First Bangladeshi Nobel Laureate Professor Muhammad Yunus is a great pride
for Bangladesh.
… poverty in the world

is an artificial creation. .…
“The one message that we are
trying to promote all the time,
that poverty in the world is an
artificial creation. It doesn't
belong to human civilization,
and we can change that, we can
make people come out of
poverty and have the real state
of affairs. So the only thing we
have to do is to redesign our
institutions and policies, and
there will be no people who will
be suffering from poverty. So I
would hope that this award will
make this message heard many
times, and in a kind of forceful
way, so that people start
believing that we can create a
poverty-free world. That's what I
would like to do.”
Telephone interview with Professor

Muhammad Yunus immediately following Source: http://www.sfgate.com/cgi-
the announcement of the 2006 Nobel Peace bin/object/article?f=/c/a/2003/06/07/BU55687.DTL&o=1
Prize, October 13, 2006. By Adam Smith, Born on 28 June 1940, Professor Muhammad Yunus
Editor-in-Chief, Nobelprize.org. is a Bangladeshi banker and economist. He is the
developer and founder of the concept of microcredit, the
Source:http://nobelprize.org/nobelprizes/peace
/laureates/2006/yunus-telephone.html extension of small loans to entrepreneurs too poor to
qualify for traditional bank loans. He is also the founder
of Grameen Bank. In 2006, Yunus and the bank were
jointly awarded the Nobel Peace Prize, for their efforts to
create economic and social development from below.
5
c. Resources
Food : Rice, vegetables, pulses, fish and meat.
Principal Crops : Rice, wheat, jute, tea, tobacco and sugarcane.
Principal Rivers : Padma, Brahmaputra, Jamuna, Meghna, Karnaphuli,
Teesta, etc. Total 230 rivers including tributaries.
Mineral Resources : Natural gas, limestone, hard rock, coal, lignite, silica,
sand, white clay, radio-active sand, etc.
d. History & Government
History : Recorded history traceable to the 4th century B.C.

with clear evidence of flourishing civilization consisting
of cities, palaces, temples, forts, seats of learning and
monasteries.
1200 : Advent of Islam, enjoying periods of
prosperity under Muslim rule till 1757;
1757 : Beginning of British colonial rule;
1947 : End of British colonial rule;
Present Bangladesh territory (East Bengal)
became East Pakistan as part of Pakistan;
1971 : Emergence of the sovereign state of
Bangladesh through a 9-month long war of
liberation.
Government : Parliamentary form of Government headed by the
Prime Minister.
The President is the constitutional head of the state.
continued ...
6
e. The Economy (FY 2006)
Currency : Taka. In short : Tk.
GDP at Current Price : Tk. 4,161.55 billion
US$ 63.054 billion
Per Capita GNI : US$ 482
GDP Growth
(at Constant Price) : 6.71%
Industrial Growth
(at Constant Price) : 9.56%
Inflation Rate : 6.17%
Investment Rate : 24.97% of GDP
National Savings Rate : 26.61% of GDP
Exports (US$) : US$ 10,526.16 million
Imports (US$) : US$ 13,949.79 million
Exchange Rate (Average) : US Dollar = Tk. 66.68

with selected International Euro = Tk. 83.32
Currencies (2006) British Pound = Tk. 124.86
Australian Dollar = Tk. 48.74
Japanese - Yen = Tk. 0.56
Swiss Frank = Tk. 52.79
Hong Kong Dollar = Tk. 8.54
Saudi Riyal - SAR = Tk. 17.64
Foreign Exchange Reserve : US$ 3,877.0 million on (31-12-2006)
Bank Rate : 5.00%
Major Industries : Textiles, Garments, Basic Chemical, Paper,
Newsprint, Fertilizer, Leather and Leather
Goods, Sugar, Cement, Fish Processing,
Pharmaceuticals, Jute, Tea, etc.
Traditional Export Items : Raw jute, jute manufactures (hessian,
sacking, carpet backing, carpets), jute
products, tea, leather, leather products etc.
Non-traditional Export Items : Garments, frozen shrimps, other fish
products, newsprint, paper, naphtha,
furnace oil, urea, ceramic products etc.
Major Imports : Wheat, oil, seeds, crude petroleum, rawcotton,
edible oil, petroleum products, fertilizer, staple
fibers, yarn, iron & steel, capital goods, etc.
Major Trading Partners : USA, EU Countries, India, China, Japan, South
Korea, Australia, Malaysia, Hong Kong,
Taiwan, Indonesia, Pakistan, Thailand, Kuwait,
Saudi Arabia, UAE.
7
f. Air, Sea and River Ports
International Airports : Zia International Airport, Dhaka,

Shah Amanat International Airport, Chittagong
Osmani International Airport, Sylhet.
Domestic Airports : Dhaka, Chittagong, Sylhet, Syedpur,
Cox’s Bazar, Rajshahi, Jessore and Barisal.
Sea Ports : Chittagong and Mongla.
Inland River Ports : Dhaka, Chandpur, Barisal, Khulna,
Narayanganj, Sirajganj etc.
1.2PPeople
e o p&l eSociety
&...
Bangladesh is the ninth most densely populated country having a very young population
over 70% of the total population. About 77% of population live in rural areas. The
significant point is, growth in the urban population (by birth and migration) significantly
increased by 38% over last decade (1991-2001).
Table 1.1
Demographic Indicators of Bangladesh in 2005-06
Demographic Indicators Figures
Population 138.8 million
Population Growth Rate 1.43%
Population Density 941 per km2
Crude Brith Rate (per 1,000 population) 20.09 persons
Crude Death Rate (per 1,000 population) 5.1 persons
Sex Ratio (Male : Female) 105.8
Life Expectancy at Birth 64.9 years
Male 64.5 years
Female 65.4 years
Adult Literacy Rate 65%
Source: Bangladesh Economic Survey 2006, Ministry of Finance, GOB
8
b. Education and Health
Five years of primary education is compulsory for all since 1993. As a result,
enrollment rate has risen to above 95%. Besides, present government encourages
female education offering free education upto Higher Secondary level, scholarships
for female students, establishment of female universities etc. As half of our
population is female, their participation would substantially influence women’s
contribution in economy and ensure gender equity.
Government adopted a long term

strategic plan with assistance of
World Bank named “Higher
Education Strategic Planning 2005-
2006’’ for ensuring higher education.
Also Government has continued
Sector Wide Approach (SWAP) of
Health, Nutrition and Population
Sector Program (HNPSP). In
achieving Millenium Development
Goal (MDG) of universal primary
education by 2015, Government has
given Priority in education by giving
highest allocation from budget. Over
80% of the country’s children are immunized against six killer diseases polio,
diphtheria, whooping cough, tetanus, tuberculosis and measles. Use of contraceptives
has increased from about 20% in early 80s to about 60%.
Table 1.2
Expenditure from ADP in Health & Education related Sectors
Sector Expenditure Detail (Taka in Crore ) 1998-99 2002-03 2004-05
Health, Population & Family Welfare 1,020.87 1,149.01 1,389.38
Social Welfare, Youth & Women Affairs 165.83 195.54 160.21
Education & Religion 1,693.47 2,373.97 1,975.59
Source: IMED, Ministry of Planning
A growing interest of private sector has been experienced in this sector since early
2002. Apart from Bangladeshi investors, USA, Thailand, Singapore and India have
shown keen interest to invest in health services delivery.
9
Bangladesh is a democratic country where people live from different religions and
faiths in harmony. It is a constitutional republic with a multi-party parliamentary
democracy. Regular free and fair parliamentary election is held under a neutral and
non-partisan caretaker government system. The President is the head of the state
elected by the members of the parliament for a five year term while executive power
is exercised by the cabinet headed by the Prime Minister. The President appoints the
Prime Minister, and on the recommendation of the Prime Minister, other Ministers.
Bangladesh has a four tier local government system. Following table presents
administrative units at different levels.
Table 1.3
Administrative Units of Bangladesh
Administrative Units Number
Division 6
District 64
Sub-district (Upazila) 482
Union (Rural) 4500
City Corporation 6
Municipaliti 309
Source : Bangladesh Bureau of Statistics
Ensuring good governance and promoting socio-economic development are

important areas of concern and the government has initiated various supportive
policy reforms to achieve these objectives. These include:
● Poverty Reduction Strategy (PRS)
● Market-driven fiscal reforms
● Liberal monetary policy
● Total literacy movement
● Comprehensive health services
● Friendly foreign policy
● Export diversification
● Rapid privatization of SOEs
● Increased private sector participation
● Conducive investment regime
10
Bangladesh has made subs-
tantial progress in the social Nobel laureate Amartya Sen lauded the success of
Bangladesh
development. The Government,
Bangladesh’s achievements in these sectors (rural
undertook ambitious scheme to development, education and health) are very
improve general literacy in remarkable. “We have many things to learn from
general and female literacy in Bangladesh. Bangladesh has made much progress in
particular, started creating literacy campaign. Womenfolk have advanced much in
Bangladesh. Bangladesh has also made remarkable
conducive environment for
progress in population control. In a family, once six
investment and above all children uses to born, now it has come down to three.
established rule of law in the He said and called upon the Indian government to
country. Improvement in various follow the Bangladesh path of population control.
social development indicators
during the last decade is the
testimony of all these efforts.
Table 1.4
Social Development Indicators of Bangladesh during 1991 to 2006
Indicator Unit 1991 2003 2006
1. Annual GDP Growth % 3.38 5.3 6.71
2. Per Capita GDP US$ 277 389 456
3. Total Export million US$ 1,718 6,548 8483
4. Population Growth % 2.17 1.42 1.42
5. Adult Literacy Rate (15 years & above) % 35.32 65.00 65.00
6. Infant Mortality at Birth Per 1,000 live births 92 51 51
7. Life Expectancy at Birth Year 56.10 68.2 -
8. Access to Safe Water % - 97.9 -
9. Enrolment Rate % - 95 -
Sources: Bangladesh Economic Review 2006, Ministry of Finance, GOB & BBS., (-) Data not available
At all levels, women’s awarness of different issues and their participation in poverty
alleviation program as well as other programs has increased. Legislation against
dowry, discrimination and other violation against women has been put in place, and
strictly implemented.
11
1.3EEconomy
c o n o&mBusiness
y &...
Bangladesh is in the process of Citigroup on Bangladesh and its Economy
transition from a predominantly For a country that had once been referred to as a
agrarian economy to an industrial member of the “Fourth World” the poorest of the
and service economy and here poor, Bangladesh’s record of development makes a
private sector is playing an remarkable story of admirable accomplishments.
Despite gigantic natural and economic disasters,
increasingly active role in the
chronic poverty and a rapidly increasing population,
economic life of the country, while Bangladesh has shown a striking ability to survive
the public sector concentrates more and make progress. Its per capita income rose from
on the physical and social US$298 in FY94 to US$421 currently while its social
infrastructure. Notably, state-owned indicators have improved across the board.”
enterprises have been undergoing Source: Economic and Market Analysis: Asia Pacific- Bangladesh by
Global Markets Inc, January 2005.
to rapid privatization.
Macro Economic Highlights

● A steady average annual GDP growth of 5% over the last decade.
● Inflation has been kept in low single-digit.
● Exports have been gradually shifted from traditional goods to more profitable items.
● Emphasis has been put on manufacturing sector.
In line with the development priorities, the Government has been providing
necessary incentives and assistant to selected sectors of the economy.
Table 1.5
Overview of Economic Indicators 2005-06
Economic Indicators 2005-06(p)
1. National Accounts
a. GDP (million US$) 63,054
b. GDP Growth (%) 6.71
2. GDP Break up (as % of Total GDP)
a. Agriculture, Forestry & Fisheries 21.77
b. Industry (Manufacturing, Mining, Construction & Utilities) 29.01
c. Services 49.22
3. Savings & Investment (as % of GDP)
a. National Savings 26.61
b. Total Investment 24.97
c. Public Investment 6.30
d. Private Investment 18.67
Sources: Bangladesh Economic Review 2006, Ministry of Finance, GOB & BBS.
12
The volume of international trade surpassed US$ 20 billion in FY 2004-05.
Government has been pursuing an export led economic development strategy to
stimulate export earnings.
Promotional campaign and Indian Business Tycoon Mr. Ratan N Tata on
industry assistance are Investment Climate of Bangladesh
being given under Export “……. When you go there you realize that their industrial
policy is more open than India’s . They do not have a history
Diversification Program.
of going back on commitments. There are some places
Three more EPZs have where pricing commitments have actually hurt the
also been established in Bangladesh government. But they haven’t changed the law;
Dhaka, Comilla and they have honored those commitments... ... ..”
Source: Businessworld, 24 January 2005.
Chittagong.
Exhibit 1.1
Trend in the Export Earnings of Bangladesh Since 1981-82
In Milion US$ 7603 10566

8655
6548
5752 6467
5172
3884
1993
627
2 2 6 8 0 1 3 4 5 6
-8 -9 -9 -9 00 -0 -0 -0 -0 -0
81 91 95 97 -2 00 02 03 04 05
19 19 19 19 9 99 20 20 20 20 20
1
Sources: Bangladesh Economic Review 2006, Ministry of Finance, GOB & BBS.
In South Asia, Bangladesh offers the most liberal FDI regime with no prior approval
requirements or limits on equity participation and repatriation of profits and income.
Please see section 1.5 (Page 20-30) for statistics on FDI in Bangladesh.
13
MMajor
1.4 a j oSectors
r S eof cThe
t oEconomy
r...
“Industrial production maintained its robust performance, primarily due to a steady
growth in export-oriented manufacturing supported by strong growth in the
construction and utilities sub-sectors. . . .
In addition, the supportive macroeconomic environment, marked by a surge in
credit, particularly to industry and agriculture sectors, and an increase in Foreign
Direct Investment (FDI) inflows, aided the economic recovery following the serious
flooding....”
Sources: ADB Quarterly Economic Update Bangladesh : June 2005…
a. Agriculture
Sector highlights
● Agriculture contributes 21.77% of GDP and 51.69% of work force
are engaged in this sector.
● Government is keen to implement National Agricultural Policy.
● Given the sector’s importance, agricultural goods contribute
second highest export earning.
● In 2005-2006, agriculture experienced a growth of 4.67%.
The Government continues to support the agricultural sector through a number of

policy interventions, with the ultimate view to achieving food self-sufficiency as
envisaged in the Fifth “Five Year Plan” (1997-2002). Fishery and livestock/poultry
sectors have grown rapidly during 1990s.
Table 1.6
Growth in the Agricultural Sub sectors of Bangladesh
Sector/Subsector 1991-92 1995-96 2001-02 2005-06 (P)
GDP Growth 5.04 4.62 4.42 6.71
1. Agriculture 1.4 2.0 -0.62 4.67
a. Crop 1.1 1.7 -2.39 4.21
b. Livestock 2.3 2.5 4.70 6.31
c. Forestry 2.3 3.5 4.91 5.18
2.Fisheries 8.2 7.4 2.22 3.89
Source: Bangladesh Economic Review 2006, MOF and BBS, GOB.
14
b. Industry
Sector highlights
● Government is keen to expand industrial base of the economy and
encourage both domestic and foreign investment.
● In 2005-06, GDP growth in industrial sector is about 10.45%.
● The Quantum Index of Production in medium and large
industries stood at 321.07 in 2005-06 (July-January) from 195.9 in 1997-98.
Since 1991, Government has been pursuing a market-oriented industrial strategy. In

2005, a new Industrial Policy was undertaken emphasizing following categories of
industries:
● Export oriented;
● Set up export processing zones for local and foreign investors;
● Incentives and different facilities for export oriented products;
● Industries based on indigenous resources or raw material;
● Quality enhancement, marketing and capacity building of existing industries; and
● Labor intensive, technology-oriented capital-intensive industries.
Table 1.7
Growth of Industry Sector and Share to GDP (Base: 1995-96)
Sector/Subsector 2001-02 2005-06 (P)
GDP Growth 4.42 6.71
Industrial Growth 6.53 9.56
Sub Sectors
a. Mining & Quarrying 4.53 8.73
b. Manufacturing 5.48 10.45
c. Construction 8.61 8.37
d. Power, Gas & Water 7.63 7.72
Industry Share to GDP 26.75 29.01
Sub Sectors
a. Mining & Quarrying 1.07 1.16
b. Manufacturing 15.76 17.05
c. Construction 8.41 9.15
d. Power, Gas & Water 1.51 1.65
Source: Bangladesh Economic Review 2006, MOF and BBS, GOB.
Emphasizing accelerated industrial growth and greater share of industry in GDP, the
new Industrial Policy 2005 has been adopted.
15
Objectives of Industrial Policy 2005
● One of the foremost objectives of the Industrial Policy 2005 is to set up planned industries
considering the real domestic demand, prospect of exporting goods abroad, and
discouraging unplanned industries in the light of past experience.
● Accept private initiatives is the main driving force of economic development and uphold the
government's facilitating role in creating a favorable atmosphere in order to augment
private investments in the country's industrialization, given the background of a free
market economy and globalization.
● Arrange for state-owned industrial enterprises to be sold/transferred/leased or
administered in any other way by the Privatization Commission or concerned ministries in
order to accelerate the privatization process.
● Take necessary initiatives to set up industries with private entrepreneurships, and where
that is feasible, establish industries on state initiative in those sectors that are considered
very important and essential because of national interest, where private entrepreneurs are
not forthcoming.
● Catering the needs for local and foreign market and also for consumer satisfaction of the
local products; measures to be undertaken (a) produce world class quality products, (b)
diversification of goods, (c) introduce cost-effective management in the production system,
(d) more value addition in the industrial sector, and (e) provide support for enhancing
productivity by using continuous, appropriate and advanced technology.
● Provide assistance to augment the industrial sector's contributions to the GDP of the
national economy, meet the general demands of local consumers and earn more foreign
exchange so that local industrial entrepreneurs can attain further capacity to establish
industries and industrial goods can have access to the overseas market on a competitive basis.
● Provide inspiration for the speedy expansion of cottage industries and SMEs and for further
investment in these sectors so that new employment opportunities are generated,
unemployment reduce and poverty alleviation program made in the country.
● Prioritize the expansion and development of agro-based and agricultural processing
industries, and assist in the expansion of poultry, dairy and goat-sheep industry as
agricultural industries.
● Provide women entrepreneurs with all necessary assistance in establishing industries in
various sectors.
● Increase productivity at enterprise level; produce high-value added products step by step
through development and application of appropriate technology and increase of export
through export diversification.
● Provide all necessary assistance for producing environment-friendly product with the
objective for creating a pollution-free environment in the industrial sector.
● Expand the local market and establish more backward linkage industries in order to
accelerate the export of high value-added garments produced in the export-oriented
garment industries and other relevant industrial sub-sector.
● Further enrich the industrial sector with the proper utilization of the country's various
natural and mineral resources.
Source: Industrial Policy 2005, Ministry of Industries, GOB
16
c. Power and Energy
Sector Highlights
● Energy and Power play a key role in achieving competitivenes of the industry.
● Energy sector is one the largest recipient of foreign direct investment in Bangladesh.
● The combined share of gas and power sectors in total FDI was about 60% during the
period 1994/95 through 1998/99.
● Identification and utilization of alternative indigenous sources of energy are crucial to
achieving energy requirements of the country.
Demand for power in Bangladesh is enormous and increasing day by day. There is
substantial gap between supply and demand. So, Government is concerned to
ensure better performance of this sector by increasing public sector investment,
attract multilateral investment on a sustainable basis, rationalize tariff rates and
improve tariff collection performance. Private sector power generation policy has
been brought into operation.
Table 1.8
Production Capacity and Production of Electricity
Sector/Subsector 1991-92 1995-96 2001-02 2004-05
Installed Production Capacity 2,398 2,908 4,230 5,025 MW
Dependable Production Capacity 1,724 2,105 3,300 3,900 MW
Maximum Production 1,671 2,087 3,218 3,751 MW
Source: Bangladesh Economic Review 2006. Ministry of Finance.
Gas is the main energy resource in Bangladesh fulfilling about 70% of commercial
energy demand. Total number of explored gas fields in the country are 23 and
estimated gas reserve is 28.4 TCF of which estimated recoverable reserve is 20.51
TCF. Substantial amount of coal reserve is also discovered in northern area, which is
an altranative source of energy.
Per capita electricity production is increased to 160 kilowatt-hour in 2004-2005 from
154 KWH in 2003-04. The national energy policy aims to increase the availbility of
sustainable sources of commercial energy.
The Energy Regulatory Commission Act (20-years) has been enacted in order to
accelerate long-term development in energy and gas sector in a competitive
environment, encourage private sector investment, protect consumer interest and
curb abuse of monopoly and ensure environmental protection.
17
d. Banking & Finance
Sector Highlight
● The banking system dominates the financial sector accounting
for about 97% of the market in terms of assets.
● Government has undertaken major reform initiatives to improve
the regulatory and legal environments for banks.
● Several specialist development financial institutions have been
providing long-term debt, equity financing and leasing.
Banking and financial sector in Bangladesh is under intensive monitoring of the

government to improve performance and efficiency. The Bangladesh Bank has
been given reasonable functional autonomy to bring dynamism in this sector. The
Bank Companies Act 1991, the Financial Act 1993, the Negotiable Instruments Act
1881, the Public Demands Recovery Act 1913 and the Securities and Exchange
Table 1.9
Infrastructaral management of Banks in Bangladesh till March 2006
Bank Type No. of No. of Shared Shared
Bank Branches Percentage of Percentage of
Total Resource Total Deposit
Government 4 3,386 38.97 38.79
Specialized 5 1,342 6.80 5.69
Private 30 1,643 44.31 48.06
Foreign 9 41 9.92 7.46
Total 48 6,412 100 100
Source: Bangladesh Bank
Commission Act 1993 have been amended. To provide more securities to the
depositor, Bank Deposit Insurance Act has been enacted.
The share of banking and financial sector in GDP is only 1.70% constituting of
banking 1.27%, insurance 0.36% and other financials services 0.07%. However, the
sector experienced an overall growth of 7.12% in 2005-06 (P) with the highest
growth in other financial services, that is (10.64%).
e. Transport & Communication
Both public and private sector efforts are present to enhance the performance of the
sector substantially. Recent adoption of Private Sector Infrastructure Guideline
(PSIG) and establishment of Private Infrastructure Committee (PICOM) have brought
a new momentum in this sector (also see section 4.8 in Chapter 4, Pages 80-82).
18
Sector Highlights
● Almost all parts of Bangladesh, even the remote areas are today connected
by road network.
● Bangladesh has the best water transport system in the region, which
accounts to two-thirds of cargo transport within the country.
● Bangladesh Telecom Regulatory Commission (BTRC) has been formed
to enhance the services.
● Government has opened up the telecommunication to private
sector participation.
● Private Sector Infrastructure Guideline brought new momentum in transport
and communication sector.
Table 1.10
Transport and Communication Readiness of Bangladesh
Description Indicator
Railways 2,854.96 km
Broad Gauge 660.22 km
Meter Gauge 1,829.74 km
Dual Gauge 365 km
Road Network 247,323 km
National Highway 3,570 km
Regional Highway 4,323 km
Feeder Road 35,454 km
Roads under FFWP 25,000 km
Telephone by BTTB 10,00,483
Cellular Mobile Phone 11,600,000
International Airports 3
Domestic Airports 5
Radio Broadcast Station AM – 12
FM – 12
Short-wave – 2
Television Broadcast Station 15
Private Satellite Television Channel 7
Transport and Communication is a precondition of development. Realizing this fact,

Government is inviting private sector’s participation in this sector.
19
Table 1.11
Share of Transport and Communication Sector in GDP
Subsector 1995-96 2001-02 2005-06 (P)
Land Transport 6.44 6.86 6.69
Water Transport 1.43 1.08 0.89
Air Transport 0.16 0.14 0.11
Associated Services 0.37 0.37 0.30
Post & Telecommunication 0.68 1.16 2.11
Total 9.08 9.61 10.10
The largest road bridge of the country and 12th largest road bridge in the world is
Jamuna Multipurpose Bridge, which has connected the west and east of the country
creating lots of economic opportunities.
1.5PPrivate
r i vSector
a t eInvestment
S e cScenario
tor...
Private sector in Bangladesh has been playing a significant role in the economic
development of the country. Specifically, in the recent years, private sector activities
have expanded enormously in diversified economic fields. Country’s Industrial growth
reached all time high nearly touching double digit (9.56%) while manufacturing
experienced a spectacular double digit (10.45%) growth. UNCTAD’s LDC Report
2006 found that the overall pattern of change for the LDCs as a group is strongly
influenced by what is happening in Bangladesh. The report states,
“Between 1990–1993 and 2000–2003, half of the total increase in manufacturing
value-added in the LDC group as a whole was attributable to the growth of
manufacturing in Bangladesh.”
The LDC Report also identified that, “Of the 40 LDCs for which data are available,
only 7 have experienced steadily sustained growth – Bangladesh, Bhutan, Burkina
Faso, Cape Verde, the Lao People’s Democratic Republic, Lesotho and Nepal”.
Recognizing Bangladesh as one of the most rapidly growing economy in the recent
times, World Bank commented that,
“Bangladesh is the 10th most rapidly growing economy among 31 large developing
countries with population above 20 million with GDP averaging 5% since 1990”.
(Source: Bangladesh Country Factsheet by the World Bank)
20
Based on this promising growth performance and potential, the New York based
global investment banking, securities and investment management firm Goldman
Sachs considered Bangladesh as one of the Next-11 emerging economies after
BRIC (Brazil, Russia, India & China). Recently, in its China ASEAN Business Report,
the Mizuho Corporate Bank of Japan has also identified Bangladesh as South Asia’s
Next Rising Star for Foreign Investments.
The robust economic growth achieved in Bangladesh has resulted from investment-
friendly policy and improved investment climate. Moreover, Bangladesh has
gradually been transforming to an attractive, competitive and profitable destination
for foreign direct investment (FDI). In 2005, the growth in FDI increased by 84% to
US$ 845 million. Besides, substantial growths in investment registration, import of
capital machinery and industrial raw materials and export have been achieved.
Bangladesh’s success in attracting private investment and achieving remarkable
industrial growth has been presented in the following eight sections:
a. Conducive Investment Climate
b. Investment Statistics
c. Private Investment Registration
d. Import of Capital Machinery
e. Growth in Manufacturing GDP
f. Private Investment as Percentage of GDP
g. Employment Opportunities and Potential
h. Continued Interests of Foreign Investors
a. Conducive Investment Climate
Doing Business in Bangladesh today is easier than many developing economies. A
report entitled “Doing Business in 2006: Creating Jobs” published jointly by the
World Bank and IFC ranked Bangladesh in the 65th position in terms of Ease of
Doing Business among 155 economies (Table 1.12).
Table 1.12
Ease of Doing Business Ranking (Selected)
Rank Country Rank Country
1 New Zealand 75 SriLanka
20 Thailand 91 China
31 Maldives 99 Vietnam
55 Nepal 104 Bhutan
60 Pakistan 116 India
65 Bangladesh 122 Afghanistan
Source: Doing Business in 2006: Creating Jobs, World Bank, 2006
21
Based on 39 indicators grouped into 10 categories, the above ranking recognizes
Bangladesh as one of the easiest location for doing business in South Asia, better
than Sri Lanka and India. Besides, persistent growth in businesses is the best
testimony of a conducive business climate prevailing in Bangladesh.
b. Investment Statistics
Actual Foreign Direct Investment
In 2005, total FDI inflow in Bangladesh was increased by 84% amounting US$ 845
million –highest ever in any year since her independence. The growth is second
highest in entire South Asia. According to World Investment Report 2006,
Bangladesh now ahead of India in terms of FDI Performance Index being ranked
116th among 200 economies while India is ranked 119th. Given the present trend,
the strategic target for 2006 to attract FDI worth US$ 1.0 billion is likely to be
achieved. Following Exhibit 1.2 presents a summary of FDI inflow data since 2001.
Exhibit 1.2
Trend in FDI in Bangladesh since 2001
1,000
US$ Mill
845
660
354 350
328
2001 2002 2003 2004 2005 2006*

Source: World Investment Report 2005, BOI and Bangladesh Bank. * Target
A component-wise analysis of FDI inflow in 2005 shows that about 50% of FDI came
as equity, 29% as reinvestment, and the rest as intra-company borrowing (Table
1.13). The higher
reinvestment rate indicates Table 1.13
unwavering confidence of FDI Inflow in Bangladesh during 2005-Summary by FDI
foreign investors on overall Component (in million US$)
investment climate of the 2005 Share
country and, simultaneously, FDI Components Jan -Jun Jul-Dec Tota l %
competitiveness of related a. Equity Capital 252.4 173. 2 425. 6 50.35%
business sectors. b. Reinvested Earnings 144.1 103. 4 247. 5 29.28%
Most of the FDI (87%) have c. Intra-Company Loans 85.3 86.9 172.2 20.37%
been brought by companies Total 481.8 363.5 845.3 100%
the balance (13%) have Source: Bangladesh Bank Enterprise Survey, 2006
22
been invested in companies registered with Bangladesh Export Processing Zones
Authority (BEPZA) (Exhibit 1.3).
Table 1.13 presents a component-wise analysis of FDI inflow in 2005 according to
its affiliation with the regulatory authorities i.e. BEPZA and BOI.
Exhibit 1.3
FDI Distribution by Regulating Authorities
13%
87%
BOI-Registered BEPZA-Registered
Table 1.14
FDI Inflow in Bangladesh during 2005-Distribution by Regulatory Agencies (in million US$)
BOI-Registered Entities - 2005 BEPZA-Registered Entities - 2005 Total
FDI Components BOI BEPZA
Jan-Jun Jul-Dec Jan-Jun Jul-Dec FDI-2005
Total Total
a. Equity Capital 242.7 168.1 410.8 9.6 5.2 14.8 425.6
b. Reinvested Earnings 124.7 89.1 213.8 19.4 14.3 33.7 247.5
c. Intra-Company Loans 51.4 58.5 109.9 33.9 28.4 62.3 172.2
Total 418.8 315.7 734.5 63.0 47.8 110.8 845.3
Source: Bangladesh Bank Enterprise Survey, 2006
A sector-wise analysis of FDI inflow in 2005 demonstrates that FDI in Bangladesh

have been widely spread among the key business sectors concentrating on
telecommunication (33%), manufacturing (26%), energy and power (25%) and trade
and commerce (15%). Table 1.14 presents a sectoral analysis of FDI inflow in 2005.
23
Table 1.15
FDI Inflow in Bangladesh during 2005-Distribution by Sectors (in million US$)
2005 2005
FDI Sectors
Jan-Jun Jul-Dec FDI-2005 Share (%)
a. Agriculture & Fishing. 1.6 0.7 2.3 0.3%
b. Power, Gas & Petroleum 113.1 95.2 208.3 24.6%
b.1. Power 12.7 14.5 27.2 3.2%
b.2. Gas & Petroleum 100.4 80.7 181.1 21.4%
c. Manufacturing 137.9 81.5 219.4 26.0%
c.1. Textile & Wearing 52.0 44.5 96.5 11.4%
c.2. Chemicals & Pharma 2.8 1.1 3.9 0.5%
c.3. Metal & Machinery Prods. - 0.1 0.1 0.0%
c.4. Vehicle & Transport Eqp. 0.7 0.9 1.6 0.2%
c.5. Fertilizer 46.7 14.5 61.2 7.2%
c.6. Cement 29.6 15.7 45.3 5.4%
c.7. Leather & Leather Prods. 0.7 - 0.7 0.1%
c.8. Other Manufacturing 5.4 4.7 10.1 1.2%
d. Trade & Commerce 59.9 70.6 130.5 15.4%
e. Transport, Storage & Comm. 167.4 114.5 281.9 33.3%
e.1. Telecommunication 165.3 113.5 278.8 33.0%
e.2. Others (TSC) 2.1 1.0 3.1 0.4%
f. Services 2.0 1.0 3.0 0.4%
g. Others - - - 0.0%
Total 481.9 363.5 845.4 100%
In 2005, FDI has been originated from 30 different sources dominated by the
developed economies (51.45%). Interestingly, a significant share of FDI also came
from developing economies (43.23%). The top-5 FDI sources are UK (18.08%), USA
(16.78%), South Korea (11.53%), UAE (6.55%) and Norway (6.33%). Table 1.15
presents a source-wise analysis of FDI inflow in 2005.
24
Table 1.16
FDI Inflow in Bangladesh during 2005-Distribution by Regions (in million US$)
FDI Inflow Country Country
Sources / Regions Jan-Jun'05 Jul-Dec'05 Total-2005 Share Rank
in million US$ in million US$ in million US$ %
Developed Economies 226.30 208.60 434.90 51.45% -
Western Europe 134.40 111.50 245.90 29.09% -

European Union 132.80 110.80 243.60 28.82% -
Denmark 6.40 11.80 18.20 2.15% 13
France 0.90 0.80 1.70 0.20% 20
Germany 0.10 1.50 1.60 0.19% 21
Luxembourg - 0.40 0.40 0.05% 27
Netherlands 8.40 7.00 15.40 1.82% 14
Norway 24.60 28.90 53.50 6.33% 5
United Kingdom 92.40 60.40 152.80 18.08% 1
Other Western Europe 1.60 0.70 2.30 0.27% -
Switzerland 1.60 0.70 2.30 0.27% 19
North America 58.10 84.40 142.50 16.86% -

Canada - 0.70 0.70 0.08% 25
USA 58.10 83.70 141.80 16.78% 2
Other Developed Economies 33.80 12.70 46.50 5.50% -

Japan 33.80 12.70 46.50 5.50% 8
Developing Economies 225.60 139.80 365.40 43.23% -

Africa 22.20 26.20 48.40 5.73% -
Egypt 22.20 26.20 48.40 5.73% 7
Latin America & the Caribbean - - - - -
Asia & the Pacific 203.40 113.60 317.00 37.50% -
Asia 203.40 113.60 317.00 37.50% -
West Asia 2.70 53.60 56.30 6.66% -
Saudi Arabia 0.50 0.40 0.90 0.11% 24
United Arab Emirates 2.20 53.20 55.40 6.55% 4
South, East and South-East Asia 200.70 60.00 260.70 30.84% -
China 1.40 0.20 1.60 0.19% 22
Hong Kong 27.20 25.90 53.10 6.28% 6
India 0.80 1.90 2.70 0.32% 18
Indonesia - 1.30 1.30 0.15% 23
Malaysia 24.90 8.20 33.10 3.92% 9
Nepal 0.10 - 0.10 0.01% 30
Pakistan 18.00 7.50 25.50 3.02% 12
Singapore 97.40 0.10 97.50 11.53% 3
South Korea 18.10 11.70 29.80 3.53% 11
Sri Lanka 2.10 2.00 4.10 0.49% 17
Taiwan 10.50 0.90 11.40 1.35% 16
Thailand 0.10 0.10 0.20 0.02% 29
Vanuatu 0.10 0.20 0.30 0.04% 28
Others 29.90 15.10 45.00 5.32% -
ADB 6.10 6.60 12.70 1.50% 15

IFC 23.50 8.20 31.70 3.75% 10
Others 0.30 0.30 0.60 0.07% 26
Total 481.80 363.50 845.30 100.00% -

25
c. Private Investment Registration
Generally, private investment project proposals are submitted to BOI after legal
formation of the company. Registration is the first formal commitment for an
investment project based on primary project feasibility study. Following Table 1.17
presents year-wise data since FY 1991-92 on the projects registered with BOI. In
FY1991-92, about 258 private investment projects with proposed investment of Tk.
660 crores were registered with BOI that reached to 1,889 Projects in FY2005-06
with proposed investment of Tk. 43,356 crores. Growth of registration for the just
concluded year of 2005-06 was 125% which is very encouraging. Table 1.17 below
presents detail of projects registered with BOI since FY 1991-92
Table 1.17
Yearwise details of the Private Investment Projects registered with BOI from FY1991-92 to FY2005-06
Local Investment Foreign/ JV Total Growth

Year
Projects Crore* Taka Projects Crore* Taka Projects Crore* Taka %
1991-92 233 365 25 294 258 660 -

1992-93 353 360 28 211 381 571 -13.4%
1993-94 846 1,827 100 3,217 946 5,043 782.9%
1994-95 1,113 3,383 145 2,920 1,258 6,303 25.0%
1995-96 1,211 4,836 127 6,261 1,338 11,097 76.1%
1996-97 1,247 4,746 138 4,515 1,385 9,261 -16.5%
1997-98 1,448 5,061 140 15,308 1,588 20,368 119.9%
1998-99 1,535 5,677 161 9,243 1,696 14,920 -26.8%
1999-2000 1,428 6,621 135 10,594 1,563 17,215 15.4%
2000-01 1,788 7,809 80 6,993 1,868 14,802 -14.0%
2001-02 2,875 8,806 89 1,734 2,964 10,540 -28.8%
2002-03 2,101 11,653 104 2,067 2,205 13,720 30.2%
2003-04 1,624 13,546 130 2,644 1,754 16,190 18.0%
2004-05 1,469 14,005 120 5,298 1,589 19,302 19.2%
2005-06* 1,754 18,370 135 24,986 1,889 43,356 125%
Total 21,025 1,07,062 1,657 96,283 22,682 2,03,345 -
* 1 Crore = 10 Million. Source: IIMC, BOI
26
Registration Statistics of Local Investment Projects:
During the last 5 years from FY2001-02 to FY2005-06, total 9,823 local investment
projects worth Tk. 66,379 crores were registered at BOI which is 122% higher than
previous five years (Exhibit 1.4). About 80% of those local investment projects have
either been implemented or at various stages of implementation.
Exhibit 1.4
Trend in Registration of Local Investment Projects (Crore Taka)
Crore Taka 18,370
13,546 14,005
11,653
8,806
7,809
6,621
4,836 4,746 5,061 5,677
3,383
1,827
365 360
1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06*
Source: IIMC, BOI. * Provisional
49% of the local investment proposals are textile projects. The other major sectors
are chemical (20%), engineering (12%), services (10%), agrobased (5%) etc. Exhibit
1.5 illustrates the sectoral break-up of local investment proposals registered with BOI.
Exhibit 1.5
Sectoral Distribution of Local Investment Projects
Registered in FY 2005-06
Food & Allied

1.71%
Agrobased Textile
5.26% Printing
48.61%
1.70%
Misc.
0.49%
Services
9.62% Leather
Engineering Glass & Chemical 1.24%
11.79% Ceramics 19.53%
0.05%
Source: IIMC, BOI. * Provisional
27
d. Import of Capital Machinery
Nearly half of the import payments of Bangladesh are spent for importing capital
machinery and industrial raw materials. During the first 8-months of FY 2005-06 (upto
February 2005), import of industrial raw materials and capital machinery grew by 16%
and 37% respectively (Exhibit 1.6). In the last four years and eight months, total
import of capital machinery stood at US$ 3.80 billion which is 123% higher than the
previous five years. This higher trend in import of capital machinery clearly indicates
that the manufacturing growth would continue for a considerable period of time.
Exhibit 1.6
Trend in Import of Capital Machinery (Million US$)
1,115
864
729
554 548
482
333 294 314
185
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06*
Source: Bangladesh Bank, Monthly Statistics Reports, 2006. * Provisional (Jul-Feb).
e. Growth in Manufacturing Sector

Manufacturing sector has shown a double-digit growth (10.45%) in FY 2005-06.
Because of this robust growth, manufacturing has now turned to be the single largest
contributor to GDP (17.05%) and has overtaken agriculture (16.91%). This clearly
shows that the economy of Bangladesh has been transforming quickly from agrarian
to industrial structure. Notably, the average growth in manufacturing during FY1992
to FY1996 was 8.21% that came down to 5.64% during FY1997 to FY2001.
However, a strong policy support by the government facilitated manufacturing to
rebound. Exhibit 1.7 presents the recent trend in manufacturing growth.
To uphold and support this unprecedented growth of manufacturing sector, BOI has
strengthened its facilitating services with transparent, easier and customer-oriented
processes. BOI introduced an Online Service Tracking System to provide status of
the service requests online at real time basis.
28
Exhibit 1.7
Trend in Manufacturing Growth since 1992
10.45%
8.21% 8.43%
6.75% 7.10%
5.64% 5.48%
1992-96 1997-2001 2002 2003 2004 2005 2006*
Source: Bangladesh Economic Review 2006. * provisional.
f. Private Investment as Percentage of GDP

Total private investment during the last 5 years from FY 2001-02 to FY 2005-06
amounted Tk. 302,550 crore which is 82% higher than that of the previous 5 years.
During FY 1995-96 to FY 2000-01, total private investment was Tk. 166, 560 crore.
In FY 2005-06, private investment stood at 18.7% of GDP from 15.8% in FY 2000-
01 (Exhibit 1.8).
Exhibit 1.8
Trend in Private Investment since FY 1996-97
77,700
68,290
59,370
51,720
45,840
37,010 40,150
30,560 33,990
24,750
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Source: Bangladesh Economic Review 2006
g. Employment Opportunities and Potential

Poverty reduction in a densely populated and geographically small country like
Bangladesh largely depends on employment generation. Accelerated investment
in labor-intensive manufacturing sector increased. Recent surge in manufacturing
activity in Bangladesh has not only nearly doubled our export earnings, but also
created plenty of new jobs.
29
Exhibit 1.9
Potential Employment Opportunities in BOI-Registered projects
425,232 418,529
373,625
319,516
273,754
2001-02 2002-03 2003-04 2004-05 2005-06*
Source: IIMC, Board of Investment, September 2006.
During the last five (5) years, more than 1.8 million new jobs have been created in
the BOI-registered projects alone. Yearwise breakdown of new job creation from FY
2001-02 is illustrated in the following Exhibit 1.9:
h. Continued Interests of Foreign Investors

The recent years have witnessed tremendous interests of foreign investors to invest
in different sectors in Bangladesh. In FY 2005-06, major foreign investors include
Dhabi Group of United Arab Emirates, Singtel of Singapore, Orascom of Egypt, YKK
of Japan and Microsoft of USA. Besides, a number of large investment proposals
worth about US$ 10.5 billion are at negotiation and / or approval stages. These
include investment proposals from Tata Group of India, Toray of Japan, Indorama
Group of Thailand, Luxon Global of South Korea, Delta Pacific Mining of United
Kingdom, Dawood Group of Pakistan, Kingdom Group of Saudi Arabia and other
proposals from China, Malaysia, India, Taiwan, UK, USA, Australia, Singapore,
Thailand, Saudi Arabia, UAE and Kuwait.
The govt has taken proper measures to make the industrial growth trend
sustainable.
30
A glimpse of central business area of Dhaka
Conducive investment climate is of critical concern to the investors. The investment climate and
incentive offered by Bangladesh are presented in this chapter that would facilitate in:
initial screening by the investors;
conducting comparative studies on investment destinations; and
assessing strengths of Bangladesh as a competitive investment location.
2
Investment Climate
and Incentives

2.1 Investment Climate
a. General Features
2.2 Infrastructure Readiness
a. Utilities
b. Transportation
c. Communication
2.3 Facilitation and Promotion
a. BSCIC
b. BEPZA
d. Board of Investment
2.4 National Taskforce for Investment Facilitation
2.5 Investment Incentives
2.6 CIP Policy
33
34
2.1I n vestm
Investment ent...
Climate
a. General Features
Bangladesh offers conducive investment climate compared to the other South Asian
economies.
● Bangladesh is a largely homogenous society with no major internal or external
tensions and a population with great resilience in the face of adversity (e.g.
natural calamities).
● Bangladesh is a liberal democratic country. The people irrespective of race and
religion have been living in harmony for years.
● It enjoys broad non-partisan political support for market-oriented reform and
offers the most investor-friendly regulatory regime in South Asia.
● Bangladesh owns a trainable, enthusiastic, hardworking and low-cost (even by
regional standards) labor force suitable for any labor-intensive industry.
● Geographical location of the country is ideal for global trades with very
convenient access to international sea and air routes. Bangladesh is the bridge
between ASEAN and SAARC nations.
● Bangladesh is endowed with abundant supply of natural gas, coal, water and
very fertile soil.
● Although Bangla is the official language, English is widely spoken as second
language.
● As a result of low per capita GNI of only US$ 482, present domestic consumption
is not significant. However, it may be considered that there exists a middle class
with significant purchasing power. As economic growth picks up, the purchasing
power will also grow substantially. And in a country of more than 138.8 million
people, even a small middle class may constitute a significant market.
● All Bangladeshi products other than armaments enjoy complete duty and quota
free access to EU, Japan, Canada, Australia, Norway and most of the developed
countries. However, for apparel export to USA, Bangladesh had a quota regime
which ended on 1st January 2005. Despite quota phase out, Bangladeshi apparel
has successfully taken up a better position in US market and experiencing
substantial growth in an even competitive market.
35
Investment in Bangladesh is well protected by law and by practice. Major laws
related to private investment-both foreign and local-are:
● The Foreign Private Investment (Promotion and Protection) Act of 1980
● The Bangladesh Export Processing Zones Authority Act of 1980
● The Investment Board Act of 1989
● The Companies Act 1994
● The Bangladesh Private Export Processing Zones Authority Act of 1996
● The Industrial Policy 2005
● The Import Policy Order 2003-2006
● Bangladesh Export Policy 2003-2006
● Private Sector Infrastructure Guideline 2004
In addition, foreign investors are required to follow the regulations of the
Bangladesh Bank – and the National Board of Revenue for taxation and customs
matters.
Important legislations are appended (Appendix II).
The Foreign Private Investment (Promotion and Protection) Act 1980 includes
guarantee of fair and equitable treatment to foreign private investment. Such national
treatment is also provided in bilateral investment treaties (BITs) for the promotion and
protection of foreign investment which was concluded with 26 countries listed below:
BITs Concluded with
1. Austria 10. Japan 19. The Philippines
2. Belgium 11. Korea, DPR 20. Turkey
3. Canada 12. Korea, Republic of 21. Thailand
4. China 13. Malaysia 22. UK
5. France 14. Pakistan 23. USA
6. Germany 15. Poland 24. Uzbekistan
7. Indonesia 16. Romania 25. Vietnam
8. Iran 17. Switzerland 26. Singapore
9. Italy 18. The Netherlands
Negotiations on concluding BITs have also been going on with other 17 countries
i.e. India, Hungary, Oman, Maldova, Egypt, Mauritius, Russia, Ukraine, Australia,
36
Romania, Byelorussia, Bahrain, Spain, Finland, Nigeria, Saudi Arabia and Vietnam.
Separate bilateral agreements for avoidance of Double Taxation, Treaties (DTTs)
were also signed with 23 countries as listed below:
DTTs Concluded with

1. Belgium 9. Japan 17. Sweden
2. Canada 10. Malaysia 18. Thailand
3. China 11. Pakistan 19. The Netherlands
4. Denmark 12. Poland 20. UK
5. France 13. Romania 21. USA
6. Germany 14. Singapore 22. Norway
7. India 15. Republic of Korea 23. Turkey
8. Italy 16. Sri Lanka
Negotiations on DTTs are also progressing with the following 21 countries:
DTTs Under Negotiation

1. Austria 8. Indonesia 15. Norway
2. Australia 9. Iran 16. South Africa
3. Byelorussia 10. Saudi Arabia 17. Spain
4. Cyprus 11. Mayanmar 18. Switzerland
5. Finland 12. Morocco 19. The Philippines
6. Greece 13. Nepal 20. Tunisia
7. Hong Kong 14. Nigeria 21. Uzbekistan
In addition, Bangladesh is a signatory to Multilateral Investment Guarantee Agency
(MIGA), Overseas Private Investment Corporation (OPIC) of USA, International
Center for Settlement of Investment Disputes (ICSID) and a member of World
Intellectual Property Organization (WIPO) permanent committee on development
cooperation related to industrial property. Bangladesh ensures adequate protection
for intellectual property rights, such as patents, designs & trademarks and copyright.
Bangladesh does not have any sovereign credit rating till date. However, the
creditworthiness of Bangladesh is regularly quantified on monthly basis by the
various Export Credit Rating Agencies (ECAs). These ECAs are members of the
Berne Union. Detail activity profiles are available at Berne Union website
www.berneunion.org.uk/members.html. Some of these ECAs could be contacted
and viewed from following websites:
37
Web Addresses of some ECAs
www.oekb.co.at www.isace.it
www.hermes-kredit.com www.cofac.com
www.ecgd.gov.uk www.ekf.dk
www.ekn.se www.finnvera.fi
Source : Guidebook for European Investors in Bangladesh, European Commission, August 2006
Regular Country risk analysis is also conducted and reported by most of

investment banks and economic research agencies like Economist Intelligence
Unit (EIU) of the Economist fracture of the Credit Rating Companies Act 1996,
two companies were established to conduct corporate credit rating in Bangladesh
member Credit Rating Information and Services Ltd. And Credit Rating Agency of
Bangladesh Ltd. Please visit www.boi.gov.bd. and www.iifc.net for detail services
of these companies.
In
2.2 frastru
Infrastructure cture...
Readiness
a. Utilities
Utility provisions for industrial undertaking include gas, electricity, water, waste
management, sewerage etc. in Bangladesh are as below:
● In EPZs, all kind of utility facilities and supports are pre-installed and ready for
utilization. There is no disruption in power, gas and water. Industrial waste
management and sewerage system do sufficiently ensure a conducive
environment.
● BSCIC Industrial Estates provide utility facilities including plot allotment.
● Other industrial areas are also being brought under the uninterrupted and
sufficient coverage of utility services.
BOI Utility Services Cell provides one window service to the investors.
Private investors can avail utility services through BOI Utility Service Cell. Senior
Officials from the respective utility service offices of the Government provide
counseling, accept applications and facilitate full services within a stipulated period.
b. Transportation
Since the mid 80s, construction of road network all over the country has been
massively undertaken. Today, almost all parts of the nation are networked with road
connection. Roads are well supported by sufficient numbers of bridges and culverts.
The longest bridge of the country and 12th longet Road Bridge in the world, Jamuna
Multipurpose Bridge has connected the east and west both by road and rail network.
Well-developed navigable waterways in the country also provide transportation
facilities even to the low remote areas. Both passengers and domestic freight are
carried over at cheaper cost.
38
Regular international flights from world business destinations of South, East and
South East Asia, Middle East and Europe are directly connected to Bangladesh by
17 International Airlines. Besides, Biman Bangladesh Airlines, the national airways
of the country, is also networked to 29 international and 7 domestic destinations.
Number of Private sector airways are connecting to domestic destinations. While
one of them is also operating on international route. Private Helicopter Services are
also available to reach any place of the country.
Between two international seaports-Chittagong and Mongla, Chittagong is the
gateway of both the export and import serving more than 80% of all international sea
freights. Chittagong port is also well connected to domestic road, rail and air routes.
The government is concerned to enhance the efficiency of the ports and invites
private sector participation in port management and establishment.
Most of the international shipping and freight-forwarding companies / agents are
present in the country providing transportation services to the investors.
Table 2.1
Transportation in Bangladesh
Description Amount
Railways 2,854 km
Broad Gauge 660.22 km
Meter Gauge 1,829.74 km
Dual Gauge 365 km
Highways 21,571 km
Paved 16,500 km
Unpaved 5,071 km
Waterways 8,046 km
(maximum depending on season)
Bridges & Culverts (Nos.) 14,731
Bridges (Nos.) 3,790
Culverts (Nos.) 10,94
Airports (Nos.) 12
International (Nos.) 03
Domestic (Nos.) 09
Seaports 09
International (Nos.) 02
Domestic (Nos.) 07
39
c. Communication
In August 2002, Government has opened up the telecom sector (fixed line) to the
private sector participation.
Government has already given licence to private sector for fixed line operations.
Such market-oriented move for telecom sector would enhance the
telecommunication service of the country to a desired level.
62 Internet Service Providers (ISPs) are in the Internet market. Divisional cities and
major industrial areas have been brought under Internet servicing.
Bangladesh has joined the consortium of SEA-ME-WE-4 submarine cable, which
starts its commercial activities from 21st May, 2006. This will especially help
prosperous data entry and software sectors.
With about 9,859 domestic postal stations including 164 Guaranteed Express Post
(GEP) providing stations and Express Mail Service (EMS) agreement with 49
countries, postal service in Bangladesh has been serving the nation. International
courier service companies like DHL, FedEx, UPS etc. are also present to serve the
investors.
Table 2.2
Communication in Bangladesh
Description Amount
Satellite Television Network 7
Private Switched Telephone Network (PSTN) Operator 3
Cellular Mobile Phone Operator 6
Telephone in Use (Fixed Line) 10,00,483
NWD Circuit 33,781
Overseas Circuit 3,700
Card Phone Booth 1,497
Cellular in Use 11,600,000
ISP 62
Internet Users 4.5 Lack
Radio Broadcast Station AM – 12
FM – 12
Short-wave – 2
Television Broadcast Station 15
40
2.3FFacilitation
a c i l i t a&tPromotion
ion...
The role and importance of private sector investment in accelerating industrial
development of Bangladesh were significantly identified and outlined by the visionary
leadership and put into the policy framework of the Government in early 1980s. Formal
legislative move was made through enactment of the Foreign Private Investment
(Promotion and Protection) Act, 1980 (Appendix-II) and the Bangladesh Export
Processing Zones Authority Act, 1980. With the changing global economic scenario,
the need for specialized institutions in promoting private investment, both foreign and
domestic, had emerged. As a result, BOI was established in 1989 (Appendix II: The
Investment Board Act 1989). Following are the four key investment promotion and
facilitation agencies of Bangladesh.
Investment Promotion & Facilitation Agencies

Agency Areas of Concern Investment Type
a. Bangladesh Small & Cottage Small and cottage industries Domestic
Industries Corporation (BSCIC)
b. Bangladesh Export Processing Zones Industries located in EPZs. Domestic & FDI
Authority (BEPZA)
c. Privatization Commission Privatization of SOEs. Domestic & FDI
d. Board of Investment (BOI) All other industries including Domestic & FDI
promotion of the above.
To facilitate and promote private sector infrastructure, two other GOB Companies –
Infrastructure Investment Facilitation Center (IIFC) and Infrastructure Development
Company Limited (IDCOL) were also established.
a. Bangladesh Small & Cottage Industry Corporation (BSCIC)
Back in 1957, BSCIC was established by parliamentary legislation, which was

amended in 1992 to match the industrialization and macro economic policies of the
Government. It provides comprehensive services to development and expansion of
small and cottage industries (SCIs). The major functions of BSCIC include:
● promotion and registration of small and cottage industries;
● conducting advisory and industrial promotion services including scouting and
training of entrepreneurs, skill development of artisans and craftsman and
creation of job opportunities;
● construction and development of industrial estates with necessary
infrastructural facilities for the SCIs;
41
● development of linkages between SCIs and other medium and large industries.
Development of small and medium enterprises (SMEs) has been encouraged by
the Government with a view to creating a cluster of reliable, quality and
competitive supply source to the large foreign investments. An initiative to
establish an SME Foundation has been undertaken converting the SME Cell of
Ministry of Industries.
b. Bangladesh Export Processing Zones Authority (BEPZA)
Under the BEPZA Act 1980, it was established to set up and operate export
processing zones in Bangladesh with a view to providing a congenial investment
climate free from procedural complications. EPZs are export-oriented industrial
enclaves that provide infrastructural facilities, administrative and support services to
the investors along with rewarding incentives.
Major Incentives & Facilities provided by BEPZA
Fiscal Incentives Non-Fiscal Incentives Infrastructure & Facilities
● Tax Holiday for 10 ● 100% foreign equity ● Fully Serviced Plots
Years allowed ● Ready Factory
● Concessionary Tax ● Unrestricted exit policy Building
for 5 years after ● Full repatriation ● All Types of Utilities
completing initial 10 facilities of dividend ● Warehouse and
years. and capital at the Secured Bonded Area
● Duty free import of event of exit ● Business Support
machinery & raw ● Import of raw materials Services
materials allowed on ● Administrative Services
● Avoidance of Documentary ● Customs Clearance at
Double Taxation Acceptance basis. Plant Site
based on DTTs ● Intra and Inter-zone ● Workers Dormitory
● All other incentives export is allowed. Enclave
as provided by BOI ● Subcontracting within ● Recreational Amenities
EPZs permitted.
For details on setting up at EPZs, its incentives, facilities and amenities, please contact BEPZA.
The first EPZ in Bangladesh was established in 1983 in Chittagong and the second
one in Dhaka in 1993. Five (05) more EPZs in Mongla, Ishwardi, Uttara (Nilphamari),
Comilla and Adamjee (Narayanganj) are in operation. Another EPZ named
Karnaphuli EPZ in Chittagong was inaugurated on 12th September 2006.
Three types of ownership prevail in the EPZs - 100% foreign ownership (A-type),
Joint ownership (B-type) and local ownership (C-type), Existing investments in EPZs
42
represent 30 countries like South Korea, China, Japan, USA, Germany, Pakistan,
Malaysia, Taiwan, India, Singapore, Panama, Denmark, Thailand, France, UAE,
Sweden, Italy, Belgium, the Netherlands and Canada etc. At present 242 industries
are operating and producing different famous brand products, which are exporting
throughout the world.
Investing in EPZ : Requirements

Requisites / Steps Fees and Rental
a. Project Proposal Form Items Fees in US$
b. Bank Solvency Certificate ● Application Form 18
c. Memorandum of Association ● Registration Fee 250
d. Articles of Association ● 6-month Rental 2,000
e. Certificate of Incorporation (Land)
f. Joint Venture Agreeement ● 6-month Rental 2,000
g. Sanction Letter (Factory Building
h. Lease Agreement for 1,500 m.)
i. Performa Invoice /
Quotation on Machineries
After the independence of Bangladesh in 1971, all major industries like jute, textiles,
chemicals etc. were nationalized under a nationalization program. In 1993,
Privatization Board (now Privatization Commission) was set up and entrusted with
the overall responsibility of privatizing State-Owned Enterprises (SOEs) that have
been identified by the government.
Since the establishment of Privatization Commission, so far 65 (sixty five) SOEs
were privatized. Among them, 44 SOEs were privatized by direct sale and the rest
21 through transfer of share. Recently another 7 SOEs privatization process is
finalized and letter of Intent has circulated for buyers. Latest list of SOEs to be
privatized could be obtained from Privatization Commission at www.pc.gov.bd.
As the SOEs have an already infrastructure and facilities, investing by acquisition of
these SOEs is a gainful option to the private investors.
d. Board of Investment (BOI)
As enacted, BOI was established “to encourage investment in the industry in private
sector and to provide necessary facilities and assistance in the establishment of
industries“. Details on BOI, its structure and objectives, functions and services and
procedures have been cited in Chapter 3.
43
NNational
2.4 ation al...
Taskforce
In a major development towards fostering an investment-friendly atmosphere in the
country, the Government instituted a National Taskforce for Facilitating of Investment
Climate on 08 October 2003.
a. All Investment-related Agencies Involved
The Taskforce consists of 17 members representing the Ministries of Home, Foreign

Affairs, Finance, Industries, Shipping, Planning, Post & Telecommunications, Civil
Aviation & Tourism, Bangladesh Bank, Power Division, Mineral Resources Division,
National Board of Revenue, Chittagong Port Authority, Bangladesh Export
Processing Zones Authority, and Bangladesh Standards & Testing Institution. BOI
Executive Chairman has been made Chairman of the Taskforce while the office of
BOI has been entrusted to act as the Secretariat of the Taskforce.
b. Taskforce Fosters Investment Climate
The Taskforce meets in every three months to review the prevailing investment
situation. However, the Chairman of the Taskforce has also been empowered to
convene meeting anytime when it deems necessary. It will also receive complaints
relating to investment for review. The Taskforce shall put recommendations to the
government for removal of any hurdles and suggest necessary suggestions to
enable faster growth of foreign investment. The Taskforce, along with FBCCI and
representatives of foreign investors, will also conduct surveys on identifying effective
strategies to attract foreign investment in the country.
c. Review of Investment Climate Started
Since its formation, the Taskforce has been holding regular meetings and taking
decisions on procedural simplification for utility connections, immigration formalities
and monitoring industrial law and order issues.
44
2.5I n vestm
Investment ent...
Incentives
Bangladesh is keen to stimulate the economy and transform a poverty-stricken
economy to NIE within short time. Government has liberalized the industrial and
investment policies in recent years by reducing regulatory requirements and opening
up many areas. Substantial incentive program has also been implemented which is
presented below:
Sectoral Incentives are cited in Chapter 6.
Summary of Incentives Provided to the investors
Approval Authorities Major Fiscal Incentives Major Non-Fiscal Incentives
● Tax Holiday ● Remittance of royalty,
● Accelerated technical know-how,
● Ministry of Finance Depreciation technical assistance
● Bangladesh Bank Allowance instead of fee.
● National Board of tax holiday ● 100% Foreign Equity
Revenue ● Concessionary allowed.

● Unrestricted Exit
● Bangladesh Export income tax in lieu of
Processing Zones Tax Holiday and Policy.
● Full Repatriation
Authority Accelerated
● Board of Investment Depreciation facilities of dividend
● Bangladesh Small &
and capital at the
Allowance
event of exit.
Cottage Industries ● Concessionary duty
● Permanent Residence
Corporation on imported
Permit on investing US$
machinery
75,000 and Citizenship
● Avoidance of Double
Offer for investing US$
Taxation 5,00,000.
Following sub-sections present a overview of each incentive scheme in a nutshell.
Exact information on these incentives may be collected from respective agencies.
a. Tax Holiday & Concessions:
i. Incentive : 1. For Existing Industry:
Tax holiday facilities (THF) are available in the
existing industry for 4 or 6 years depending on the
location of the industrial enterprise.
Location years
Dhaka and Chittagong Divisions 4
(excluding 3 Hill Tract districts of Chittagong Division)
Khulna, Sylhet, Barisal & Rajshahi Divisions and 6
3 Chittagong Hill Tract districts
45
List of Tax Holiday Applicable Sectors (Up to 30th June 2008)
1. Textile 2. Pharmaceuticals
3. Melamine 4. Plastic
5. Ceramic & Sanitary ware 6. Steel Production from Iron ore
7. Fertilizer Production 8. Insecticide and Pesticide
9. Computer Hardware Production 10. Residential Hotels of Three Star Standard and above
11. Petro-Chemicals 12. Basic Ingredients of Drug,Chemicals &
Pharmaceuticals
13. Agro Machineries 14. Ship Building
15. Boilers and compressor 16. Textile Machinery
17. Physical Infrastructure
a. Sea/River Port
b. Container terminal/Internal Container depot/Container Freight Station
c. LNG terminal and Transmission line
d. CNG terminal and Transmission line
e. Gas Pipe Line
f. Flyover
g. Large Scale water treatment plant and its supply through pipe line
h. Waste Processing plant and
i. Export Processing Zone
(Subject to Conditions. For details please contact National Board of Revenue www.nbr.gov.bd)
Important to note:
● THF for Extension Unit is not allowed.
● THF will be available for the industrial undertaking formed as a Separate Company.
● THF availing companies are required to reinvest at least 30% of their exempted
income during Tax Holiday period and also extra more 10% of income have to
beinvested in any registered company of stock exchange during last 3 months of the
fiscal year.
ii. How to Avail : 1. Register your project with BOI.

2. Apply for Tax holiday approval and
certification from NBR.
3. NBR issues Tax holiday certificate within 90
days of submission of application.
46
b. Depreciation Allowance:
i. Incentive : 1. Accelerated Depreciation Allowance: Only New industrial
undertakings will enjoy accelerated depreciation allowance
in lieu of tax holiday as per following schedule:
a) For the first year in which - Fifty percent of the actual
the undertaking starts cost plant and machinery
to commercial production
the assessee
b) Next following second year - Thirty percent of the
actual cost of plant an
machinery to the assessee
c) Next following third year - Twenty percent of the
actual cost of plant and
machinery to the assessee
2. Initial Depreciation Allowance has been
reintroduced from the FY 2006-07 as per
following schedule:
● On the Machinery : 25% of its costs.
● On the Factory : 10% of its costs.
3. Restructuring of Depreciation Allowance to ensure
better pofitability of the industry as following:
● General Building : 10%
● Factory Building : 20%
● Furniture : 10%
● Machinery : 20%
● Vehicle : 47%
(not plying for hire)
ii. How to Avail : 1. By setting up and operating business in Bangladesh.
c. Duty Exemptions and Concessions on Machinery:
i. Incentive : 1. For 100% export oriented industry, no import duty is
charged in case of capital machinery and spares up to
10% value of such capital machinery.
2. For other industry, import duty, at the rate of 5% ad valorem,
is payable on capital machinery and spares imported for
initial installation or BMR/BMRE of the existing industries.
The value of spare parts should not, however, exceed 10%
of the total C&F value of the machinery.
47
3. Value Added Tax (VAT) is not payable for imported capital
machinery and spares.
4. Import duty @ 5% ad valorem, is secured in the form of
bank guarantee or an indemnity bond is returned after
installation of the machinery
2. Apply for Import Permit (IP) at BOI for importation of
machinery against foreign equity.
3. BOI sends recommendation to CCI&E for issuance of IRC
and IP within 7 days from the date of application.
4. Apply for import duty exemption certificate at BOI.
5. BOI issues certificate within 7 days from the date of application.
d. Avoidance of Double Taxation:
i. Incentive : 1. For foreign investors, double taxation can be avoided on the
basis of bilateral Double Taxation Avoidance Treaties (DTTs).
2. Exemption of income tax upto 3 years for the expatriate
employees in industries specified in the relevant schedule
of Income Tax ordinance.
2. Apply for Tax Avoidance approval at NBR.
3. NBR arranges Tax Avoidance facilities.
e. Remittance:
i. Incentive : 1. For investors, remittance of royalty, technical
know- how, technical assistance fee.
2. Apply for remittance of royalty, technical know-how,
technical assistance fee approval from BOI.
3. BOI gives remittance approval.
f. Repatriation:
i. Incentive : 1. For investors, full repatriation of invested capital,
profit and dividend is allowed.
2. Apply for repatriation approval from Bangladesh Bank
(BB) through nominated bank.
3. Bangladesh Bank gives repatriation approval.
48
g. Exit:
i. Incentive : 1. Foreign investors can wind up on investment either through
a decision of the AGM or EGM.
ii. How to Avail : 1. Decide wind up in company AGM or EGM.

2. Complete the formalities to exit the country.
3. Apply for repatriation approval for sales proceeds from
Bangladesh Bank (BB).
4. Bangladesh Bank gives repatriation approval within a
specified period.
h. Ownership:
i. Incentive : 1. Foreign investors can set up ventures either wholly owned
or in joint collaboration with local partner.
ii. How to Avail : 1. Incorporate a company.
2. Register your project with BOI.
i. Incentives to Non-Resident Bangladeshis (NRBs):
In recognition to enormous contribution of NRBs to the economy, the Government has

established Ministry of Expatriate Welfare and Overseas Employment in early 2002 to
look after the interests of the NRBs.
i. Incentive : 1. Investment of NRBs is treated at par with FDI and enjoy

facilities similar to those of foreign investors.
2. NRBs can buy newly issued shares/ debentures of
Bangladeshi companies.
3. A quota of 10% has been fixed for NRBs in primary public shares.
4. They can maintain foreign currency deposits in the Non-
resident Foreign Currency Deposit (NFCD) account.
5. On fulfillment of certain conditions “Important Non-Resident
Bangladeshi (INRB)” is selected.
ii. How to Avail : 1. Contact BOI and Ministry of Expatriate Welfare and
Overseas Employment.
2. Register your project with BOI.
49
J. Other Incentives:
There is no discrimination in case of duties and taxes for the same type of industries
set up by foreign and local investors and in the public and private sectors.
● Tax exemption on royalties, technical know-how fees received by any

foreign collaborator, firm, company and expert.
● Tax exemption on the interest on foreign loans under certain conditions.
● Exemption of income tax up to 3 years for the foreign technicians employed
in industries specified in the relevant schedule of income tax ordinance.
● Tax exemption on income of the private sector power generation company
for 15 years from the date of commercial production.
● Multiple entry visa facilities for the prospective new investors.
● Re-investment of repatriable dividend treated as new investment.
● Citizenship by investing a minimum of US$ 5,00,000 or by transferring US$
10,00,000 to any recognized financial institution (non-repatriable).
● Permanent residentship by investing a minimum of US$ 75,000 (non-
repatriable).
● Tax exemption on capital gains from the transfer of shares of public limited
companies listed with a stock exchange.
k. Incentives to Export-Oriented and Export-Linkage Industries:

Export-oriented industrialization is one of the major objectives of the Industrial Policy
2005. Export-oriented industries are given priority and public policy supports are ensured
in this respect. An industry exporting at least 80% of its manufactured goods or an
industry contributing at least 80% of its products as an input to finished exportables, and
similarly, a business entity exporting at least 80% of services including information
technology related products are considered as an export-oriented industry. To make
investment in 100% export-oriented industries attractive, the following incentives and
facilities will be provided :
Cash Incentives/Export subsidy

To encourage further export, Government has offered
following cash incentives/export subsidy on net FOB
value of following export items :
Local Textile 5%, Frozen Fish 10%, Leather Products 15%,
Tobacco 10%, Potato 10%, Bicycles 15%, Jute Products
7.5%, Light Engineering Products 10% etc.
[For details please contact Foreign Exchange Policy Dept. of
Bangladesh Bank. (www.bangladesh-bank.org.bd)]
50
a. Duty free import of capital machinery and spare parts up to 10% of the
value of such capital machinery.
b. Bonded Warehouse and back-to-back Letter of Credit facility.
c. Duty drawback facility.
d. Providing loans up to 90% of the value against irrevocable and confirmed
Letter of Credit/Sales Agreement.
e. Supporting backward linkage "deemed exporters".
f. The export-oriented industries, further to the provisions of Bangladesh
Bank foreign exchange regulations, are entitled to receive additional
foreign exchange, on case to case basis, for publicity campaign, opening
overseas offices and participating in international trade fairs.
g. The entire export earning from handicrafts and cottage industries are
exempted from income tax. For all other industries, income tax rebate on
export earning are given.
h. The facility for importing raw materials included in the banned/restricted
list, but required in the manufacture of exportable commodities.
i. The import of specified quantities of duty-free samples for manufacturing
exportable products is allowed consistent with the prevailing relevant
government policy.
j. The local products supplied to local industries or projects against foreign
exchange L/C are treated as indirect exports and are entitled to all export
facilities.
k. The Export Credit Guarantee Scheme facility.
l. 10% products of the enterprises, located in both public and private EPZs
are allowed to be exported to domestic tariff area against foreign currency
L/C on payment of applicable duties and taxes.
m. 100% export-oriented industry outside EPZ is allowed to sell 20% of their
products in the domestic market on payment of applicable duties and taxes.
n. The Export-oriented industries which are identified by the government as
"Thrust Sector" are provided special facilities and venture capital support.
Apart from the above-mentioned facilities, other facilities announced and provided in the
Export Policy is applicable to export-oriented and export-linkage industries.
BOI Counseling Service at Investment Facilities and Services Section provides all
necessary assistance with regard to the above incentives. Investors are encouraged to
contact BOI (also see Chapter 3).
51
CCIP
2.6 I P (NRB)
(NR B)
Policy
1. Commercially Important Person (Non Resident Bangladeshi) Selection Policy 2006
2. Classification and number of Commercially Important Persons-The categories for

selection, classification and number of Commercially Important Person (Non Resident
Bangladeshi) then known as CIP (NRB) is given below:
SL. Classification for Selection Number
1) NRBs investing directly

in industrial sector Maximum 10
2) NRBs remitting highest amount of foreign currency
through formal channel. Maximum 10
3) NRBs importing Bangladeshi goods
in foreign country. Maximum 05
Maximum 25
3. For selection of CIP (NRB) [ investors in industries]

1) For a Calender year, Amount of investments in Bangladeshi industry by a non
resident Bangladeshi in previous fiscal year
2) Capital investment in foreign currency equivalent to US$ 5,00,000 or more. and
3) For industries under implementation, bill of landing, bill of entry, LC etc. shall have to be furnished
as an evidence in shipment of machinery
4. For selection of CIP (NRB) [ foreign Currency remitters]

1) For a calender year, the amount of non repatriable foreign currency remitted in a particular
account through legal banking channel in previous fiscal year.
2) Remittance to Bangladesh of a nonrepatriable minimum amount equivalent to US$ 1,50,000
through legal Banking channel.
5. For selection of CIP (NRB) [ Importers]

The following determinants will be considered
1) For a Calender year, the value of commodity imported from Bangladesh during
the previous fiscal year by the NRB.
2) For the year in consideration, Bangladeshi goods amounting to a minimum of
equivalent to US$ 500,000 FOB value shall have to be imported.
3) Amount of imports through Proceeds Realisation Certificate (PRC) and
4) Priority shall be given to the importers importing high value added products.
52
Privileges for selected CIP (NRB)
1. The Expatriate Welfare and Overseas Employment Ministry of Bangladesh will provide indentity Card
to the selected CIPs (NRB).
2. CIPs (NRB) will receive entry pass to enter the Bangladesh secretariat during valid period of ID Card.
3. CIPs (NRB) shall be eligible to become members in different policy making concerned committees of
the Govt. of Bangladesh.
4. CIPs (NRB) will be given priority in meeting with local and foreign high officials.
5. CIPs (NRB) will be invited by foreign Bangladeshi missions in different occasions like Independentce
and National Day, Eid-ul-Fiter, Eid-ul-Azha, 21st February International Mother Language Day etc.
important days.
6. CIPs (NRB) will be given priority to reserve seats in Air, Rail, Roads & Water ways for their business trips.
7. CIPs (NRB) and their wives, sons, daughters will be given priority to get cabin facilities for treatment in
government hospitals.
8. For Investment in Bangladeh, CIPs (NRB) investors shall be entitled facilities like that of foreign
investors and their investment will be protected under the Foreign Private Investment (Promotion and
Protection) Act 1980 (Act No. XI of 1980)
9. CIPs (NRB) will be entitled to use VIP lounge to and facilities of special handling in Airport.
Disqualification to be a CIP (NRB)
In the following cases, an individual will be disqualified to be selected as CIP (NRB)

1. If applicant is loan defaulter/tex defaulter in his country or foreign country.
2. If the applicant has got business dispute with foreign buyer and if the applicant is unwilling to resolve
the dispute or adopted means to linger the issue.
3. If the applicant is convicted by Court and unless five years has not been elapsed after imprisonment or
has been declared persona non Greta.
4. If it is proved that the applicant has furnished false information, he will be disqualified to be CIP;
even if a person has already been selected as CIP. Moreover, Such case shall not be eligible to apply.
Source : Original Version is in Bangla, This is an unofficial English Version Translated by

the institute of Modern Languages, University of Dhaka, Bangladesh
53
Jiban Bima Tower, BOI Office at Dilkusha C/A, Dhaka
This part presents the formation, function and services of BOI. As the apex investment promotion agency
of the country, BOI’s role is central to all investors in Bangladesh. This would enable the investor to :
Know about BOI and its services;
Smooth working with BOI functionaries; and
Exchange views and opinions in developing investment climate.
3
Board of Investment
Profile & Procedures

3.1 Structure and Objectives
a. Formation of BOI
3.2 Functions and Facilities
a. Functions of BOI
3.3 Procedural Mapping : First Contacts
3.4 BOI Partnership with Private Sector
b. Institutional Partnership Initiative : CSDC
55
56
3.1SStructure
t r u c t&uObjectives
re...
a. Formation of BOI
Board of Investment (BOI) was established by the Investment Board Act of 1989 to
promote and facilitate investment in the private sector both from domestic and overseas
sources with a view to contribute to the socio-economic development of Bangladesh. It
is headed by the Prime Minister. Its membership includes representatives (at the
highest level) of the relevant ministries – industry, finance, planning, textiles, Jute,
commerce, energy, power, as well as others, such as the Governor of Bangladesh
Bank, Presidents of FBCCI and BCI (Appendix II-b).
The Operational Head and CEO of BOI is the Executive Chairman. The key
organogram of BOI is depicted below:
Exhibit 3.1
Key Organization Structure of BOI
Prime Minister
CHAIRPERSON
BOI BOARD
Executive Chairman
Executive Council Chaired

by Executive Chairman
BOI Office
Head Office Regional Office
Source : Derived from Investment Board Act 1989
Broadly, the objective of BOI is to encourage and promote investment in the private
sector both from domestic and overseas sources and to provide necessary facilities
and assistance in the establishment of industrial setup with a view to contribute to
the socio-economic development of Bangladesh.
57
F Functions
3.2 u n c t i&o Services
ns...
a. Functions of BOI
Broadly, BOI is responsible for facilitating private investment in the country. its
functions are :
i. Providing of all kinds of facilities in the matter of investment of local and foreign
capital for the purpose of rapid
industrialization in the private sector;
BOI Functions are broadly
ii. Implementation of the Government categorized into three:
policy relating to the investment of
capital in industries in the private sector; 1. Investment promotion
iii. Preparation of investment schedule in 2. Investment facilitation and
relation to industries in the private sector 3. Policy advocacy
and its implementation;
iv. Preparation of area-schedule for establishment of industries in the private sector
and determination of special facilities for such areas;
v. Approval and registration of all industrial projects in the private sector involving
local and foreign capital;
vi. Identification of investment sectors and facilities for investment in industries in
the private sector and giving wide publicity thereof abroad;
vii. Invention of specific devices for the purpose of promotion of investment in
industries in the private sector and their implementation;
viii. Creation of infrastructural facilities for industries in the private sector;
ix. Determination of terms and conditions for employment of foreign officers, experts
and other employees necessary for industries in the private sector ;
x. Preparation of policies relating to transfer of technology and phase-wise local
production in the private sector and their implementation;
xi. Providing necessary assistance in the rehabilitation of sickly industries in the
private sector;
xii. Financing and providing assistance in the financing of important new industries
in the private sector;
xiii. Adoption of necessary measures for creation of capital for investment in
industries in the private sector;
xiv. Collection, compilation, analysis and dissemination of all kinds of industrial data
and establishment of data-bank for that purpose; and
xv. Doing such other acts and things as may be necessary for the performance of the
above functions. BOI has been entrusted to give approval of foreign commercial
offices.
58
xvi Work with PICOM to foster Private Infrastructure Committee.
(For details please see page 80).

To summarize, BOI services available for the investors could be categorized in three
stages.
Stage 1: Pre-investment Information and Counseling

At this stage, BOI provides all sorts of information required by an investor to
undertake initial investment move (also see Chapter 4). Professional Investment &
Business Counselors provide cordial assistance upon visit to the BOI office, over
phone, by email & fax and express mailing. It also assists in company formation and
registration.
Stage 2: Special Welcome Service to Foreign Investors

BOI has Welcome Service Desk at Zia International Airport Dhaka, and Shah
Amanat International Airport Chittagong, operating round-the-clock. It assists in
obtaining necessary immigration and Visa on Arrival / Landing Permit, hotel
accommodation and counseling arrangement.
Stage 3: Investment Implementation and Commercial Operation

Once the investor decides to invest and forms a company, BOI provides following
specific facilities and comprehensive services.
a. Industrial registration
b. Industrial Plot
c. Utility Connections
d. Approve Terms & Condition of Foreign Loan, Suppliers' Credit, deferred
payment PAYE Scheme etc.
e. Recommand for Import of Machinery & Raw Materials
f. Work Permit
g. Remittance of Royalty, Technical Know-How and Technical
Assistance Fees
59
3.3PProcedural
r o c eMapping
d u r a: First
l . . .Contacts
To avail the facilities and services provided by BOI to the investors, approaching the right
Serving Desk brings efficiency in the process and interaction. Following Guide Table
shows a summary of such desks by functions / services:
Guide Table :
To Whom to Interact at BOI
Facilities / Services Service Desk First Contact
1. Pre-Investment Counseling Investment Facilities & Assistant Director
Services
2. Welcome Service at BOI Welcome Desk at Assistant Director
3. Immigration & Visits Communication Director
4. Registration of Industries Investment Facilities & Assistant Director
Services
5. Pemission/Approval of Branch/Liaison/ R&I - 1 Deputy Director
Reprsentative office and Buying House
6. Obtaining Work Permit for foreign Nationals R&I - 1 Director
7. Obtaining Industrial Plot Investment Facilities & Director

Services
8. Registration/Approval for R&I – 1 Deputy Director
Foreign Loan, Suppliers' Credit, (Bangladesh Bank Desk)
PAYE Scheme etc.
9. Obtaining Utility Connections Utility Service Cell Director
(gas, electricity, telephone, water
& sewerage, environmental clearance)
10. Import of Machinery & Raw Materials
a. 100% Foreign & Joint Venture R&I – 1 Director
b. Local R&I - 2 Director
11. Remittance of Royalty, Technical Know- R&I - 1 Director
How and Technical Assistance Fees
12. Policy Counseling Policy & Planning Member
13. Strategic Guidance Executive Chairman Private Secretary to
Executive Chairman
In the first visit, investors are advised to have clarifications of the following issues:
● How could BOI assist him in the project implementation?
● What procedures have to be completed?
● What are the preconditions or requirements in each procedure?
● How much time would take to complete each process?
Such specific queries would remove any ambiguity therein and help in efficient
functioning of the process.
60
3.4BBOI
O IPartnership
P a r twith
ne r s hSector
Private ip..
BOI is a key agency for policy advocacy and facilitation for private sector. It maintains
a strong relationship with the private sector business chambers, industry
associations, professional development bodies, economic research initiatives etc.
The 19-Member Board of BOI is also represented by two private sector chambers
namely FBCCI and BCI. Besides, BOI also engages private sector in all the policy
making and implementation initiatives.
b. Institutional Partnership Initiative: Chittagong Skills Development Centre

(CSDC)
In responding to its investors’ changing business requirements, BOI has undertaken
a pioneering initiative by partnering with industry and academia to establish CSDC –
the Chittagong Skills Development Centre. CSDC is an industry-led, non-profit skills
development centre that caters to the present and future skill requirements of the
industry, modeled after the highly-acclaimed Penang Skills Development Centre –
PSDC, of Malaysia.
CSDC’s industry-focused skills training strives to galvanize the nation’s abundant

human resource to boost industrial productivity and growth. By strategically
leveraging the nation’s cost-effective labor base into a skilled workforce, CSDC will
help add greater value to existing and future Foreign Direct Investments; A broader
skilled workforce will further expand and attract multinational and particularly ICT
manufacturing in Bangladesh for regional markets. As a smart partnership, CSDC’s
membership includes multinational and local companies, Chambers of Commerce &
Industry, NGOs and the BOI. The Bangladesh Government is firmly committed to this
policy of Private-Public partnership for accelerated economic development.
Through its strategic partnership with PSDC as well as its members’ internal training
institutions, CSDC offers state-of-the-art, cutting edge technical trainings and global
best practices in business management education. By sharing, developing,
importing and localizing high-caliber training programmes cost-effectively, CSDC
strives to redress the lack of high-quality training services in Bangladesh and reduce
companies’ costly dependence on foreign training. Furthermore, its industry
orientation ensures proactive skills upgradation in response to evolving skill
requirements and new technologies.
61
Partial view of the Chittagong Port
Setting up a business in a foreign country requires a number of activities to perform. This chapter gives a
simplified presentation of those activities with a view to enabling investors to:
approach in the most simplified manner.
avoid unjustified steps in a multi-step cycle.
ensure the best and efficient use of time in business set-up.
4
Business Set-up
Roadmap

4.1 Business Set up at a Glance
4.2 Info Searching
4.3 Physical Verification
b. BOI Counseling
4.4 Getting Structured
a. Selecting a Business Structure
c. Opening Branch/Liaison/Representative Offices
4.5 Operational Set up for Industries
a. Registering with BOI
c. Registration/Approval for Foreign Loan, Suppliers'
Credit, PAYE Scheme etc.
e. Import of Machinery & Raw Materials
f. Obtaining Work Permit
i. Remittance of Royalty, Technical know-how and
Technical Assistance Fees
4.6 Commercial Operation
4.7 Human Resources and Employment
4.8 Listing Private Infrastructure Projects
4.9 Exchange Control
63
64
BBusiness
4.1 u s i n Set-up
e s s . .at. a Glance
Implementing a private sector industrial project in Bangladesh either local, joint
venture or 100% foreign follows a rather simplified process. The entire process could
be divided into 5 (five) major steps as presented the following diagram. BOI supports
are available in Step 1 through 4.
Table 4.1
Major Steps to Set up a Plant in Bangladesh & BOI Assistance
1 Info Search
2 Physical Verification
Assistance
Available
3 Getting Structured
4 Plant Set-up
5 Commercial Operation
Detail roadmap is presented in the next page.
I nInfo
4.2 f oSearching
Searching
Once an investor intends to do business in Bangladesh, the first thing is to have
relevant, sufficient and reliable information on the investment and business climate,
opportunities, competitive strengths, industry structure etc. of the country. This could
be collected from a number of agencies like:
● BOI : The most reliable and state of the art information source in
the Government.
● GOB Agencies : Other sources of the Government of Bangladesh like
Ministries and trade related offices.
65
Exhibit 4.2
Business Setup Road Map
Intention to
Info Searching
Invest in
Bangladesh
Information/data on
Country, Industry &
Overall Climate from BOI
Intention Collection
Arrive Bangladesh
Reception by
Physical verification
BOI Welcome Service at Airports
Immigration &
Customs Formalities
Hotel / Accommodation
BOI Counseling
at Investment Facilities
& Services Section
Independent Decision More Information

Counseling / Services to Invest & Documents from BOI
at investors discretion & website others
Structured
Getting
Opening Bank Company Formation Trade License from

Account & RJSCF Registration Local Govt. Bodies
Import of Machinery
Open Letter of Credit (LC) Application for
or as Equity Investment BOI Registration
Industrial IRC
Operational Set-up
Project Profile
Consignment Release Plant Set-up Memorandum of Assoc.
Articles of Association
Land Information & Document
VAT Registration Machinery Details
Financing Sources
DOE Clearance Tax Identification Number
CIFE Registration
Business
Doing
Commercial Operation
CIFE : Chief Inspector of Factories & Establishments. DOE : Department of Environment.

RJSCF : Registrar of the Joint Stock Companies and Firms. VAT : Value Added Tax
66
● Missions : Direct queries to the Bangladesh Missions in the country of the
investor would also result in reliable information.Diplomatic
Mission of the intending country could also be a dependable
source of information (Appendex ).
● Chambers : Chambers can provide real experiences of the existing investors.
These include FBCCI, FICCI, ICC, DCCI, MCCI, BCI, CCCI
and other regional chambers. Joint Business Councils and
Chambers between the countries (Appendex ).
● Associations: Business associations of the country could also privide sector-
specific information related to the respective industry
(Appendex ).
● International : UN bodies like World Bank, UNCTAD, UNDP, WTO, IFC, MIGA,
FIAS Organizations etc. and other international organizations
could also be a reliable source (Appendex ).
● Consultants : Independent business consulting firms and consultants provide
professional services and assistance (Appendex ).
● Websites : A number of independent websites on Bangladesh hosted in
different locations of the world could be surfed. The keyword
searching by ‘Bangladesh Investment’, ‘Bangladesh Business’,
‘Bangladesh Profile’, ‘FDI Bangladesh’ etc. would provide
numerous results. To have more results, please search in
different search engines like Google, Yahoo, Altavista, Lycos
etc. BOI official website is www.boi.gov.bd while the official
website of Government of Bangladesh is www.bangladeh.gov.bd.
Contact address of the above mentioned sources are given in Chapter 8.
67
PPhysical
4.3 h y s i cVerification
al...
Upon analysis of the collected information and initial decision to move forward, the
investor requires to visit Bangladesh to have physical verification. He could either
visit independently or ask BOI to arrange the visit. However, to make the visit more
meaningful and effective, BOI recommends the investor to contact and avail BOI
Welcome Service.
Business travellers may request for visas for a specified duration and multiple
entries. Bangladesh issues appropriate categories of visas to business persons to
conduct feasibilities, do business and make investment and also work in the private
sector industries. Period of visa may vary from 1 month to five years with entry-
restrictions depending on applications. Please see present visa policy in Annex II (d).
Landing Permit (LP) / Visa on Arrival (VOA)
The foreign investors and businesspersons could avail LP/VOA from ZIA for
maximum 30 days under the following conditions:
● The foreign investors are identified on the basis of certification from Board of
Investment (BOI) / BEPZA. Officials from the BOI are on duty round-the-clock to
facilitate certification of the relevant documents to get VOAs / LPs.
● The foreign businesspersons who are directly associated with import of
Bangladeshi products are identified on the basis of the certificate by the relevant
associations of export-oriented commercial/industrial organizations or the FBCCI
or the BGMEA. The certificate shall include Tax Identification Number (TIN) of the
respective local commercial/industrial organizations.
The conditions of issuing LP/VOA include following:
i. The period of LP/VOA can not be extended;
ii. The LP/VOA applicant shall have endorsement of US$500 in the passport / in cash;
iii. The LP/VOA Fee will be determined on Reciprocity Policy with the respective countries;
iv. The applicant shall have Return Air Ticket;
v. The applicant shall utilize same port for entry and departure.
Also please contact Bangladesh mission in your country.
b. BOI Counseling
On arrival in Bangladesh, investors could avail in-depth BOI counseling.
Professional Investment and Business Counselors provide cordial assistance
through Over-the Desk-Meeting at BOI office, attending phone, by email and fax and
express mail. They also assist in company formation.
68
g eGetting
4.4 t t i nStructured
g
a. Selecting a Business structure
To know the appropriate procedures for doing business in Bangladesh, it is important
to select the type of business operation. These could either be:
- Operating as a Branch/Liaison Reprsentive Office or Buying House or
- Establishing Industrial Projects.
Various Types of Company:

Business in Bangladesh may be carried on by a company formed and incorporated
locally or by a company incorporated abroad but registered in Bangladesh. The
incorporation or registration is done by the Registrar of Joint Stock Companies and
Firms (RJSC&F) under the provisions of the Companies Act 1994. Companies could
be classified in following categories:
1. Limited Companies:
a. Company Limited by Shares
i. Public Limited Company and
ii. Private Limited Company
b. Company Limited by Guarantees.
2. Unlimited Companies
Unlimited companies and companies limited by guarantees may or may not have
share capital.
Private Limited Company:
A private limited company is a business entity that

a. restricts the rights to transfer the shares,
b. limits the number of its members to minimum 2 and maximum 50 excluding the
persons employed in the company,
c. prohibits any invitation to the public to subscribe for the shares or debentures of
the company and
d. entitles to commence business from the date of its incorporation.
69
Public Limited Company:
On the other hand, a public limited company,
a. may issue invitation to the members of the public to subscribe the shares and
debentures of the company through a prospectus which complies with the
requirements of the Companies' Act 1994 and the Securities and Exchange
Commission Act 1993 as amended from time to time,
b. has minimum 7 members, but there is no maximum limit,
c. has at least 3 Directors and
d. may a private company converted into a public company.
Incorporation Options for Foreign Investor:
Incorporation options to a foreign investor include:

a. Setting up a 100% foreign-owned company in Bangladesh;
b. Setting up a Joint Venture with Bangladeshi company / investor;
c. Establishing the Company’s Place of Business in Bangladesh;
d. Setting up a branch or a subsidiary of a foreign company in Bangladesh;
e. Setting up a Bangladeshi Company or participate in a Bangladeshi Company
already formed.
Company Formation Procedure:
To register a company with the Registrar of Joint Stock Companies and Firms
(RJSCF), promoter have to undertake activities in following steps:
1. Step 1: Selection of the Company Name. The name should not be identical with
or closely resemble to the name of an existing company. An application in plain
paper along with required nominal fees is to be submitted to the RJSRF for
verification and clearance of the proposed name.
2. Step 2: Memorandum of Association (MOA). MOA states the name of the

company, whether it is public limited or private limited and the location of the
registered office at the company. The MOA should clearly spell out the main
objectives, the authorized capital, the division of this capital into shares of fixed
amount and liability of its members.
3. Step 3: Articles of Association (AOA). The AOA are the regulations governing the
internal management of the affairs of the company and the conduct of its
business. These articles are subordinate to and controlled by MOA.
70
4. Step 3: Registration Application. Prescribed Application Form for registration
has to be filled in, signed and submitted to the Registrar of the Joint Stock
Companies and Firms. The application should include:
● Application Form. Duly filled in, signed and stamped;
● MOA. Duly signed and stamped;
● AOA. Duly signed and stamped;
● Registration Fees. As applicable. (See Costs of Doing Business)
● Stamp Duty for MOA. Fixed.
● Stamp Duty for AOA. Variable. (See Costs of Doing Business)
For private companies, also required :

● Form I : Declaration on Registration of Company;
● Form VI : Notice of situation of registered office or any change therein;
● Form IX : Consent of Director to Act;
● Form X : List of Persons Consenting to be Directors;

● Form XII : Particulars of Directors, Managers and Managing
Agents and any change therein.

For public companies, also required :
● Form XI : Agreement to take Qualification Share of the Propose
Company
● Form XIV : Declaration before commencing business in case of the
company filling a Statement in lieu of Prospectus.

Upon complete submission of the above, registration is given by the RJSCF. For
latest information, please contact the Registrar of the Joint Stock Companies & Firms
or visit www.roc.gov.bd.
Establishing Place of Business:
In establishing a place of business of a foreign company, the company has to be
registered with the Registrar of Joint Stock Companies as the place of business.
Such registration is required in respect of capital issue and obtaining clearance from
the central bank i.e. Bangladesh Bank.
Documentary requirements include:
● Prescribed Application Form. Duly filled in, signed and stamped
● Copies of Charter, statutes or MOA and AOA or other similar instrument. Duly
certified by Oath Commissioner or Notary Public and authenticated by

Bangladesh Embassy in the respective country;
● List of Company Directors and Secretary; and
● Complete address of the Registered or Principal Office in the country of origin.
71
c. Opening of Branch/Liaison/Representative Office:
To open or seek extension of Branch/Liaison Representative Office of a foreign
company, the company has to submit in prescribed Application Form to Board of
Investment along with following documents:
● Prescribed Application Form. Duly filled in, signed and stamped;
● MOA and AOA of the Principal Company;
● Certificate of Incorporation;
● Name and Nationalities of the Directors/Promoters of the Principal Company;
● Board Resolution to open a Branch/Liaison/Representative Office in Bangladesh;
● Audited Accounts of the last financial year;
● Proposed organogram of the office;
● List of activities of the proposed office.
All papers/documents must be attested by the Bangladesh Embassy/High

Commission of the country of origin. Embassy/High Commission of the applicant’s
country of origin or Apex Chamber of Commerce of the country of origin.
The Trade License has to be secured from the local government office like City
Corporation or Municipality or Union Parishad, as applicable. More information on the
procedures of Trade Licence could be viewed at www.dhakacity.org.
OOperational
4.5 p e r a t iSet
on upaforl .Industries
..
a. Registration with BOI
i. Joint venture and 100% foreign investment proposals in the private sector
● Entrepreneur/investors are advised to apply for registration to BOI in order to

avail of facilities and the institutional support services provided by the
Government
● Prescribed application form has to be collected from BOI Office or downloaded
from BOI website www.boi.gov.bd. (Appendix I). Documents to be enclosed
with the application are:
72
i. Application in prescribed Form duly filled in. 2 (two) copies.
ii. Certificate of incorporation along with Memorandum & Articles of
Association in case of Public / Private Limited Company. In case of Joint
Venture Project (JVP), JVP Agreement duly signed in by both the parties.
2 (two) copies.
iii. Attested copies of Deeds/Documents in support of project land (in case of
own land, Purchase Deed and in case of lease / rental premises, Deed of
Agreement). 2 (two) copies.
iv. If the total project cost exceeds Tk. 50 (fifty) million, submit Project Profile.
2 (two) copies.
v. Background of the Promoters in official letterhead pad describing a) Name,
b) Permanent and c) Mailing Address, d) Position and e) Nationality. 2 (two)
copies.
vi. List of machinery indicating quantity and price. 3 (three) copies.
vii. In case the project is financed by loan, copy of relevant documents in
support of loan. 2 (two) copies.
viii. Pay order / bank draft amounting required amount in favor of "EXECUTIVE
CHAIRMAN AND MEMBER-SECRETARY, BOARD OF INVESTMENT".
● After receiving the application duly filled in, signed and required documents
enclosed, BOI reviews the application and, if found suitable, Registration

Certificate is issued by 7 days.
● BOI registration makes the company eligible to avail the incentives and
facilities provided by the government.
ii. Self financed local investment proposals including industries sanctioned/
financed by financial institutions or commercial banks
The entrepreneurs of such projects are to fill up a simple prescribed application
form and submit to BOI for registration. After a first hand scrutiny of the information,
BOI issues registration letter.
● Entrepreneur/investors are advised to apply for registration to BOI in order to
avail facilities and the institutional support services provided by the Government.
● Prescribed application form has to be collected from BOI Office or downloaded
from BOI website www.boibd.org. Documents to be enclosed with the application are:
ii. Certificate of incorporation along with Memorandum & Articles of
Association in case of Public / Private Limited Company. In case of
Partnership Project, Partnership Agreement duly signed in by both the
parties. 2 (two) copies.
73
iii. Attested copies of Deeds/Documents in support of project land (in case of
own land, Purchase Deed and in case of lease / rental premises, Deed of
Agreement). 2 (two) copies.
iv. If the total project cost exceeds Tk. 50 (fifty) million, submit Project Profile.
2 (two) copies.
v. Pay order / bank draft amounting required amount in favor of "EXECUTIVE
CHAIRMAN AND MEMBER-SECRETARY, BOARD OF INVESTMENT".
● After receiving the application duly filled in, signed and required documents
enclosed, BOI reviews the application and, if found suitable, Registration
Certificate is issued by 7 days.
● BOI registration makes the company eligible to avail the incentives and facilities
provided by the government.
iii. Permission for setting up industrial units with the public sector
corporations
Any individual entrepreneur either local or foreign can set up an industry with public
sector corporation. Such joint venture is required to be registered with the BOI if the
private sectors contribution is more than 50% of the project cost and in such a case
it is treated as private sector project. For any public sector which makes contribution
out of their own fund needs approval of the Ministry concerned. If the contribution
of the corporation is 50% or above, it is treated as a public sector project. The public
sector project is processed by the Ministry concerned for approval of the Planning
Commission.
● Government promotes rapid privatization of the state-owned enterprises (SOEs).
● Infrastructure and high investment projects like power have been encouraged
for public-private partnership.

Entrepreneurs requiring industrial plot for setting up of industry in any industrial
areas/estates apart form BEPZA and BSCIC, may apply to BOI as following with a
view to justifying actual requirement:
● Mention the location and size of the plot
● Copies of sanction / registration letter and
● Industrial Layout Plan.
74
After receiving the application, BOI provides assistance to get the industrial plot.
Most of the industrial areas/ estates are owned / controlled by city development
authorities in three divisional headquarters., RAJUK in Dhaka, CDA in Chittagong
and KDA in Khulna. Besides, a few industrial estates are owned and controlled by
some other government agencies namely (a) Public Works Department and (b)
Housing and Settlement Directorate.
BOI also recommends for acquisition of land to the concerned if required by the
industrial units. In such cases, the entrepreneurs are required to submit relevant papers
and information in connection with the land to be acquired by the Deputy Commissioners
(DC) concerned.
c. Approval of Foreign Loan, Suppliers' Credit, PAYE Scheme etc.:

Entrepreneurs in the private industrial sector arranging foreign credit in the form of
loan, suppliers' credit, PAYE scheme etc. are required to obtain prior approval from
the Scrutiny Committee headed by the Governor of Bangladesh Bank. However, all
neccesary processes are completed at BOI. Representatives from Bangladesh Bank
provide technical assistance to the applicants.

● Utility connections and respective providers are:
i. Electricity : Power Development Board (PDB), Dhaka Electric

Supply Authority (DESA), Dhaka Electric Supply
Company (DESCO) and Rural Electrification Board (REB).
ii. Gas : Titas Gas Transmission & Distribution Company Ltd.
(TGTDCL), Bakhrabad Gas System Ltd. (BGSL) and
Jalalabad Gas Transmission & Distribution System Ltd.
(JGTDSL)
iii. Telephone : Bangladesh Telegraph and Telephone Board (BTTB)
for Land phone, and other companies for cellular
phone services.
iv. Water : WASA or self generated.
v. Sewerage : WASA or self serviced.
vi. Tube well Licensing : WASA.
● Enterpreners are encourged to contact BOI Utility Service Cell for obtaining utility
services
75
● BOI Utility Service Cell has been sufficiently strengthened with placement of
Senior Officials from the utility service providers.
● Investors may apply in prescribed forms for specific connectivity to BOI Utility
Service Cell (USC). The Cell arranges necessary utility services from the
respective providers within the stipulated period.
e. Import of and Raw Materials

● Prescribed application form for IRC should be collected from BOI and CCI&E.
After receiving the application duly filled in, signed and required documents
enclosed, BOI reviews the application, arranges necessary inspection of the
plant.
● BOI, BEPZA and BSCIC fix up the import entitlement and recommend to Chief
Controller of Imports & Exports (CCI&E) for issuance of Import Registration
Certificate (IRC).
● CCI&E issues IRC in favor of the industrial enterprise within 30 days. ???
● Items included in the banned list cannot be imported unless specified otherwise.
● In case of import of raw and packaging materials for pharmaceutical industry,
the Drug Administration Directorate under the Ministry of Health and Family
Welfare prepares the Block list on half-yearly basis. BOI/BEPZA/BSCIC
provides necessary assistance relating to import of their respective jurisdictions.
f. Work Permit
Work permit for foreign nationals is required for employment in Bangladesh. Private
sector industrial enterprises (outside EPZs), branch/liaison/ representative office of
foreign origin and also local commercial enterprises desiring to employ foreign
nationals are required to apply in the prescribed form obtainable from BOI. For
expatriate employment the guidelines are as follows:
● Nationals of the countries recognized by Bangladesh are considered for
employment.
● Employment of expatriate personnel are considered only in industrial
establishments and commercial enterprises duly sanctioned / registered by the
appropriate authority.
● Employment of foreign nationals is normally considered for the job for which
local experts / technicians are not available and persons below 18 years of age
are not eligible for employment.
76
● Decision of the Board of Directors of the company concerned for new
employment/ extension has to be furnished.
● Initially employment of any foreign national is considered for a term of one year
which may be extended on the basis of merit of the case.
● Necessary security clearance has to be obtained from the Ministry of Home
Affairs after issuance of Work Permit and the duration of visa should be
extended upto the period of Work Permit.
● For obtaining new Work Permit, the expatriate investors and employee must
arrive in Bangladesh with ‘PI’ and ‘E’ types visa respectively obtainable from
Bangladesh Mission concerned in abroad.
● Recommendation from BOI/BEPZA is required for obtaining ‘PI’ and ‘E’ type visa.
● Application for Expatriate Work Permit must be submitted to BOI within 15
(fifteen) days from the date of arrival.
● Number of the expatriate employees in an industrial enterprise should not
exceed 1:20 (foreign:local) ratio at any time during regular production and the
ratio for commercial enterprises be 1:5 (foreign:local).
● Prescribed application form has to be collected from BOI. The application form
could also be downloaded from BOI website www.boi.gov.bd.

● In order to regulate working conditions and to ensure safety in the factory, any
manufacturing company employing ten or more workers is required to be
registered under the Factories Act, 1965 along with the office of the Chief
Inspector of Factories and Establishment (CIF&E).
● The act is primarily to regulate working conditions and to ensure safety in the factory.
● Prescribed Application Form has to be collected from the office of the Chief
Inspector of Factories and Establishment, filled in and submitted with
requirements. The CIF&E office issues registration within the stipulated period.

● Environment Conservation Act 1995 made it mandatory to all industrial projects
to obtain Environmental Clearance Certificate from the Department of
Environment.
77
● The main criteria for obtaining clearance are set out in the Environment
Conservation Rules 1997 which was established under the Act.
● Different levels of assessment are required depending on the particular industry
concerned.
● Investors may apply in prescribed forms for Environmental Clearance
Certificate to BOI Utility Service Cell (USC) enclosing required documents. The
USC arranges necessary clearances from the DOE within the stipulated period.
i. Remittance of Royalty, Technical Know-How and Technical Assistance Fees

● Prior permission of BOI is not required for entering into agreements for the
purpose of royalty, technical know-how and technical assistance if the total fees
and other expenses connected with technology transfer are within the following
prescribed limits:
- For new projects, such fees and other expenses should not exceed an
aggregate limit of 6 % of C&F value of imported machinery.
- Recurrent annual fees for royalties and other expenses such as fees for
technical know-how, technical assistance, operational services, marketing
of products etc. should not exceed an aggregate limit of 6% of the previous
year's sales of the firms as declared in the tax return.
● Proposals which are not covered under the prescribed limits require prior
approval of BOI for which application has to be submitted along with necessary
documents and copy of the relevant draft agreement.
● Prior approval from BOI must be required for remitting any technical fees.
● Industrial concern desiring to remit technical fees must be registered with BOI.
● Application in prescribed form to be submitted to BOI along with necessary
documents. Sample application form is annexed at appendix-1e.
78
CCommercial
4.6 o m m eOperation
rcial...
● After completion of the setup, the plant goes into trial production.
● Successful trial production leads to commercial production.
● The investor is required to submit half-yearly performance report to BOI on
production and employment in the project.
● Any changes in information provided in the registration letter has to be informed
and ammended approved by BOI immediately.
4.7HHuman
u mResources
a n . . .& Employment
Bangladesh offers a substantial manpower reserve-skilled, unskilled, educated and
otherwise. There is a good supply of relatively low cost labor in the country. Many
of them have a working knowledge of English and possess the basic skills required
by industries. Of late, there is an increasing supply of professionals, technologists
and other middle and low-level skilled workers. They receive technical training from
universities, college, technical training centers, polytechnic institutions etc. The
expenditure incurred by an employer to train his employees is exempted from
income tax.
Laws related to consolidate and amend the matter relating to employment of labor,
relation between employees and employers, fixation of minimum rate of wages,
payment of wages, compensation for the workers in industrial hazards, formation of
trade union, occurrence of industrial dispute and dispute settlement mechanism,
labor health, security, safety, environment of working place, probation and other labor
related matter and death with the recently enacted “The Bangladesh Labour Act,
2006”. This law has replaced the previously used laws for labor related issues.
79
4.8EListing
x c hPrivate
ang e...
Infrastructure Projects
The Government of Bangladesh has adopted a policy for promoting the development
of infrastructure projects through private sector. There was an absence of consistent
procedures to identfy, develop and process private infrastructure projects, as there
were no guidelines. In October 2004, GOB published the Bangladesh ''Private Sector
Infrastructure Guidelines'' (PSIG) for encouraging infrastructure projects with private
sector financing, management and operation.
The objectives of PSIG are:

● to establish within the Government, procedures to identify Private Infrastructure Projects;
● to document a set of guidelines, for both the private investors and the Government; and
● to establish institutional arrangements to monitor and expedite the implementation
of such projects at a national level.
Full text of the PSIG are available online and can be downloaded from
www.boi.gov.bd and www.iifc.net
Private Infrastructure Projects may be initiated for listing, through the following
mechanism:
a) Submitted by a Line Ministry to PICOM

b) Submitted directly by the private sector to the BOI
c) Submitted directly by the private sector to PICOM
The initiation of projects for the List shall be made in forms prescribed by PICOM. For
items (b) and (c), the relevant Line Ministry shall confirm whether the Project is
consistent with the sector plan and is desirable.
Projects. shall be approved for inclusion in the List in the following manner:
(a) Projects of capital cost less than US$ 5 million shall be approved by the Line
Ministry and notified to PICOM for inclusion in the list;
80
(b) Projects of capital cost US$ 5 million or more shall be approved by the Cabinet
Committee on Economic Affairs.
Exhibit 4.3
Segregation of Public and Private Infrastructure Project
Public
LMs Prepare Infrastructure PC Prepares Draft
Public Sector Projects Preliminary ADP ADP
and Private
Sector Lists
Private PICOM examines Private
Infrastructure
Infrastructure Projects
Projects
Projects from ECNEC
the Private Approval
Sector
CCEA
Approval
LMs and Implementation

ADP = Annual Development Programme PICOM monitor by LMs & Mon-
CCEA = Cabinet Committee on Economic Affairs EAs itoring by IMED
EAs = Executing Agencies
ECNEC = Executive Committee for the National Economic Council
IMED = Implementation Monitoring and Evaluation Division
LMs = Line Ministries
PC = Planning Commission
PICOM = Private Infrastructure Committee
81
Table : 4.2
List of the Projects approved by PICOM
* Subject to approval of CCEA
82
E Exchange
4.9 x c h a nControl
ge...
Bangladesh Bank (BB) is the central Bank of the country and is responsible for
issuing Bangladeshi currency and maintaining its value. BB administers the foreign
exchange regulations. It has been continuing to liberalize foreign exchange
regulations in conformity with the government’s reform agenda in macro economic
policies with a view to creating an environment conducive to investment and
productivity.
Instructions relating to foreign exchange transactions by a foreign investor are
available in the Guidelines for Foreign Exchange Transactions (1996), Volume-I and
Volume-II and Circulars issued by Bangladesh Bank from time to time. For detailed
instructions, investors may consult the relevant guidelines/circulars. Salient features
of some of those instructions are given below.
a. Convertibility of Bangladesh Taka
The Taka is fully convertible for current account transactions. All current transactions
including trade and investment & investment related transactions may be conducted by
individuals / firms through authorized dealer (AD) banks without prior permission of BB.
b. Opening of Bank Account by a Foreign Investor
A non-resident may open with any Authorized Dealer (AD) branch of a bank Foreign
Currency (FC) accounts and Non-resident Foreign Currency Deposit (NFCD)
accounts with foreign exchange brought in from outside. Balances of these accounts
are freely transferable abroad. A foreign investor may also open and operate a Taka
account freely with any bank while he is a resident. A non-resident can open a Non-
Resident Investor's Taka Account (NITA) with any AD bank in Bangladesh with
foreign exchange remitted from abroad through normal banking channel or by
transfer of funds from the non-resident investor's foreign currency account for
portfolio investment in Bangladesh.
c. Bringing in Cash from Abroad by a Foreign Investor
A foreigner can bring in foreign exchange in any form including cash without limit. But
for amounts, in excess of US$ 5,000 a declaration on FMJ form is required to be
made to the Customs Authorities at the time of entry. Amounts brought in may also
be taken out freely, subject to production of the declaration where applicable.
d. Transfer of Capital and Capital Gains
Foreign Investors are free to make investment in Bangladesh in industrial enterprises
excepting a few reserved sectors. An industrial entity may be set up in collaboration
with local investors or may even be wholly owned by the foreign investors.
The repatriation of sale proceeds (including capital gains) of shares of companies
83
listed in a Stock Exchange in Bangladesh may be made through an AD if such
investment takes place through NITA operation. Remittance of sale proceeds of
shares of companies not listed in a Stock Exchange requires prior Bangladesh Bank
(BB) permission, which is accorded to for amounts not exceeding the net asset value
of the shares. Transfer of shares and securities from one non-resident to another
non-resident requires no prior BB approval.
e. Remittance of Proceeds from Liquidation of Industrial Undertaking
Remittance of proceeds arising out of liquidation of industrial undertaking requires
prior BB approval.
f. Transfer of Profit and Dividend Accruing to a Foreign Investor
i. Profits : Branches of foreign firms/companies including foreign banks, insurance
companies financial institutions are free to remit their post-tax profits to their head offices
through ADs.
ii. Dividends: Remittance of dividend income to non-residents in respect of their
investments in Bangladesh may be made through an AD.
g. Repatriation of Savings, Retirement Benefits & Salary of Foreigners Employed
in Bangladesh
Foreigners employed in Bangladesh with the approval of the Government may remit
50% of salary, actual savings and admissible retirement benefits through an AD. Net
salary of foreign nationals payable for the period of leave admissible to them as per
their service contract duly approved by the Government will be remittable.
h. Local Borrowings
Banks may extend working capital loans or term loans in local currency to foreign
controlled or foreign owned firms/companies (manufacturing or non-manufacturing)
operating in Bangladesh on the basis of prevailing credit norms and normal banker-
customer relationship.
While the term loan in taka may also be obtained without prior Bangladesh Bank
approval provided:
a) The term loan in taka does not exceed the amount of equity of the firm/company
held by Bangladesh nationals and firms/companies not owned or controlled by
foreigners and
b) Total debt of the firms/company does not exceed the total equity of that
company/firms.
Banks are free to grant local currency loans to joint venture industries in Export
Processing Zones (EPZ) up to the amount of short-term foreign currency loans
obtained from abroad.
84
i. Borrowing Abroad
Borrowing abroad in foreign currency requires prior BOI approval. Application as per
proforma (Annexure-A) for approval of foreign borrowings should be submitted to
BOI with analyses and supporting document as per the check list enclosed. In
examining the approval request for foreign borrowing proposals, the Board of
Investment shall attach priority mainly to medium and longer term borrowing. Having
scrutinized fully documented proposals only will be submitted to the committee
headed by Governor, Bangladesh Bank for approval. Repayment of principal and
interest on approved foreign currency borrowing may be made through Authorized
Dealer (AD) bank as per agreed terms. 100% foreign owned and joint venture units
in EPZs may, however, obtain foreign currency loans from overseas banks and
financial institutions without prior BOI or BB approval. Joint ventures in EPZ cannot,
however, create charge on their assets favoring non-residents.
j. Investment Facilitating Measures:
Prior approval of Bangladesh Bank is no longer required for:
a. Remittance of profits to the head office of foreign investors.
b. Issuance of shares to non-residents against investment in industrial setup in
Bangladesh.
c. Remittance of dividends on such shares to the non-resident investors.
d. Portfolio investment by non-residents including foreign individuals/enterprises
in shares and securities through stock exchanges of Bangladesh.
e. Remittance of dividends on portfolio investment by non-residents through
stock exchanges of Bangladesh.
f. Remittance of sale proceeds including capital gains.

g. Remittance of principal and interest installments on loans/supplier’s credit
obtained by industrial units from foreign lenders with approval of BOI.
h. Remittance in repayment of principal and payment of interest on such loans.
i. Remittance of royalty, technical know-how and technical assistance fees in
conformity to the BOI guidelines.
j. Remittance of savings of expatriate personnel, out of salaries and benefits
stated in BOI approved contract, at the time of their leaving Bangladesh.
85
k. Export Encouragement Measures:
a. Annual foreign exchange retention quota for exporter has been refixed at 50%
of FOB export earning.
b. Retention quota for high import content exporters is 10% of FOB export
earnings.
c. Exporters are allowed to keep foreign exchange retention quota in foreign
cur rency accounts in a bank in Bangladesh dealing with foreign currency.
d. Usage of funds of the retention quota of exporters in setting up offices abroad
and bonafide business expenses such as business visits abroad, participation
in export fairs & seminars, import of raw materials, machineries and spares
etc. are allowed keeping the bank informed.
86
Cost is the prime determining factor in any investment decision. At the end of the day, the
investor calculates how much return on investment has been earned. Higher business costs lead
to losses that ultimately results in investment termination, discontinuation and closure. This
chapter presents:
Detail costs of doing business in Bangladesh
A comparison of basic cost elements among competing destinations in Asia
5
Costs of Doing
Business

5.1 Typical Costs of Doing Business in Bangladesh
a. Arrival and Getting Started
b. Industrial Land and Factory building
c. Business Setup
d. Utilities
e. Telecommunication
f. Human Resources
g. Transportation
h. Living Costs
5.2 Taxation in Bangladesh
5.3 Customs Tariff
5.4 Comparative Costs in Competing Locations
89
90
5.1TTypical
y p i cCosts
a l of C o aBusiness
Doing st...
The cost of doing business in Bangladesh is significantly competitive in comparison
to other economies in the region. A summary of relevant costs of doing business is
given below for the prospective investors.
a. Arrival and Getting Started
Business Startup Costs : Arrival

Cost Heads Costs
Immigration & Visa Varies by
1. Pre-arranged Visa from Missions Country.
a. Single-entry for 3 months
b. Single-entry for 6 months Please contact
c. Multiple-entry for 6 months Bangladesh Mission
d. Multiple-entry for 1 year in your
e. Multiple-entry for 5 year Country/nearest
f. Multiple-entry for Work period Country
2. Landing Permit / Visa on Arrival
a. Visa on Arrival for 30 days
Business Startup Costs : Structuring

Cost Heads in Taka In US$
Trade License
Securing Trade License 250-2,500 3.57-35.7
Incorporation with RJSC&F
1. Name Clearance (for each name search) 5.00 0.071
2. Stamp Affixing with MOA Stamp Value Stamp Value

- Authorized Capital of any amount 500 7.14
3. Stamp Affixing with AOA Stamp Value Stamp Value

- Authorized Capital upto Tk. 1,000,000 1,500 21.42
- Authorized Capital upto Tk. 30,000,000 4,000 57.14
- Authorized Capital above Tk. 30,000,000 10,000 142.85
Note : Exchange Rate US$ 1 = BDT 70 Tk.
91
Business Startup Costs : contiued
Cost Heads in Taka In US$
4. Registration Fees based on Capital Limit Fee Fee

- Authorized Capital: upto Tk. 20,000 120 1.70
- Authorized Capital: upto Tk. 50,000 120+ @ 60 1.70+@ 0.85
for each 10,000 for each 142
above 20,000 above 284
- Authorized Capital: upto Tk. 1,000,000 300+ @ 15 4.28+@ 0.21
for each 10,000 for each 142
above 50,000 above 714
- Authorized Capital: upto Tk. 5,000,000 1,725+ @ 8 24.6+@0.11
for every 10,000 for every 142
above 1,000,000 above 14285.71
- Authorized Capital: above Tk. 5,000,000 4,925+ @ 15 70.35+@0.21
for every for every
100,000 1428.57
b. Industrial Land and Factory Building

Registered industrial projects are eligible to obtain land from the government. Price
of land in most of the industrial estates/areas is relatively lower than the market rate.
These estates are developed with necessary infrastructure and utility facilities such
as electricity, gas, water, sewerage etc. Industrial plots are allotted by BEPZA and
BSCIC in industrial areas developed by them. Plots in other industrial estates/areas,
owned by the government or owned/controlled by any local authority, are allotted on
the recommendation of BOI.
Quality construction materials including civil, structural and architectural design and
labor force are locally available in every part of the country. Moreover, international
construction firms are also present in the country.
Fully serviced Industrial plots and standard factory buildings are offered by
Bangladesh Export Processing Zones Authority (BEPZA) as per rate stated below:
Industrial Land & Factory Building

Cost Heads Unit In Taka In US$
Land in EPZs (30 years renewable lease)
a. Dhaka, Chittagong, Comilla, Adamjee & Karnaphuli Sq.m/year 140 2.00
b. Mongla, Ishwardi, Uttara Sq.m/year 70 1.00
Standard Factory Building Rental
a. EPZs : Dhaka, Chittagong, Comilla, Adamjee & Karnaphuli Sq.m/month 145 2.5
b. EPZs : Mongla, Ishwardi, Uttara Sq.m/month 72 1.25
c. Average Construction Cost Sq.m 5,790-7,238 86.98-108.73
92
c. Business Setup
Following is a list of costs incurred in various kinds of registration and license.
Business Setting Up Costs

Cost Heads in Taka in US$
BOI Registration
1. Registration Fees based on Project Cost Fee Fee
Project Cost: upto Tk. 100,000,000 5,000 71
Project Cost: upto Tk. 1,000,000,000 50,000 714.28
Project Cost: above Tk. 1,000,000,000 100,000 1428.57
2. Updating the changes in Registration Info 1,000 14.28
Work Permit Fee Fee

1. For Private Sector (permit given by BOI)
Work Permit Fee per Person (Industry) New 5,000 71.42
Work Permited fee per Person (Branch/Liason Office) New 3,000 45
Extension 1,000 15
DOE Clearance / Renewal
1. Fees based on Project Cost Fee Fee
Project Cost : upto Tk. 1,000,000 300 4.28
Project Cost : upto Tk. 10,000,000 3,000 42.85
Project Cost : upto Tk. 500,000,000 5,000 71.42
Project Cost : above Tk. 500,000,000 10,000 142.85
Registration with CIFE

1. Fees based on No. of Factory Workers Fee Fee
Worker Nos. : 10 - 300 80 - 800 1.14-11.4
Worker Nos. : 301 - 1,000 1,400 - 2,000 20-28.57
Worker Nos. : Above 1,000 2,400 34
VAT Registration with NBR

1. Registration Fees No Fee
Required
d. Utilities: Electricity, Gas, Water, Sewerage

Electricity: Bangladesh Power Development Board (BPDB) is the responsible
agency for generation, transmission and distribution of electricity in Bangladesh.
93
Power is generated in hydro, steam, gas turbine and diesel power plants, All the
generating stations are interconnected through a national grid. The Dhaka Electric
Supply Authority (DESA) started operation to maintain uninterrupted supply of
electricity in the capital city. The industrial consumption rate of electricity varies from
Tk. 3.30 to Tk. 5.75 per kW (US$ 0.05 to 0.10) depending on the size of the
industries, load capacity and peak & off-peak hour consumption. However, captive
power generation is also allowed for private sector enterprise.
Gas: Natural gas supply is available in major industrial areas of Dhaka and
Chittagong Division. Gas tariff for industrial consumption is Tk. 5.07 (US$ 0.09) per
cubic meter including supplementary duty and VAT.
Water and Sewerage : Water is supplied by the Water Supply and Sewerage
Authority (WASA) in metropolitan areas of Dhaka and Chittagong. In other municipal
areas, local municipalities are provides the service. Dhaka WASA supplies fresh
water to the city consumers at the following rate :
● Residential / Domestic : Tk 5.15 (US$ 0.074) / 1000 litter
● Commercial / Industrial : Tk 19.48 (US$ 0.34) / 1000 litter
Sewerage bill is equal to water bill for those who has sewerage connection. The
consumer who does not have a sewerage connection but there is sewerage main
line within 100 ft distance from the respective premise, he has to pay an amount of
10.02% to municipal valuation annually as sewerage bill.
Utility Costs
Electricity
(Providers: BPDB, DESA, DESCO, REB)
1. BPDB, DESA & DESCO
Temporary Connection
a. Application Form No No
b. Connectivity Fee & Tariff As may be As may be
determined determined
Permanent Connection
a. Application Fee 15-250 0.21-3.57
b. Security Deposit (per kW load 220-440) 375-550-600 5.35-8.57
c. Instruments, Transformers, Service Line
Drawing, Bay Extension, Installation etc. As per Rate As per Rate
(In DESA, 'Item c' except Bay Extension, 5000-55,000 71.4-785.71
is Fixed At lti-ht)
d. Tariff per Unit (excluding VAT and SD)
- Pump used in Agriculture 1.84 0.026
- Small Enterprise (as on usage time)
Flat 4.02 0.057
94
Off Peak 3.20 0.045
Peak 5.62 0.080
- Commercial (as on usage time)
Flat 5.30 0.075
Off Peak 3.80 0.054
Peak 8.20 0.117
- Class F : Medium Pressure (11 KV)
Flat 3.80 0.054
Off Peak 3.13 0.044
Peak 6.73 0.096
- Class G1 :Very High Pressure
DESA (132 KV) 2.22 0.031
- Class G2 :Very High Pressure
General Use (132 KV) / Flat 2.75 0.039
2. REB
Provisional Connection for Construction
period only
a. Application Form No No
b. Security Advance As per Rules of As per Rules of
c. Transformer Supply Charges PBS PBS
- Advance Installation & removal
For Single Phase 1,500 21.42
For Three Phase 3,000 42.85
- Monthly Rental
For Single Phase 500 7.14
For Three Phase 1,000 or 30/KVA 14.28 or
whichever is 0.42/KVA
higher whichever is
higher
a. Application Deposit (non refundable) 1,000 14.28
b. Capacity Retention Charge for entire 2.50 per 0.035 per
period (06 months - 02 years) KVA/month, KVA/month,
but min. 250 but min. 3.57
As per Rules of As per Rules of
PBS PBS
95
Gas
(Providers: TGTDCL, BGSL, JGTDSL)
1. TGTDCL
a. Application Form (Domestic,Industrial,Commercial) 100-300 1.42-4.28
b. Demand Note As actual As actual
expenditure expenditure
c. Tariff (including VAT and SD) (per cubic meter)
- Industrial 5.23 0.074
- Tea Garden 5.23 0.074
- Captive Power Generation 3.73 0.053
- Fertilizer 2.24 0.032
- Power 2.61 0.037
- Commercial 8.23 0.117
- Household 4.59 0.065
- Feed gas for CNG 2.47 0.035
Water (WASA)
1. Piped Water
a. Application Form 100 1.42
b. Connectivity
For Size of Connection: 0.75 Inch Dia
- Connection Fee 500 7.14
- Meter Cost with Installation Fee 2780 39.71
- Other Charges As may be As may be
For Size of Connection: 1 Inch Dia
- Connection Fee 1500 21.42
For Size of Connection: 1.5 - 2 Inches Dia
- Connection Fee 3,500 50
c. Water Tariff Domestic/Residential Commercial/Industrial
During Construction Period In taka in US$ In taka in US$
- 0.75 Inch Dia (per month) 662 9.45 1902 27.17
- 1.00 Inch Dia (per month) 1134 16.20 3416 48.80
- 1.50 Inches Dia (per month) 2268 32.40 6830 97.57
- 2.00 Inches Dia (per month) 4725 67.50 14230 203.28
96
Post Construction Operation Period
- Commercial/Industrial (per 1000 liter) 17.50 0.25
- Residential / Domestic (per 1000 liter) 5.25 0.075
2. Deep Tube Well (DTW) max.6 Inch Dia

a. Application Form 100 1.42
b. Permission Fee (annual) Domestic/Residential Commercial/Industrial
In taka in US$ In taka in US$
- 2 & 3 Inch Dia 80,000 1,142.85 1,50,000 2,142.85
- 4 Inch Dia 1,40,000 2,000 3,00,000 4285.71
- 6 Inch Dia 2,20,000 3,142.85 3,50,000 5,000
c. Meter Charge (annual) In taka in US$
- 2 & 3 Inch Dia 6,945 99.21
- 4 Inch Dia 63,384 905.48
- 6 Inch Dia 1,07,070 1,529.57
d. Renewal Fee (annual)
Renewal Application deadline: Domestic/Residential Commercial/Industrial
15 February In taka in US$ In taka in US$
- 2 & 3 Inch Dia 50,000 714.28 75,000 1,071.42
- 4 Inch Dia 1,00,000 1,428.57 1,50,000 2,142.85
- 6 Inch Dia 1,20,000 1,714.28 2,20,000 3,142.85
Sewerage (WASA)
1. Application Form 100 1.42
2. Connectivity
a. 4 Inch Dia 400 5.71
b. 6 Inch Dia 1000 14.28
c. 8 & 9 Inch Dia 5000 71.42
3. Sewerage Tariff
a. Have both Water & Sewer Connection Same as Water. Same as Water.
b. Have No Sewerage Connection, but lying 10.02% of 10.02% of
within 100 ft of the Sewer Line. annual valuation* annual valuation*
c. Have Sewerage, but no Water Connection 27.80% of 27.80% of

annual valuation annual valuation
* annual valuation of the holding per year. But,
not exceed Water Tariff.
Source: BPDB, DESA, REB and WASA.
97
e. Telecommunication:
Comprehensive telecommunication service such as fully automatic telex, fax, e-
mail, internet, telephone including international direct dialing are available with
important countries of the world.
Telecommunication Costs
Telephone
a. Installation and Security
- Dhaka, Chittagong and Other Divisions 6,000 85.71
- Districts (existing) 5,000 71.42
- Upazilas (existing) 4,000 57.14
2. Tariff Rate
- ISD
Please visit
- Economy ISD www.bttb.gov.bd
- NWD
- Local
1. Connectivity with Standard Set

a. Mobile to Mobile 1,399 - 5,000 19.98-71.42
b. Regular with Fixed Line Access 3,500 - 5,000 50-71.42
For details visit www.grameenphone.com; www.teletalk.com;
www.citycell.com; www. aktel.com; www.banglalink.com;
www.ispab.org
Internet & Broadband
1. Dial Up Connection
a. Connection Fee 300 4.28
b. Connectivity Rate per minute 0.20 - 0.40 0.002-0.004
2. Broadband (available in selected areas)
a. Connection Fee (depends on bandwidth) 10,000-20,000 142.85-285.71
Source : BTTB. Also visit www.bttb.gov.bd and other Cell phone companies & ISPs
98
f. Human Resources
The government is committed to provide fair wages to all level of industrial workers.
Wages may be fixed through collective bargaining process. In case of inadequacy of
the collective bargaining procedure, wages, would, however, be fixed by the
Minimum Wages Board. Due emphasis is given so that the interests of the
management and the workers are properly safeguarded.
Human Resources
Cost Heads Salary Benefits Total
Executive Salary & Benefits in US$ in US$ in US$
a. Senior Management 1,000-2,000 500-1,000 1,500-3,000
b. Mid-level Executives 400-600 200-300 600-900
c. Entry-level Executives 200-400 100-200 300-600
Non-Executive Salary & Benefits in US$ in US$ in US$

a. Skilled Workers 50-70 25-30 75-100
b. Semiskilled Workers 40-55 20-25 60-80
d. Unskilled Workers 30-40 20-25 50-65
Note : According to Labour Act 2006, Minimum Gross Monthly Labour Wage 1662.50 Tk.
g. Transportation
Road Transport: Bangladesh has about 40,344 km of paved roads. Ports and
important business centers are well connected by roads and highways.
Bangladesh Land Port Authority was established under Ministry of Water
Transportation to make easy and smooth transportation of merchandise through
land ports. Only Benapole land Port is handled by government among thirteen land
ports. In 2005-06 FY, Land port authority earned 67.78 crore taka, while its
expenditure was 43.99 taka.
Railway: Bangladesh Railway has a network of about 2,854.96 km connecting all

the administrative and business points of the country. Railway container service from
Chittagong Port to Dhaka is available.
Airway: Bangladesh is connected with important major cities of the world by air.
Many of the world's reputed airlines have their air link with ZIA International Airport,
Dhaka, Shah Amanat International Airport, Chittagong and Osmani International
Airport, Sylhet.
99
Marine Transportation: Bangladesh has two sea-ports Chittagong & Mongla.
World's reputed shipping lines are operating through these two ports.
Transportation
Cost Heads 20 ft Container 40 ft Container
Ocean Frei ghts to Int'l Destinations In US$ In US$
Major European Ports 900 1,800
USA - East Coast (NY) 2,000 3,000
USA - West Coast (LA) 1,900 2,550
Canada (Toronto / Montreal) 2,700 3,700
Australia (Melbourne) 800 1,600
New Zealand (Auckland) 1,250 2,400
Hong Kong 500 900
UAE (Dubai) 800 1,600
Express Mail Service in Taka in US$

(depending on destinations)
Weight : 20 gm 200 - 655 3.00-9.84
Weight : 01 kg 435 - 990 6.35-14.87
Weight : 02 kg 590 - 1,395 8.86-20.9
Weight : 10 kg 1710-5200 25.68-78.11
100
h. Living Costs
Living in Bangladesh is highly affordable and pleasant. Following are the major living
expenses in Dhaka Metropolis:
Accommodation Costs
Accommodation: Apartment Rental/month
- 2-3 Bedroom Unfurnished Flats 25,000 - 60,000 257.14-857.14
- 3-4 Bedroom Unfurnished Flats 40,000 - 85,000 571.42-1214.28
Domestic Help / Maid Services
- Full time Living Maid 4,000-5,000 57.14-71.42
- Car Driver 6,000 - 8,000 85.71-114.28
Hotel Rental: Single Room
- Deluxe Room (5 Star) - 170 - 260
- Executive Suite (5 Star) - 330 - 460
- Standard (3 Star) - 70 - 100
- Guest House - 40 - 80
Car Retail Prices
- Low Price Cars (900-1299cc) 600,000-700,000 8571-10000
- Compact Cars (1300-1799cc) 1,200,000-1,800,000 17142-25714
- Family Cars (2500cc upwards) 2,500,000-5,000,000 35714-71428
Petrol & Gas
- Unleaded Petrol 65.00 /liter 0.9 / liter
- Octane 67.00 /liter 0.95 /liter
- CNG 8.50/m3 (vol) 0.121 /c.ft
Car Operating Expenses
- Annual Road Tax 4,845 69.21
- Annual Insurance Premiums 40,000 - 85,000 571-1214
Eating Out (one person)
- Buffet Lunch/Dinner Per person 250 - 500 3.57-7.14
- 3-Course Dinner at Top Restaurant 3,000 - 5,000 42.85-71.42
- Simple Meal at 5-Star Coffee Shop 1,000 - 1,500 14.28-21.42
Health Services (one person : First visit)
- To call on a General Practitioner 100 - 200 1.42-2.85
- Specialist (Asstt. Professor & Professor) 400 - 700 5.71-10
- Expatriate Specialist 1,500 - 2,000 21.42-28.57
101
5.2TTaxation
a x a t in
i oBangladesh
n...
Corporate tax rate for industrial companies whose shares are publicly traded is 30%
and the rate of whose shares are not publicly traded is 37.5%.
a. Tax rate on other companies: Tax rate on income of all other companies
including banks, financial institutions, insurance companies and local authorities
ranges from 37.5% to 45%.
b. Investment requirement by companies enjoying tax holiday: Companies enjoying

tax holiday are required to invest 30% of their exempted income within two years
from the end of the tax exemption period in the said undertaking or in new
industrial undertaking or in stocks and shares of a public company or in
government bonds or securities.
c. Acceptance of returns of public limited companies : Returns field by the public

limited companies shall be accepted if it is accompanied by audited accounts
and certified by a chartered accountant as to the correctness of the total income
of the assessee.
d. Salary of foreign technician : Salary received by or due to a foreign technician

under contract of service approved by the NBR is fully exempted from paying tax
(subject to prescribed conditions and limitations) for a period of 3 years from the
date of his arrival in Bangladesh.
e. Tax payable by the employer on remuneration of foreign technician: Expenditure

incurred by an employer in respect of remuneration of the foreign technician is
fully exempted from income tax (subject to the stipulated conditions).
f. Remuneration of foreign technicians employed by the consulting and

engineering firms : Expenditure incurred as remuneration payable to a foreign
technician by a Bangladesh firm carrying on the business of consulting and
engineering is fully exempted from tax (subject to prescribed conditions and
limitations).
102
Taxation (Fiscal year 2005-06)
Cost Heads Rate
Personal Income (of total Income)
1. On the first Tk. 120,000 Nil
2. On the next Tk. 200,000 10%
3. On the next Tk. 250,000 15%
4. On the next Tk. 350,000 20%
5. On the balance 25%
Minimum Tax (of total Income)

1. For All Individual Category (Normal) Tk. 1,800
(self) Tk. 3,600
2. For Spot Assessment Tk. 2,400
Corporate Tax
1. For Public Listed Companies 30%
(except Bank, Insurance, Leasing &
Other Financial Institutes)
2. For Other Companies 37.5%
(except Bank, Insurance, Leasing &
Other Financial Institutes)
3. For Bank, Insurance, Leasing & 45%
Other Financial Institutes
4. For Branch Companies, on repatriable profit 15%
5. For Hospital under company law, Computer Software
Business by Bangladeshi Fish farm, Poultry farm and
Dairy farm (upto 30th June 2008) Exempted
Capital Gain Tax

For all type of Companies 15%
regardless of the retention period of assets
Tax Abatement
Any listed company declares dividend @ 20%, or higher, will get Tax
Abatement @ 10%.
Source : National Board of Revenue, Bangladesh
103
5.3CCustoms
u s t oTarrif
ms tariff
For the updated customs tariff rate, please visit our official website www.boi.gov.bd
or the official website of National Board of Revenue www.nbr-bd.org.
CComparative
5.4 o m p a rCosts
ative...
Comparative cost structure of doing business in the similar cities of competing
economies like Dhaka, Bangkok, Colombo, Hanoi, Jakarta, Karachi, Kuala Lumpur,
Manila, New Delhi, Seoul, Shanghai and Yangoon have also been presented. This
would enable investors to easily compare the costs of contending investment
destinations and facilitate undertaking decisions.
104
Sl Main Heads Subheads Unit Dhaka Bangkok Colombo Ho chi Minh City Karachi Jakarta Kualampur Manila New Delhi Seoul Shanghai Yangoon
cost (US$) cost (US$) cost (US$) cost (US$) cost (US$) cost (US$) cost (US$) cost (US$) cost (US$) cost (US$) cost (US$) cost (US$)
1 Wage Worker Person/month 33-58 146 69-100 111-185 118-228 131 205 182 105-239 1216-1741 172-301 17-33
2 Engineer Person/month 107-198 316 138-210 249-373 216-739 270 790 279 303-498 1744-2208 334-593 28-89
3 Mid-Level Manager Person/month 305-533 584 333-503 572-1054 557-1256 618 1643 649 737-1219 2215-2612 772-1521 56-222
4 Legal Minimum Wage Person/month 22-63 4.40/day 36.33/Month - 5016/month 71.40/month - 4.85/day 69.41 2.99/hr 85.51/month -
5 Bonus Person/year BW x 1mn BWx2.6mn BWx1.39mn - BWx4-7mn BWx2-2.5mn BWx1.8mn BWx1mn BWx0-2mn BWx6.8 Months BWx1-3mn BWx0-3mn
Executive: 6.1-6.0-5.9
6 Nominal Wage Increase Rate % ('2002-'03-'04) 10% 1.1-1.9-3.7 7.4-7.0-2.3 no official data 1.8-1.2-14.3 - Non Executive:5.9-5.7-5.3 10.3-0-3.6 - 11.2-6.0-5.5-2.8 9.6-13.8-10.1 No official Data
7 Land Prices, Industrial Land Purchase Price per sq.m 182.09-227.62 58.71 12.36 - 8.26 35-40 5.3-10.6 45-50 76.74 212 25-30 -
8 Office Rents, Industrial Land Rent sq.m/month 0.08-0.17 4.86 0.87 0.16 0.009 3.60-4.10 - 1.00 - 0.03 1.00 0.33
9 etc. Office Rent sq.m/month 2.13-9.92 11.67 8.72 23 8.36-22.30 22-26 9.96-14.21 7.4 18.88-35.40 46.9 28.35 15.00
10 Housing Rent for Foreigners unit/month 609-1523 1581 982-2455 2200 585-5017 1800-2500 924-1056 1726 1535-3289 1927 3400-3500 1600-2400
11 Telecom Telephone Installation Fee per telephone 152.25 81.41 193.94 37.82 25.96 45.14 48.85-161.08 36.58-64.04 10.96 57.8 16.1-37.2 1500
12 Expenses Basic Telephone Charge per telephone 2.63 0.04-0.22 0-0.03 0.003-0.008 0.007 0.01 0.01 0.09-0.25 0.02-0.03 0.01 0.02-0.03 0.15
13 Mobile Phone Subscription Fee per mobile 150.65-279.31 Nil 24.55 12.61 105.77 6.52 42.25 Nil 32.89-175.40 52.99 Nil 2200
14 Mobile Phone Basic Dialing Fee call per minute 0.04-0.07 0.05 0.09 0.09 0.01 0.09 0.04 0.11-0.12 0.03-0.06 0.12 0.06 0.30
15 Internet Connection Fee (Telephone) Initial contract fee 98.96 12.15 19.64 47.28 60.20 5.02 43.04 Nil 21.93 38.5 Nil 230
16 Internet Connection Fee (Boardband) per connection 342.96 - - - - - - - - - - -
17 Public Utilities Electricity Rate for Business Use per kWh 0.02-0.08 0.041-0.042 0.07 0.05-0.06 0.09 0.04 0.05 6.93 0.09 0.05 0.04-0.11 0.08
18 Electricity Rate for General Use per kWh 0.04-0.08 0.04-0.07 0.03-0.16 0.03-0.08 0.12 0.06 0.06-0.07 0.10 0.03-0.08 0.06 0.07 0.08
19 Water Rate for Business Use per cu.m 0.36 0.024-0.51 0.41 0.28 1.85/1000gallon 0.98 0.48 0.42-0.47 0.49-1.64 0.01 0.15 0.88
20 Water Rate for General Use per cu.m 0.11 0.19-0.36 0.01-0.49 0.18-0.47 9.87/1000gallon 0.75 0.15 0.13-0.39 0.33 0.31 0.13 0.44
21 Gas Rate for Business Use per cu.m 0.03-0.13 0.36 0.76/kg 0.79 5.93/1million BTU 4.5/1million BTU 0.13 0.73 0.07HBJ 0.04 0.25-0.32 1.00/kg
22 Gas Rate for Generall Use per cu.m 0.07 0.41 0.67/kg 0.87-0.92 5.49/1million BTU 0.15 0.20 0.79-0.83/kg 0.46/kg 0.49 0.13 1.00/kg
23 Automobiles Passenger Car Purchase Price per Sedan 1500cc - - - - - - - - - - - -
24 Large Passenger Car Purchase Price per Sedan 1500cc+ - - - - - - - - - - - -
25 Regular Gasoline Price per liter 0.69 0.61 0.79 0.60 0.94 0.45 0.43 0.66-0.68 0.95 1.41 0.57% 0.37%
0-50 million rupaya:10%
50-100 million:15%
under 100 million won: 13%
26 Taxation Corporate Income Tax (basic tax rate) % 37.5% 30% 32.5% 28% 37% 100 million:30%
28% 35% 33.66% over 100 million won: 25% 33% 40%
27 Personal Income Tax (highest tax rate) % 25% 37% 30% 40% 0-1965/year (Fixed)+0-35% 35% 28% 32% 33.66% 35% 45% 15-40%
28 Value-Added Tax (standard rate) % 15% 7% 15% 0%,5%,10% 15% 10% 5-25% 10% 12.5% 10% 17% 0-30%
Note: BW = Basic Wage: All figures represent average or average range only for standard cases. For specific information on costs, please contact relevant authorities in the respective cities/ areas.
Source : 16th Survey of Investment-Related Cost Comparison in the Major Cities and Regions in Asia, JETRO, March 2006
105
Comprehensive information on industrial sectors significantly assists the investors to match their
strengths and choose most competitive sectors for investment. This Chapter would allow the investor to
have a glimpse over:
the competitive and priority sectors in Bangladesh
existing structure and profile of the sectors and
Long term industry outlook and government’s strategic moves.
6
Competitive Sector
for Investment

6.1 Textiles
6.2 Spinning
6.3 Frozen Foods
6.4 Leather
6.5 Electronics
6.6 Agro-based Industry
6.7 Information Technology
6.8 Ceramics
6.9 Light Engineering
6.10 Natural Gas-based Industries
6.11 Steel
6.12 Pharmaceuticals
107
108
“Bangladesh: Growth and Export Competitiveness”
“By developing-country standards, Bangladesh’s growth for the past two decades and more has been notable. The past
decade’s boom in exports – with earnings in 2003/04 (of $7.6 billion) about three times the level of 1991/92 – and the
success in having the 1980’s average rate of population increase have helped raise the country’s per-capita growth
ranking to twice the global median for 1991-2000. By that measure, over the past 30 years, it has overtaken Pakistan
and Nepal and narrowed the gap significantly between its standing and that of India and Sri Lanka.”
Source : The World Bank
6.1TTextiles
extiles
Ready Made Garments ● Textiles ● Composite Textiles
a. Sector Highlights
● The Ready Made Garments industry experienced an export boom in the 1990s
because of the excellent negotiation with the U.S in 1984-85.
● The most beneficial public policy of introducing back to back LC and bonded ware
house facility gave a tremendous impetus to the export scenario in Bangladesh.
● Bangladesh is best placed in the region for textiles and garments because of low-
cost labor, preferential trade status and advantageous global market access.
● Government incentives for the spinning and weaving industries include a 15%
cash subsidy of the fabric cost to exporters sourcing fabrics locally.
● There is a huge fabric demand supply gap in the RMG industry which is being
met by imports. Thus, the potential for backward linkage industry is enormous.
b. Industry Background and Status
The phenomenal growth in RMG was experienced in the last decade. In 1984-85,
no of Garment factories was 800 RMG jointly with knitwear accounted for more than
70% of total investments in the manufacturing sector during the first half of the
1990’s. At present with about 4000 factories and a workforce of two million, 80% of
which are women, employing over 50% of the industrial workforce and having 75%
of the total exports earning of the country. Exhibit 6.1 shows the growth of RMG
exports from Bangladesh since 1981-82.
Exhibit 6.1
Growth of RMG Exports from Bangladesh (1980-81 to 2005-06)
In million US$
6,000
4,860 4,584 4,912
5,000 4,352 4,084
3,783 4,020
4,000
3,001 3,538 3,598
3,000 2,547
2,000
1064
1,000
131
0
1999-2000
1985-86
1991-92
1995-96
1996-97
1997-98
1998-99
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
Source: Bangladesh Economic Review 2006. Export Promotion Bureau

109
c. Industry Outlook
Multi-Fibre Agreement (MFA) and Generalised System of Preferences (GSP) of the
EU are the main actors behind acquainting Bangladesh RMG products to global
market ensuring assured market access. Bangladesh is now a significant RMG
supplier to North America and Europe. Due to phasing out of MFA, many are doubtful
about Bangladesh’s ability to maintain the fast growth of the recent years in this
sector but Bangladesh has taken a better position in the U.S.A market through
competition. However, on a more positive note, Bangladesh is expected to maintain
its tariff-free access to EU under the European GSP, since the GSP is not covered
by the Uruguay Round Agreement. Recently, Canada has also provided tariff-free
access of all the items from Bangladesh.
Meantime, Bangladesh RMG industry has earned strong competitiveness as a global
standard RMG source. Marketing network has been spread over the economies of the
continents. End users could well recognize and differentiate the products confidently.
Till today, Bangladesh RMG industry largely depends on the imported yarns and
fabrics. Bangladesh produces only 10% of export-quality cloth used by the garments
110
industry. The need for establishment of backward-linkage industry has become an
immediate concern to the government and the exporters. There are enormous
opportunities in setting up composite textiles industry combining textile, yarn and
garments.
d. Investment Opportunities
RMG and textile sectors have enormous investment opportunities. Government
provides highly favorable policy framework for investment in these sectors. Investors
have the following choices:
● Establishment of new textile / RMG mill in the private sector.
● Joint ventures with the existing textile / RMG mill.
● Acquisition of public sector textile mills that are being privatized.
● Indirect investment through financial services and / or leasing.
Sp
6.2 inning
Spinning
a. Value Addition to the Fibrous Substances
Spinning is the first step in textile value chain that adds value to the fibrous
substances by converting them into yarn or thread through the processes of drawing,
twisting and winding (Exhibit 1). Characteristics of the yarn vary based on the
materials used, fiber length and alignment, quantity of fiber used and degree of twist.
The earliest spinning probably involved simply twisting the fibers in the hand. Later,
the use of a stick to help twist the fiber was introduced.
Drop spinning involves the use of a stick with a whorl or weight to stabilize the
spinning of the stick (called a spindle). The spindle is spun, and hangs supported by
the yarn as more fiber is introduced. This introduced fiber picks up the twist and
becomes yarn. However, the development of spinning wheel allowed a continuous
and faster yarn production. Spinning wheels are either foot or hand powered. Modern
powered spinning, originally done by water or steam power but now done by
electricity, is vastly faster than hand spinning. Materials that can be used to create
yarn fall into three broad classes: plant, animal, and synthetic.
111
● Plant materials: cotton, flax (to produce linen), hemp, raffia, yucca, coconut husk, ...;
● Animal materials: wool, goat (angora or cashmere goat), rabbit (angora), llama,
alpaca, dog, camel, silk, ...;
● Synthetic materials: polyester, nylon, rayon, acetate, mylar...;
Apart from the above, mineral materials like asbestos are also used, but not very
often.
Exhibit 6.2
Major Production Steps for the Textile & Apparel Sector
The Textile-Clothing/Making Up-Application- Retail- Network

Machinery/Services/Software/... Providers
Type 1
Dyed
Distribution/
Type 2
Private
Fabric Clothing Retail Type ... Consu-
Woven
Printed
Fabric
Fabric
Type n mption
Home Textile
Knitted Laminated
Filament Household
Fabric Fabric
Yarn Furniture Hotels
Non- Services Hospitals
Twisted ......
Wovens Public
Natural Yarn
Finished Functional Services
Texturized ......
Fibers
Fabric Clothes
M anmade
Yarn
Fabric Protective Indus-
......
Fibers Corporate Other Industries trial
...... Thread Non-conventional
Automotive
Construction Use
Application of Machinery
Fiber Technical Textiles Aeronautics
Figure: Textile Chain Typology © IT V Denkendarf

Source: European Research in Textiles and Clothing Sector by EURATEX, 2002, Page 15
Cut
Grey Garment Finished
Finished
Fibers
Yarns
Fabrics Dyeing,
Dy Fabrics
Pieces Garments
Spinning
Spinning Weaving
Weaving oror Printing and Cutting
Cutting Sewing
Sewing
Knitting
Knittin g Finishing
Source: Textiles and Apparel: Assessment of the Competitiveness of Certain Foreign Suppliers to the U.S. Market, U.S.
International Trade Commission, Washington, DC 20436, www.usitc.gov
b. Spinning Industry in Bangladesh

Development of spinning industry in Bangladesh is closely associated with the
development of Textile and Clothing (T&C) sector as a whole. Power-driven modern
textiles in Bengal were traced back to early twentieth century. Before 1947, modern
textiles were only the composite textile mills having spinning and weaving facilities.
112
Later, activities like specialized textile weaving, knitting and hosiery and dyeing-
printing-finishing were added. During 1947, there were about 11 composite textile
mills in Bangladesh (then East Pakistan) with 1.1 millions spindles and 2.7 thousand
looms. Spindles grew to 3.2 millions in 1956 but declined to 0.8 million in 1972 as
worn-out obsolete spindles went out of operation. In 1972, large-scale manufacturing
units including textile mills were nationalized. After 1982, state-owned spinning mills
were gradually denationalized. By 1999, spindles installed were 2.8 million (2.4 million
in the private sector and 0.4 million in the public sector) with an annual production
capacity of 200 million kg. BOI sectoral Survey found that in 2004, about 3.44 millions
spindles are producing 382 million kg of yarn for the textile industry (Exhibit 2).
Exhibit 6.3
Spindles Growth in Bangladesh Spinning Industry
(Cumulative Number of Spindles in Million)
3.32 3.44
3.2 3.04
2.83 2.91 2.80 2.56
2.28
1.1
0.8
1947 1956 1972 1997 1998 1999 2000 2001 2002 2003 2004
Sources: BOI Sectoral Survey 2004, USITC Report and Banglapedia.
c. BOI Spinning Sector Study 2004

The spinning sector census was conducted during March–June 2004. Initially, a spinning
population frame was prepared combining the lists of BOI registered mills and BTMA
members. Total 198 spinning mills were listed and all of them were surveyed. In practice,
10 units could not be traced, while 17 mills were found closed and 13 mills undertook no
action to implement their projects. In terms of spindle capacity, only 10.7% spindles were
found inactive while 81.2% spindles are in production (Table 1).
Mainly Dhaka-based Production: A geographical analysis of the active spinning mills
demonstrates that about 81.6% of millsare located in Dhaka Division and 11.4% in
Chittagong Division. On the other hand, Khulna, Rajshahi, Sylhet and Barisal
Division have only 2.5%, 1.3%, 1.3% and 1.9% mills respectively.
Dominated by the Local Entrepreneurs and Human Resources: It is observed that
among all 158 active mills, almost all the mills (96%) were set up by the local
entrepreneurs. Only 4% mills have been established jointly with the foreign investors.
Total investment in the active spinning mills is amounted to Taka 8,554 crores. The
survey found that about 92,172 people are working in the spinning sub-sector
including only 85 foreign experts / technicians.
113
d. Yarn Types and Market Scenario
The products of the spinning sub-sector are yarns of different categories like cotton,
polyester, synthetic, acrylic, filament, woolen, blended, etc. Production data shows
that 138 ‘in production spinning mills’ produced 382.11 thousand MT of yarn in 2003
of which 81% are cotton yarn. Some secondary sources indicate that in 1999, yarn
production of 112 million kg satisfied only 22% of total yarn requirement of the Value
country. The total demand-supply gap of yarn for 1996-97 was 429 million kg, which
increased to 639 million kg in 2002.
Table 6.1
State of Spinning Sector in Bangladesh in 2004
Spinning Mills Status Plants Spindles * Rotors*
In Production 138 3,125.326 101.351
On Trial Production 9 83.800 1.810
Ready for Production 6 163.160 0.911
Under Implementation 5 65.700 -
Sub-Total : Active 158 3,437.986 104.072
Closed 17 338.696 14.096
No Action 13 14.400 -
Untraceable 10 59.000 0.100
Sub-Total : Inactive 40 412.096 14.196
Grand Total 198 3,850.082 118.268
Source: BOI Sectoral Survey 2004. * Number In Thousand
Import pattern of yarn into Bangladesh also illustrates the intensity of demand.
Exhibit 3 presents data on import of yarn to Bangladesh since FY 1990-91. Major
sources of yarns are Taiwan, China, Hong Kong, Korea, Indonesia, India and
Thailand. It shows the potential of spinning for further investment.
e. Challenges of and Supports to the Spinners
The success of a robust textile sector largely depends upon an improved and reliable
spinning sub-sector. If spinning sub-sector produces substandard / inferior yarn, its
adverse effect persists right across the entire value chain. Availability of raw
materials, transportation, port facilities and tariff rationalization are the key
challenges to the spinners.
114
Table 6.2
Production by the Active Spinning Mills
Description Mill s 2002* 2003*
Cotton Yarn 139 233.5283 10.119
Cotton & Polyester Yarn 6 34.518 33.158
Polyester Yarn 5 3.654 6.035
Acrylic Yarn 4 2.110 2.176
Filament Yarn 3 7.565 14.179
Others 1 16.457 16.443
Total 158 297.832 382.110
Source: BOI Sectoral Survey 2004. * In ‘000 MT
The Government has been supporting the spinners providing lower tariff for
machinary spares and raw materials, cash incentives, reduced tax rate, and low-cost
funding etc.
Exhibit 6.4
Import of Yarn in Bangladesh Since 1991
(in Million US$)
395
327 300 322
296 283 283 270
200
168
127
92
52
FY1991 FY1992 FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003
Source: Statistics Department, Bangladesh Bank.
f. Investment Outlook
Textile & Clothing is the largest manufacturing sector of Bangladesh providing over 4
million jobs, accounting for 5% of GDP, 40% of manufacturing value addition and
75% of total foreign exchange earnings.
The growing demand for yarn in the local market, comparatively low cost of doing
business, lucrative incentive package, favorable investment policy regime etc are the
main reasons for investment in this sustainable sector. Spinning could be chosen.
115
Table 6.3
World Yarn Production Capacity
Asia is believed to have the world’s largest capacity to spin yarn and was also the largest buyer of
new textile production equipment during 1992-2001. There has been a shift of world yarn spinning
capacity from developed countries to developing countries in the past two decades. In 2000, Asia
accounted for 71% of the short-staple spindles, 45% of the long-staple spindles, and 27% of the
open-end (O-E) rotors. China and India have the largest number of short-staple spindles in the world
with 46% of the 2000 total, followed by Pakistan and Indonesia with 11%.
Table: Spinning equipment: Number of installed spindles and rotors in 2000 and number of
new spindles and rotors purchased during 1992-2001 by types and by selected countries
Installed Capacity 2000 Cumulative Purchases 1992-2001

Country Spindles Open-end Spindles Open-end
Short-staple Long-staple Rotors Short-staple Long-staple Rotors
World 156,913,000 15,372,000 8,284,700 30,257,491 3,316,120 2,530,091

United States 3,331,000 628,000 860,000 787,236 63,488 529,84407
European Union 5,493,500 4,449,000 496,700 1,681,338 686,518 303,653
Canada 305,000 51,000 40,000 67,920 5,984 26,603
Mexico 3,500,000 227,000 100,000 814,328 102,820 96,840
1
Asia, total 111,904,500 6,881,000 2,230,700 21,481,335 1,756,282 726,389
China 34,435,000 3,600,000 623,800 2,005,480 961,610 208,363
Hong Kong 48,000 24,000 20,100 96,672 12,676 16,739
Korea 1,803,000 676,000 13,700 409,820 90,708 14,384
Taiwan 2,716,000 339,000 85,700 710,872 66,652 33,105
Bangladesh 2,469,000 15,000 55,900 929,376 2,520 25,616
India 37,698,000 990,000 453,100 11,041,023 233,164 162,083
Pakistan 8,567,000 35,000 149,500 1,351,632 - 8,604
Sri Lanka 246,000 - - 35,616 - 160
Indonesia 8,500,000 103,000 56,000 1,419,912 90,948 19,247
Malaysia 650,000 35,000 6,000 437,614 21,900 5,451
Philippines 950,000 13,000 50,000 160,112 2,032 14,049
Thailand 3,719,000 65,000 58,500 893,324 61,042 41,609
CBERA countries 489,000 3,000 28,600 77,948 5,280 13,745
Andean countries 1,900,000 148,000 54,500 165,536 58,140 20,287
Sub-Saharan Africa 391,000 70,000 20,200 127,864 10,752 14,064
Other:
Egypt 2,600,000 98,000 41,000 148,936 66,000 1,976
Turkey 5,554,000 743,000 430,400 2,646,076 299,768 402,513
Asia as % of World 71% 45% 27% 71% 53% 29%
1
Also includes a number of countries in Oceania, including Australia and New Zealand.
Source: International Textile Manufacturers Federation, International Textile Machinery Shipment Statistics, Vol.24/2001 cited in the
USITC Report entitled “Textiles and Apparel: Assessment of the Competitiveness of Certain Foreign Suppliers to the U.S. Market.
116
F Frozen
6.3 r o z eFoods
n Foods
Frozen Shrimp ● Frozen Fish ● Other Items
● Government is promoting semi-intensive shrimp farming.
● Fish and prawn exports registered a modest growth in the past decade.
● Shrimp processing and export industry is largely dominated by the smaller
unorganized sector.
● Government has taken different initiatives of quality assurance of frozen foods in
co-operation with exporters.
● 15% cash incentive is given to shrimp export amount.
b. Industry Situation
The frozen foods export is the second largest export sector of the country. After some
initial difficulties in terms of quality achievement, exporters have earned credibility
and trustworthiness in the global market. Assurance of reliable and continued product
quality is a major challenge in this sector. Technology orientation, marketing
perceptions, and quality improvement aspects invite foreign investment in this sector.
The current challenges of international trading are largely dictated by price, quality,
time and service.
Exhibit 6.5
Frozen Food Exports from Bangladesh
in million US$
459
421
390
363
344 322
314 276
142
1991-92
1995-96
1999/00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
c. Industry Outlook
Frozen food sub-sector has credible opportunities in Middle East, EU and North
American countries and Far Eastern countries. In 2004-05, total fish production was
22.16 lack metric tons of which 8.82 metric .tons were shrimp. At present , there are
868 fish hatcheries and farm of which 2.18 lack hectors of shrimp farm. This export-
oriented industry includes the following sub-sectors, which need proper attention for
117
augmentation of production, attain international standard quality and export earnings.
● Hatcheries
● Sustainable aqua-culture technology
● Feed meals plants
● Processing unit for value-added products.
Investment in frozen food sector with new technology and equipment has a vast potential for
growth.
L Leather
6.4 eather
Finished Leather ● Leather Goods
● The labor-intensive leather industry is well suited to Bangladesh having low-cost
and abundant labor.
● Bangladesh has a domestic supply of good quality raw material, as hides and
skins are a by-product of large livestock industry.
● Adequate government support in the form of tax holidays, duty free imports of
raw materials and machinery for export-oriented leather market
● The industry lacks domestic technology and expertise and local support
industries such as chemicals are still under-developed.
118
b. Investment Incentive
● Present government is in the process of setting up of separate Leather Park
relocating the existing industry sites to a well-organized place.
● Leather exporters have been given 15% Duty drawback of cash incentive.
Exhibit 6.6
Trends of Leather Export from Bangladesh
in million US$ 275
254
221
212 212
202 207
195 195
190 191
168
1999-2000
1994-95
1995-96
1996-97
1997-98
1998-99
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
Source : Export Promotion Bureau, 2006
c. Industry Situation
Bangladesh leather industry is dominated substantially by the domestic investment
which are mostly export-oriented. The leather includes some ready-made garments,
although that aspect is continued mainly to a small export-trade in "Italian-make"
garments for the US market. Footwear is more important in terms of value addition.
This is the fast growing sector for leather products.
Presently Bangladesh produces between 2 and 3 percent of the world’s leather

market. Most of the livestock base for this production is domestic which is estimated
as comprising 1.8 percent of the world’s cattle stock and 3.7 percent of the goat
stock. The hides and skins (average annual output is 150 million sq.ft.) have a good
international reputation. Foreign direct investment in this sector along with the
production of tanning chemicals appears to be highly rewarding.
Having the basic raw materials for leather goods as well as for the production of
leather shoe, a large pool of low cost but trainable labor force together with tariff
concession facility to major importing countries under GSP coverage, Bangladesh
can be a potential off shore location for leather and leather products manufacturing
with low cost but high quality. In 2004-05 total export of leather goods was 220.93
million US$ on the other hand it is 257.27 million US$ during 2005-06 FY.
119
d. Industry Outlook
Provision of newly announced infrastructural facilities through establishment of an
integrated Leather Park and simultaneously, growth in the global demand,
opportunities for investing in and setting up export-oriented leather industry in
Bangladesh is definitely attractive. Foreign investors are welcome to capitalize on this
opportunity.
EElectronics
6.5 lectronic
Home Appliances ● Telecommunication Equipment ● Semi-Conductor
● Rapid urbanization, migrations to urban centers and emergence of a consuming
middle class have resulted in a modest growth in home appliance usage in
Bangladesh.
● Global market of semi-conductor amounting about US$ 200 billion is clearly
dominated by the Asian NIEs.
● Manufacturing of semi-conductors could be established as a potential cottage
industry.
120
● Since 1996, phenomenal growth in cellular phone usage in Bangladesh has
been registered and today, the number of customers reached at nearly two million.
● The labor-intensiveness nature of electronic industry highly matches with the
Bangladesh’s competitiveness and invites foreign investment in this sector.
b. Industry Background
The electronics industry in Bangladesh mostly produces consumer items. Home
appliances like television, radio, VCD and CD players, refrigerator, air conditioners,
oven, electronic fan, blenders etc. are being assembled to a large extent. To ensure
the performance reliability, the key challenges in this sector are technical assistance
and proper technology orientation of the industry. Developing the significant capacity
and skill in assembly and manufacture of a wide range of electronic components and
parts is crucial.
As yet, Bangladesh does not have any telecommunication equipment industry in the
private sector. However, an urgent need for diversification and modernization is felt
among the existing entrepreneurs, government and professionals. Government is
keen to provide and ensure enabling assistance to the development of this sector.
c. Industry Outlook and Opportunities

Skilled, easily trainable and low-cost human resources are the main cost advantage
of setting up electronic industry in Bangladesh. Growing domestic demand and
international market access are some key attractive issues to the investors. In the
economies like Malaysia, Singapore, Korea and Thailand, electronics contribute a
major portion in the GDP. They are encouraging electronic industry to shift from low-
end assembly operations with high import content of inputs to upstream higher-
value-added activities. In this context, relocation, outward investment and joint
venture with Bangladeshi companies could be gainful strategies. To capitalize on the
comparative advantages, substantial foreign investment from those countries is
highly encouraged.
121
AAgro-based
6.6 g r o - bIndustry
ased...
Fresh Fruits & Vegetables ● Cooked/Semi Cooked Food Items
Canned Juice ● Dairy and Poultry ● Livestock and Fisheries
● Bangladesh has a tropical climate, a lot of fresh water, indeed a land interspersed
with numerous rivers, fertile soil and possibility to cultivate crops round the year. So,
it unique to supply raw materials for the agro-based industry.
● Fruits and vegetable production has increased significantly in recent years.
● Government and NGOs have been conducting regular training programs in
developing skilled manpower for agro-based industry.
● Substantial demand supply gap in the agro-based industry both in the
domestic and international market.
b. Industry Incentives
1. Specially arranged Equity Entrepreneurship Fund for development of agro-based
industry.
2. Special loan facilities available to set up an agro-based industry.
3. Agro-based industry enjoys tax holiday.
4. Any investment in this sector will enjoy similar tax amnesty as available in other sectors.
5. Imposition of supplementary duty on mango, orange, grape, apples, dates and
others to utilize the high quality and cheaper local resources.
6. Cash incentive to the exporters ranges from 15% to 20% in various sub-sectors.
c. Sector Background
Being an agrarian economy, agriculture has dominated in the economy for years. It
has fulfilled the preconditions of access to input and raw materials in setting up
successful agro-based industries. Alluvial soil, a year-round frost-free environment,
adequate water supply and abundance of cheap labor are available in Bangladesh.
Increased cultivation of vegetables, spices and tropical fruits now grown in
Bangladesh could supply raw materials to local agro-processing industries for both
domestic and export markets.
In 2005-06, Export of agricultural products accounted for about 1.00% of total export
amounting US$ 76.24 million.
d. Industry Outlook
To avail the competitive and comparative advantages, Bangladesh invites
progressive agricultural practices, improved marketing technique and modern
processing facilities. The government emphasizes development of the agricultural
sector through appropriate measures to increase crop sector productivity and
122
production of non-crop agriculture by providing increased credit, and facilitating
greater access to inputs and modern technology. Investment interests in setting up
agro-based industries in Bangladesh are highly encouraged.
To promote agro-based industries and attract investment in this sector, Board of
Investment organized ‘Agri-Invest 2003 Bangladesh’ in December 2003. This first
ever exposition created huge interest among the foreign and local investors.
In
6.7 f o r m aTechnology
Information tion...
Data Processing ● Software Development ● Hardware Manufacturing
● To investigate the IT industry robustly, deregulation of the telephone has been
decided and executed by mid 2003.
● The extensive growth of mobile telephony resulted in significant opportunities.
● The industry is at its introductory stage and has opportunity of capitalizing the potential.
● Bangladesh has a well-educated, skilled, dedicated and growing IT workforce.
● There is a fast growing domestic market and export demand.
● Strong research assistance from the universities and research institutions are available.
● Government is keen in establishing IT related infrastructure for the development
of the industry.
b. Industry Incentive
● IT is declared as one of the thrust sector for development. Soft loan facilities from
the Equity and Entrepreneurship Fund is available.
● Tax holiday for Software and IT services companies.
● All other facilities and incentives applicable in general to a foreign investor.
c. Industry Background
Compared to the neighboring India, Pakistan and other South and South East Asian
nations, Bangladesh is lagging behind in IT Sector. But it is true that the sector has
vast potentiality to develop. Availability of substantial number of qualified and
experienced young people in various branches of engineering, science and
technologies have opened up the scope of profitable investment in these sectors.
Existing investment in IT sector is mainly small-scale and domestic in nature.
Collaboration in the IT sector is mainly based on licensing agreements and
representation. A growing number of computer training schools and institutes are
123
being opened. Management of most of the IT firms is professionally strengthened
with the Bangladeshis who have studied and worked in both North America and
Europe, and returned home.
The annual market size for IT including computer hardware, peripherals and software
was estimated to be worth approximately US$ 20 million. The market is fast growing
at an annual rate of about 25%. The country has over 400,000 PCs. And the number
is increasing rapidly. Most of them are locally assembled clones. Taiwan, South
Korea, Malaysia and Singapore are the main sources of motherboard and other
components.
Since the introduction of Internet service in 1996, computer has become

communication equipment to a growing number of businessman, professionals and
individuals. At present 4-5 lac of internet connections are using in the country.
The development of telecommunication infrastructure is a major precondition to the
development of IT. The Government of Bangladesh has adopted National
Telecommunication Policy 1998. However recent policy shift towards deregulation of
telecommunication would give real infrastructural advantage of the country in IT
development.
d. Industry Outlook
Formalization of VOIP by the early 2003 and telecom deregulation in mid 2003 would
boost the overall IT sector lucrative for investment. Foreign investors from Asian,
European and North American countries could avail these opportunities. A number of
Bangladeshi IT firms are interested in finding international investors or joint venture
partners in various sub-sectors.
e. Submarine Cable
Bangladesh has joined the consortium of SEA-ME-WE-4 submarine cable, which
starts its commercial activities from 21st may, 2006. This will especially help
prosperous data entry and software sectors. The landing station of this cable is
situated at Jhelong in Cox’s bazaar. There are 14 countries of this consortium, the
countries are Singapore, Thailand, UAE, Bangladesh, India, Pakistan, Srilanka, KSA,
Egypt, Tunisia, Italy, Algeria and France. It has connected 16 telecommunication
organizations of 14 countries. With the direct help from submarine cable Bangladesh
can earn more foreign currency by increasing international voice circuit (e.g.
submarine cable will give support to establish 1 lac voice circuit. Voice and data
communication will be faster. Consortium has created capacity pool, which we can
sell also can manage IRV. Broad band service, data transmission, call centre,
software export will be cheaper. Unemployed youths can easily engage themselves
124
in those services by taking short term training. Bangladesh has right to land 15
landing station without charge. It will help smoother operation of E-commerce, E-
governance, E-education, Telemedicine etc. So, there are huge chances of
development of ICT sector and finally government will be financially benefited.
Exhibit 6.7
SEA-ME-WE- 4 LANDING MAP
Marseille
Palemo
Annaba
Bizerte Alexandria
Segment 3
Suez
Jeddah Karachi Cox's Bazar
Mumbai
Fujairah
Chennai
Satum
Colombo
INDIAN Melaka
OCEAN
Singapore
Segment 4 Segment 2 Segment 1
Source : www.bttb.gov.bd
CCeramics
6.8 eramics
Tableware ● Sanitaryware ● Insulator
● Global market of ceramic tableware is about US$ 10 billion.
● Bangladesh Ceramic tableware has a good reputation is the international market
like North America and EU countries.
● Bangladesh has achieved technical expertise on ceramic tableware manufacturing.
● Historically, tableware industry is labor-intensive and Bangladesh has a skilled
manpower in ceramic industry.
● Sanitary ware and insulator has also a domestic and international market demand.
● The clean gas reserve required for firing is a great competitive advantage for
Bangladesh.
125
b. Industry Status
A few ceramic tableware manufacturers dominate the industry producing high quality
products for the international brands. A pool of skilled manpower has been developed.
The latest technological advancements in ceramic are also acquainted. Bangladesh
produces high quality Bone China transferring the technology from Japan. The domestic
market is also attractive. Some low-quality tableware are imported mainly from China to
cater the demand of lower segment of the domestic market.
Exhibit 6.8
Growth of Ceramic Tableware Exports from Bangladesh
In million US$ 28.75

27.5
19.07 24.07
17.5 18.82
14.21
11.32 10.86 10.02 9.46
8.49
1994/95 1995/96 1996/97 1997/98 1998/99 99/2000 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06
Source : Bangladesh Economic Review 2006
c. Industry Outlook
Global ceramic tableware industry is currently going through a phase of acquisition
and consolidation as smaller industries in the developed countries are becoming
uncompetitive and bankrupt. As a result, the big names like Noritake, Wedgewood,
Lenox, Villeroy & Boch and Royal Doulton are all individually becoming billion-dollar
operations.
Historically, tableware industry is labor-intensive and even after spending billions of
dollars on automation, developed countries could not reduce the number of workforce
according to their expectations. As a result, the cost of production will always remain
extremely high in developed countries and the premium brands are only surviving
because they are charging huge price to the consumers for their brand equity.
Bangladesh, being a gas-rich and low-labor-cost economy, offers to be strategic
partners in production and supply of ceramic products. Investment interests in this
sector are strongly encouraged.
126
The growing sanitaryware and insulator items has a large domestic market. Besides,
international market, both in terms of demand and access, is highly potential.
L Light
6.9 i g hEngineering
t Enginee...
Machinery Parts ● Bicycle ● Other Consumer Items
● Bangladesh has about 40,000 small-scale light engineering enterprises spread
over the country.
● Current light engineering industry manufactures about 10,000 types of items for
the local industry amounting an annual value of approximately US$ 120 million.
● As the demand and usage of engineering and electronic goods increase,
demand for light engineering products are also increasing.
● Significant number of cottage industries engaged in production of simple
electronic goods.
● Government provides cash incentive facilities to exporters of value-added light
engineering products.
127
b. Industry Situation
Light engineering industry in Bangladesh has grown with informal cottage status over
the years. This labor-intensive operation produces a diverse range of items having
an annual valuation of about US$ 120 million. These items include import-substitute
machinery spares, plant machineries, small tools, toys, consumer items and paper
products for the domestic market. Most of these enterprises are located in and
around Dhaka metropolis. The industry has been turning to more formal set up and
expected to grow remarkably in the upcoming years.
Bicycle is one of most important item in light engineering industry. Its role in the world
transport system is expanding. Not only does it provide low-cost mobility, but in cities
it offers more mobility than the automobile. Because it provides mobility and
exercise, does not pollute the air or disrupt the earth’s climate and is efficient in its
use of land, the bicycle is emerging as the transport vehicle of the future.
c. Industry Outlook
Because of the shortage in labor and wage hike in the light engineering sector, and
simultaneously, strategy shift of the NIEs to concentrate on upstream higher-value-
added industries, establishment and development of light engineering industry in
Bangladesh has a huge potential. Foreign investors could take advantage of
Bangladesh’s low-cost and easily trainable labor and already established light
engineering industry and its infrastructure facilities to manufacture quality products
for the export market.
N Natural
6.10 a t u r aGas-based
l G aIndustries
s...
Electricity ● Fertilizer ● Petrochemicals ● CNG Distribution Network
● Bangladesh has a net recoverable gas reserve of approximately 28.4 TCF of
which primary recoverable is 20.51 TCF.
● Amount of gas production till January, 05 was 6.033 TCF.
● Joint venture opportunities between BPDB and private sector are open.
● There is a huge demand for fertilizer in Bangladesh as the agriculture is the
principal sector of the economy.
● Usage of indigenous resources and conservation of environment are important
policy concerns of the Government.
● Introduction of CNG fuelling in the metropolises has geared the need for estab
lishment of sufficient CNG Distribution Stations.
128
● Each year 5000 metric ton LPG is produced from Koilashtila small LPG plant at
Gopalganj in Sylhet .
b. Industry Incentives
Energy and Power sector has significant investment incentives like:
● Tax holiday for 15 years.
● Tax exemption from interest payable on foreign loans.
● Tax exemption from royalties, technical know-how and technical assistance fees payable.
● Tax exemption from profit arising from transfer of shares.
c. Industry Situation
Among the three main operators in power sector, until recently, BPDB was the sole
public sector power generator in Bangladesh. It is also responsible for transmission
and distribution of electricity outside Dhaka and in some rural areas. DESA is
responsible for transmission and distribution of electricity in and around Dhaka – the
largest load center in Bangladesh. REB distributes electricity in rural areas through
operating Palli Bidyut Samities (PBSs). All of them are controlled by the Ministry of
Energy and Mineral Resources (MEMR). PDB at presents owns some 3,091 MW of
generation capacity.
With the increasing growth in industry, commerce and household usage, the demand
for electricity in Bangladesh is enormous. It is assumed that the power demand will
increase at around 6% per annum in the upcoming years.
CNG is a highly efficient, eco-friendly and cost-effective fuelling option for motorized
129
vehicles. It could also make significant cross-savings in the health sector and reduce
public health hazard. The increasing demand for maintaining air quality in
metropolises like Dhaka has become the nation’s top-most priority. As such, two-
stroke petrol fuelled taxies are being replaced with CNG-fuelled taxies. Other
vehicles are also being converted to CNG orientation. At present we have 117 CNG
filling station and 72 conversion workshops. There are 46501 CNG driven cars in
Bangladesh and no. is increasing. Also steps have taken to set up more CNG filling
station with the financial assistance of World Bank.
In these circumstances, a huge opportunity for investment in CNG Distribution
Network has become imminent.
Table 6.4
Trends of Gas Usage in Different Sectors.
Sector 2004-05 2005-06 2006-07 2007-08 2008-09
Electricity 211.02 233.6 247.8 268.3 291.6
Captive power 37.87 42.48 46.97 53.4 61.25
Fertilizer 93.97 98.91 98.91 107.03 136.15
Industry 51.68 68.98 76.99 86.0 112.5
Commercial 4.85 5.5 5.8 6.3 6.7
Brick field 0.0 0.1 0.1 0.1 0.1
House hold 52.49 59.45 65.41 72.0 79.1
Tea garden 0.80 0.8 0.8 0.8 0.8
CNG 3.62 2.5 2.7 2.9 3.7
System loss 30.45 23.8 23.0 21.1 20
Total 486.75 536.12 568.48 618.2 711.7
Source : Bangladesh Economic Review 2006
d. Industry Outlook
Opportunities exist for foreign investors include:
● Developing new plants (barge-mounted and other, large, small and mini) in joint
venture with BPDB.
● Maintaining and expanding existing power transmission and distribution system.
● Rehabilitating or upgrading existing plants and supplying a variety of support services.
● Privately owned Remote Area Power Supply System (RAPSS).
● Technology transfer through manufacturing / assembly of power equipment.
● Investing in CNG distribution network development.
130
S tSteel
6.11 eel
Billets ● Plates ● HR Coils ● Galvanized Sheets
● Iron has been a vital material in technology for well over three thousand years.
● Usage of steel products in Bangladesh increased remarkably in 80s when this
industry flourished due to relaxation/liberalization of country’s Industrial Policy.
● World crude steel production for the 63 countries reporting to the International
Iron and Steel Institute stood at an estimated 81.7 million metric tons in October
2003.
● Steel industry in Bangladesh has huge potential of growth in the coming years.
b. Industry Background and Status
Steel Production in Bangladesh

Usage of steel products in Bangladesh increased remarkably in 80s when this
industry flourished due to relaxation/liberalization of country’s Industrial Policy. Until
1987, people had to depend on imported CI sheet and on the only state-owned
Chittagong Steel Mills Limited, which produced small quantity of CI sheet/GP sheet.
Statistics showed the use of CI/GP sheet rose to 4.85 lakh metric tons in 1999 from
1.00 lakh metric tons of 1987. In this backdrop to meet up this huge demand,
production of GP/CI sheets in private sector began in 1987. This industry expanded
rapidly in recent times.
In Bangladesh, there are about 300 manufacturing units to produce steel and steel
products. In terms of the products diversity, these manufacturing plants could be
categorized into at least six broad categories like:
● Billets used as feedstock to merchant mills, section mills, wire rod and seamless
tube mills etc ;
● Finished long products e.g. wire rods, rebars, plain rounds, squares, flats, angles,
channels, beams, rails etc;
● Plates used in production of boilers, merchant ships, off-shore platforms, line
pipes, railway coaches, wagons and locomotives, structures etc;
● HR Coils /sheets mainly used for manufacture of pipes and tubes and as feedstock
to cold rolling units;
● CR Coils/sheets used for production of automobiles, consumer durables, galva
nized sheets, metal products etc;
● Galvanized sheets used in consumer durable industries and domestic
applications including GP / CI sheets.
131
Recent implementation status Survey by BOI, revealed that annual installed capacity
of 48 GP/CI sheet units registered with BOI are 6.74 lakhs MT and their average
production was 4.70 lakh MT.
According to statistics, on an average, about 5.14 lakhs MT BP Sheet/CR Coil were
imported annually from 1996 to 1999. In response to the huge demand for BP sheet/
CR coil, entrepreneurs became keen to set up CR coil industry to produce it locally.
During 2001-02, three CR Coil manufacturing units were established in the country.
The total annual production capacity of these three industries is 2.66 lakh MT. To
date, nine CR coil/sheet manufacturing units have been established, seven are in
operation and rest two will go to very soon. The total annual installed capacity of
these nine industries is 9.51 lakhs MT and the estimated investment is Tk. 8.83
billion. Table 6.5 summarizes the steel plants registered with BOI during FY 2002-03.
Bangladesh has around 250 Steel Re-rolling Mills consisting of five large automatic
units. The country’s only state-owned major steel producer Chittagong Steel Mills
was closed permanently by the Government in July 1999. The open-hearth furnaces
had crude steel making capacity of 150,000 metric tons per year. The mill produced
angles, blooms, and plates and also operated three hot-dip galvanizing lines fed by
imported coil. Bangladesh consumed 2 million metric tons per year of finished steel,
and the deficiencies were met by imports (Metal Bulletin, 2002).
Demand and Supply Scenario
The demand for steel is highly corelated to the growth of investment in the industrial
sector.
Table 6.5
Demand of Steel Products in thousand tones

Products FY-2003 FY-2007
Billets 1,110 1,120
Bars & Rods/Structural 1,161 1,598
Railway Materials 19 26
HR Coils/Sheets 340 523
CR Coils/Sheets 640 795
GP/GP/CI Sheets 696 955
Electrical Steel Sheets 2 3
Tin Plates 6 8
Pipes & Tubes 63 134
Total 4,037 5,162
Source: Various.
Above Table 6.6 presents the projected demand scenario of steel products at present
and the FY 2007-08. There remains a substantial demand-supply gap in the steel
132
products. With the increasing investment in infrastructure, construction, machinery,
railway machinery like locomotives, wagons, coaches; refinery machinery, pipelines;
household appliances like air conditioners, refrigerators, consumer durables; ship-
breaking and other steel intensive segments, the demand for steel is growing.
Table 6.6
Export of Major Steel & Engineering Products in Million Taka
Description 2004-05 2005-06

2001-02 2002-03
(July-June) (July-June)
Iron Chain 28.28 55.55 1896.65 1108.8
Cast Iron Articles 0.13 0.14 476.06 15.04
Generator 14.82 9.05 53.79 71.8
Fishing Reel 1.11 - 1.4 0.002
GI Pipes - - 6.9 11.5
Coil Assembly - - 244.4 485.8
Others 25.46 659.77 275.6 3291.1
Source: Export Promotion Bureau, 2006
Steel Imports
Given the local production constraint, Bangladesh imports substantial amount of
steel and steel products from a number of countries. Table 6.4 presents last 5-year
data on import of iron, steel and steel products. Major sources of steel products
include Australia, Belgium, Canada, China, France, Germany, Greece, Hong Kong,
India, Indonesia, Italy, Japan, Malaysia, Mexico, Netherlands, North Korea, Poland,
Russia, Saudi Arabia, Singapore, South Korea, Turkey, UK and the USA.
Export Potential
There remains a substantial market for steel products in the neighboring South Asian
countries like Myanmar, India, Sri Lanka, Nepal etc. Export of CI Sheets have
already started to Middle East, Sri Lanka, Singapore, China, and some African
countries like Sierra Leone, Senegal, Uganda, Angola, Mozambique, Ghana etc.
There also remains export potentials for billets, slabs, reinforcement bars and plates.
Table 6.6 presents the recent export data of steel and steel products.
133
c. Challenges in the Steel Industry
Availability of raw materials, transportation, port facilities and tariff rationalization are
the key challenges for the development of steel industry. Bangladesh urgently
requires a number of basic steel industries to help the rapid industrialization process.
Consistent and sufficient supply of gas is a major issue in steel manufacturing.
d. Outlook
Considering the overall development and industrialization process, steel industry in
Bangladesh has huge potential of growth in the coming years. Steel could be chosen
as a prime sector for investment to earn a sustainable return.
P hPharmaceuticals
6.12 armaceuticals
● Pharmaceutical products have huge demand both in local and overseas market.
● There are huge demand-supply gap in pharmaceutical products.
● Bangladesh offers a good number of qualified, skilled Pharmacists, Bio-chemists,
Micro-biologists, and Chemists for Pharmaceutical industries.
● Government offers support for importing raw materials for production.
● Present Government has taken initiatives to modernize, expand and attract foreign
investment in pharmaceutical industries, and for this adopted national medicine
Exhibit 6.9
Trends of Pharmaceuticals Export from Bangladesh
Source : Export Promotion Bureau, 2006
134
policy (revised) 2005, which will help to adapt with the changing world under WTO/TRIPS
b. Outlook:
Considering the overall demand, Pharmaceuticals is one of the emerging sectors in
Bangladesh. Bangladesh Government offers different incentives for importing raw
materials and establishing industries.This particular sector has huge potential of growth
in the future. For sustainable return, Pharmaceutical sector could be a rational choice.
135
Jatiya Sangshad Bhaban (National Parliament Building), Dhaka
As a newcomer to a country, there always remain some uncertainities in settlement. This Chapter
describes
Essential of adapting to a new culture and society; and
Facilities available for social life in Bangladesh.
7
Settling
in Bangladesh

7.1 Harmonious Living
7.2 Cultural Shock
7.3 Adapting to Life
7.4 Affordable Living Costs
7.5 Schooling and Healthcare
7.6 Entertainment and Recreations
7.7 Tours and Travels
7.8 Workdays and Business Hours
7.9 Flight Schedules
7.10 Useful Bangla Words
137
138
7.1HHarmonious
a r m o nLiving
ious...
Bangladeshi people are by nature very polite, courteous, friendly and hospitable. And
that’s why it is an exciting place to live and visit. Historical and archeological sites dot
the countryside, some dating as far back as the third century, B.C. It is blessed with
enchanting scenic beauty, mighty rivers, sunny beaches, historical relics and colorful
tribal life. Today, Bangladesh is a home to some of the major religions of the world
like Islam, Hinduism, Buddhism and Christianity are all found here. Owing to a long
tradition of tolerance, there is no communal animosity or ethnic conflict in
Bangladesh. The constitution of the country also guarantees full freedom of religion
and there is no discrimination based on race, religion, caste, sex or place of birth.
CCultural
7.2 u l t u Shock
ral Shock...
It is really challenging for a family or individual to adjust to a new culture. Although it
may involve some periods of pain, its accomplishment is certain to be gratifying.
Coping with the stresses experienced in an unfamiliar situation in Bangladesh is
rather easier. Human beings are actually very good at adjusting to changes and
learn to live happy and productive lives in many settings.
139
Physical signs of culture shock include sleep disturbances, stomach ailment, loss of
appetite, and pain with no organic cause, lack of energy etc. Psychologically,
depression, groundless fear, irritability, apathy etc. may also result in. Children may
have difficulties at schools, regress in their behavior, and either become quiet or
withdrawn. Adults, especially non-working spouses may found themselves acutely
lonely, irritated by and critical of the surroundings.
In these cases, primarily recognize culture shock, engage in more socialization, learn
and take active participation in culture and cultural events etc.
Lalbag Fort, Dhaka
7.3AAdapting
d a p tTo
i nLife
g...
You are probably no less secure in Bangladesh than you would be in your country
because of the guards and other staff who look after your household. Professional
domestic help and maid services suitable for a foreign family are available.
Hospitalities are much more relaxed, cordial and warm. There are numbers of good
restaurants for eating out. Muslims do not eat pork. Hindus and many Buddhists do not
eat beef. All types of cuisines are readily available in Bangladesh. You may also enjoy the
different cultural festivals on different occasions.
140
Bangladesh Cricket Team
Bangladesh Vs India, 2nd ODI, 26 December 04
AAffordable
7.4 f f o r dLiving
a b l eCosts
...
For the expatriates, Bangladesh is affordable and comfortable to live in. Expatriates’
accommodation is available in centrally located apartments and houses. In several
suburban areas, much quiet, more secluded houses are also available for rent. For
those visiting Bangladesh, Dhaka offers three international five-star hotels – the Pan
Pacific Sonargaon Hotel, Dhaka Sheraton Hotel and newly launched Radisson
Water Garden Hotel. All the hotels provide deluxe accommodation, restaurants,
health-club and entertainment facilities. In addition, there are a number of medium
standard hotels and guesthouses in Dhaka, Chittagong and Khulna to accommodate
the expatriates. Please see Chapter 5 for details on Living Costs.
Hotel Radisson Water Garden, Dhaka
141
7.5S Schooling
c h o o& l iHealthcare
ng &...
There is a good number of schools are available in Dhaka and also in Chittagong. An
American International School for grades 1 to 12 is located near the high-class
residential area of Gulshan in Dhaka. The professional teaching staffs follow the
American school curriculum. The school library maintains a substantial collection.
Tuition charges are reasonable. A Japanese school is located in the residential area
of Baridhara in Dhaka. The school is managed by the Japanese Association in
Bangladesh. Also there have some English medium schools with international
standards with having examination center of O-level and A-level examination.
Basic health care needs can be met at any of the country’s hospitals or clinics, or by
a foreign-trained registered physicians, engaged in various state owned and private
hospitals and clinics. Most of them are highly qualified, well experienced and
educated in U.S.A., U.K. Japan, and other European countries. There are also some
good hospitals and clinics with modern diagnostic equipment and facilities.
EEntertainment
7.6 n t e r t a i n&m ent...
Recreations
Expatriates have access to 3 private clubs in Dhaka to play tennis, squash, golf and
billiards, and to swim or dine. Local entertainment includes plays, art exhibits, films
and instrumental and vocal music groups. As Bangladesh is enriched with rich
culture, special occasions are often marked by folk, dance festivals or observing
different rituals. Similar sports and recreational facilities are also available in
Chittagong and Khulna.
Both the rural and urban people are very sound in culture. Local drama, film festivals,
cultural exhibitions etc. are regularly held in the urban centers. People observe
national days in a very festive and joyous manner.
142
TTours
7.7 o u r&sTravels
&...
Chittagong and Khulna – these two places have some special attractions for visitors.
Chittagong, the second largest city, is the gateway to the Bay of Bengal with a
picturesque hinterland of large hills and forests, broad sandy beaches and fine
temperate climate always attract holiday-makers. It combines the humming of busy
sea-port with the pleasure of a charming hill-town with undulating topography.
Chittagong is the country’s principal sea-port and is the main site of heavy, medium
and light industries. Chittagong is also close to other unique tourist spots like Cox’s
Bazar, Kaptai and Rangamati.
Khulna, the country’s third largest city, serves as the gateway to the port of Mongla
and the Sundarbans, the home of the Royal Bengal Tiger. A journey by paddle
steamer from Dhaka to Khulna along the southern river system running through the
green countryside is guaranteed to be an unforgettable experience for foreigners.
Saint Khan Jahan Ali’s sixty-domed ancient mosque (1459 A.D.) and his mausoleum
at Bagerhat about 32 kms. away from Khulna are the popular tourist attractions.
Hanging Bridge, Rangamati
143
WWorkdays
7.8 o r k d&aBusiness
y s &Hours
...
Bangladesh observes Friday and Saturday weekend for government offices.
Business hours are 9:00 – 17:00. Banks observe the same hours while industry has
a 48-hour week. But different business and private organizations observe a Friday
weekend.
F Flight
7.9 l i g hSchedules
t schedules
It is very easy and simple to travel Bangladesh from any country in the world. Please
contact your travels agent or the airline offices for latest flight schedules from major
international hubs like London, Dubai, Bangkok, Singapore Also visit the official
website of Biman Bangladesh Airlines. www.bimanair.com.
UUseful
7.10 s e f uBangla
l . . . Words
Bangladeshi people regard Bangla as central to the sense of pride of their nation.
Speaking a few words in Bangla will not facilitate your communication a lot. But this
would be appreciated by every Bangladeshi. Here are some very common Bangla
words and phrases:
Shahid Minar, Dhaka
144
Useful Bangla Words
Greetings & Conversation Numbers
Muslim Greeting : Assalamu Alaikum 1 : Ek
Response : Wa Alaikum Asslam 2 : Dui
Hindu Greeting : Nomoshkar 3 : Tin
Response : Nomoshkar 4 : Char
Muslim Farewell : Khuda Hafez/Allah Hafez 5 : Panch
Response : Khuda Hafez 6 : Choy
Thank you : Dhanyabad 7 : Shat
Yes : Ji or Ha 8 : Aat
No : Na 9 : Noy
OK : Achcha 10 : Dosh
How are you? : Kemon aachen? 20 : Bish
I am well. : Bhalo Aachi. 30 : Trish
What is your name : Apnar nam ki? 40 : Chollish
My name is .. : Amar nam ... 50 : Ponchash
I have ... : ... Aache 100 : Ek Sho
I don't have ... : ... nai 200 : Dui Sho
I need ... : ... lagbe 1,000 : Ek Hajar
I don't need : ... lagbe na 1,00,000 : Ek Lakh
Food / Shopping Time
Vegetable : Shobji Morning : Shokal
Potato : Alu In the morning : Shokale
Onion : Peyaj Afternoon : Bikal
Cauliflower : Phulkopi Night : Raat
Cabbage : Badhakopi Today : Aaj
Banana : Kola Yesterday : Gotokal
Mango : Aam Tomorrow : Agamikal
Lemon : Lebu Hour : Ghonta
Apple : Apel Day : Din
Papaya : Pepe Week : Shopta
Orange : Komla Month : Mash
Rice (cooked) : Bhat Year : Bochor
Rice (uncooked) : Chaal Everyday : Roj
Lentils : Dal Whole Day : Sara din
Curry : Torkari Later : Pore
Sugar (white) : Chini
Water : Pani
Market : Bazar
Shop : Dokan
For more information on living in Bangladesh, its culture, travel information, places to visit and
security, you may also please contact Bangladesh Parjatan Corporation.
145
Information is the key and life-blood of an investment decision. Without reliable and legitimate
information sources, decisions are always at stake. This chapter records all possible sources of business
and relevant information on Bangladesh. Investors would be able to
Arrange independent contacts, cross-refer and study.
Build relationship with a wide range of stakeholders.
Equip them with the real and true information.
8
Important Contacts &
Information Sources

8.1 Government Bodies
8.2 Trade and Chamber Bodies
8.3 Specialized Associations
8.4 Foreign Missions in Bangladesh
8.5 International Organizations
8.6 Bangladesh Missions Abroad
8.7 Board of Investment (BOI)
147
148
8.1GGovernment
o v e r nBodies
ment...
The Web address of Government is www.bangladesh.gov.bd
Ministry of Civil Aviation & Tourism

Bhaban No. 6, 19th Floor
Bangladesh Secretariat, Dhaka 1000
Tel : (880-2) 716 7244
Fax : (880-2) 716 9206
E-mail : bpcho@bangla.net
Web : www.bangladeshtourism.gov.bd
Ministry of Communications
Bhaban No. 7 (8th floor), Secretariat, Dhaka 1000
Tel : (880-2) 716 2866
Fax : (880-2) 955 3900
Email : secretary@moc.gov.bd
Web : www.moc.gov.bd
Ministry of Commerce
Room No. 129, Building 3, Bangladesh Secretariat, Dhaka-1000
Tel : (880-2) 716 5741, 716 0346
Fax : (880-2) 716 7999
Email : mincom@bdonline.com & mincom@bttb.net.bd
Web : www.mincom.gov.bd
Ministry of Finance
Bhaban No. 7 (3rd floor), Bangladesh Secretariat, Dhaka 1000
Tel : (880-2) 716 2785, 716 0406, 716 2641
Fax : (880-2) 716 5581
Email : fsoff@bdmail.net
Web : www.mof.gov.bd
Ministry of Foreign Affairs
Segun Bagicha, Dhaka-1000
Tel : (880-2) 956 2862
Fax : (880-2) 955 5283
Email: communicationcell@mosabd.org
Web : www.mofa.gov.bd
Ministry of Industries
Shilpa Bhaban (2nd floor), 91 Motijheel Commercial Area, Dhaka 1000
Tel : (880-2) 956 7024, 956 3582
Fax : (880-2) 956 3553, 955 9531
Email : indsecy@bttb.net.bd
Web : www.moind.gov.bd
149
Ministry of Power, Energy & Mineral Resources
Bhaban No. 6 (1st floor), Bangladesh Secretariat, Dhaka 1000
Tel : (880-2) 716 6188
Fax : (880-2) 716 1110
Email : secyenergy@yahoo.com
Ministry of Posts & Telecommunications
Bhaban No. 7 (6th floor), Bangladesh Secretariat, Dhaka 1000
Tel : 880-2-716 2160
Fax : 880-2-716 5775
Email : mopt@bttb.net.bd
Web : www.mopt.gov.bd
Ministry of Textiles and Jute
Bhaban No. 6 (11th floor), Bangladesh Secretariat, Dhaka 1000
Tel : (880-2) 716 7266
Fax : (880-2) 716 0600, 7168766
Email : sectext@bttb.net.bd
Web : www.motj.gov.bd
Bangladesh Bank
Motijheel Commercial Area, Dhaka 1000
Tel : (880-2) 712 6101-20, 712 6280-95
Fax : (880-2) 956 6212
E-mail : gmfrtmbb@bangla.net
Web: www.bangladesh-bank.org
Bangladesh Export Processing Zones Authority (BEPZA)
BEPZA Complex, House # 19/D, Raod # 6,
Green Road, Dhaka-1205, Bangladesh
Tel : (880-2) 865 0059
Fax : (880-2) 966 1849, 856 0063
Email : chairman@bepza.org
Web : www.epz-bangladesh.org.bd
Bangladesh Standard & Testing Institution (BSTI)
Ministry of Industries
Mann Bhaban, 116/KA, Tejgaon Industrial Area, Dhaka-1208
Tel: (880-2) 881 0673, 989 9030, 989 8115
Fax: (880-2) 913 1581
Email: bsti@bangla.net
Web: www.bstibd.org
150
Bangladesh Tariff Commission
1st Twelve Storied Govt. Building (10th Floor)
Segunbagicha, Dhaka
Tel : (880-2) 933 5935, 831 4542
Fax : (880-2) 831 5685
Email : btariff@intechworld.net
Web : www.bdtariffcom.org
Bangladesh Telephone & Telegraph Board
Telejogajog Bhaban, 37/E Eskaton Graden, Dhaka-1000
Tel: (880-2) 831 1500, 865 1800
Fax: (880-2) 831 2577
E-mail: chairman@bttd.net.bd.
Web: www.bttb.gov.bd
Dhaka City Corporation
Nagar Bhaban, Fulbaria, Dhaka
Tel: (880-2) 956 3447, 956 3504
Fax: (880-2) 956 3514
Web: www.dhakacity.org
Export Promotion Bureau (EPB)
TCB Bhaban, 1-2, Kawran Bazar C/A
Commercial Area, Dhaka 1215, Bangladesh
Tel : (880-2) 914 4821-4, 912 8377, 815 1496, 811 2427
Fax : (880-2) 911 9531
Email : epb.bd@aitbd.net
Web: www.epb.com.bd
National Board of Revenue
Segunbagicha, Dhaka
Tel : (880-2) 831 8120-26, 831 8101-8
Fax : (880-2) 831 6143
E-mail : nbr-bd@bobnline.com, bdnbr@mail.com
Office of the Chief Controller of Export & Import (CCEI)
111-113 Motijheel Commercial Area (2nd Floor), Dhaka-1000
Tel : (880-2) 955 1556
Fax : (880-2) 955 0217
Email : ccie@bdmail.net
151
Privatization Commission
Jiban Bima Tower (14th floor)
10, Dilkusha Commercial Area, Dhaka 1000
Tel: (880-2) 955 1986
Fax: (880-2) 955 6433
Email: pb@bdonline.com
Web: www.pc.gov.bd
Petrobangla
Petrocenter, 3 Kawran Bazar, Dhaka-1215
Tel: (880-2) 811 4972
Fax: (880-2) 912 0224
Email: petchair@petrobangla.org.bd.
Power Development Board
WAPDA Building, (1st floor) Chairman Bhaban, Dhaka 1000
Tel: (880-2) 956 2154
Fax: (880-2) 956 4765
Email: chbpd@bd-online.com
Web: www.bpdb.gov.bd
Registrar of Joint Stock Companies and Firms
24-25 Dilkuha C/A, Dhaka
Tel: (880-2) 956 4005
Fax: (880-2) 955 4452
Email: rjsc@citechco.net
Web: www.roc.gov.bd
152
TTrade
8.2 r a d&e Chamber
& . . . Bodies
The Federation of Bangladesh Chambers of Commerce & Industry (FBCCI)
Federation Bhaban
60 Motijheel Commercial Area, Dhaka 1000
Tel : (880-2) 956 0102-3, 956 0588-9, 956 0482
Fax: (880-2) 861 3213, 955 1233
Email : fbcci@bol-online.com
Web : www.fbcci-bd.org
Foreign Investors’ Chambers of Commerce and Industry (FICCI)
Prime View (03-303) 7 Gulshan Avenue, Gulshan-1, Dhaka-1212
Tel : (880-2) 989 3049
Fax : (880-2) 989 3058
Email : ficci@bangla.net
Web : www.ficci.org.bd
Bangladesh Chamber of Industry (BCI)
BCIC Bhaban (3rd Floor) 30-31, Dilkusha C/A, Dhaka-1000, Bangladesh
Tel : (880-2) 955 1669, 956 9601, 956 5345
Fax : (880-2) 956 4170
Email : bci@bdcom.com
Web : www.bangladeshchamber.org
International Chamber of Commerce Bangladesh (ICC-Bangladesh)
Chandrashila Suvastu Tower (6th Floor), 69/1, Panthapath, Dhaka
Tel : (880-2) 956 4174, 862 2583-84
Email : iccb@bdmail.net, iccb@citechco.net
Metropolitan Chamber of Commerce & Industry (MCCI)
Chamber Building, (4th floor) 122-124, Motijheel C/A, Dhaka-1000
Tel : (880-2) 956 5208-11, 716 1028-29 (PABX)
Fax : (880-2) 956 5212
Email : sg@citechco.net
Web : www.mccibd.org
The Dhaka Chamber of Commerce & Industry (DCCI)
Dhaka Chamber Bhaban 65-66, Motijheel C/A, Dhaka
Tel : (880-2) 955 2808, 955 2562
Fax : (880-2) 956 0830
Email : dcci@agni.com, dcci@bangla.net
Web : www.dhakachember.com
153
Chittagong Chamber of Commerce & Industry (CCCI)

Chamber House # 38, Agrabad C/A, Chittagong, Bangladesh
Tel : (880-31) 713 366-69, 711 355
Fax : (880-31) 710 183
Email : ccc@golbalctg.net
Khulna Chamber of Commerce & Industry (KCCI)
Chamber Mansion, 5, KDA C/A P.O. Box 26, Khan-A-Sadur Road, Khulna
Tel : (880-41) 723 953, 811 248
Fax : (880-41) 726 535
Rajshahi Chamber of Commerce & Industry (RCCI)
Chamber Bhaban, Station Road, Rajshahi
Tel : (880-721) 812 122, 812 133 (Office)
Fax: (880-721) 812 133
Barisal Chamber of Commerce & Industry (BCCI)
P.O. Box 30, Shaow Road, (Nazirer Pool) Barishal, Bangladesh
Tel : (880-431) 522 20, 618 76
Fax : (880-431) 546 91
Sylhet Chamber of Commerce & Industry (SCCI)
Chamber Building P.O. Box 97 Jail Road, Sylhet
Tel : (880-821) 714403, 716069, 716808
Fax : (880-821) 715210
Joint Chambers
Australia-Bangladesh Chamber of Commerce & Industry (ABCCI)
House # 296 (Ground Fl.), Road # 04 (east side), DOHS Baridhara, Dhaka-1206
Tel : (880-2) 988 3926
Fax : 880-2-988 8450
Email : abcci@citek_bd.com
American Chamber of Commerce in Bangladesh (AmCham)
Dhaka Sheraton Hotel (Room 319)
1, Minto Road, Dhaka 1000
Tel : (880-2) 861 3391, 988 5881
Fax : (880-2) 934 9217, 8312915
Email : amcham@bangla.net
Web : www.amachambd.org
154
Bangladesh-Malaysia Chamber of Commerce & Industrics (BMCCI)

House # 14, Road # 27, Block # J, Banani, Dhaka 1213
Tel: (880-2) 989 5124, 989 5525, 988 7071
Fax : (880-2) 989 5541, 988 7072, 885 8527
Email : bmcci@dhaka.net
Bangladesh-China Chamber of Commerce & Industrics (BCCCI)
House # 432, (2nd Floor) Road # 30, New DOHS, Mohakhali, Dhaka
Tel: (880-2) 885 9080, 0172-290417, 0171-031049
Fax: (880-2) 988 3444
Bangladeshi-German Chamber of Commerce & Industry (BGCCI)
H.R. Bhaban (4th Floor), 26/1 Kakrail Road, Dhaka-1000
Tel: (880-2) 989 3536
Fax: (880-2) 989 344
Email : bgccibd@yahoo.com, info@bgcci-bd.com
Web : www.bgcci-bd.com
Bangladesh-Norway Chamber of Commerce & Industry (BNCCI)
East Coast Centre, SW(G), 8 Gulshan Avenue, Gulshan-1, Dhaka-1212
Tel : (880-2) 988 4312-7
Fax: (880-2) 988 3783, 988 3785
E-mail : ecg@bangla.net
Web : www.ecg.com.bd
Bangladesh-Thai Chamber of Commerce and Industry (BTCCI)

52/1, New Eskaton Road (2nd Floor), Dhaka - 1000
Tel: (880-2) 934 3948, 934 5174, 935 6085
Fax : (880-2) 831 4933
Email: rmkhan@dbn-bd.net
Web : www.bscl.net
Dutch-Bangla Chamber of Commerce & Industry (DBCCI)

Chowdhury Centre (2nd Floor) 23Ka New Eskaton Road
Tel : (880-2) 8359337
Fax : (880-2) 8359562
Email : dbcci@dbn-bd.net
Web : www.dbcci.org
155
Japan-Bangladesh Chamber of Commerce & Industries (JBCCI)

Sharif Plaza (3rd Floor), 39, Kemal Ataturk Avenue, Banani, Dhaka-1213
Tel : (880-2) 881 8222-3
Fax : (880-2) 881 8224
E-mail : jbcci@citech-bd.com
Web : www.jetro.gojp/bangladesh/eng/jbcci/index.hdml
Bangladesh-France Chamber of Commerce & Industry (BFCCI)

House No. 2, Road No. 1, Baridhara, Dhaka-1212
Tel: (880-2) 882 1540, 882 2751-4
Fax: (880-2) 882 1450, 986 0712
Email: dhaka@missionceo.org
Russia-Bangladesh Joint Chamber of Commerce & Industry (RBJCCI)

House 2, flat 6/1, Road 17, block C, Banani, Dhaka
Tel : (880-2) 881 2050,
Fax: (880-2) 882 2275
Email: info@russia-bangladesh-cci.com
8.3S Specialized
p e c i a lAssociations
ized
Association of Cargo Agents of Bangladesh
House # 45, Road # 17, Block # E Banani C/A, Dhaka
Tel : (880-2) 988 1663-4
Fax : (880-2) 988 1663
Email : acabhq@pradeshta.net
Bangladesh Automobiles Assemblers & Manufacturer Association

Eastern Trade Centre, Room # 510-5111 (5th floor)
56, Purana Paltan Line, VIP Road, Dhaka-1000, Bangladesh
Tel : (880-2) 935 1927, 955 1273, 955 2212
Fax : (880-2) 956 6324
E-mail : aitarek@aitbd.net
156
Bangladesh Association of Construction Industry (BACI)

ABC House, (5th floor) 8 Kamal Ataturk Aveneu Banani C/A, Dhaka 1213
Tel : (880-2) 882 8202, 882 4754-55
Fax: (880-2) 882 3085
E-mail: baci@citechco.net
Bangladesh Association of Consulting Engineers (BACE)
House # 95/A, Road # 4, Block-F, Banani, Dhaka-1213, Bangladesh
Tel : (880-2) 986 2713-5, 986 27717
Fax : (880-2) 989 3321
E-mail : bal@bclgroup.net
Web : www.bclgroup.com
Bangladesh Bread, Biscuit & Confectionery Manufacturers Association
62/2, Purana Paltan Lane, Kakrail, Dhaka
Tel : (880-2) 832 1064, 934 8490 (Factory)
Bangladesh Corrugated Carton & Accessories
Manufacturers’ & Export Association
“SONARTARI TOWER” (9th Floor), Plot No. 12, Biponon C/A
Sonargaon Road (Link Road), Dhaka-1205
Tel : (880-2) 966 6763, 862 1200, 710 2452
Fax : (880-2) 862 1200, 710 2451
Bangladesh Computer Association
House 8/A, Road 14(New) Sobhanbag, Dhanmondi, Dhaka-1205
Bangladesh Cold Storage Association

BCSA Bhaban 38, Purana Paltan, (2th floor), Dhaka-1000
Tel : (880-2) 956 2932, 955 5252, 955 4883, 955 4883
Fax : (880-2) 956 2932, 989 8246
Bangladesh Computer Samity (BCS)

Sonartori Tower (12th Floor) Plot # 12
Biponon C/A, Sonargaon Road, Dhaka-1205, Bangladesh
Tel: (880-2) 967 0955-56 Ext-108
Fax: 880-2-967 0955-56
E-mail: samity@agni.com
Wed: www.bcs-bd.org
157
Bangladesh Cargo Vessel Owners Association

47/4, Toyenbee Circular Road (3rd floor), Dhaka-1000, Bangladesh
Tel : (880-2) 711 1013
Fax : 880-2-956 4292
Bangladesh Electronics Manufacturers Association

Arafat Tower, 94, Malibagh, DIT Road Dhaka 1217
Tel : (880-2) 955 2078, 955 7967
Fax : (880-2) 831 2913
E-mail : glactron@citechco.net
Bangladesh Engineering Shilpa Malik Samity

38, Tipu Sultan Road, Dhaka-1000
67, Nayapaltan
Tel : (880-2) 711 9011, 711 5425
Bangaldesh Fruits, Vegetables & Allied Products Exporters Association

Sharif Mansion (6th floor)
56/57, Motijheel C/A, Dhaka
Tel : (880-2) 956 0506
Fax: 880-2-956 0506
Bangladesh Frozen Foods Exporters Association (BFFEA)

Sky Lark Point (10th floor) 24/A Bijay Nagar, Dhaka-1000
Tel : (880-2) 812 0434, 914 1750, 913 2452
Fax : (880-2) 913 2452
Email : bffxa@dhaka.net
Bangladesh Finished Leather & Leather goods and footwear Export
Association
House 61, Road 2/A Dhanmondi, Dhaka
Tel : (880-2) 862 2167, 861 5977
Fax : (880-2) 862 2168
E-mail : bfllfea@citechco.net
Web : www.dif.net
Bangladesh Furniture Silpa Malik Samity
129/C Shopping Centre (4th Floor)
Gulshan-1, Dhaak 1212
Tel : (880-2) 882 7703, 882 8776, 882 7703
Fax : (880-2) 882 8756
158
Bangladesh Garment Manufacturers & Exporters Association (BGMEA)

23/1 Panthapath Link Road, Karwan Bazar (3rd & 4thFloor) Dhaka-1215
Tel : (880-2) 811 5597, 811 5751
Fax : (880-2) 811 3951
Email : info@bgmea.com
Web : www.bangladeshgarments.info
Bangladesh G. P & C.I Sheet Manufacturers Association
387, North Tejgaon I/A, Dhaka 1215
Phone : (880-2) 811 7420, 811 7795, 811 9227
Fax : (880-2) 811 8997, 811 3417
Bangladesh Handicrafts & Manufacturers Exporters Association
BTMC Bhaban, 7-9 Karwan Bazar (4th Floor). Dhaka-1215
Tel : 01710 296359
Bangladesh Hosiery Association
Hosiery Bhaban, Hosiery Shilpa Nagar Sashangaon, Fatulla, Narayanganj
Tel : (880-2) 760 1023, 7601629
Bangladesh Jute Association
BJA Bhaban, 77, Motijheel C/A, Dhaka 1000
Tel : (880-2) 955 2916
Fax : (880-2) 956 3589
Bangladesh Jute Mills Association
Adamjee Court (4th floor) 115-120 Motijheel C/A, Dhaka
Tel : (880-2) 955 0664, 913 2520, 912 4982
Fax : (880-2) 955 0664
Bangladesh Jewelery Manufacturers & Exporters Association
F-37, Anarkoli Super Market (1st Floor) Mowchak, Dhaka
Tel : (880-2) 935 7539, 934 3491
Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA)
233/1, B.B. Road, Narayanganj-14000
Tel : (880-2) 955 3866, 955 3422, 971 5494
Fax : (880-2) 971 6050
Email : bjmajutegood@oagnionline.com
Bangladesh Milk Products Manufacturers & Traders Association

46/1, Lake Circus, Kalabagan, Dhaka
Tel : (880-2) 811 6576
Fax : (880-2) 811 6576
159
Bangladesh Marine Fisheries Association

Head Office-Suite no. 10/4, Eastern Plaza (9th floor) Hatirpul, Dhaka.
Tel : (880-2) 861 6934
Fax : 880-2-861 6934
Email : bmfa@bdcom.com
Bangaldesh Poultry Industries Association

Adamjee Court (Ground floor) 115-120, Motijheel C/A, Dhaka
Tel : (880-2) 956 46133, 955 0543
Fax : (880-2) 933 2866
Email : bpiadhaka@yahoo.com
Bangladesh Re-rolling Mills Association

Asif Mansion (9th Floor) 77/1 Kakrail, Dhaka-1000
Tel : (880-2) 835 3051
Bangladesh Reshom Industry Owners Association

23, Liknath High School Market, Rajshahi-6000
Tel : (880-721) 775 271, 772 739
Bangladesh Ship Breakers Association

Road # 13, House # 375, Agrabad Abashik Area, Chittagong
Tel : (88-031) 714 778, 721 182
Fax: (88-031) 723 403
Bangladesh Tea Sangsad

Dar-E-Shahidi, 69, Agrabad C/A, P.O. Box 287, Chittagong
Bangladesh Tanners Association

99, Hazaribagh, Tannerbag Jame Masjid Area, Dhaka 1209
Tel : (880-2) 966 2836
Fax : (880-2) 861 8564
Bangladesh Terry Towel & Linen Manufacturers & Exporters Association

Paltan Tower, 87 Purana Paltan Line (5th Floor)
South East Corner, Dhaka-1000, Bangladesh
Tel : (880-2) 935 1815, 935 1820
Fax: (880-2) 935 1815
E-mail: bttlmea@citechco.net
160
Bangladesh Textile Mills Association (BTMA)

Unique Trade Centre (Level 8)
8 Panthapath, Karwan Bazar, Dhaka, Bangladesh
Tel : (880-2) 914 3461, 913 0969, 811 2361
Fax: (880-2) 912 5338
E-mail : btma@siriusbb.com
Web : www.btmadhk.com
National Association of Small & Cottage Industries of Bangladesh

79, Siddeswari Circular Road, Malibagh Moor, Dhaka-1217
Tel : (880-2) 832 2709
Fax : (880-2) 832 2709
Packaging Industries Association of Bangladesh

68, Dilkusha C/A, Dhaka 1000
Tel : (880-2) 955 7275, 955 7271
Fax : (880-2) 956 4528
E-mail : eliteppl@agni.com
Real Estate & Housing Association of Bangladesh (REHAB)

National Plaza (6th floor) 1/G, Free School
Street, Sonargaon Road, Dhaka-1205, Bangladesh
Tel : (880-2) 966 2482
Fax : (880-2) 956 8520
E-mail : rehab@aitlbd.com
Web : www. rehab-bd.org
161
Fo
8.4 r e i gMissions
Foreign n . . . in Bangladesh
For Latest Update please visit www.mofa.gov.bd
Embassy of the Republic State of Afghanistan
House CWN(c) 2A, Road 24, Gulshan, Dhaka-1212
Phone : (880-2) 989 5994, 989 5819, 989 5901
Fax : (880-2) 989 4767
E-mail: afganembassydhaka@yahoo.com
Australian High Commission

184 Gulshan Avenue, Gulshan # 2, Dhaka-1212
Phone: (880-2) 881 3101-5
Fax: (880-2) 881 1125
E-mail: AHC.dhaka@dfat.gov.au
Web: www.bangladesh.embassy.gov.au
Royal Bhutanese Embassy

House # CEN 12, Road # 107, Gulshan # 2, Dhaka-1212
Phone: (880-2) 882 6863, 882 7160
Fax: (880-2) 882 3939
E-mail: bhtfs@citech-bd.com, bhtccc@citech-bd.com
High Commission of Brunei Darussalam

House # 26, Road # 6, Baridhara, Dhaka-1212
Phone: (880-2) 881 9552, 881 3304, 9861837
Fax: (880-2) 881 9551
E-mail: bruhcomm@citech-bd.com
Canadian High Commission

House 16/A, Road 48, Gulshan, Dhaka-1212
Phone: (880-2) 988 7091-7
Fax: (880-2) 882 3043, 882 6585
E-mail: dhaka@dfait-maeci.gc.ca
Web: www.bangladesh.gc.ca
Embassy of the People’s Republic of China

Plot # 2 & 4, Road # 3 Block # 1, Baridhara, Dhaka-1212
Phone: (880-2) 882 4862, 882 2599, 882 4164, 885 5405
Fax: (880-2) 882 3004
E-mail: chinaemb_bd@mfa.gov.cn
Web: www.bd.china-embassy.org
Royal Danish Embassy

House # 1, Road # 51, Gulshan # 2, Dhaka
Phone: (880-2) 882 2499, 882 2599, 882 2699
Fax: (880-2) 882 3638
E-mail: dandhaka@citechco.net
Web: www.danishembassybd.com
162
Embassy of the Arab Republic of Egypt
House NE(N) #9, Road # 90, Gulshan # 2, Dhaka-1212
Phone: (880-2) 882 2766-7, 881 3828
Fax: (880-2) 885 8747
E-mail: embassyofegypt@netscape.net
Embassy of the Republic of France

House 18, Road 108, Gulshan, Dhaka-1212
Phone: (880-2) 881 3812-4, 988 3851
Fax: (880-2) 882 3612
E-mail: ambafrance@gononet.com
Web: www.ambafrance-bd-org
Embassy of the Federal Republic of Germany

178, Gulshan Avenue, Gulshan, G.P.O Box 108, Dhaka-1212
Phone: (880-2) 885 3521-24
Fax: (880-2) 885 3260, 885 3528
E-mail: aadhaka@citechco.net
Web: www.dhaka.diplo.de
High Commission of India

Chancery address: House # 2, Road # 142, Gulshan, Dhaka-1212
Phone: (880-2) 988 8789, 8820243- 7
Fax: 880-2-9893050
E-mail: hoc@hcidhaka.org
Embassy of the Republic of Indonesia

Plot # 14, Road# 53, Gulshan #2, Dhaka-1212
Phone: (880-2) 988 1640-41, 8812260
Fax: (880-2) 882 5391, 8810993
E-mail: indhaka@bangla.net,
Web: www.jakarta-dhaka.com
Embassy of the Islamic Republic of Iran
House #7, Road#6, Baridhara, Dhaka-1212
Phone: (880-2) 882 5948, 882 5896, 989 6664, 989 6754
Fax: (880-2) 882 8780
E-mail: dacembiran@yahoo.net
Embassy of the Republic of Italy

Plot 2/3, Road 74/79, Gulshan Model Town, Dhaka
Phone: (880-2) 882 2781-3(PABX), 988 2802, 882 6359
Fax: (880-2) 882 2578
E-mail: ambdhaka@dominox.com
163
Embassy of Japan
Plot 5 & 7, Dutabash Road, Diplomatic Enclave Baridhara, Dhaka-1212
Phone: (880-2) 881 0084, 881 0087
Fax: (880-2) 882 6737, 882 3714
E-mail: information@embjp.eccesstel.net
Web: www.bd.emb.japan.go.jp
Embassy of the Democratic people's Republic of Korea

House # 5/A, Road # 54, Gulshan # 2, Dhaka-1212
Phone: (880-2) 881 1893-9 ( Economic Section: 8915690)
Fax: (880-2) 881 0813 (Economic Section: 8915690,8915511)
E-mail: namnam@bangla.net
Embassy of the Republic of Korea

4, Madani Avenue, Baridhara, Dhaka-1212
Phone: (880-2) 881 2088-90
Fax: (880-2) 882 3871
E-mail: embdhaka@embdhaka.org
Web: www.mofat.go.kr
Embassy of the State of Kuwait

House# 16, Road# 4, Baridhara, Dhaka, GPO box no.6099
Phone: (880-2) 882 2700-3
Fax: (880-2) 882 3753
E-mail: kuwaitem@bdmail.net
Embassy of The Great Socialist People's Libyan Arab Jamahiriya

Phone: (880-2) 989 5808-9
Fax: (880-2) 882 3417
High Commission of Malaysia

House 19, Road 6, Baridhara, Dhaka-1212
Phone: (880-2) 882 7759-60, 989 1651, 988 5543
Fax: (880-2) 882 3115, 882 7761, 989 6266
E-mail: mwdhaka@citechco-bd.com
Embassy of the Kingdom of Morocco

House 44, United Nations Road, Baridhara, Dhaka-1212
Phone: (880-2) 882 3176, 988 0329
Fax: (880-2) 881 0018
E-mail: sifmadac@citechco.net
164
Embassy of the Union of Myanmar
House no. NE(L) 3, Road 84, Gulshan 2, Dhaka-1212
Phone: (880-2) 989 6373, 989 6298
Fax: (880-2) 882 3740
E-mail: mynembdk@dhaka.net
Royal Nepalese Embassy
United Nations Road, Road 2, Baridhara Diplomatic Enclave, Dhaka
Phone: (880-2) 989 2490, 989 2568
Fax: (880-2) 882 6401
E-mail: rnedhaka@dbn-bd.net
Royal Netherlands Embassy
House 49, Road 90, Gulshan, Dhaka-1212
Phone: (880-2) 882 2715
Fax: (880-2) 882 3326
E-mail: nlgovdha@citechco.net,
Web: www.netherland.dhaka.org
High Commission of Nigeria
Plot #9 EP 4, Road 111, Gulshan, Dhaka
Phone: (880-2) 881 7999
Royal Norwegian Embassy
House 9, Road # 111, Gulshan, Dhaka
Phone: (880-2) 882 3065, 881 3880, 881 6276, 881 6303, 881 6273
Fax: (880-2) 882 3661
E-mail: emb.dhaka@norad.no,
Web: www.dhaka.mfa.no
High Commission for the Islamic Republic of Pakistan

House NE(C) 2, Road # 71, Gulshan Avenue, Dhaka-1212
Phone: (880-2) 882 5388-9
Fax: (880-2) 8850673
E-mail: paredha@bangla.net
Embassy of State of Palestine
Chancery Address: House # 15/A , Road# 35, Gulshan Model Town, Dhaka-1212
Phone: (880-2) 989 3895-6
Fax: (880-2) 882 3517
E-mail: pemdhaka@hotmail.com
Embassy of the Republic of the Philippines

House 6, Road 101, Gulshan 2, Dhaka-1212
Phone: (880-2) 988 1590-93, 988 1578
Fax: (880-2) 882 3686
E-mail: philem1@ citechco.net, philem2@ citechco.net,
165
Embassy of the Republic of Poland

House # House # 111, Road # 4, Banani, Dhaka-1212
Phone: (880-2) 882 5895, 989 3895-6
Fax: (880-2) 882 7568, 881 1458
E-mail: pendhaka@hotmail.com
Embassy of the State of Qatar
Hous # 1, Road # 79/81, Gulshan # 2, Dhaka-1212
Phone: (880-2) 881 9930, 882 3950
Fax: (880-2) 989 6071
Embassy of the Russian Federation
House NE(J) 9, Road 79, Gulshan # 2, Dhaka-1212
Phone: (880-2) 8818142, 882 8147
Fax: (880-2) 882 3735
E-mail: rusemb@citech-bd.com, info@rusdhaka.org
Web: www.rusdhaka.org
Royal Embassy of Saudi Arabia
House # 5(NE)L, Road#83, Gulshan # 2, Dhaka-1212
Phone: (880-2) 882 9125, 882 9128-9, 882 6989
Fax: (880-2) 882 3616
Email: BDEMB@mofa.gov.sa
Consulate of the Republic of Singapore

House 15, Road 68/A, Gulshan-2, Dhaka-1212
Phone: (880-2) 988 0404, 988 0337
Fax: (880-2) 988 3666
The High Commission of the Democratic

Socialist Republic of Sri Lanka
House # 4A, Road # 113, Gulshan Model Town, Dhaka-1212
Phone: (880-2) 989 6353
Fax: (880-2) 882 3971
E-mail: slhc@citechco.net
Embassy of Sweden
House # 1, Road # 52, Gulshan, Dhaka-1212
Phone: (880-2) 882 4761-4,882 0220
Fax: (880-2) 882 3948
E-mail: ambassaden.dhaka@sida.se
Web: www.citechco.net/swedhaka
Embassy of Switzerland
House # 31-B, Road # 18, Banani, Dhaka-1212
Phone: (880-2) 881 2874-6
Fax: (880-2) 882 3872
E-mail: vertretung@dha.rep.admin.ch
166
Royal Thai Embassy
Phone: (880-2) 881 2795-6, 881 3260-1
Fax: (880-2) 885 4280
Email: thaidac@mfa.go.th
Web: www.thaidac.com
Embassy of the Republic of Turkey

House# 14A, Road # 62, Gulshan, Dhaka 1212
Phone: (880-2) 882 2198, 882 3536, 882 3297
Fax: (880-2) 882 3873
Email: dakkabe@citech-bd.com
Embassy of the United Arab Emirates

191 Gulshan Avenue, Dhaka-1212
Phone: (880-2) 988 2255, 988 2266, 988 2277, 9882244
Fax: (880-2) 882 3225,
Email: uaedac@bol-online.com
Web: www.uaeembassydhaka.org
British High Commission

United Nations Road, P.O. Box: 6079, Baridhara, Dhaka-1212
Phone: (880-2) 882 2705-9
Fax: (880-2) 882 3437
Email: Dhaka.Immigration@fco.gov.uk, Dhaka.Commercial@fco.gov.uk
Website: www.ukinbangladesh.org
Embassy of the United States of America

Madani Avenue, P.O. Box: 323, Baridhara, Dhaka-1212
Phone: (880-2) 885 5500-22
Fax: (880-2) 882 3744, 8823648
Consular Agency of the Republic of Uzbekistan
Wali Centre, 3rd floor, House 74, Gulshan Avenue, Dhaka 1212
Phone: (880-2) 601 022
Fax: (880-2) 882 3452
Delegation of the European Commission

House 7, Road 84, Gulshan, Dhaka.
Phone: (880-2) 882 4730-32, 986 2826
Fax: (880-2) 882 3118
Email: Delegation-Bangladesh@cec.eu.int
Website: www.eudelbangladesh.org
167
8.5I n t e r n a tOrganizations
International ional...
Asian Development Bank
Plot # E-31, Sher-e- Bangla Nagar
GPO Box no. 2100, Dhaka 1000
Phone: (880-2) 8165000-8, 8154009-16
Fax: (880-2) 81566018-19
Email: abdbrm@adb.org
Web: www.adb.org
Australian Aid Agency (AusAID)

184 Gulshan Avenue, Gulshan, Dhaka Bangladesh
Phone: (880-2) 881 3101 - 05
Fax: (880-2) 882 3794
Email: ausaid.dhaka@dfat.gov.au
AusAID Web: www.bangladesh.embassy.gov.au
Canadian International Development Agency (CIDA)

House # 16A, Road # 48, Gulshan - 2, Dhaka 1212, Bangladesh
Phone: (880-2) 988 7091-7
Fax : +880 2 882 3043 & +880 2 882 6585
Email: dhaka@international.gc.ca
Web: www.dfait-maeci.gc.ca/bangladesh/cida-en.asp
Department for International Development (DFID)

10 Gulshan Avenue, Gulshan-1
Dhaka-1212, Bangladesh.
Tel: (880-2) 881 0800 [Lead/Pilot]
Fax: (880-2) 882 3181, 882 4661, 882 6454
E-mail: info@dfidbangladesh.org
Web: www.dfidbangladesh.org
Islamic Development Bank

IDB Bhaban (4th Floor), E/8-A Rokeya Sharani
Sher-e-Bangla Nagar, Dhaka-1207, Bangladesh
Phone : (880-2) 912 3821, 913 1150, 913 1151
Fax: (880-2) 811 0450
IDB.BISEW
E-mail: idbb@idb-bisew.org
Web: www.idb-bisew.org
168
IMF Office in Bangladesh

Bangladesh Bank Building
Room 4 (4th floor)
Motijheel C/A, Dhaka 1000
Phone: (880-2) 955 0275, 955 0293
Fax: (880-2) 958 6217
Web: www.imf.org
International Finance Corporation

C/O World Bank
Bay's Galleria (2nd Floor), 57, Gulshan Avenue
Gulshan-1, Dhaka-1212, Bangladesh
Phone: (880-2) 988 6773, 8833752-67
Fax: (880-2) 989 4744
Email: info@sedf.org
Web: www.ifc.org
JICA Bangladesh
JICA BANGLADESH OFFICE
UDAY TOWER (7th floor), Plot No.57 & 57/A,
Gulshan Avenue (south), Circle-1, Dhaka-1212, Bangladesh
(Banani P.O.Box No.9030, Dhaka-1213, BANGLADESH )
Phone: (880-2) 989 1897, 989 1899, 989 1073, 989 3106, 882 6547
Fax: (880-2) 989 1689, 989 1753
Email: jicagap-opinion@jica.go.jp
Web: www.jica.go.jp/english
South Asia Enterprise Development Facility (SEDF)

Bay's Galleria (2nd Floor), 57, Gulshan Avenue (CWS-A 19)
Gulshan-1, Dhaka-1212, Bangladesh
Tel: (880-2) 883 3752-67, 986 1711-20
Fax: (880-2) 989 4744
Email: info@sedf.org
Web: www.sedf.org
The World Bank Office in Bangladesh

Plote E # 32, Agargaon, Sher-e-Bangla Nagar, Dhaka-1207
Phone: (880-2) 815 9001-28
Fax: (880-2) 815 9029-30
Web: www.worldbank.org.bd
169
United Nations Development Programme (UNDP)

IDB Bhaban, E/8-A Begum Rokeya Sharani
Sher-e-Bangal Nagar, Dhaka 1207
Phone: (880-2) 811 8600-06, 811 8632
Fax: (880-2) 811 3196,8117811
Email: registry.bd@undp.org
Website: www.un-bd.org/undp
United States Agency for International Development,

Bangladesh
Madani Avenue, Dhaka Bangladesh
Phone: (880-2) 885-5500
Fax: (880-2) 882-3648
Email: idhaka@usaid.gov
Web: www.usaid.gov/bd
170
BBangladesh
8.6 anglad e s h .Abroad
Missions ..
For Latest Update please visit www.mofa.gov.bd
Australia Canada
High Commission for the People`s Republic High Commission for the People`s Republic of
of Bangladesh, Canberra Bangladesh, Ottawa, 275 Bank Street, Suite 302,
21, Culgoa Circuit, O` Melley Act-2606, Ottawa, Ontario K2P 2L6, (Ottawa).
Canberra, Australia. Phone: (1-613) 236-0138, 236-0139
Phone; (61-2) 6290-0511, 6290-0522, Fax: (1-613) 567-3213
Fax: (61-2) 6290-0544 Email: bangla@rogers.com
Email: bdoot@canberra@cyberone.com.au Web: www.bdhc.org
Web: http://users.cyberone.com.au/bdeshact China (Hong Kong)
Bahrain Consulate General of the People`s Republic
Embassy of the People's Republic of Bangladesh, Hong-Knog, Room 4007,
of Bangladesh, Manama, Bahrain. China Resources Building, 26,
House # 2280 Road # 2757, Adliya-327, Harbour Road, Wanchai, Hong-Kong.
Bahrain, P.O. Box 26718, Adliya Manama, Bahrain. Phone: (852) 28274278-79
Phone: (00973) 17714717 (PABX) Fax: (852) 28271916
Fax: (00973)-17710031, 17742252 Email: bangladt@netvigator.com
Email: bangla@batelco.com.bh China
Belgium Embassy of the People`s Republic of
Embassy of the People's Republic of Bangladesh, Bangladesh, Beijing
Brussels, 29-31, Rue Jacques Jordaens, 1000 42, Guang Hua Lu, chaoyang
Phone: +(32-2) 6405500, 6405606 (PABX) District Beijing-100600
Fax: +(32-2) 6465998 Phone: (0086-10) 65322521, 65323706
Email: bdootbrussels@skynet.be Fax: (0086-10) 65324346
Web: www.banglaeshembassy.be Email: bdemb@public3.bta.net.cn
Bhutan Web: www.bangladeshembassy.com.cn
Embassy of the People`s Republic of Bangladesh, Egypt
Thimphu, Bhutan. Plot# HIG-3, Upper Chubachu Embassy of the People`s Republic of
Phone: (00975-2) 322 539, Bangladesh, Cairo, Egypt
Fax: (00975-2) 322 629 20 Gazeret EI Arab Street, Mohandession-12655,
Email: bdoot@druknet.bt Phone: (20-2) 3462003, 3462009
Brazil Fax: (20-2) 3462008
Embassy of the People`s Republic E-mail: bdoot@link.net
of Bangladesh, Brasilia-DF, SHIS QI-7, Conj-3, France
Casa-4, Brasilia-DF, Brazil Embassy of the People`s Republic of
Phone: (55-61) 248-4830/248-4905/248-7218 Bangladesh, Paris, 39, Rue Erlanger, 75016
Fax: (55-61) 248-4609 Phone: (33-1) 01-4651-9033, 4651-9830 (PABX)
Email: bdoot.bz@nutecnet.com.br Fax: (33-1) 01-4651-9035
Brunei Email: bdootpar@yahoo.com
High Commission for the People`s Republic Germany
of Bangladesh, Bandar Seri Begawan Embassy of the People`s Republic of
House No. 10 Simpang 83-20, Jalan Sungai Bangladesh, Berlin, Dovestrasse 1, 10587
Akar, BC-3915, Bandar Seri Begawan, Brunei Darussalam. Phone: (49-30) 0049-30-3989 750 (PABX)
Phone: (673) 2342420 (PABX) Fax: (49-30) 0049-30-3989 7510
Fax: (673) 2342421 Email: bdootbgd@aol.com
Email: bdoot@brunet.bn Web: www.bangladeshembassy.de
171
India Italy
High Commission for the People`s Republic Embassy of the People`s Republic
of Bangladesh, New Delhi, EP-39, of Bangladesh, Rome
Dr.S.Radhakrishnan Marg, Chanakyapuri, Via Antonio Bertoloni, 14,
New Delhi-110021 Rome-00197, Italy
Phone: (91-11) 24121389-94 (PABX) Phone: (0039-06) 8083595, 8078541 (PABX)
Fax: (91-11) 26878953, 26878955 Fax: (396) 8084853
Email: highcommissionba@eth.net Email: embangrn@mclink.it
Web: www.bhcdelhi.org Japan
India (Kolkata) Embassy of the People`s Republic
Deputy High Commission for the People`s of Bangladesh, Tokyo
Republic of Bangladesh in India Kolkata, 4-15-15, Meguro, Meguro-KU,
9 Bangabandhu Sheikh Mujib Sarani Tokyo-153-0063
Kolkata-700017 Phone: (81-3) 5704-0216-8 (PABX)
Phone: (91-33) 2290-5208-9, 2290-0341, (PABX) Fax: (81-3) 5704-1696
Fax: (91-33) 2290-0941 Email: bdootjp@bdembjp.com
Email: bdhckolkata@eth.net Web: www.bdembjp.com
Indonesia Jordan
Embassy of the People`s Republic Embassy of the People`s Republic
of Bangladesh, Jakarta, of Bangladesh, Amman
Jalan Denpasar Raya, Block A-13, Kav 10, Um Uthaina, Price Zeid Bin Al Hussein St.,
No.3 Kuningan, Jakarta Selatan-12950, Indonesia. Villa No. 47, Amman.
Phone: (62-21) 5221574, 5251987 Phone: (962-6) 5529192-3
Fax: (62-12) 5261807 Fax: (962-6) 5529194
Email: bdembjak@uninet.net.id Email: embangl@wanadoo.jo
Web: www.bangladeshembassyjakarta.or.id Kenya
Iran High Commission for the People`s Republic
Embassy of the People`s Republic of Bangladesh, Nairobi, Kenya
of Bangladesh, Tehran Ole Odume Road, Off Argwings-Kodhek
Building # 14, Street # 5, Gandhi Ave. Tehran, Road, Kilimani, P.O. Box: 41645, Nairobi, Kenya.
Phone: (98-21) 88772979 & 88772980 (PABX) Phone: +(254-20) 3862816, 3870467 (PABX)
Fax: (98-21) 88778295 Fax: +(254-20) 3874133
Email: banglaemb@parsonline.net Email: bdhcn78@yahoo.com
Iraq South Korea
Embassy of the People`s Republic Embassy of the People`s Republic
of Bangladesh, Baghdad, House No. 9, of Bangladesh, Seoul
Road No. 13, Area # 915, Jadria, Embassy of Bangladesh, 310-22,
Baghdad, Iraq, Dongbinggodong, Yongsan-gn, Seoul, 140-
POBOX No. 2092 (Jadria Post Office) 817, Republic of Korea.
Phone: (964-1) 7763002-3 Phone: (82-2) 796-4056-7, 795-6535 (PABX)
Email: bdembirak@yahoo.co.uk Fax: (82-2) 790-5313
Email: bdootseoul@kornet.net
172
Kuwait Myanmar
Embassy of the People`s Republic of Embassy of the People`s Republic of
Bangladesh, Kuwait Bangladesh, Yangon
Block-1, Street no.102, House no.26 Hateen, 11/B Than Lwin Road, Yangon, Myanmar
South Surra, Kuwait Phone: (95-1) 515275, 526144
Phone: (00965) 5030551 Fax: (95-1) 515273
Fax: (00965) 5316041 Email: bdootygn@mptmail.net.mm
Email: bdoot@ncc.moc.kw Nepal
Libya Embassy of the People`s Republic of
Embassy of the People`s Republic of Bangladesh, Kathmandu
Bangladesh, Tripoli, Libya Maharaajgunj, Chakrapath (Ring Road),
Hi Damask, (Opposite to Khadra Hospital) Kathmandu, Nepal
PO Box # 5086, Tripoli, Libya Municipality, Ward No.4, Shanti Ashram
Phone: (0218-21) 4911198, 4911199, (PABX) Kitta No. 9, kathmandu.
Fax: (0218-21) 4906616 Phone: (977-1) 4372843, 4370438
Email: bdtripoli@yahoo.com Fax: (977-1) 4373265
Malaysia Email: bdootktm@wlink.com.np
High Commission for the People`s Republic of The Netherlands
Bangladesh, Kuala Lumpur, Embassy of the People`s Republic of
Block-1, Lorong Damai-7, Jalan Damai, Bangladesh, the Hague,
Kuala Lumpur-55000, Malaysia Wassenaarseweg 39, 2596 CG The Hague,
Phone : (60-3) 21487940, 21423271, 21422505 (PABX) The Netherlands
Fax: (60-3) 21413381 Phone: (31-70) 3283722
Email: bddoot@streamyx.com Fax: (31-70) 3283524
Web: www.bangladesh-highcomkl.com Email: amb.vanbangladesh@wanadoo,nl
Maldives Web: www.bangladeshembassy.nl
High Commission for the People`s republic Oman
of Bangladesh, Male, Maldives Embassy of the People`s Republic of
M. Kuribee Lodge (5th Floor), Izzudheen Magu, Bangladesh, Muscat
Male, Maldives Building No. 5903, Street No, 664,
Phone: (960) 315541, 3320859 Opposite, CCC qurum, P.O. Box No. 3959,
Postal Code 112, Ruwi, Muscat, Sultanate of Oman.
Fax: (960) 3315543 Phone: (968) 2456739 (PABX)
Email: bdootmal@dhivehinet.net.mv Fax: (968) 24567502
Morocco Email: bangla@omantel.net.om
Embassy of the People`s Republic Pakistan
of Bangladesh, Rabat High Commission for the People`s Republic of
25 Avenue Tarik Ibn Ziad, Rabat Morocco Bangladesh, Islamabad
Phone: (212-37) 766 713, 766 731 House No. 1, Street No.5, F-6/3,
Fax: (212-37) 766729 Islamabad, Pakistan.
Email: bdoot@mtds.com Phone: (0092-51) 2279267 (PABX)
Web: www.bangladeshembassy-morocco.org Fax: (0092-51) 2279266
Email: bdhcisb@sat,net.pk
Web: www.bdhcpk.org
173
Poland Saudi Arabia (Jeddah)

Embassy of the People`s Republic Consulate General of the People’s of
of Bangladesh, Warsaw Bangladesh, Jeddah.
u1. Rejtana 15, m.20/21, 02-516 Warsaw, Poland. Kilo 3, Makkah Road,
Phone: (48-22) 848 0637, 848 3200 (Behind Mitsubishi Car Office) Jeddah
Fax: (48-22) 848 4974 Tel: (966-2) 6878465, 6894712
Email: bangla@it.com.pl 6817140, 6881752 & 6817149 (PABX)
Web: www.banmglaemb.pl Fax: (966-2) 6800392
Philippines E-mail: cg@bcgjeddah.com
Embassy of the People`s Republic Web: www.bcgjeddah.com
of Bangladesh, Manila Singapore
Universal-Re Building, 2/F, High Commission for the People’s
106 Paseo de rexas, Makati City, Metro, Republic of Bangladesh, Singapore
Manila, The Philippines. 101, Thomson Road # 05-04, United
Phone: (63-2) 8175001, 8175010 Squire, Singapore-307591.
Fax: (63-2) 816-4941 Tel: (65) 62550075 (PABX)
Email: dutabash.phil@pacific.net.ph Fax: (65) 62551824
Qatar E-mail: bdoot@singnet.com.sg
Embassy of the People`s Republic Web: www.bangladesh.org.sg
of Bangladesh, Doha South Africa
House No. 77, Musaab bin Omair High Commission for the People’s
Street Al Hilal Area (Near Lancy Supar Market) Republic of Bangladesh, Pretoria
P.O. Box: 2080, Doha Qatar. 410 Farenden Street, Sunnyside
Phone: (974) 4671927, 4673471 Pretoria-0002
Fax: (974) 4671190 Tel: (27-12) 3432105-7 (PABX)
Email: bdootquat@qatar.net.qa Fax: (27-12) 3435222, 3435224
Russian Fedaration E-mail: bdoot@mweb.com.za
Embassy of the People`s Republic Spain (Madrid)
of Bangladesh, Moscow Embassy of the People`s Republic
Moscow, Zemledelcheski Pereulok-6, of Bangladesh, Madrid
Moscow-119121. C/Diego De Leon, 69-2nd Floor-D
Tel: (7-495) 2467804 Madrid-28006, Spain.
Fax: (7-495) 248-3185/247-2887 Tel: (34) 91 3092735, 91 4019932 (PABX)
E-mail: banglatrade@hotmail.com Fax: (34) 91 402-9564
Saudi Arabia (Riyadh) E-mail: chancery@bdoot-mad.e.telefonica.net
Embassy of the People`s Republic Sri Lanka
of Bangladesh, Riyadh High Commission for the People’s
Al-Warood Quarters North of Aruba Republic of Bangladesh, Colombo
Street, House No. 50, Sulaimania, Riyadh. 85, Dharmapala Mawatha, Colombo-7,
Tel: (00966-1) 4195300, 4192594 Sri Lanka
Fax: (00966-1) 4193555 Tel: (94-11) 2303943, 2303944
E-mail: Info@bangladeshembassy.org.sa Fax: (94-11) 2303942
Web: www.bangladeshemmassy.org.sa E-mail: bdootlanka@sltnet.lk
174
Switzerland (Geneva) UAE (Dubai)

Permanent Mission of Bangladesh to the Consulate General of the People’s
UN Offices and other International Republic of Bangladesh for Dubai and
Organisations in Geneva and Vienna. Northern Emirates, Dubai, UAE.
65, Rue De Lausanne, 1202, Geneva. Villa No. 24, Abdul Aziz Al Mulla Villa,
Tel: (41-22) 9068020 Al Muteena Area, Deira, Dubai.
Fax: (41-22) 7384616 Tel: (00971-4) 272 6966 (PABX)
E-mail: mission.bangladesh@ties.itu.int Fax: (00971-4) 272 7965, 271 8131
Sweden (Stockholm) E-mail: bdoot@emirates.net,ae
Embassy of the People`s Republic United Kingdom
of Bangladesh, Stockholm High commission for the People’
Anderstorpsvagen 12, 1st floor, 171 54 Republic of Bangladesh, London
Solna, Stockholm. 28, Queen’s Gate, London SW7 5JA, (UK)
Tel: (46-8) 7305850, 7305851, 7305852 Tel: PABX (44-20) 7584-0081-4
Fax:(46-8) 730 5870 Fax: (44-20) 7581 7477
E-mail: doot@bangladeshembassy.se E-mail: bhclondon@btconnect.com
Web: www.bangladoot.se Web: www.bangladeshhighcommission.org.uk
Thailand (Bangkok) UK (Birmingham)
Embassy of the People`s Republic Bangladesh Assistant High Commission
of Bangladesh, Bangkok Birmingham, UK
House No. 727, Thonglor, Soi-55, 31-33, Guildhall Building-12, Navigation
Sukhumvit Road, Bangkok-10110 Street, Birmingham, B2 4BT, UK
Tel: (66-2) 02-392-9437, 02-392-9438 Tel: (44-121) 6432386
Fax: (66-2) 391-8070 Fax: (44-121) 6439004
E-mail: bdoot@samart.co.th E-mali: bhcbham@aol.com
Turkey (Ankara) UK ( Manchester)
Embassy of the People`s Republic Assistant High Commission for the
of Bangladesh, Ankara, 78/7-10, Cinnah People’s Republic of Bangladesh,
Manchester, UK
Caddesi, Cankaya, Ankara, turkey Cedar House (3rd Floor), 2, Fairfield
Tel: (90-312) 439 2750-51 (PABX) Street, Manchester M1, 3GF, UK
Fax: (90-312) 442 2561 Tel: +(44-161) 236-4853
E-mail: bdootankara@superonline.com Fax: +(44-161) 236-1522
E-mail: bdoot.man@btconnect.com
UAE (Abu Dubai)
Embassy of the People`s Republic USA (Washington)
of Bangladesh, Abu Dubai Embassy of the People`s Republic
Vill No. 21, Plot No. W-14/01.Al of Bangladesh, Washington DC.
Rowdha Area Abu Dhabi. 3510 International Drive
Tel: (971-2) 4465100 (PABX) Washington DC 20008.
Fax: (971-2) 4464733 Tel: (1-202) 244 0183 (PABX)
E-mail: banglaad@emirates.net.ae Fax: (1-202) 244 2771, 2447830
Email: bdootwash@bangladoot.org
Web: www. bangladoot.org
175
USA (New York) PM

Permanent Mission of Bangladesh to the
United Nations, New York.
227 East 45th Street (14th flr.)
New York, N.Y 10017, (U.S.A)
Tel: (1-212) 867-3434/3435/3436/3437
Fax: (1-212) 972-4038
Email: bangladesh@un.int
Web: www.un.int/bangladesh
USA (Los Angeles)
Consulate General of the People’s
Republic of Bangladesh, Los Angeles
4201 Wilshire Boulevard, Suite # 605,
Los Angeles, CA 90010, USA
Tel: (323) 9320100, 932-0013 (PABX)
Fax: (323) 932-9703
Email: bcgla@earthlink.net
Web: www.bangladeshconsulatela.com
Uzbekistan (Tashkent)
Embassy of the People`s Republic
of Bangladesh, Tashkent
17, 1st Mirobod Street, Tashkent-700015.
Tel: (998-7) 1522692
Fax: (998-71) 1206711
Email: bdoottas@rol.uz
Vietnam (Hanoi)
Embassy of the People`s Republic
of Bangladesh, Hanoi.
7th Floor, Daeha Business Center
360 Kim Ma Street , Hanoi
Socialist Republic of Vietnam.
Tel: (84-4) 771 6625, 771 7829 (PABX)
Fax: (84-4) 771 6628
Email: bdoothn@netnam.org.vn
Zimbabwe
44 Downie Avenue, Belgravia, harare,
Zimbabwe
Tel: 263-4-307714
Fax: 263-4-336389
176
Board
8.7 of Ivestment
Board of Ivestment (BOI)
Executive Chairman Director (Industrial Park)

Board of Investment Board of Investment
Prime Minister office Prime Minister office
Jiban Bima Tower Jiban Bima Tower
19th floor 10 Dilkusha C/A, Dhaka 18th floor 10 Dilkusha C/A, Dhaka
Tel : (880 2) 9559378, 9561430-1 Tel : (880 2) 9561430-1
9561433, 9560789 (Ex-100) 9561433, 9560789 (Ex-120)
Fax : (880 2) 9562312 Fax : (880 2) 9562312
Email : ecoboi@bdmail.net
Director (R & I-2)
Member Executive Council Board of Investment
Board of Investment Prime Minister office
Prime Minister office Jiban Bima Tower
Jiban Bima Tower 17th floor 10 Dilkusha C/A, Dhaka
19th floor 10 Dilkusha C/A, Dhaka Tel : (880 2) 9551644, 9561430-1
Tel : (880 2) 7172144, 9561430-1 9561433, 9560789 (Ex-110)
9561433, 9560789 (Ex-103) Fax : (880 2) 9562312
Fax : (880 2) 9562312
Member Executive Council Director (Communication)
Tel : (880 2) 9562414, 9561430-1 Tel : (880 2) 9562426, 9561430-1
9561433, 9560789 (Ex-102) 9561433, 9560789 (Ex-129)
Fax : (880 2) 9562312 Fax : (880 2) 9562312
Secretary Director (P & P)

Tel : (880 2) 9563572, 9561430-1 Tel : (880 2) 9552097, 9561430-1
9561433, 9560789 (Ex-105) 9561433, 9560789 (Ex-112)
Fax : (880 2) 9562312 Fax : (880 2) 9562312
Director (S & P) Director (IIMC)

Tel : (880 2) 9562426, 9561430-1 Tel : (880 2) 9552089, 9561430-1
9561433, 9560789 (Ex-109) 9561433, 9560789 (Ex-227)
Fax : (880 2) 9562312 Fax : (880 2) 9562312
177
Director
Board of Investment
Chittagong Divisional Office, 1
CGO Building, Agrabad, Chittagong
Tel : (031) 810608, 721038
Fax : (031) 722382
Director
Board of Investment
Rajshahi Divisional Office, Hia Bitan,
Kazihata, C&B Road, Rajshahi
Tel : (0721) 772047
Director
Board of Investment
Khulna Divisional Office,
Shilpa Bank Bhaban 9th Floor.
25-26, KDA, C/A, Khulna.
Tel : (041) 724716, 720017
Director
Board of Investment
Barisal Divisional Office,
90/87, Jhordan Road, Barisal
Tel : (0431) 64797, 63869
Director
Board of Investment
Sylhet Divisional Office, Prabah-18,
Telihaor, Taltala, Sylhet
Tel : (0821) 724306
Director
Board of Investment
Sylhet Divisional Office, Prabah-18,
Telihaor, Taltala, Sylhet
Tel : (0821) 724306
178
This part presents supplementary information as appendices.

9
Appendices
I thru’III

I. Investment Application Forms
a. Registration of Foreign/Joint Venture Investment
b. Employment of Foreign Nationals in the Industries
c. Registration of Foreign/Joint Venture Commercial Offices
d. Application for Employment of Foreign Nationals
in Commercial Offices
e. Visa Application
f. Application for Approval of Foreign Borrowing Agreement
II. Relevant Legislation & Highlights

a. Foreign Private investment (Promotion and Protection)
Act 1980
b. Investment Board Act 1989
c. Baggage Rules
d. Visa Policy
e. Highlights from Relevant Legislation
III. Bangladesh Industrial Policy 2005

182
Appendix I: Investment Application Forms
a. Application for Registration of Foreign/Joint Venture Investment
Application for Registration BOARD OF INVESTMENT

Prime Minister's Office, Jiban Bima Tower
of Foreign Investment 10 Dilkusha C/A , Dhaka 1000, Bangladesh
/Joint Venture Project Phone: 880-2-9561430-1 Fax: 880-2-9562312
This space is for OFFICIAL USE ONLY. Please DO NOT write in this space.
Registration No. :
Date of Approval :
[Please fill in each of the following fields accurately and clearly in BLOCK letters.]
a. Project Status (please tick ( ): Proposed Existing b. Application Date: / /200 .
1. Name of Industrial Project:
2. Addresses:
a. Office
House / Holding No.: Road No.: Phone :
Area : Fax :
City / District : Email :
b. Factory
Mouza / Village : Phone :
Plot / Holding No.: Post Office: Fax :
Upazila: City / District: Email :
3 Background of the Promoters (Local & Foreign): Details Enclosed
a. Name of the Main Promoter :
b. Permanent Address :
c. Mailing Address :
d. Experience (business/ industrial):
4. Type of Industry:
5. Target Date of Commercial Operation:
6. Investment Details:
Local Foreign Total
Items
(Million Taka) (Million Taka) (Million Taka)
a. Fixed Investment:
i. Land
ii. Building
iii. Machinery & Equipment
iv. Others
b. Working Capital (3 months):
In Million Taka
Total
In Million US$
7. Sources of Finance:
Local Foreign Total Investment
Sources
(Million Taka) (Million Taka) (Million Taka) Country (ies)
a. Equity
b. Loan
In Million Taka
Total
In Million US$
8. Equity (in percentage): Local : % Foreign: %
Continued to Page 2
183
App-P2
9. List of Machinery & Equipment: List Enclosed
Estimated Value
Procurement Sources Quantity
(Million Taka) (Million US$)
a. Procured/ To Be Procured Locally
b. Imported / To Be Imported
Total Value :
10. Annual Production Capacity:
Name of the Product / Services Estimated Value
Quantity
(Top Five Only) (Million Taka) (Million US$)
1.
2.
3.
4.
5.
11. Description of Raw & Packing Materials:
a. Local :
b. Importable :
12. Utility Service Requirement:
Utility Type Required Quantity Targeted Date of Distance of the Site from
(Minimum - Maximum) Commissioning (mm-yy) Nearest Source (in meter)
a. Electricity
b. Gas
c. Telephone
13. Employment
Job Level Local (person) Foreign (person) Total (person)
a. Managerial
b. Worker
Total
14. Marketing (not applicable for service) : Local : ............% Foreign : ...........%
15. Tax Identification No. (TIN), if any :
16. Enclosed Pay Order / Bank Draft No.: Amount: Tk.
Name of the Bank and Branch :
I do hereby declare that the information furnished above are true and correct to the best of my
knowledge.
Signature : .................................................
Name : .................................................
Designation : (Managing Director/Partner/Proprietor)
Date : .................................................
List of documents to be enclosed with the application:
ii. Certificate of incorporation along with Memorandum & Articles of Association in case of Public / Private
Limited Company. In case of Joint Venture Project (JVP), JVP Agreement duly signed in by both the parties.
2 (two) copies.
iii. Attested copies of Deeds/Documents in support of project land (in case of own land, Purchase Deed and in
case of lease / rental premises, Deed of Agreement). 2 (two) copies.
iv. If the total project cost exceeds Tk. 50 (fifty) million, submit Project Profile. 2 (two) copies.
v. Background of the Promoters in official letterhead pad describing a) Name, b) Permanent and c) Mailing
Address, d) Position and e) Nationality (as part of Item # 3). 3 (three) copies.
vi. List of machinery indicating quantity and price (as part of Item # 9). 3 (three) copies.
vii. In case the project is financed by loan, copy of relevant documents in support of loan. 2 (two) copies.
viii. Pay order / bank draft amounting required amount in favor of "EXECUTIVE CHAIRMAN AND MEMBER-
SECRETARY, BOARD OF INVESTMENT".
184
b. Application for Employment of Foreign Nationals in the Industries
Application for Employment BOARD OF INVESTMENT

Prime Minister's Office, Jiban Bima Tower
of Foreign Nationals in the 10 Dilkusha C/A , Dhaka 1000, Bangladesh
Private Sector Industries Phone: 880-2-9561430-1 Fax : 880-2-9562312
For Official Use Only. Please do not write in this space. Applicant's
Photograph
Work Permit No. :
Date of Approval: Passport Size
[Please fill in each of the following fields accurately and clearly in BLOCK letters.]
A. Particulars of Sponsor / Employer:

1. Name and address of the Enterprise :
2. Type of industry (please specify :
Products)
3. Whether local, foreign or joint :
venture company (if joint venture,
percentage of local and foreign
investment is to shown).
4. Recommendation of Company's Board :
B. Particulars of the Foreign Incumbent

1. Name (in block letters) :
2. Nationality :
3. Date of birth :
4. Marital status :
5. Particulars of passport of the
incumbent (Attested copy should
be enclosed). :
a. Passport No. :
b. Valid upto :
c. Permanent address of the
incumbent :
185
App-P2
6. Qualification and experience:-
a. Academic qualification :
b. Professional qualification :
c. Experience :
(please attach copies of
relevant certificates)
C. Particulars of Job
1. Designation/post for which :
the incumbent will work
2. Brief job description :
3. Date of employment/extention :
4. Period of employment/extention :
D. Monthly Remuneration
(inclusive or exclusive of income tax) Payable locally / Payable abroad
1. Basic pay :
2. Dearness allowance :
3. Overseas allowance :
4. House rent :
5. Conveyance allowance :
6. Entertainment allowance :
7. Bonus :
8. Other fringe benefits, if any :
9. Monthly estimated expenditure to :
be incurred on accommodation, car,
driver, mali, servants insurance,
club subscription (if any) and
other house-hold amenities :
10. If remittance claimed (please attach :
copy of the agreement) entered into
with the incumbent
E. Other Particulars
1. Whether advertisement was made :
to employ local people (if so,
relevant press cutting is to be attached)
2. Justification for employment of :
foreign national
3. Has the project been approved by :
any sanctioning authority ? If so,
please attach copy of the sanction
letter
4. Arrangements for training of local :
employees to replace the foreign
national
5. No of existing local and foreign :
employees
186
App-P3
Salary brackets Local Foreign

Upto Tk. 1000/- p.m.
From Tk. 1001/- p.m. to Tk. 2500/- p.m.
Above Tk. 2500/- p.m.
Date : Signature with name and

designation of the applicant
(Managing Director/Director/Managing Partner/Proprietor).
Note : 1 Application is to be submitted in 4 copies with 4 passport size photographs.

2. Instead of writing "see attached sheet"/"bio-data" etc. specific replies in short should be given
in each column.
3. Additional sheets may be attached, if required.
4. Copy of approval of the Board of Directors regarding employment of foreign national is to be
attached.
5. Employment of foreign national is subject to prior govt. approval.
6. Appointment letter/employment contract.
7, Certificate of Incorporation along with Memorandum and Articles of Association is case
187
App-P4
The following papers/documents are required to be furnished for

Extension of Work Permit in favour of the expatriate(s) employment in
Branch/Liaison Office and other Commercial Establishment.
1. Application in prescribed form along with passport size photograph of the expatriate (1 copy)
2. Decision of Board of Director's of the company/partners of the firm regarding extension of

employment of foreign national (s) including salary & other facilities to be provided duly
signed by Directors/Partners present in the meeting (one copy)
3. Attested photocopy of passport (full set) with ''E'' type visa for employment and 'PI' type for
Investors 1 set (1 copy)
4. Attested copy of extension of service contract/agreement and appointment letter (1 copy)
5. Attested copy of tax assessment order sheet, tax payment receipt and income tax clearance
certificate from concerned tax circle for the previous working period (1 copy)
6. Bangladesh Bank's Permission under sector 18 (A), in case of foreign company/Firm
7. Statement of existing manpower showing list of local and expatriate personnel with salary
break-up designation, nationality and date of first appointment
8. Encashment certificate of inward remittance in favour of Liaison/Branch office for the last 2
years.
9. Encashment certificate of inward remittance of at cash US$ 50,000.00 for joint venture and
100% foreign ownership company incorporation in Bangladesh as equity investment of the
foreign shareholders.
N.B. All documents should be signed /attested by Managing Director/Managing

Partner/proprietor of the company.
188
c. Application for Registration of Foreign/Joint Venture Commercial Offices
[Commercial Offices include Branch/Representative/Liaison Office, Buying House,
Educational Institute of Foreign Origin ]
BOARD OF INVESTMENT
PRIME MINISTERS'S OFFICE
JIBAN BIMA TOWER, 10, DILKUSHA C.A
DHAKA-1000, BANGLADESH
APPLICATION FOR OPENING/EXTENSION OF BRANCH OFFICE/LIAISON

OFFICE/COMMERCIAL ENTERPRISE OF FOREIGN ORIGIN
A. INFORMATION ABOUT PRINCIPAL COMPANY

01. Name and address of the principle company including :
phone/fax number
02. Nature of the organization :
(Private/Public Limited Company)
03. Major activities in details :
04. Type of business:
05. Capital:
(i) Authorized capital :
(ii) Paid up capital :
06. Country of origin and full address with
telephone & fax no.
B. INFORMATION ABOUT LIAISON /BRANCH OFFICE

01. Name and local address of the Liaison/Branch office
including phone/fax number.
02. Intended field of business in Bangladesh through :
proposed branch/liaison office
03. Major activities of the principal company in brief :
04. Target date of operation/extension of the proposed :
branch/liaison office/commercial enterprise.
05. period for which permission/extension is sought for :
06. Reference on of the previous permission in case of :
extension (copy to be enclosed)
07. Proposed organizational set up of the company :
(in case of new application)
08. Establishment expenses and operational expenses : (a) Estimated initial expenses:
forecast of the concerned office and source of financing (b) Estimated operational/monthly
expenses:
(c) Source of financing:
C. REMITTANCE :
Amount of remittances made from Bangladesh/into
Bangladesh for the last two years (in case of extension
(..........................................)
Signature with name and
Designation of the applicant
(Chairman/managing Director/Proprietor)
189
App-p2
The following papers/documents are required to be furnished for application

for opening of NEW Branch Office/Liaison Office/ Representative Office
1. Application in prescribed form signed by authorized persons for establishment of

Branch Office/Liaison Office - 4 copies;
2. Memorandum and Articles of Association of principal company - 2 copies;
3. Certificate of Incorporation - 2 copies;
4. Name and nationality of the Directors/Promoters of the principal company - 4 copies;
5. Company's Board of Directors resolution regarding opening of office in Bangladesh -2 copies;
6. Audited Accounts of last financial year of the principal company - copies
7. Proposed organogram of the office showing the posts to be occupied by expatriates as well
as local personnel - 2 copies;
8. Details of activities to be performed through the proposed office in Bangladesh - 2 copies.
N.B. Documents (item 2-6) must be attested by Bangladesh Mission/Principal country's

Mission in Bangladesh/Principal country's Apex Chamber.
The following papers/documents are required to be furnished for application

for EXTENSION of Branch Office/Liaison Office/ Representative Office
1. Application in prescribed form to be submitted to the BOI for renewal of the

permission at least 2 months before expiry of the existing permission.
2. Following documents are to be enclosed:
a. Duly filled in Prescribed Form in duplicate;
b. Permission letter of Bangladesh Bank under Article-18 (B);
c. Income tax clearance certificate for the previous period from concerned Tax Circle;
d. Company's Board Resolution for extension/renewal;
e. Audit Accounts of the office;
f. List of manpower employed showing designation/salary/functions;
g. Encashment certificate of remittance for the last 2 years;
h. Security clearance of the office, if any.
190
d. Application for Employment of Foreign Nationals in Commercial Offices.
[Commercial Offices include Branch/Representative/Liaison Office, Buying House,
Educational Institute of Foreign Origin ]
BOARD OF INVESTMENT
PHOTOGRAPH PRIME MINISTERS'S OFFICE
OF THE
JIBAN BIMA TOWER, 10, DILKUSHA C.A
INCUMBENT
DHAKA-1000, BANGLADESH
(4 copies)
APPLICATION FOR EMPLOYMENT OF FOREIGN NATIONAL IN

BRANCH OFFICE/LIAISON OFFICE AND OTHER COMMERCIAL ENTERPRISE
A. PARTICULARS OF SPONSOR/EMPLOYER
1. Name and address of the Enterprise including :
Phone/Fax number
2. Type of the organization :
(Proprietorship/Partnership/Private/Public
Limited Co.)
3. Nature of business :
4. Reference of permission for opening :
Liaison/Branch office issued by Ministry of
Industries/BOI and duration of Permission
5. Capital structure:
(i) Authorized capital :
(ii) Paid up capital :
6. Gross income:
(i) Remittance received during last 12 months :
(ii) Total export earning during last 12 months
B. PARTICULARS OF FOREIGN INCUMBENT
1. Name of the foreign national in BLOCK letters :
2. Nationality with passport No., date & place of :
issue and period of validity
3. Permanent address :
4. Date of birth :
5. Marital status (married, unmarried, divered)
(i) If married, number of family members :
(ii) Whether any of the incumbents family :
members will live in Bangladesh, if yes,
name (s), relationship & age
6. Academic qualification (Please attach :
certificates)
7. Professional qualification (Please attach :
certificates)
8. Work Experiences (Please attach certificates) :
C. PARTICULARS OF JOB
1. Name of the post employed for :
2. Brief job description :
3. Whether the post has bee :
4. Advertised in Bangladesh (if advertised, please
attach copy of paper clipping)
5. Justification for employment of foreign incumbent :
6. Expected date of arrival in Bangladesh :
7. Type of visa &period of validity
8. Date of employment/joining :
9. Period of employment (in years) :
10. Whether the employment is fresh, extension or :
transfer from other company in Bangladesh
191
App-p2
D. MONTHLY REMUNERATION (inclusive or exclusive of income tax)

Items (in US$/BD Taka)
1. Salary support (monthly) Payable locally Payable in abroad
(a) Basic salary :
(b) Overseas allowance :
(c) House rent :
(d) Conveyance allowance :
(e) Entertainment allowance :
(f) Annual bonus :
(g) Other fringe benefit, if any :
2. Whether remittance will be made from :
Bangladesh or to Bangladesh (whole or part)
E. EXISTING/PROPOSED MANPOWER OF THE OFFICE

Local Foreign Ratio
Officer Staff Total Officer Staff Total Local : Foreign
Date:
(..........................................)
Signature with name and
Designation of the applicant
(Chairman/managing Director/Proprietor)
The following papers/documents are required to be furnished for

New Work Permit of in favour of the expatriate(s) employment
in Branch/Liaison Office and other Commercial Establishment.
1. Attested copy of permission letter for opening Branch/Liaison Office/Commercial enterprise

from the appropriate authority, if not submitted earlier (one copy).
2. Decision of Board of Director's of the company/partners of the firm regarding employment of
foreign national (s) including salary & other benefit to be provided duly signed by
Directors/Partners Present in the meeting (one copy).
3. Memorandum & Articles of Association and Certificate of Incorporation of the company duly
signed by shareholders along, if not submitted earlier (1 copy).
4. Copies of application in prescribed form along with 4 passport size photographs of the
expatriate (s) with name duly attested by the Managing Director/Partner/Proprietor of the
Company/Firm.
5. Attested photocopy of Passport (full set) with arrival stamp and ''E'' type visa for employees
and ''PI'' type visa for investors (4 sets).
6. Attested copy of service contract/agreement and appointment letter in case of employee (4 copies).
7. Attested copies all academic, professional & experience certificates for employee (4 copies).
8. Paper clipping showing advertisement made for recruitment of local personnel prior to
appointment of the expatriate (s) (1 copy).
9. Statement of the manpower showing list of local & expatriate personnel employed in the office
with designation, salary break-up, nationality and date of first appointment.
10. Encashment certificate of inward remittance in favour of Liaison/Branch office for the last 2 years.
11. Encashment certificate of inward remittance of at cash US$ 50,000.00 for Joint-venture and
100% foreign ownership company incorporation in Bangladesh as equity investment of the
foreign shareholders.
N.B. All documents should be attested by Managing Director/Managing Partner/Proprietor of
the Company/Firm.
192
e. Visa Application Form
D.I.P. - 4
a. VISA APPLICATION FORM
To
(1) The Director General,

Department of Immigration & Passports A copy of
Government of Bangladesh, Dhaka. photograph to be
affixed here.
(2) The Assistant Director,
Regional Passport Office
..................................................
Dear Sir,
I shall be grateful if a Multiple/Entry/Re- entry/ Extension of Visa is granted to me. My full
particulars are as follows:
NOTE: 1. All the columns should be filled in properly.

2. If any of the particulars furnished below is found to be incorrect of information withheld
the visa/extension of stay is liable to be cancelled at anytime.
1. Name in full (Surname in Capital) .......................................................................................................

2. (a) Permanent address ......................................................................................................................
(b) Present address in Bangladesh ..................................................................................................
.......................................................................................................................................................
3. Date of birth ........................................................................................................................................

4. Place of birth (Country, Town and District) .........................................................................................
..............................................................................................................................................................
5. Present Nationality ..............................................................................................................................
6. Nationality at birth ...............................................................................................................................
7. Name of father/ husband with his nationality ......................................................................................
8. Whether holder of a passport from his/her government ....................................................................
9. Passport No ............................................... Date of issue .................................................
Place of issue ............................................. Date of Expiry ..............................................
10. Profession/Occupation (give detail) :

(a) Business (Nature & detail) ............................................................................................................
(b) Employment : Name of Organisation ............................................................................................
Capacity in which employed ....................................................................................
(c) Annual income/salary ...................................................................................................................
11. Whether previously visited Bangladesh and, if so, place of residence with dates and the purpose of
previous visits ...................................................................................................................................
...........................................................................................................................................................
12. If working in Bangladesh, details of employment are to be given :
(a) Name and address of the organization ......................................................................................
(b) Capacity in which employed ......................................................................................................
(c) Terms of employment ................................................................................................................
193
App-P2
(d) Period of employment with date .......................................................................................................................................

(e) Monthly salary ..................................................................................................................................................................
(f) Whether income tax payee ...............................................................................................................................................
(If the reply is yes, receipts of income-tax payment for the last two years should be attached.
If not, necessary reasons for nonpayment to be stated.)
13. Period and purpose for which Entry/Re-entry/Multiple entry/Extension of Visa is required :
(a) Period .........................................................................
(b) Purpose ......................................................................
14. For applicant of Multiple/Re-entry visa only :

(a) Name of country to which applicant is proceeding and purpose of journey .....................................................................
.........................................................................................................................................................................................
(b) Purpose of return to Bangladesh .....................................................................................................................................
(c) Period of stay in Bangladesh after Re-entry ....................................................................................................................
NOTE : Extension of transit visa which is valid for a fortnight will not generally be granted.
15. Date of last arrival in Bangladesh ............................................................................................................................................
16. Last Visa number with date and the name of the Visa issuing authority.
17. Name and address of persons in Bangladesh who will furnish information as to the applicant and also
furnish financial guarantee for maintenance and repatriation if necessary.
1. (a) Name and address 2. (a) Name and address

..................................................... ...................................................
..................................................... ...................................................
..................................................... ....................................................
(b) Profession/Occupation (b) Profession/Occupation
..................................................... ....................................................
(c) Annual income .............................. (c) Annual income .............................
(d) Whether income-tax payee (d) Whether income-tax payee
.................................................... ....................................................
If the reply is yes, receipts of incometax payment for the past two years should be attached.
18. Date on which present permission of stay in Bangladesh expire ............................................................................................

..................................................................................................................................................................................................
19. Remarks, if any ........................................................................................................................................................................
Dated .......................... 20...........
..................................................
(Full signature of the applicant)
194
f. Application for Approval of Foreign Borrowing Agreement
ANNEXURE-'A'
APPLICATION FOR APPROVAL OF FOREIGN BORROWING AGREEMENT
1. a. Name Address with location and :
telephone number of the firm
b. i) Registration/Permission letter No. :
ii) Date :
iii) Issuing authority :
(Please attach copy)
C. Type of industry : Please Tick
i) Export oriented and export linkage
industries. :
(ii) Pioneering industries :
(iii) Industry based on new/high Technology. :
iv) Industry that generates employment :
v) Industry based on local natural
resources and its diversified uses. :
vi) Industry that involves high value
added. :
vii) Increase Industrial efficiency &
productivity. :
viii) Employment opportunity. :
2. a) Name & address of the Foreign firm(s)
from whom borrowing has been
proposed :
b) Principal amount of the borrowing :
c) Purpose of borrowing :
3. Foreign Borrowing proposal :
a) Copy of Draft/Final Agreement Should
be attached. :
b) Effective rate of interest @ :
c) Repayment period :
d) Effective date :
e) Down payment, if any :
195
App-p2
4. Type of Borrowing :
a) Loan :
b) Supplier's Credit :
c) Pay-As-You-Earn Scheme :
d) Deferred payment :
5. Commercial viability report of

project along with the analysis
and papers in regards to :
a) Name of the sector/sub-sector of the

project with item of products. :
b) The commercial viability of the project. :
c) The capacity of the project to service

the proposed debt with income flows
from the project. :
d) The cost competitiveness of the
outputs from the project in the
domestic and external markets. :
e) Existing production capacity in :
Bangladesh and demand of the
products on local as well as export
market abroad on the basis of market
study.
f) existing indebtedness structure of the
sponsors of the project, duly certified
by report of their bankers as to their
credit worthiness. :
6. Please outline the reasons for entering
into agreement on foreign borrowing
(please attach separate sheet, if
necessary)
7. Schedule of Repayment in brief :
8. Name and address of the firms :

nominated Bank.
9. Please enclose the following papers :

a) Certified copy of the memorandum and Articles of Association.
b) Board of Director Resolution in favour of the loan proposal.
c) Proforma Invoice of machinery to be imported.
Signature:
Name and designation of applicant:

Date:
@ Effective rate of interest is the sum of the stated annual rate of interest and the annualized fee,
such as, commitment fee, syndication fee, project appraisal fee etc.
196
App-p3
Check List Foreign Borrowing
1. Copy of BOI Registration (Full set);
2. Loan Agreement;
3. Board's Resolution;
4. Application form (Annexure-A) duly filled in;
5. Repayment Period along with Repayment schedule in details;
6. Grace period if any;
7. Calculation of effective rate of interest as defined in the application form (Annexure-A);
8. Feasibility report of the project;
9. Financial Analysis :
a) Internal Rate of Return (I.R.R);

b) Break-Even Analysis;
c) Payback Period;
d) Sensitivity Analysis;
e) Debt Service Coverage Ratio (DSCR) analysis;
f) Track Record of past FDI including Foreign borrowing;
g) Credential of the Sponsors;
h) Debt-equity ratio of the project.
10. Memorandum & articles of Association (Certified copy);
11. Certificate of Incorporation with Joint Stock Company;
12. Relevant inquiry forms (CIB-1A, CIB-2A, CIB-3A) and under taking from sponsors
Director duly filled in for collection of up-to-date CIB report from Bangladesh Bank;
13. Proforma Invoice/Price Quotation through international tender for importing of capotal
machinery;
14. Bank certificate as to indebtedness and creditworthiness of the borrowing company and
its sponsors based on latest CIB report;
15. Certificate from BRTC, BUET in respect of Quality, Price and Economic life of capital
machinery to be imported (in case of supplier's credit only).
197
Appendix II : Relevant Legislation and Highlight
a. Foreign Private Investment (Promotion & Protection) Act 1980

Act No. XI of 1980
An Act to provide for the promotion and protection of foreign private investment in
Bangladesh. WHEREAS it is expedient to provide for the promotion and protection of
foreign private investment in Bangladesh;
It is hereby enacted as follows:-
1. Short Title -
This Act may be called the Foreign Private Investment (Promotion and Protection)
Act, 1980.
2. Definitions -
(1) In this Act, unless there is anything repugnant in the subject or context, -
(a) "foreign capital" means capital invested in Bangladesh in any industrial

undertaking by a citizen of any foreign country or by a company incorporated
outside Bangladesh, in the form of foreign exchange, imported machinery
and equipment, or in such other form as the Government may approve for
the purpose of such investment;
(b) "foreign private investment" means investment of foreign capital by a person
who is not a citizen of Bangladesh or by a company incorporated outside
Bangladesh, but does not includ investment by a foreign Government or an
agency of foreign Government;
(c) "industrial undertaking" means an industry, establishment or other
undertaking engaged in the production or processing of any goods, or in the
development and extraction of such mineral resources or products, or in the
providing of such services, as may be specified in this behalf by the
Government.
(2) Words and expressions used but not defined in this Act shall have the same
meaning as in the Companies Act. 1913 (VII of 1913).
198
3. Foreign Private Investment -
(1) The Government may, for the promotion of foreign private investment, sanction
establishment with foreign capital of any industrial undertaking:
(a) Which does not exist in Bangladesh and the establishment whereof, in
the opinion of the Government is desirable; or
(b) Which is not being carried on in Bangladesh on a scale adequate to the
economic and social needs of the country; or
(c) Which is likely to contribute to:-
(i) the development of capital, technical and managerial resources of
Bangladesh; or
(ii) the strengthening of the balance of payment of Bangladesh; or
(iii) increasing employment opportunities in Bangladesh; or
(iv) the economics development of the country in any other manner.
(2) Sanction of the establishment with foreign capital of an industrial undertaking

under sub-section (1) may be subject to such condition as the Government may
deem fit to impose.
4. Protection and Equitable Treatment -

The government shall accord fair and equitable treatment to foreign private
investment which shall enjoy full protection and security in Bangladesh.
5. Terms of Sanction, etc. -

The terms of sanction, permission or licence granted by Government to an industrial
undertaking having foreign private investment shall not be unilaterally changed so as
to adversely alter the conditions under which the establishment be accorded a less
favorable treatment than what is accorded to similar private investment by the
citizens of Bangladesh in the application of relevant rules and regulations.
6. Indemnification etc. -
In the event of losses of foreign investment owing to civil commotion, insurrection, or
riot, foreign private investment shall be accorded the same treatment with regard to
indemnification, compensation, restitution, or other settlement as is accorded to
investment by the citizens of Bangladesh.
199
7. Expropriation and Nationalization -
(1) Foreign private investment shall not be expropriated or nationalized or be

subject to any measures having effect of expropriation or nationalization except
for a public purpose against adequate compensation which shall be paid
expeditiously and be freely transferable.
(2) Adequate compensation for the purpose of sub-section (1) shall be an amount
equivalent to the market value of investment expropriated or nationalized
immediately before the expropriation or nationalization.
8. Repatriation of Investment -
(1) In respect of foreign private investment, the transfer of capital and the returns
from it and, in the event of liquidation of industrial undertaking having such
investment, of the proceeds from such liquidation is guaranteed.
(2) The guarantee under sub-section (1) shall be subject to the right which, in
circumstances of exceptional financial and economic difficulties, the
Government may exercise in accordance with the applicable laws and
regulations in such circumstances.
9. Removal of Difficulty -
If any difficulty arises in giving effect to any provision of this Act, the Government may
make such order, not inconsistent with the provisions of this Act, as may appear to it
to be necessary for the purpose of removing the difficulty.
[Act Ended]
200
BOI Act -P1
b. Investment Board, Act, 1989

Act No. XVII of 1989
AN ACT
For the establishment of a board to encourage investment in the private sector and to
provide necessary facilities and assistance in the establishment of industries;
WHEREAS, it is expedient to make provision for the establishment of a Board to

encourage investment in the industry in private sector and to provide necessary facilities
and assistance in the establishment of industries;
It is hereby enacted as follows:-
1. Short title and commencement.-

(1) This Act may be called the Investment Board Act, 1989.
(2) It shall be deemed to have come into force on the 8th Poush, 1395
corresponding to the 22nd December 1988.
2. Definitions - In this Act, unless there is anything repugnant in the subject or

context:-
(a) "Board" means the Board established under section 4;
(b) "Chairman" means the Chairman of the Board:
(c) "Executive Council" means the Executive Council constituted under section
8(1);
(d) "letter of approval" in relation to the establishment of an industry, means a letter
of approval issued under section 11(4);
(e) "person" includes a group of individuals, a company or a commercial
establishment;
(f) "rules" means the rules made under this Act.
3. Act to override other laws.-

The provisions of this Act and the rules made hereunder shall have effect with not
standing anything to the contrary contained in any other law for the time being in
force.
201
BOI Act -P4
4. Establishment of the Investment Board -

As soon as may be after the commencement of this Act, the Government shall, by-
notification in the official Gazette, establish a Board to be called Board of Investment.
5. Head Office -
The head office of the Board shall be at Dhaka and the Board may establish its
branch offices at such other place or places as it considers necessary.
6. Composition of the Board -

1. The Board shall consist of the following members, namely:-
a. Chairman;
b. Minister in charge of the Ministry of Division dealing with industries who shall
also be its Vice-Chairman, ex-officio;
c. Minister in charge of the Ministry or Division dealing with finance, ex-officio;
d. Minister in charge of the Ministry or Division dealing with power, fuel and
mineral resources, ex-officio;
e. Minister in charge of the Ministry or Division dealing with commerce,
ex-officio;
f. Minister in charge of the Ministry or Division dealing with textiles, ex-officio;
g. Ministry in charge of the Ministry or Division dealion with Jute. ex-officio;
h. Minister in charge of the Ministry or Division dealing with planning, ex-officio;
i. Governor of the Bangladesh Bank, ex-officio;
j. Secretary of the Ministry or Division dealing with industries, ex-officio;
k. Secretary of the Ministry of Division dealing with finance, ex-officio;
l. Secretary of the Ministry or Division dealing with internal resources,
ex-officio;
m. President of the Federation of the Bangladesh Chambers of Commerce and
Industry, ex-officio;
n. President of the Bangladesh Chamber of Industry, ex-officio;
os. Chairman of the Executive Council, who shall also be its Secretary,
ex-officio;
2. The Chairman of the Board shall be the Prime Minister or a person nominated
by him from amongst the Minister - members of the Board.
3. The Board may co-opt not exceeding four additional members.
4. No act or proceeding of the Board shall be invalid or called in question merely
on the ground of existence of any vacancy in, or any defect in the constitution
of, the Board.
202
BOI Act -P5
7. Functions - The functions of the Board shall be -

(a) providing of all kinds of facilities in the matter of investment of local and foreign
capital for the purpose of rapid industrialization in the private sector;
(b) implementation of the Government policy relating to the investment of capital in
industries in the private sector;
(c) preparation of investment schedule in relation to industries in the private sector
and its implementation;
(d) preparation of area-schedule for establishment of industries in the private sector
and determination of special facilities for such areas;
(e) approval and registration of all industrial projects in the private sector involving
local and foreign capital;
(f) identification of investment sectors and facilities for investment in industries in
the private sector and giving wide publicity there of abroad;
(g) invention of specific devices for the purpose of promotion of investment in
industries in the private sector and their implementation;
(h) creation of infrastructural facilities for industries in the private sector;
(i) determination of terms and conditions for employment of foreign officers,
experts and other employees necessary for industries in the private sector;
(j) preparation of policies relating to transfer of technology and phase-wise local
production in the private sector and their implementation;
(k) providing of necessary assistance for rehabilitation of sickly industries in the
private sector;
(l) financing and providing of assistance in the financy of important new industries
in the private sector;
(m) adoption of necessary measures for creation of capital for investment in
industries in the private sector.
(n) collection, compilation, analysis and dissemination of all kinds of industrial data
and establishment of data-bank for that purpose;
(o) doing such other acts and things as may be necessary for the performance of
the above functions.
8. Executive Council.-
(1) There shall be an Executive Council of the Board which shall consist of a
Chairman and other members not exceeding six in number.
(2) The Chairman and other members of the Executive Council shall be appointed
by the Government, and the tenure of their office and terms and conditions of
their service shall be determined by the Government.
(3) The Chairman of the Executive Council shall be called the Executive Chairman
and shall act as the Chief Executive of the Board.
203
BOI Act -P6
(4) The Executive Council shall advise and assist the Board in the efficient
performance of its functions, be responsible for implementation of the decisions
of the Board shall exercise such powers and perform such functions as may be
delegated to it by the Board.
(5) Where the office of the Executive Chairman becomes vacant or he is unable to
discharge his duties due to absence, illness or any other reason, a member of
the Executive Council nominated by the Government in this behalf shall act as
the Executive Chairman until the new Executive Chairman appointed to the
vacant office enters upon that office or, as the case may be, the Executive
Chairman becomes able to resume the duties of his office.
9. Meetings -
(1) Subject to the other provisions of this section, the Board shall determine the
procedure for its own meetings and for the meetings of the Executive Council.
(2) All meetings of the Board shall, with approval of the Chairman, be convened by
its Secretary and shall be held at least once in every three months at such times
and places as may be determined by the Chairman.
(3) All meetings of the Board shall be presided over by its Chairman or, in his
absence, by its Vice-Chairman, and in the absence of both them, by such
member as may be nominated by the members present in the meeting from
amongst themselves.
(4) All meetings of the Executive Council shall be convened under the direction of
the Executive Chairman and shall be held at such times and places as may be
determined by him.
(5) All meetings of the Executive Council shall be presided over the Executive
Chairman and, in his absence, by a member thereof as may be specified by the
Executive Chairman.
10. Registration -
(1) All industries set up in the private sector, other than those falling within the
jurisdiction of the Export Processing Zones Authority or of the Bangladesh Small
and Cottage Industries Corporation and textile industries set up by own finance
and the industrial projects approved by the Board, shall be registered in the
prescribed manner.
(2) An industry registered under this section shall be deemed to be an industry
approved by the Board under this Act, and such industry may, on its request, be
provided with all such facilities as may be provided to an industrial project
approved by the Board.
204
BOI Act -P7
11. Approval etc. of an industrial project -

(1) Every person intending to set up an industry in the private sector, other than an
industry falling within the jurisdiction of the Export Processing Zones Authority
or of the Bangladesh Small and Cottage Industries Corporation, shall apply to
the Board in the form and manner prescribed by it for obtaining the Board’s
approval on the proposed industrial project.
(2) Notwithstanding the provisions of sub-section (1) upon recommendation of the
Board, the Government may, by notification in the official Gazette, exempt any
industry or any industrial project from the operation of the provisions of this section.
(3) The Board may, for the convenience of considering an application received
under sub-section (1) direct the applicant to furnish any information which it
considers necessary for such purpose, and may also consult any relevant
authority on any matter relating to the proposed industrial project.
(4) If, after considering the application, the Board is satisfied that the project should
be approved, it shall, subject to such conditions and limitations as it deems fit to
impose, approve the same and shall issue a letter of approval to the applicant
and shall specify in such letter the time-limit for the implementation of the project
and also the time-limit for commencement of production thereat.
(5) At the time of approving an industrial project under sub-section (4), the Board
shall give its decisions on all facilities that may be required for implementation
of the project in due time and, in particular, on all or any of the following matters,
subject to their relevancy, and shall send such decisions to the concerned
persons or authorities, namely:-
(a) the extent and the terms and conditions of foreign loan and of suppliers credit;
(b) allotment of land in the industrial areas under the control of, or belonging
to, the Government or a local authority other than the Export Processing
Zones Authority and the Bangladesh Small and Cottage Industries
Corporation.
(c) time-limit for giving connections of electricity, gas and water-supply;
(d) time-limit for giving sewerage connections;
(e) time-limit for giving connections of all kinds of telecommunications;
(f) time-limit for clearing by the customs authorities of imported machineries,
spares of such machineries and raw materials;
(g) time-limit for issuing clearance regarding environment pollution;
(h) other facilities and services that may be required for speedy setting up of
an industry.
205
BOI Act -P8
(6) A decision given by the Board under sub-section (5) shall be deemed to be a
decision given by the Government or by such other person or authority as is
authorized by, or entitled to give such decision under, the provisions of the
relevant law on the relevant subject, and such decision shall be implemented
accordingly.
(7) No person shall, except with the prior permission of the Board, use any service
or facility availed of by him pursuant to a decision under sub-section (5) for any
purpose other than for the industrial project for which it was so availed.
(8) Where an industrial project is a company registered under the provisions of the
Companies Act, 1913 (VII of 1913), the Board may, in respect of all matters
relating to the issue of capital and sale of shares of that company, exercise all
powers and perform all functions of the Government under the provisions of the
Capital Issues (Continuance of Control) Act, 1947 (XXI of 1947).
(9) Where an industrial project faces any difficulty in the completion of the project
within the time-limit specified in the letter of approval or if, after such completion,
it faces any difficulty in commencing, within such time-limit, production thereat,
the entrepreneur of the project may apply to the Board for removing such
difficulty, and upon such application, the Board shall endeavour to extend to the
entrepreneur necessary assistance.
(10) The Board may, from time to time, require the entrepreneur of an industrial
project approved under sub-section (4) to furnish such information relating to
the implementation of the project as the Board may consider necessary.
12. Determination of import entitlement.-
(1) If, an industry set up in the private sector, other than a textile industry or an
industry or an industry falling within the jurisdiction of the Bangladesh Export
Processing Zones Authority or of the Bangladesh Small and Cottage Industries
Corporation, is in need of import entitlement for importing machineries, spares of
machineries, raw-materials and packing materials for its own use, it may, in the
form and manner prescribed by rules, apply to the Board for such entitlement.
(2) The Board shall, issue to the applicant a clearance so that such machineries,
spares of machineries, raw materials and packing materials may be imported in
accordance with the import entitlement determined by the Board after
considering the application.
13. Royalty and fees.-
If an industry set up in the private sector, other than an industry falling within the
jurisdiction of Export Processing Zones Authority, is required to pay to a foreign
national or a foreign organization any royalty or any fees in respect of technical
know-how or technical assistance, that industry shall, in the manner prescribed by
the Board, apply to the Board for determination of such royalty or fees; and the
royalty or fees determined by the Board shall be payable by the industry.
206
14. Duties of other concerned authorities regarding an approved industrial project -
(1) If, at the time of approving an industrial project, the Board sends to any person
or authority any decision under section 11, that person or authority shall take
necessary steps so that the decision is implemented within the time-limit
specified by the Board.
(2) If such person or authority fails or is unable to take, within the time limit specified
by the Board, proper steps pursuant to such decision, the Board may, after
considering the circumstances of the case, issue direction for taking proper step
pursuant to the decision, and upon such direction the concerned person or
authority shall be bound to take necessary step accordingly.
15. Cancellation of approval -

If an industrial project approved under section 11 contravences any of the provisions
of this Act or of any rules made thereunder or violates any of the conditions relating
to the approval, the Board may, in the manner prescribed by rules, cancel the
approval of the project.
16. Inspection, etc. -

The Executive Council or a person or authority appointed by it may inspect the
progress of the implementation of an industrial project approved under section 11
and shall, after such inspection, submit to the Board a report of the inspection.
17. Declaration of industrial area. -

For carrying out the purposes of this Act, the Government may, by notification in the
official Gazette, declare one or more areas specified therein to be an industrial area
or areas.
18. Acquisition of land for industrial areas.-

If any land situated in an area declared under section 17 to be an industrial area is
required for any industrial project approved under section 11, such land shall be
deemed to be required for public purpose and it may be requisitioned or acquired for
such purpose under the provisions of the Acquisition and Requisition of Immovable
Property Ordinance, 1982 (11 of 1982).
19. Committee.-
The Board may appoint one or more committees to assist it in the performance of its
functions.
207
20. Appointment of officers and other employees -
The Board may, for the proper performance of its functions, appoint such number of
officers and other employees and consultants or advisers as it may deem fit.
21. Delegation of powers -

The Board may, by order, delegate to the Executive Council or the Executive
Chairman or a member of the Executive Council or a Committee appointed by the
Board any of its powers or functions under this Act or the rules made thereunder.
22. Power to make rules -

The Government may, by notification in the official gazette, make rules for carrying
out the purposes of this Act.
23. Abrogation and Preservation -

(1) Biniog Board Ordinance, 1988 (Ordinance No. 32, 1988) is hereby abrogated.
(2) In spite of such abrogation the acts and measures taken under abrogated
Ordinance shall be treated to have been done or adopted under this Act.
[Act Ended]
208
c. Baggage Rules 2000
Un-Official Compilation of SRO-164 and

its Ammendments by SRO.168 (Budget-04)
People’s Republic of Bangladesh

Ministry of Finance
Internal Resource Department
National Board of Revenue
(Customs)
25 Jyaitha, 1407 B.S
Dhaka ......................................
08 June, 2000 A.D
S.R.O. No. 164- Law/2000/1845/ Cus. Section 219 of Customs Act, 1969 (IV of 1969), to be read
with the Item 17 of the Third Schedule of the said Act. The National Board of Revenue by virtue of the
powers vested under the said Act, has drawn up the following rules after having cancelled the existing
rules in this regard, namely:
1. Short Title and Aplication.- (1) These rules may be called the passengers ( non tourist) Baggage
(Import) Rules, 2000.
2. These rules will be applicable in the cases of all passengers excepting those falling under the Tourists
Baggage (Import) Rules, 1984 and Priviledged Persons Baggage Rules, 1985.
3. Definitions, In these rules, unless anything contrary appears from the subject or the context-
1[( a) “ Baggage” means food items, clothes, household or other personal effects in reasonable
quantities imported by a passenger],
(b) “Passenger” means a passenger arriving from abroad:
(c) “ Schedule” means the schedule annexed to these rules.
4. Customs duty facilities for passengers arriving by air and by water.(1). All baggage brought by
passengers coming by air or by water in hand- bags, cabin bags and two cartons, bags or sacks
weighing not more than 65 (sixty-five) kilograms, or in two suitcases or trunks measuring 32" (thirty-two
inches) in length can be taken delivery of without paying any customs duties.
(1) In addition to the baggage mentioned in the Sub-rule (1), clothes, books, periodicals or reading
materials for personal use brought in a suitcase, trunk, carton, bag or sack weighing not more
than 35 (thirty-five) kilograms can be taken delivery of without paying any customs duties.
(2) In case of a passenger under 12 (twelve) years of age, personal baggage brought in a carton,
bag, sack weighing not more than 40 (forty) kilograms or in a suitcase or trunk measuring 32"
(thirty- two inches) in length can be taken delivery of without paying any customs duties.
(4) Unaccompanied baggage can be taken delivery of without paying customs duties subject to
making declaration in the form of the schedul 1/e and a copy of the declaration has to be
submitted to the concerned customs officer at the time of taking delivery of the said baggage.
1 SRO No. 161-Act/2003/Customs, date: 12 June, 2003
209
(5) A passenger will be allowed to import once in every calendar year one from each of the goods
mentioned in the schedule 2 without paying any customs duties and one from each of the goods
mentioned in the schedule 3 subject to the payment of the customs duties indicated in the said
schedule.
(6) A foreign national will be allowed to import one bottle of or upto 1/6 gallon of alcohol or alco
holic drink (e.g. spirit, wine, beer etc) without paying any customs duties.
(7) In case a passnger has not brought with him from abroad the goods mentioned in the scheule 2
and the schedule 3, he will be able to buy them at the city sales centre of the Bangladesh
Parjatan Corporation within seven working days of his arrival after having mentioned them in the
form of the schedule 4.
(8) A passenger will be able to import the instruments used in his professional activities and easily
portable without paying any customs duties.
(9) A passenger under 12 (twelve) years of age will not be entitled to any other facilities other than
the ones mentioned in the sub-rule (3).
2[(10) A passenger will be allowed to import gold or silver ornaments weighing not more than 200
(two hundred) grams without paying any customs duties.
3[(11) A passenger coming home from abroad will be allowed to import gold bar or gold ingot not
exceeding ten (10) kg or silver bar or silver ingot not exceeding twenty (20) kg.]]
4. Facilities for sick and disabled passengers. Medical equipments and wheelchair to be used by a
sick, disabled or old passenger can be taken delivery of without payment of any customs duties.
5. Facilities for passengers arriving by road. – A passenger arriving by road will be able to import
baggage to a maximum value of 200 (two hundred) US dollas irrespective of the period of his stay
abroad without payment of customs duties.
6. Facilities for the crew. – (1) 4[A member of the crew or on officer of the Bangladesh Biman and a
Bangladeshi member of the cerew or officer engaged in a foreign airlines operating flights to any
Bangladeshi airport] returning on completion of his professional responsibilities is entitled to bring a
baggage to a maximum value of 100 (one hundred) US dollars without payment of customs duties.
(2) A Bangladeshi sailor or officer of a ship arriving from a foreign seaport will be entitled to bring a
baggage to a maximum value of 300 (three hundred) dollars without payment of any customs duties.
(3) If a sailor or an officer mentioned under sub-rule (2) signs off, he will be entitled to import a
baggage to a maximum value of 2,000 (two thousand) US dollars on payment of all the imposable
customs duties.
2. Sub-rule (10) and (11) are added by S.R.O. No. 137 – Act/ 2002/1956/Customs, dated 6 June 2002.
3. Replaced by S.R.O. No. 161 – Act/2003/ Customs, dated 2 June 2003.
4. Replaced by S.R.O. No. 132 – Act/2002/1958/Customs, dated, 6 June 2002.
210
(4) Drivers and stewards (helpers/assistants) of passenger-buses coming from abroad will be entitled
to import clothes, beddings and cooked food items and personal and household goods to a maximum
value of 50 (fifty) US dollars without paying any customs duties.
7. Use of the Green and the Red channel. – (1) If a passenger does not carry any goods subject to
customs duties, he may use the Green Channel (if any) of the airport.
(2) Notwithstanding anything in the sub-rule (1), a customs officer, on reasonable suspicion, will be able
to examine any passenger passing through the Green Channel.
8. Obligation of making customs declaration for all passengers. All passengers coming from abroad will
make declaration of baggage to the customs authorities by completing the form of the schedule 1.
9. Exemption in the case of deceased. – Notwithstanding whatever is in these rules, if a Bangladeshi

citizen dies abroad, his baggage will be exempted from payment of all kinds of customs duties.
G:\ @ NBR \BRules 2000 Amend- BGT_2004 as on 140804.doc
1. substituted by SRO No. 161-law/2003/2013/customs,Dated 12th June, 2003

2. added by subrule (10) and (11) SRO No.-137-law/2002/1956/customs, Dated : 6th June 2002
3. substituted by SRO No. 161-law/2003/2013/customs, Dated 12th June, 2003
4. substituted by SRO No. 137-law/2003/1956/customs,Dated 6th June, 2002
211
Schedule 1
Part -A
Form of Baggage announcement Letter
1. Passenger’s Name :
2. Father/Mother Name :
3. Passport No. :
4. Flight No. :
5. Arrival Date :
6. Nationality :
7. The Countries you have visited : Country Name Date of Visit
a)
b)
c)
8. Information about your suitcase, Carton, : Number Weight
Trunk, Bag, and Cabin Bag etc.
9. Do you have Gold more than 200gm of weight ? : Yes/No
10. Do you have more than 10kg of goldbar/goldpiece : Yes/No
or more than 20kg of Silverbar/Silverpiece?
11. Do you have Wine, Alcoholic drinks : Yes/No
Cigarate or Alcohol ?
12. Do you have more than 5000$ or same amount : Yes/No
of foreign currency ?
13. Do you have duty applicable goods in your baggage ?: Yes/No
14. Information about Bag, Suitcase, Trunk, Carton, etc. : Number Weight Airway Bill/Bill
which you have not carried in your journey of Loading numbe
and date
Signature Signature of the Passenger (According to passport) :

Date :
Superintendent (Customs)
212
Schedule 1
Part -B
Short list of the goods subject to imposition of customs duties
(a) If any goods which are not for personal or household use are imported in baggage, customs duties are to be
paid for them.
(b) Baggage brought in suitcases in excess of two suitcases are liable to imposition of customs duties. But books,
periodicals or educational materials brought in the third suitcase can be taken delivery of free of customs
duties.
(c) If any goods are imported in the baggage in commercial quantities customs duties are to paid.
(d) Although the following goods are personal and household commodities, in case of their being imported as
baggage, customs duties are to be paid at the fixed rate shown against each item.
(1) Television 7[(a)] upto 21 2500/- (two thousand five hundred) taka, (b) above 21 and upto 29 600/- (six thousand)
taka, (2) VCR/VCP/ Satellite receiver 500/- (five hunddred) taka,
6 The letter and the word Part B is added to S.R.O. No.137-Act/2002/1956/Customs, dated 6 June, 2002.
G:\ @ NBR \BRules 2000_ Amend BGT_2004 as on 140804.doc
7. Serial no. (1), (2) and (3) of the para (d) replaced by S.R.o. No. 186- Act /2004/2051 /cuostoms, dated 10 June
2004 A.D.
VCD/DVD/LD/MD Player 1500/- (one thousand five hundred) taka], (2) Music Centre (a) with ordinary CD and with
detachable speaker 2,000/- taka, (b) conponent system (CD / VCD / DVD / LD / MD set) 8,000/- taka, (c) in
detachable condition (CD / VCD / DVD / LD / MD set) 15,000/- taka, (5) Rrefrigerator / deep freezer 5,000/- taka,
(6) dish washer/washing machine/cloth drier 3,000/- taka, (7) electric swinge machine/knitting machine 1,000/- taka
(8) ordinary photocopier/photo enlarger 10,000/- taka, (9) air-cooler/air-conditioner (a) window type 10,000/- taka, (b)
split type 25,000/- taka, (10) fax machine 5,000/- taka, (11) oven (a) microwave oven 2,000/- taka, (b) gas oven
(including burner) 5,000/- taka, (12) dish antenna 7,000/- taka, 8[(13) gold bar or gold ingot (maximum 10 kg) 125/-
taka per 11.664 gr), (14) Silver bar or silver ingot (maximum 20 kg) 6/- taka (per 11.664 gr.), 9[(15) mobile/cellular
telephone ( per set 1500/- (one thousand five hundred ) taka], (16) airgun/air rifle 2,000/- taka, (17) chandelier 300/-
taka (per point), (18) carpet upto 15 square meters 500/- taka (per square meter).
8. Serial no. 13 and its entries are replaced by S.R.o. No. 161-Act/2003/2013/Customs, dated 12 June 2003.
9. Replaced by the letter of the National Board of Revenue, file no. 2(17) Customs-
Passengers and Diplomatic Privileges (Part-2) /210, dated 21/06/2003
Schedule 2
List of duty free goods
1. Cassette Player / 2 in 1
2. Disk man/walkman (Audio)
3. Portable Audio CD player
4. Desktop/Laptop Computer (With Printer and UPS)
5. Video Camera
6. Still Camera
7. General/push button/Cordless telephone set
8. General/Electric Woven
9. Rice Cooker/Presser Cooker
10. Blender/Juicer/Coffee maker
11. General and Electric type writer
12. Sewing machine (Manual)
13. Table/Paddle stal fan
14. Sports Instruments (for personal usage)
15. 200gm of Gold or Silver Ornaments (Same type of ornaments not exceed 12)
16. One Carton Cigarate (200 sticks)
17. Computer Scanner.
Original version was in Bangla
213
d. Visa Policy
Government has revised its visa policy rcecently. Only relevant portion of that policy has
been inserted below.
People’s Republic of Bangladesh
Ministry of the Interior
Immigration Branch-2
Memo No. Swa. Ma. (Bahi-2) 1P - 7/2006/2879 Dated : 19th October, 2006
Visa Rules
S.L. Visa Eligible Person Purpose of Visit Authority of issuing visa/increasing of visa
Class and condition
1. A Officials of government/semi- Performance of (a) The concerned visa issuing authorities
g o v e r n m e n t / a u t o n o m o u s public/ official will be able to issue visa for the necessary
organizations/members of duty period mentioning the applicable travel
government delegations and facilities after having examined Note
entourage, spouses and Verbale/ relevent papers regarding the
dependent children. purpose of the visit.
(b) If it becomes necessary to extend the
period of visa, the Directorate General of
Immigration and Passport will be able to
extend the visa for the required period on
the basis of the recommendation of the
Ministry / organizing authorities concerned.
2. A-1 Officials and employees Service/ (a) The visa issuing authorities will be able
employed in an performance to issue visa with facilities of multiple entries
organization/office of the of official duty for the entire period of service or for a
United Nations and its maximum period of 5(five) years, whichever
affiliated organizations, is less, on the recommendation of the
international/regional bodies organization concerned.
bodies/offices established (b) If it is necessary to extend the period of
under bilateral/multilateral visa, the Directorate General of Immigration
agreements with the and Passport Directorate will be able extend
Government of Bangladesh the period of visa with facilities of multiple
entries for the entire period of employment
or for a maximum period of 5 (five) years,
whichever is less, on the basis of the
recommendation of the organization
concerned and security clearance. But in
this case obtaining security clearance will
not be applicable for persons holding
Diplomatic Passport and Laissez-passer.
3. A-2 Spouses and other If a member of (a) The concerned visa issuing authorities will
dependent members of the the entourage be able to issue visa to the spouse and the
family of the persons of of a person dependent members of the family for a period
coming on A-1 category coming on a equal to the one granted to the person coming
A-1 category on a A-2 category visa after having examined
or arriving later the necessary papers to this effect.
In case of necessity of extending the visa,
the Directorate General of Immigration and
the Passport will be able to extend the visa
for a period equal to the one granted to the
person coming on a A-2 category visa. But
in this case, obtaining security clearance will
not be applicable for persons holding
diplomatic passport and Laissezpasser.
- Original version was in Bangla

for further clarification please contact nearest Bangladesh mission
You can also visit www.mha.gov.bd
214
S.L. Visa Eligible Person Purpose of Visit Authority issuing visa/increasing of visa
Class and condition
4. FA2 Businessman/Business Trade and (a) The visa issuing authorities will be able to
representative commerce issue visa initially for not more than 1 (one)
year with facilities of multiple entries on the
condition of staying upto a maximum of 01
(one) month on every visit, on being satisfied
that the applicant is a genuine businessman,
after having considered the certificate issued
by the recognized Chamber of Commerce of
the country concerned in favour of the visitor
arriving for the purpose of prospecting
feasibility of investment / trade and commerce
and the recommendation of the local sponsor
situated in Bangladesh and the genuineness
of his business establishment etc. But if the
visa issuing authorities thinks it necessary,
they can see the lastest relevant documents
(audit report of at least one year, statement of
bank transactions, memorandum of
understanding, memorandum of association of
the firm etc.) of the business concern of the
applicant for visa.
(b) In case of necessity of extending the period
of visa, the Directorate General of Immigration
and Passport will be able to issue visa on the
basis of the recommendation of the local
sponsor and security clearance for a period of
3 (three) years on the condition of 01 (one)
month s stay on every visit with facilities of
multiple entries on each occasion. But the
period of visa may be extended for 05 (five)
years on the same conditions, after recording
the evidence / certificate, if any, to the effect
that the applicant had come to Bangladesh
several times for business purposes and
performed his business according to the
proper rules and regulations.
5. B Crew travelling on Performance (a) The concerned authorities for issuing visa
international routes being of professional will be able to issue visa for a maximum period
employed in airlines / ships duties of 3 (three) years with facilities of multiple
and other transport sectors travels on the basis of the recommendation of
the appointing authority. In the case of the
ship s crew the condition of a maximum period
of one (1) month s stay at a time and in other
cases the condition of a maximum period of 7
(seven) day s stay will be applicable.
(b) In case it is necessary to extend visa, the
Directorate General of Immigration and
Passport will be able to extend the period of
visa according to necessity on the basis of the
recommendation of the proper authorities.
215
Class and condition
6. C Domestic aid of the persons Accompanying The concerned authorities for issuing visa
belonging to category A-1 the persons will be able to issue visa for the required
belonging to period with mention of the applicable travel
category facilities, after having examined Note
A-1 Verbale /relevant papers regarding purpose
arriving later of the visit and where applicable, following
diplomatic etiquette. In case of necessity of
extending the period of visa the Directorate
General of Immigration and Pass-port will
be able to extend the visa for the required
period with multiple entries.
7. D (a) experts / consultants / Employment / The concerned visa issuing authorities will
employees / persons employed Service be able to issue visa for a maximum period
in government / of 3 (three) months with the facilities of
semi-government / autonomous multiple entries, after having examined in
organizations / projects and each case the certificate, appointment letter
equivalent institutions issued by the Ministry / Board of Investment
(b)Employees/ persons appointed / BEPZA to the effect that the person has
been properly appointed at the concerned
/employed in local / foreign
organization and the authenticity of the
government/liaison/industrial/
appointing organization.
commercial organizations or
(b)In case of extension of visa, the
equivalent organizations Directorate General of Immigration and
(c) Employees/persons Passport will be able to extend the period of
appointed in local/foreign visa for the entire period of work permit or
government/non-government for a maximum period of 01(one) year,
firms of contractors or whichever is less, with multiple entries, on
equivalent firms the basis of the recommendation of the
appointing authority, work permit of the
concerned authority and security clearance.
If extension of visa is applied for for the
second time, the Directorate General of
Immigration and Passport Directorate will
be able to extend the period of visa for the
entire period of the work permit or for
3(three) years, whichever is less, on the
basis of satisfactory stay. However, if the
period of employment in the same
profession exceeds 03(three) years,
approval of the Ministry of Interior has to be
sought in case of extension of visa.
(c) In the case of experts/ consultants/
employees/persons employed in
government /semi-government/autonomous
organizations/ projects, the period of the
visa can be extended for the entire period
of the work permit or for 03 (three) years,
whichever is less, on the basis of the
recommendation of the Ministry, work
permit and security clearance.
216
Class and condition
8. ND Spouses and other Accompanying (a) The concerned authorities for issuing
dependent members of the persons visa will be able to issue visa for a period
the family of the persons entitled to D equal to the one granted to the person
entitled to D category class or arriving coming on a E category visa, after having
later examined the necessary papers to the
effect that the applicant is spouse and
dependent member of the family.
(b) In case of extension of visa the
Passport will be able to extend the visa
for a period equal to the one granted to
the person coming on a E category visa,
with multiple entries, on the basis of the
recommendation of the appointing
organization and security clearance.
9. DA Persons coming for supply Supply/ (a) The authorities for issuing visa will be
/installation/maintenance/ installation/ able to issue visa for a maximum period
supervision of equipments maintenance/ of 1(one) month after taking into
and software /inspection of supervision of consideration the recommendation of
project and similar work equipments BOI/BEPZA to the effect that foreign
and software/ nationals as described are required to
inspection of come for the installation of the
project etc. equipments / software at the
inviting/importing firm, letter of invitation of
the local sponsor, authenticity of the
inviting/ importing firm, deed of contract
of the sending/supplying firm.
(b) The Directorate General of
Immigration and Passport will be able to
extend the visa for a maximum period of
01(one) year with multiple entries on the
basis of deed of contract signed with the
firm supplying the equipment,
recommendation of the local sponsor,
work permit and police report.
10. E Foreign investors of capital Management (a) The concerned visa issuing authorities may
in the industries/mercantile of investment/ issue visa to an applicant for visa in an industrial/
firms established/ to be mercantile enterprise established in Bangladesh
established
in the private sector individually or as a joint
established as a joint business/ venture or with entire foreign investment, for a
venture or with entire business maximum period of 01(one) year with facilities of
foreign investment in the concern multiple entries on the basis of a certificate of the
private sector Board of Investment (BOI)/ Bangladesh Export
Processing Zones Authorities (BEPZA) (if
applicable) to the effect that he is a genuine
investor. However, if the visa issuing authorities
feels necessary, it may see the relevant
documents (for example, the Memorandum of
Understanding, Memorandum of Association of
the firm etc.) regarding the investment/business of
the applicant.
(b) In case of extension of visa, the Directorate
General of Immigration and Passport may issue
visa for a maximum period of 5(five) years with
multiple
217
Class and condition
11. FE Spouses and other dependent Accompanying (a) The concerned visa issuing authorities
members of the family of the the person may issue visa for a period equal to the one
person coming on a E category coming on a granted to the person coming on a PI
visa E class visa or category visa, after having examined the
arriving later necessary papers showing that the persons
concerned are spouse and dependent
members of the family.
(b) In case of extension of visa, the
Passport may extend the visa with multiple
entries for a period equal to the one granted
to the person coming on a PI category visa
on the basis of the recommendation of the
concerned establishment and security
clearance.
12. EI (a) Any person from a country Travel / tourism / (a) The concerned visa issuing authorities
with which Bangladesh has meeting relatives / may issue visa for a maximum period of 15
diplomatic relations religions reasons / (fifteen) days without any travel facilities.
(b) Persons coming for seminars / private seminars / (b) For special need the Directorate General
workshops / study tours workshops / of Immigration and Passport may extend the
organized at private level study tour sector visa upto 1 (one) additional month without
ravel facilities on the basis of police report.
13. J a) Foreign spouse and children Stay and travel in (a) The concerned visa issuing authorities
of Bangladeshi Citizen. Bangladesh may issue visa to foreign wife / husband
b)Foreign Citizen of Bangladeshi and children for a maximum period of 1
origin and his/her spouse (one) year with multiple entries on the basis
and children. of the proof of the Bangladeshi citizenship
of the Bangladeshi citizen and affidavit
sworty by the Bangladeshi citizen regarding
his/ her spouse / children and marriage
certificate.
(b) The Directorate General of Immigration
and Passport may extend the visa for a
maximum period of 5 (five) years with
multiple entries on the basis of favourable
police report.
Source : Original Version is in Bangla, This is an unofficial English Version Translated by

the institute of Modern Languages, University of Dhaka, Bangladesh
218
Appendix III : Bangladesh Industrial Policy 2005
[The Industrial Policy 2005 was adopted by the Government since 2006]
Chapter 1
Introduction
Bangladesh is a developing country, and the present government is striving

relentlessly to attain rapid economic development in the country. Many programs
taken so far have been carried out successfully. Despite a lack of resources faced
by the government, development programs in the key sectors have continued. At the
same time, considering the importance of the private sector, an all-out support is
being provided to initiatives taken in this sector. As a result, a new kind of dynamism is
under way in both the public and private sectors. In this backdrop, it is essential to
examine various aspects of industrialization and its impacts on overall economic
activities.
Given the present environment of global competition, the private sector is playing an
important role in the industrialization of the county. Therefore, the Government in the
Ministry of Industries has taken the role of a facilitator. Faced with the challenges of
the free market economy and globalization, the government has accepted private
ownership and management of industrial enterprises as one the major guiding forces
in achieving economic growth. Besides this, the government has also brought about
many constructive and timely reforms in the running of business, and liberalized
trade so that private entrepreneurs can seize opportunities of establishing and
running industrial enterprises profitably and freely.
In the meantime, quite a number of publicly managed industrial enterprises have
already been sold out and transferred to private ownership. In order to establish
economically prospective industries in industrial sub-sectors, there are plans to set
up industrial parks and special economic zones so that huge amount of unused and
abandoned land can be utilized. All this is aimed at fostering industrialization and
economic development and generating employment opportunities in the country.
To reduce poverty and generate employment opportunities, more efforts are needed
to establish agro-based industries as well as to raise agricultural production. This will
ensure the protection and fair price of agricultural products and employment of a
huge number of unemployed people. In order to create further employment
opportunities beyond the agricultural sector, initiatives should be taken to set up
small, medium and large industries across the country. If these types of industries
are set up in a planned way, then unemployment rates will decline and poverty
alleviation will be accelerated. With these objectives in mind, the Industrial Policy has
been radically reshaped.
219
In order to provide administrative, institutional and infrastructural facilities in the
country’s industrialization, there are organizations such as the Bangladesh
Standards and Testing Institution (BSTI), Bangladesh Industrial Technical Assistance
Center (BITAC), Bangladesh Institute of Management (BIM), Bangladesh Small and
Cottage Industries Corporation (BSCIC), National Productivity Organization (NPO)
and Small and Cottage Industries Training Institute (SCITI) under the Ministry of
Industries, and the National Institute of Textile Training, Research and Design
(NITTRED), Textile Vocational Institutes, Textile Diploma Institute and Bangladesh
Silk Research and Training Institutes under the Ministry of Textiles and Jute. For the
leather industry, the Bangladesh College of Leather Technology and different district
level polytechnic institutes provide technical education. These Institutes also provide
assistance for industrialization by providing training on management and quality
control of goods, safeguarding consumers’ Interests, new tools necessary for the
production of industrial goods that are in demand, and by improving efficiency and
overall productivity. However, many industrial entrepreneurs are not fully aware of
the necessary technical and other assistance available for the industrial sector
through these institutes. Therefore, extensive publicity is necessary for the proper
use of these important institutes and the facilities available there.
In order to further strengthen the country’s industrialization process, the present
government has identified the Small and Medium Enterprises (SMEs) as a priority
sector and as the driving force for industrialization. A national taskforce led by the
Principal Secretary of the Prime Minister’s Office has been formed so that proper
policies and planning are followed in establishing SMEs. At the same time, with a
view to providing entrepreneurs with assistance in the establishment of SMEs. A cell
has been created under the supervision of the Ministry of Industries comprising
officials experienced in SMEs from the Ministry of Industries, Bangladesh Small and
Cottage Industries Corporation (BSCIC), National Productivity Organization (NPO),
Asian Development Bank (ADB), FBCCI, National Association of Small and Cottage
Industries, Bangladesh (NASCIB) and women entrepreneurs.
The provisions of all facilities for attracting foreign investments have been envisaged
in the Industrial Policy. The government has taken an initiative to formulate a
separate SME policy to provide entrepreneurs with necessary guidance and
strategic support in respect of the establishment of SME industries all over the
country. These strategic guidelines will be followed in establishing SMEs across the
country.
Far-reaching changes have occurred in the past decade in economic and social
activities across the globe, especially with regard to the participation, contributions
and successes of women in industrial activities. Therefore, the creation of women
entrepreneurs and their participation in industrialization have been given
considerable prominence in the present Industrial Policy.
Necessary steps have been taken to hygienically preserve and market agricultural
products of Bangladesh. Wit this end in view, measures will be taken for the
220
preservation of frozen, pasteurized, canned and dry foods in a modern and hygienic
way in order to sell them in local and overseas markets throughout the year.
Steps will be taken to properly utilized the natural and mineral resources of the
country such as gas, coal, hard rock, limestone, silicon, monazite, zircon, rutile,
oyster, pearl, coral, fossil, seaweeds, etc., available in the country’s long sea-beach
so that new profitable industries can be set up. Steps will also be taken at the same
time to use solar power and municipal refuse to generate electric power in order to
minimize power shortage in running small and cottage industries.
This is an age of information and communication technology (ICT). The application
of ICT in running industrial enterprises efficiently and profitably can ensure quality
development of goods, make production cost-effective and ensure faster customer
services. So, providing further importance and incentives to the use of ICT in a
number of sectors is one the notable features of the Industrial Policy.
The industrial sector is likely to grow rapidly over the next decade raising its
contribution to the country’s GDP to 30 to 35 percent, and the workforce in this sector
is expected to increase to 35 percent of national employment need. I order to attain
this growth in this sector, special importance has been given in the Industrial Policy
on agro-based and agro-processing industries and on steps to overcome possible
adverse conditions in the export oriented garment sector. Importance has also been
given on considering the SMEs and cottage industries as one of the major driving
forces, providing assistance to women entrepreneurs on a priority basis, setting up
special economic zones in different parts of the country, improving the quality of
industrial products to world standard, marketing of goods at competitive prices, and
enhancing productivity in the industrial sector.
There is a proposal in the Industrial Policy for the formation of a high level committee
led by Minister of Industries and comprising senior officials from public and private
organizations involved in industrialization. This committee will submit a report to the
Cabinet for its decisive approval, and afterwards the relevant ministries /
divisions / agencies will take necessary programs for industrialization to get
underway in the approved sectors.
In the end, it can be hoped that the guidelines contained in the new Industrial Policy
will help expand planned industrialization in the country, bring about sustainable and
continuous industrial growth, and overcome the past failures of industrialization to a
great extent. As a result, a sound and prospective foundation of economic
development will be established. This will help baring about poverty alleviation,
create further employment opportunities, reduce unemployment instances, improve
living standards of people, and achieve and overall economic growth in the country.
221
Chapter 2
Objective
2.1 One of the foremost objectives of the Industrial Policy 2005 is to set up planned
industries considering the real domestic demand, prospect of exporting goods
abroad, and discouraging unplanned industries in the light of past experience.
2.2 Accept private initiatives a the main driving force of economic development and
uphold the government's facilitating role in creating a favorable atmosphere in
order to augment private investments in the country's industrialization, given the
background of a free market economy and globalization.
2.3 Arrange for state-owned industrial enterprises to be sold/transferred/leased or
administered in any other way by the Privatization Commission or concerned
ministries in order to accelerate the privatization process.
2.4 Take necessary initiatives to set up industries with private entrepreneurships, and
where that is feasible, establish industries on state initiative in those sectors that
are considered very important and essential because of national interest, where
private entrepreneurs are not forthcoming.
2.5 Catering the needs for local and foreign market and also for consumer satisfaction
of the local products; measures to be undertaken (a) produce world class quality
products, (b) diversification of goods, (c) introduce cost-effective management in
the production system, (d) more value addition in the industrial sector, and (e)
provide support for enhancing productivity by using continuous, appropriate and
advanced technology.
2.6 Provide assistance to augment the industrial sector's contributions to the GDP of
the national economy, meet the general demands of local consumers and earn
more foreign exchange so that local industrial entrepreneurs can attain further
capacity to establish industries and industrial goods can have access to the
overseas market on a competitive basis.
2.7 Provide inspiration for the speedy expansion of cottage industries and SMEs and
for further investment in these sectors so that new employment opportunities are
generated, unemployment reduce and poverty alleviation program made in the country.
2.8 Prioritize the expansion and development of agro-based and agricultural
processing industries, and assist in the expansion of poultry, dairy and goat-sheep
industry as agricultural industries.
2.9 Provide women entrepreneurs with all necessary assistance in establishing
industries in various sectors.
2.10 Increase productivity at enterprise level; produce high-value added products step
222
by step through development and application of appropriate technology and
increase of export through export diversification.
2.11 Provide all necessary assistance for producing environment-friendly product with
the objective for crating a pollution-free environment in the industrial sector.
2.12 Expand the local market and establish more backward linkage industries in order
to accelerate the export of high value-added garments produced in the export-
oriented garment industries and other relevant industrial sub-sector.
2.13 Further enrich the industrial sector with the proper utilization of the country's
various natural and mineral resources.
Chapter 3
Policy Strategy
3.1 Ensure full utilization of current production capacity in the industrial sector,
especially by reusing that it is not hampered because of infrastructure deficiency.
3.2 Provide special facilities as well as infrastructure support to Cottage and Small and
Medium Enterprises (SME) located in different parts of the country.
3.3 Provide financial, technical, technological and infrastructure facilities in order to
inspire setting up and developing agro-based industries.
3.4 Take steps to preserve and market agro-based goods hygienically by processing
in frozen, pasteurized, canned or dry form so that goods produced in the country
are preserved and marketed in compliance with modern standards in order to
ensure that they can be made available in the local market of exported throughout
the year.
3.5 Take steps to properly utilize the natural and mineral resources in the country such
as gas, coal, hard rock, limestone, silicon, monazite, zircon, rutile, oyster, pearl,
coral, fossil, seaweeds, etc, available on the long sea-beach so the new profitable
industries can be set up.
3.6 Take action to use solar power and municipal refuse to generate electric power in
order to run small and cottage industries.
3.7 Assist backward linkage industries on priority basis. The objective is to diversify
and produce goods of world standard and value added items so the they help to
diversify our exports.
3.8 Consider the readymade garment and textile industries as a priority sector in view
of their special contributions to the country’s export trade.
3.9 Provide necessary assistance to value added linkage industries and
subcontracting industries so that they are developed.
223
3.10 Provide assistance to waste management development in order to ensure proper
waste minimization and waste removal and produce pollution-free goods.
3.11 Strengthen and ensure efficiency in import substitution industries so that the
gradually increasing demand for goods in the local market can be met.
3.12 Inspire well-proportioned industrialization across the country by providing
incentives, wherever necessary.
3.13 Conduct a survey to determine the demand in the local market of goods produced
in sick industries as a primary step towards the rehabilitation and development of
those industries. In view of competition in the local market, take action to reduce
the production cost of goods in sick industries in a cost-effective way so that the
qualitative standards of goods and productivity are ensured.
3.14 Provide incentive to various institutions that are concerned with technological and
technical efficiency enhancement, side by side with human resources
development, in order to improve efficiency in the industrial sector.
3.15 Remove policy discrimination, if any, between domestic and foreign investments,
and enhance regional and sub-regional cooperation.
3.16 Privatize non-profitable industries in the state sector quickly and in phases.
Restrict state investment and administration only to those industries in the public
sector which the government think are not safe for investment in the private
sector.
3.17 Provide all-out assistance to create a strong capital market so the investments in
the industrial sector are increased.
3.18 Give preference to infrastructural development including ports, power, transport
and communications, and human resources development. Specifically promote
private investments along the principles of construction, administration and BOO,
and construction, administration and BOT in these sectors.
3.19 Quite a number of publicly managed industrial enterprises have already been sold
and transferred to private owners. Take initiatives to set up industrial parks with a
view to establishing economically viable industries in these industrial sub-sectors.
3.20 Provide further structural and other facilities to establish and develop compact
industrial areas. Develop planned industrial areas by establishing Special
Economic Zones in areas with vast economic potentials, and utilizing local
resources.
3.21 Take necessary steps to bring about the country’s industrial development in line
with different agreements with the World Trade Organization (WTO).
224
3.22 Consider highly developed technology-based seed breeding, production and
development, and agricultural goods processing activities as industries. At the
same time, take strong steps regarding the diverse use of jute.
3.23 Market daily essentials such as flour produce from wheat in flour mills, refined
edible oil, refined salt produced from unrefined salt, etc. after enriching them with
vitamins, minerals and iodine.
3.24 Arrange for incentives to be given for research and development, acceptance and
transfer of environmentally friendly appropriate technology. At the same time,
develop market-oriented institutional structure in overall technological
development.
3.25 Promote foreign direct investments in order to bring about technology transfer,
efficiency and management development and enhance marketing skills.
3.26 Establish coordinated and extensive Management Information Service (MIS)
comprising different public and private agencies under the Ministry of industries
(various chambers of commerce and industries) and arrange for information
received from MIS to be supplied to administrative divisions and districts levels.
3.27 Create a long-term credit fund to generate industrial production capacity and also
a venture capital fund to support in the commercial production and marketing of
creative industries.
3.28 Collect information on industrial development and arrange for technology
dissemination through the Technology Dissemination Cell, set up at the Ministry of
Science and Technology, Industry and Business Association, and the Bangladesh
missions abroad.
3.29 Take assistance from extended administrative-judicial system (Financial Loan
Courts, Arbitration Centers and various other tribunals) in order to resolve trade
disputes quickly and at minimum cost.
3.30 Ensure the availability of the working capital from financial institutions after the
establishment of an industry so working capital can be obtained in time.
3.31 Ensure the availability of assistance of the capital market so that industrial
entrepreneurs can overcome the lack of capital and mobilize the necessary capital
from the capital market in order to establish or administer industrial enterprises.
3.32 Consider other industry related policies such as the Textiles Policy, Jute Policy,
and Silk Policy as supplementary to the Industrial Policy.
225
Chapter 4
Definitions and classifications of Industrial Enterprises
4.1 Broadly speaking, industry includes manufacturing and service activities
4.2 Production, processing and assembling, and rehabilitation and fabrication of
manufactured goods are included in industry.
4.3 The services that are received through the use of machinery and durable resources are
included in the service industries. The service industries have been enlisted in Annex-
2
4.4 Definitions of industries in the manufacturing sector.
(a) "Large Industry" means an industry in which the value/replacement cost of
durable resources other than land and factory buildings is above 100 million taka.
(b) "Medium Industry" means an industry in which the value/replacement cost of
durable resources other than land and factory buildings is between 15 million
and 100 million taka.
(c) "Small Industry" means an industry in which the value/replacement cost of
durable resources other then land and factory buildings is under 15 million taka.
(d) "Cottage Industry" means an industry in which members of a family are
engaged part-time of full-time in production and service-oriented activities.
4.5 Definitions of industries in the one-manufacturing sector (trading and other services):
(a) "Large Industry" means an industry in which more than 100 workers work.
(b) "Medium Industry" means an industry in which 25 to 100 workers work.
(c) "Small Industry" means an industry in which fewer than 25 workers work (unlike
family members in a cottage industry).
Reserved industries:
4.6 Those industries that are necessary to be kept reserved by the government in the
interest of national security and are sensitive have been identified as reserved
industries. A list of reserved industries has been given in Annex-3.
Thrust sector:
4.7 The thrust sector will mean those industries/industrial sub-sectors which have
already been able to successfully contribute to the country's industrialization and
poverty alleviation by increasing GDP, creating employment opportunities and
increasing export income. Special incentives and financial facilities such as tex
exemptions, exemption from dual taxation, tax holiday, and taxation at a reduced
rate or accelerated depreciation (if the tax holiday and tax exemption facilities
cannot be provided for new industries in the future) can be considered. The
facilities provided to those industries that are established in EPZ areas including
export-oriented industries can also be provided to the thrust sector. The objective
226
will be to use domestic technology, import substitution, adjustment and/or export
augmentation. But entrepreneurs under the thrust sector will not receive these
facilities automatically. The government will determine the facilities to be received
by thrust sector entrepreneurs after analyzing and reviewing the performances and
contributions of their sub-sectors/industrial enterprises to the national economy. A
list of the thrust sector has been given in Annex-1.
4.8 The definitions of the abovementioned industries may change over time and
variation of location.
Chapter-5
Facilitating Role of Relevant Ministries and
Public Institutions in Industrialization
5.1 The Bangladesh government gives importance to the private sector as a driving
force of industrialization, and has brought about constructive and realistic reforms
in formulating policies. The government will provide assistance in the following way
to play a supporting role through concerned public institutions:
(a) Before setting up industries, all foreign investors will register with concerned
offices in a measured manner.
(b) The Bangladesh Small and Cottage Industries Corporation will allot industrial
plots in its own industrial areas and in other industrial areas created with
specific objectives. Similarly, the Bangladesh Export Processing Zones
Authority (BEPZA) will allot plots in its own areas. The Board of Investment will
make necessary recommendations and take steps to allot land where public
land is available.
(c) The concerned utility agencies will determine the timeline for providing electric
power, gas, water and sewerage, and telephone connections in consultation
with relevant authorities and provide clearance regarding environmental
pollution. Wherever possible, these authorities will provide their services
through one-stop service centers.
(d) The Board of Investment and BEPZA will approve, as necessary, the royalty,
technology or technical assistance fees and the appointment and
remuneration of foreign employees.
(e) The sponsoring authority will provide entrepreneurs with advance
information in order to avoid investment risks because of unplanned and
excessive investments in certain sectors.
5.2 Approval will be given for establishing EPZ areas and developing industrial parks
in the private sector. The government will provide all possible assistance for the
EPZ areas and parks to be developed.
5.3 Accreditation bodies will be set up and arrangements made for properly
conducting activities of public and private laboratories/institutions engaged in
examining and fixing the standards of goods produced at home or imported from
abroad.
227
5.4 Activities of training institutes under different ministries that are engaged in human
resources development in the industrial sector will be made more dynamic and
effective. These institutes include the Bangladesh Institute of Management (BIM),
National Productivity Organization (NPO), Small and Cottage Industries Training
Institute (SCITI) and Training Institute for Chemical Industries under the Ministry of
Industries; the Textile Industrial Development Center under the Department of
Textiles; the training institutes under the Bangladesh Jute Mills Corporation;
Bangladesh Handloom Board and Bangladesh Silk Board; and some other
relevant training institutes.
Chapter-6
Privatizing State-Owned Industries and the Privatization Commission
6.1 The present policy of privatizing public sector industries will be pressured with vigour.
6.2 Investments in the public sector will be restricted to the "reserved sector". State
investments in the industrial sector will be treated as residual investment in the
future. State-owned enterprises will be complimenting to private sector industries
and will be encouraged to compete.
6.3 The present state-owned industries will be given autonomy as far as possible so
that they are run on commercial lines.
6.4 Except for the reserved sector, capital will gradually be withdrawn from state-
owned corporations.
6.5 100% shares of public sector enterprises will be sold out, if necessary.
Shares of public sector industries will be sold out to the public to ensure wider
distribution of shares and securities to the public and to involve the public in the
management of these industries.
6.6 Bangladeshis working abroad will be encouraged to buy shares of industrial
enterprises in foreign currency.
6.7 If the Privatization Commission cannot privatize state-owned enterprises

successfully, then the concerned ministry will sell/transfer/lease those enterprises
or take any other action in this regard.
The Privatization Commission and privatization policies:

6.8 The government is committed to bring about quick privatization of state-owned
industries, businesses and service institutions. The reason is to strengthen the role
of the private sector in the national economy and establish the private sector as
228
the main carrier of development, given the sick and deteriorating condition of state-
owned enterprises. With this end in view, the government has formed the
Privatization Commission. The main objectives of the Commission are to: (a)
promote social welfare by enhancing efficiency; (b) attract foreign investments,
enhance efficiency and improve mutual relations; (c) generate revenue; (d) release
resources from loss-making industries and invest in other social and public welfare
activities; and (e) stimulate competition so that employment opportunities are
created and protected.
Privatization policies to be followed:
6.9 (a) To protect the interests of workers, employees and officers; (b) give importance
to consumers' and good will; (c) avoid possible closure of any industrial
enterprises; (d) consider the market price as the sale price; (e) safeguard the
interests of consumers; (f) conclude transfer documents or agreements; and (g)
maintain transparency, privacy and unbiased behaviour.
Activities of the Privatization Commission in brief:
6.10 (a) To formulate program of privatization; (b) assess the value of
industries/trade/service institutions marked for privatization; (c) draw up guidelines
for preparing reports on privatization related assessment; (d) sell industrial
enterprises through tender; (e) transfer portions of shares to staff when selling
shares through Stock Exchange; (f) sell the public shares of private limited
companies; (g) conclude management agreement; (h) give lease; (i) sell/liquidate
assets directly; (j) prepare a progress report on privatization activities; and (k) take
back the possession of privatized enterprises.
Chapter 7
Revenue and Financial Incentives
7.1 There will be no differences between the same types of industries established in
the public and private sectors in respect of customs duty and other taxes.
7.2 (a) As of today, the tax holiday facility will be provided till the end of 2005 on the
basis of the locations of industrial enterprises. After that time, this facility will
depend on what the government decides in this regard. However, tax holiday
will not be applicable for extended units of industrial enterprises. At least 40%
of the tax-free income must be reinvested.
(b) As an alternative to tax holiday, industrial enterprises will receive depreciation
at the rate of 100% in the first year. Apart from this, industrial enterprises
receiving tax holiday will be entitled to 80% depreciation in the second year and
20% depreciation in the third year for their extended unit plants and machinery.
(c) If the tax holiday and tax relief facilities cannot be provided for setting up new
industries in the future, then taxation at a reduced rate will be considered.
229
(d) Agro-processing industries and computer software businesses will receive
income tax relief form 1 July 2002 to 30 June 2006.
(e) Credit equity ratio will be fixed at a reasonable rate to inspire investment in
textile industries.
(f) Industries established in EPZ areas will continue to receive income tax relief for
10 years from the date of commercial production.
(g) As and alternative to tax holiday, industries established between 1 July 2002
and 30 June 2005 will receive the taxation facility at a reduced rate of 20%.
(h) Industrial enterprises engaged in the production of readymade garments will
receive the taxation facility at a reduced rate of 10% n their export incomes till
30 June 2006; jute goods industries will receive the taxation facility at a
reduced rate of 15% on their export incomes till 30 June 2006; and textile
industries will receive the taxation facility at a reduced rate of 15% on their export
incomes till 30 June 2006.
(i) Financing institutions will be encouraged to fix their interest rates at the
minimum on their short-and long-term loans for industrialization.
7.3 The present structure of duty concession on machinery imports will continue.
Imported machinery and spare parts will be exempt from payment of VAT subject
to existing conditions. In addition to other incentives schemes, activities of the
Equity and Entrepreneurship Fund (EEF) will be intensified to give priority to
entrepreneurs of under-developed areas and entrepreneurs of the BSCIC industrial
enclaves in receiving loans from this fund.
7.4 The duty structures of imported raw materials, intermediate goods and
manufactured goods will be set at gradually escalating rates.
7.5 In order to eliminate unequal competition between goods produced at home and
goods imported, the prevailing duty structures will be made reasonable, if
necessary. If any items are illegally imported at a dumping price - a price that is
unjustified and below the production costs, then with recommendations room the
Bangladesh Tariff Commission, the anti-dumping law will be applied and counter-
veiling duty imposed.
7.6 In order to eliminate unequal competitions between goods produced at home and
goods imported, the prevailing duty structures will be made reasonable, if
necessary. I any items are illegally imported at a dumping price-a price that is
unjustified and below the production costs, then with recommendations from the
Bangladesh Tariff Commission, the anti-dumping law will be applied and counter-
veiling duty imposed.
7.7 Special incentives will be given to non-resident Bangladeshis in order to encourage
them to make investments in the country. They will be provided with the same
230
facilities that are given to foreign investors in respect of making investments in
Bangladesh. The Securities and Exchange Commission will reserve 10% of the initial
public offers for non-resident Bangladeshis. Besides, they can keep deposits of foreign
exchange in their NFCD (Non-resident Foreign Currency Deposit) accounts.
7.8 Special revenue facilities (as described in Section 4.7) will be provided to industries
marked as "thrust sectors", SMEs and cottage industries.
7.9 Industrial enterprises registered with the Board of Investment nee not pay any
transfer fee and gains tax to purchase land for setting up new industries or to
transform an industry into a limited company provided that no changes can be
made in the ownership structure after that transfer.
7.10 Steps will be taken to create an industry fund in the Bangladesh Bank, strengthen
specialized banks, establish a country fund, expand the capital market, create an
endeavor fund, and rationalize the tax holiday system.
Chapter 8
Massive Establishment of Small, Medium Enterprise (SMEs) and Cottage
Industries in Countrywide Industrialization
8.1 The development and expansion of SMEs is regarded as a very important medium
of achieving industrialization and economic growth in both developed and
developing countries. The role of SMEs in industrial revolution in the industrialized
world was enormous, and the trend has continued to-date. The role of SMEs in
generation investment, saving, profit, employment opportunities, export, regional
industrialization and improvement of people's living standard as well as national
development is very important. To this end, forward linkage, backward linkage,
value addition activities and productivity improvement should be accelerated in
order to establish and expand SMEs in the manufacturing sector. As such the SME
sector has been treated as a priority sector in the Industrial Policy 2005.
Scope of SMEs:
8.2 The structural arrangement of Bangladesh's industries show that jute, textiles,
paper, steel and engineering, cement, chemical, fertilizer and pharmaceutical
industries are under the big and medium scale industries. On the other hand
specialized textile industries (including garment), backward linkage industries,
hand-operated welding, food processing and food linkage industries, leather
ceramics, light engineering including automobiles, basic metal engineering, small
scale chemical engineering, rubber industries, paper printing and publishing
industries, small fabrication industries, non-metal mineral products, batteries,
electrical electronics, handicrafts, agro-based industries multilateral jute goods, silk
industries, fruit processing, poultry farming, fisheries, tea-gardening and processing,
231
vegetable seed farming, floriculture and agro-forestry, and printing industries,
ginning and baling, construction industries, transportation (including automobiles),
cinema and photography, pathological laboratories, cold storage, furniture, computer
industries, fast food, frozen food, etc, under service industries, and many other
sectors are included in the SMEs.
8.3 SMEs will be established on a greater scale across the country in order to bring
about poverty alleviation, unemployment reduction and creating more
employment opportunities so that national economic growth can be attained. To
this end, the government has taken an initiative to draw up a separate SME policy
with a view to provide necessary guidelines and strategic assistance in respect of
establishing SMEs throughout the country. The guidelines and strategy
incorporated in the relevant policies will be pursued in establishing and expanding
SMEs of all kinds through the country.
Chapter 9
Establishment of special Economic Zone based on the Importance of Industries,
Availability of Inputs and Regional Facilities.
9.1 In some of the Asian and Pacific countries, such as Taiwan, China, Singapore and
Malaysia, industrial enterprises have been established in various regions
considering their socioeconomic conditions and importance, and economic and
commercial opportunities on the basis of the availability of various facilities many
other countries across the world are pursuing the concept. The setting up of special
economic zones in Bangladesh considering the socioeconomic background and
facilities available in various regions is equally important.
9.2 Because this concept to a great extent in cost-effective and economically
profitable, special economic zones will be established across Bangladesh on a priority
basis considering the nature and types of industries and comparative costs across
regions.
9.3 A Considerable size of land has remained unproductive because of salinity and
infertility in a number of regions in the country. On the other hand, the labor and
creative working capacity of a great number of efficient people cannot be utilized
because of lack of opportunity. Therefore, initiatives will be taken to establish and
run industries profitably in special economic zones on the basis of facilities available in
various regions so that unused land, human and other resources can be properly used.
9.4 By creating special economic zones. Cluster villages can be established quickly for
running industrial enterprise. Cluster villages can be set up in especial economic
zones for industries such as leather industries, hosiery industries, small chemical
industries (paint, varnish, etc), dyeing, printing and finishing, electronics, electrical
goods, handicrafts, boutique, etc.
232
9.5 As a foremost strategy for maintaining balance in the country's economic
development, initiatives will be taken to set up industrial enterprises on a limited
scale and on a trial basis in economic zones.
Chapter 10
Productivity and Industrial Relations
10.1 Productivity improvement program shall be undertaken as a driving-force by using
continuous and modern technology in all national economic activities including
agriculture sectors, especially in industrial enterprises and institutions with the
objective to build a self-reliant Bangladesh and also for facing the present
challenges of globalization and free market economy.
10.2 The productivity enhancement program will be pursued as a national movement
under government support. The objective is to establish good relations and
understanding between all concerned parties (workers, owners and the
government) in order to speed up productivity in all national economic activities,
especially in the industrial field.
10.3 It has been proposed that month of January will henceforth be observed as the
productivity month with a view to strengthening productivity enhancing activities in
all industrial enterprise and institutions. The aim is to continue a positive
productivity enhancing effort in the industrial sector throughout the year.
10.4 In recognition of success in manufacturing quality goods of international standard
and successful running of an industrial enterprise, a national "Excellence in
productivity and Quality" award will be given every year from now on to an
institution which will achieve the highest productivity records.
10.5 A separate policy entitled "Productivity Policy" will be drawn up which will provide
help to and exert influence on developing productivity in the country.
10.6 To ensure application of productivity enhancement strategies in all industrial
enterprises and institutions, productivity-training programs for human resources
development will be conducted at the enterprise level.
10.7 In its regular broadcasts, Bangladesh Television and Radio Bangladesh will stress
the importance of productivity and announce the positive results, so that people
around the country become more conscious and interested in it.
10.8 A Productivity Data Bank will be established in NPO so that workers, owners, the
government, professionals, researchers, planning specialists and others
concerned can access information for necessary guidance on productivity.
10.9 The interrelationship between wage and productivity will be established as a
strategy to increase productivity in industrial enterprises and institutions.
233
10.10 The total quality management culture will be adopted as a policy to introduce the
joint consultation system between workers and owners in order to continuously
increase productivity in the industrial sector.
10.11 The necessity for developing proper workers-management relations in the
industrial sector will be upheld, and if necessary, some of the sections of the present
labor law will be reformed in line with recommendations of the labour law commission,
as committed to the ILO, so that necessary steps can be taken to improve industrial
relations.
10.12 Collective bargaining will be given priority in fixing wage.
10.13 The Tripartite Consultation Council (the government, owners and the trade union),
National Productivity Council and other national-level organizations will help the
government formulate polices on employment expansion, productivity
enhancement, training, efficiency development, etc.
10.14 Employment of child labour will be stopped in industrial enterprises.
Chapter 11
Participation and Development of Women Entrepreneurs
in Industrialization
11.1 Over the last decade, there have been substantial progress in women's
participation and successes in socioeconomic activities, especially in industrial
activities, in Bangladesh as elsewhere in the world. So, women's participation in
the country's industrialization must be ensured on a wider scale.
11.2 Special emphasis will be given to identify women entrepreneur capable of running
independent and self-sufficient industries and businesses all across the country.
11.3 Necessary steps will be taken to provide women entrepreneurs with pre-investment
advice and assistance in drawing up and implementing projects.
11.4 Various incentives and financial support will be considered for women
entrepreneurs to get established in small and cottage industries.
11.5 Technical, financial and training assistance will be provided for establishing SMEs
considering the social stance and status of women entrepreneurs. Modern
technical training will be arranged for enhancing the efficiency of women
entrepreneurs in cooperation with different institution established under the
Ministry of Industries, such as BSCIC, BITAC, BIM, NPO, and SCITI.
11.6 Women entrepreneurs will be given preference in expanding and achieving growth
in service industries.
11.7 Women entrepreneurs will be encouraged on a greater scale in setting up and
234
running agro-based industries in the country. Similarly, women entrepreneurs will
be given technical and financial assistance in establishing garment (knit and
woven), electronic, ceramic, hosiery, frozen food, cold storage and high value added
industries.
11.8 Women entrepreneurs will be provided with incentives and financial assistance in
establishing cottage industries of decorative items, leather goods, embroidery, imitation
items, block boutique, handicrafts of bamboo and cane, toys and other gift items.
11.9 In order to crate women entrepreneurs of high standard, opportunities will be
generated for advanced training and necessary capital, and successful
implementation of projects will be ensured to set up SMEs and cottage industries.
With this end in view, a number of plots will be reserved for women entrepreneurs
in industrial parks in all divisional towns of the country.
11.10 Necessary initiatives will be taken to help improve the standard of goods produced
by women entrepreneurs, crate new markets, publicize, promote and sell their
products in local and foreign markets.
11.11 The participation of women entrepreneurs in policymaking in the field of industrial
development will be ensured.
11.12 The establishment of a separate bank under public or private initiative will be
considered so that women entrepreneurs can have an easy access to industrial
credit, equity capital, venture capital and working capital. Co-lateral free loans will
be considered for women entrepreneurs after examining their competence.
Chapter 12
Investment Criteria of feasibility study for planned industrialization
Policy Strategy for Investment Criteria
12.1 Because of the scarcity of capital in the country, financing institutions investing in
the industrial sector have the conduct pre-investment study properly. With this end
in view, the investment criteria that are suitable should be examined and then
applied. Special care should be taken in respect of big and medium scale
industries because the require big amount of capital to be invested. While setting
up large and medium scale industries, entrepreneurs and financing institutions should
consider improving the conventional investment tactics, examine and review the
different investment criteria, and then conduct the feasibility study on the basis of the
criterion which is most suitable. If necessary, more than one criterion can be used to
conduct feasibility study. Investment criteria have been explained in brief in Annex 4.
12.2 Creating re-investment opportunities in manufacturing goods in the industrial
sector is an important factor. So, production activities in the industrial sector should
be administered in such a way that re-investment opportunities are created.
235
12.3 The principles of productivity gain sharing are appropriately followed in many
developed and developing countries in order to attain continuous growth in the
production sector. The objective is to distribute profit between workers, owners and
the government on an equal basis. This concept can also be pursued in running
industrial enterprises in our country. To this end, a minimum productivity standard
should be set in each industrial enterprise.
Chapter 13
Export-oriented and export linkage industries
13.1 Export-oriented industrialization is one of the major objectives of the present
industrial policy. Prioritizing export-oriented industries and providing all-out
government assistance in respect of this will be ensured.
13.2 Those industries that export at least 80 percent of their produce or supply 80
percent raw materials for exportable items or those business enterprises that
export at least 80 percent of their services will be considered export-oriented
industries (IT-related goods are also included).
13.3 The following incentives and facilities will be provided in order to attract investment
in 100 percent export-oriented industries:
a) The percent duty-free import policy will continue for the import of capital
machinery and for up to 10 percent of the value of the spares of that capital
machinery. The rates of customs duty in the import sector have been
reorganized into three tiers: 7.5%, 15% and 25%.
b) The duty drawback system has been further simplified, and with this in mind, a
flat rate will be fixed for all exportable items. Exporters will get duty drawback
facility at a flat rate from concerned commercial banks.
c) The system of providing up to 90 percent credit against non-negotiable and
fixed L / Cs / sale agreements will continue.
d) In order to ensure backward linkage, export-oriented readymade garment
industries and other local raw material using export-oriented industries will be
provided with various facilities at a prescribed rate. Similar facilities will also be
provided to local deemed exporters in export-oriented industries.
e) Export-oriented industries will be given the facility of handling foreign exchange
of certain amount which will be beyond the Bangladesh Bank's foreign
exchange regime in order to facilitate the opening of their offices abroad, pro
moting their products and taking part in international trade fairs.
f) The export income earned from cottage industries will be 100% income tax-
free, and the SMEs and other industries will be given income tax rebate at the
rate of 50% of their export income.
g) The facility of importing raw materials necessary for the production of export
goods but enlisted as banned/reserved items will continue.
236
h) Value-added jute, jute-mixed goods and diversified jute goods produced with
new technology will be treated as export-oriented or import-substitute
industries.
i) Consistent with present government policies, facilities will be given for tax-free
import of raw materials (at a prescribed amount) necessary for the production
of exportable goods.
j) If local raw materials are provided to local industries or projects through foreign
currency L/Cs, then those will be treated as indirect export and will be given
facilities, which are applicable for export.
k) The export credit assurance scheme will be further expanded and
strengthened.
13.4 The export-oriented industries identified, as the government's thrust sector will be
given special facilities including "venture capital' facilities.
13.5 The current facilities of duty and tax assessment and rebate on imported goods
(before arrival) will continue. Clearing process and formalities will be further
simplified so that the clearance process takes the least time to be completed.
13.6 In respect of export-oriented and export linkage industries, all sorts of facilities
described in the export policy will be given, apart from the facilities mentioned above.
13.7 Utility services will be provided to 100% export-oriented industries at
reduced/rebated rates.
Chapter 14
Foreign Investment
14.1 Foreign direct investment will be encouraged in all industries in Bangladesh except
those in the reserved lists. Banking, insurance and other financial institutions. This
type of investments can be made in local public and private sector individually or
jointly. The capital market will be open for "portfolio" investment.
14.2 The legal framework for foreign investments has been drawn up on the basis of the
foreign investment (promotion & Protection) Act 1980. The framework is as follows:
a) Equal treatment of both local and foreign investments;
b) Safeguarding foreign investment from state expropriation; and
c) Assurance of repatriating finance and profit deriving from share disposal.
14.3 There will be no restrictions to foreign investment in terms of equity participation,
i.e., 100% foreign equity can be invested. While setting up industries with complete
foreign investment or in joint venture there will be no restrictions to the sale of
shares through public issue irrespective of paid-up capital. However, foreign investors
or institutions can purchase shares through stock exchange, and necessary guidelines
on this will be drawn up. Foreign investors or institutions can avail loan from local
banks to meet their running costs. Conditions for such type of loan will be determined
on the basis of the relations between the bank and the borrower.
237
14.4 Foreign investors can avail of the same facilities as local investors in items of tax
holiday, royalty payment, technical fees, etc. Personal income taxes need not be
paid by foreign technicians appointed in foreign companies for up to three years,
and after that period, they have to pay on the basis of dual taxation revocation
agreement or any other agreement reached with their respective countries.
14.5 In respect of foreign investment, full repatriation facility of invested capital will be
given. Profits and dividends are also repatriable. if foreign investors choose to
reinvest their repatriable dividend or earned profit, then this will be treated as new
investment. Foreign citizens appointed in Bangladesh will be entitled to a remittance of
50% of their wage and full repatriation of their saving and retirement benefits.
14.6 There will be no restrictions to the issuing of work permit for efficient foreign
professionals on the basis of the recommendations of local and foreign investing
companies or joint venture companies. Multiple entry visa will be issued to foreign
investors for three years and to efficient professionals for the whole period of their
appointment.
14.7 In respect of foreign investments in thrust sectors, preference will be given to small
and medium scale investors when allotting plots in BSCIC industrial enclaves.
14.8 Investments by non-resident Bangladeshis will be treated as foreign direct investment.
14.9 Steps will be taken to protect intellectual property in respect of new goods and formulae.
14.10 International norms and systems will be followed in respect of providing
investment assurance and conflict resolution.
14.11 Initiatives will be taken to expand the facilities of EPZ areas to those 100% export-
oriented industries that are established in non-EPZ areas.
Chapter 15
Board of Investment
15.1 In accordance with the Board of Investment Act 1989, the Board of Investment will
provide necessary assistance and facilities to boost private investment in
Bangladesh. The Board, formed under the leadership of the Prime Minister, with
Minister and Secretaries representing relevant ministries, will take necessary
decisions in order to help establish new industries and provide assistance to
already established industries.
15.2 The Board of Investment will provide one-stop service in the following fields so that
investors get infrastructure facilities quickly when setting up industries:
(a) Electric and gas connections:
238
(b) Water and sewerage connections:
(c) Telecommunications facilities;
(d) Customs clearance of imported machineries, spare parts and raw materials;
(e) Clearance from environmental agencies; and
(f) Other necessary facilities and services for speedy setting up and running of
industries.
15.3 With this end in view, all relevant public agencies will be involved with the one stop
service of the Board of Investment.
Chapter 16
Export Processing Zones
16.1 Export Processing Zones have been set up in the country under the Bangladesh
Export Processing Zones Act 1980 in order to help establish export-oriented
industries. All infrastructure facilities including telecommunication and utilities have
been provided in the zones. Under the Bangladesh Private Export Processing
Zones Act 1996, permission has also been given to bring in foreign investments or
joint ventures or for setting up private export processing zones.
16.2 Keeping in mind that agro-based industries can play an important role in the socio-
economic sector of the country, cash incentives may be provided by the
government to entrepreneurs of agro-based industries in EPZs, especially in the
Mongla, Ishwardi and Uttara (Nilphamari) EPZs .
16.3 10 percent of the goods produced in EPZ industrial units can be exported inside the
country subject to payment of applicable duties and taxes (through foreign currency
L/Cs)
16.4 100 percent export-oriented industries outside the EPZs can sell 20 percent of
their products in the local market subject to payment of applicable duties and
taxes.
16.5 The following investments are allowed in the Export processing Zones:
Category (a): 100 percent foreign investment including those of non-resident
Bangladesh: Under this category, foreign investors should bear all costs including
construction, purchase of raw materials and the total working capital only with their
own sources of foreign exchange.
Category (b): Joint ventures of foreign and local investors: Under this type of
investment, project expenses should be borne in accordance with the partnership
agreement but the costs of importing all sorts of machinery should be borne by
foreign partners.
239
Category (c): 100 percent investment of Bangladeshi investors living in
Bangladesh: Under this category, all project expenses including the import of
machinery should be borne from the investor’s own resources, supplier’s credit,
non-exportable foreign exchange, pay-as-you-earn scheme or any other
acceptable system.
Chapter 17
Industrial Technology
17.1 One of the foremost objectives of the Industrial Policy 2005 is to help attain
competitive efficiency by developing. Technology, reduce consumers’ costs by
using cost-effective technology, and assist in the development of an
environmentally friendly industrial production system. Converted efforts will be
made in order for entrepreneurs to boost their profit with the help of improved
management and production technology.
17.2 Assistance will be provided in the use of new technology in order to substitute for
imports or expand exports in prioritized sectors.
17.3 Licensing process will be simplified in respect of imported, adapted or domestic
technology.
17.4 A subsidiary corporate culture will be established in order to create a team of
workers consistent with planned human resources development and changing
technology.
17.5 Approved research and development expenses will receive tax holiday. Fruitful
contacts will be arranged between various research institutions and related
industrial enterprises so that research results can be utilized for the benefit of all
concerned.
Chapter 18
Technical and institutional Assistance
18.1 Assistance will be taken form a number of specialized public and private
institutions to generate and sustain competition in the industrial sector. These
institutions will be strengthened gradually so that they can play an effective role in
the country’s industrialization.
18.2 Development of sub-contracting: The policy of linkage between heavy, medium
small and cottage industries will be pursued in such a way that small and cottage
industries can work as “sub-contractors” of comparatively bigger industries
incentives will be given so that big industries manufacture and assemble basic
goods and small i9ndustries produce accessories.
240
18.3 Efficiency enhancement: Attempts will be made to develop the efficiency of
workers, technicians and employees in the public and private sectors. A public
institution named national productivity Organization is working to this end. Apart from
this, universities and training organizations/institution will be used for this purpose. In-
service training courses will also be arranged for workers to enhance their efficiency.
18.4 Quality control: Manufactured goods must have an acceptable quality in order for
them to sustain demand in domestic and foreign markets. SO all manufacturers of
industrial goods must strictly follow a quality control system. The Bangladesh
Standard and Testing Institution (BSTI) and some other quality control institution
are carrying out their task in this regard. BSTI, corporate organizations and other
quality control institution will jointly develop a system to provide International
Standard Organization ISO certificates (specially the ISO 9000) for Bangladeshi
goods and services. Initiatives will also be taken to establish an accreditation body.
18.5 Advising on investment matters and management training Approving authorities
such as the Board of Investment, BEPZA and BSCIC provide domestic and foreign
investors in the private sector with pre-investment and post –investment guidance
and services. To this end, the advisory and training facilities of the Small and
Cottage Industries Training Institute (SCITI) and the Bangladesh Management
Institute (BIM) will be further developed and expanded.
18.6 Environment pollution control: The Environmental Protection Act 1995 and other
relevant legislation are gradually implemented to control environmental pollution.
Those industries that pollute the environmental and endanger public health must
ensure safety measures in respect of environmental pollution control. Industrial
enterprises will be encouraged to obtain ISO-14000 certificates.
18.7 Capital market development: The Securities and Exchange Commission will draw
up and carry out relevant legislation in order to mobilize market-oriented capital.
18.8 Recognition of industrial development: A new category will be added to the
Independence Day Award to recognize the special contribution of entrepreneurs to
the industrial sector. Successful entrepreneurs of the industrial sector will be
treated as CIPs (Commercially Important Persons) at an increasing number. In
order to provide incentives to non-resident Bangladeshi investors, 5 to 10
important non-resident Bangladeshi will be selected every year.
18.9 An all-out effort will be made to encourage the production of diversified jute goods
and the diverse use of jute. The Jute Diversification Promotion Center (JDPC)
under the Ministry of Jute will provide interested investors with all sorts of
information assistance.
241
Chapter 19
Implementation, Monitoring and Review
19.1 Public agencies will follow thee Industrial Policy 2005. This policy will be
implemented properly and monitored regularly, and necessary changes will be
brought about consistent with the needs of economic development.
19.2 The Industrial Policy has upheld the present environment of industrial development by
following existing laws and other polices. In line with the industrial policy, concerned
public agencies will review their rules and regulation, and amend them, if necessary.
Apart from this, powerful new committees will be formed to implement this policy.
19.3 The special activities that will be undertaken to implement the Industrial Policy are
as follows:
a) In order to remain consistent with the objectives and strategy of the Industrial
Policy 2005, necessary amendments will be brought about the Board of
Investment Act 1989, Foreign Investment (Development and Preservation) Act
1980 and other relevant legislation. If this policy contravenes any prevalent
rules/legislation, the present rules/legislation will remain valid until an
amendment is brought about.
b) A new set of policy entitled “Productivity Policy” will be formulated under the
Industrial Policy 2005.
c) Necessary action will be taken to update the relevant legislation and principles
so that the standards of industrial goods are monitored and improved and
consumer interests are safeguarded.
d) If there are ambiguities or difficulties in respect of application of rules regulations,
ordinances and laws for industrialization, the Ministry of Industries will take
steps to alleviate them in cooperation with various trade bodies and the Law
Commission.
19.4 The Productivity Development Program should be declared and accepted as a
national movement.
19.5 From now on, the month of January will be observed as a ‘productivity month’ every year.
19.6 In order to properly monitor and administer the Industrial Policy 2005, an
Information Management Service (MIS) will be set up in the Ministry of Industries.
19.7 The National Council for Industrial Development (NCID) undertaken various
development programs aiming at establishing countrywide small, medium and
heavy industries at a massive scale. The Prime Minister of the People’s Republic
of Bangladesh is its Chairperson and Minister for Industries is its Vice Chairman.
The Council will also comprise the following:
242
(1) The Ministers for Finance, Commerce, Power and Energy, Agriculture, Textile
and Jute, Environment and Forest, Post and Telecommunication, Science and
ICT, Labour and Employment, Civil Aviation and Tourism, Expatriate Welfare
and Foreign Employment, Women and Children, and Fisheries and Livestock,
and the Deputy Minister for Industries.
(2) Chairman, The Privatization Commission
(3) A Member of Parliament from each of the administrative divisions
(4) Governor, the Bangladesh Bank
(5) Secretaries of the relevant Ministries/Divisions (Finance,
Industries, Commerce, Planning, ERD, Power and Energy, Textiles and Jute,
Post and Telecommunication, Science and ICT, Labor and Employment)
(6) Members of the Industries and Energy Divisions of the Planning Commission
(7) Executive Chairman, the Board of Investment
(8) Chairman, the Tariff Commission
(9) Chairman, the Bangladesh Small and cottage Industries Corporation
(10) Executive Chairman, the Bangladesh Export Processing Zone Authority
(11) Presidents of the FBCCI, DCCI, MCCI, BCI, FICCI, CCCI, NASCIB, BGMEA,
BTMA and BJMA
(12) President, the Bangladesh Employers’ Federation
(13) Chairperson, the Women Entrepreneurs’ Association
(14) Government nominated five distinguished industrialists
The Council will meet once every six months, and the Ministry of Industries will provide
the council with secretarial assistance.
19.8 An Overall Guidelines Committee has been proposed in the Industrial Policy 2005
under the supervision of the Ministry o industry. This objective is to provide
entrepreneurs with information-based advice and overall assistance in the interest
of planned and proper industrialization in the country and also to provide necessary
recommendations and assistance to public and private industries by coordinating
with relevant ministers and agencies so that their problems are minimized. The
committee will comprise as follows:
(1) Minister, Ministry of Industries Convener
(2) Chairman, Privatization Commission Member
(3) Principal Secretary, Prime Minister’s Office Member
(4) Governor, Bangladesh Bank Member
(5) Secretary, Planning Commission Member
(6) Secretary, Finance Division, Ministry of Finance Member
(7) Secretary, Ministry of Industries Member
(8) Secretary, Ministry of Commerce Member
(9) Secretary, Internal Resources Division and Chairman, NBR Member
243
(10) Secretary, Ministry of Agriculture Member
(11) Secretary, Ministry of Fisheries and Livestock Member
(12) Secretary, Ministry Science and ICT Member
(13) Secretary, Ministry of Textiles and Jute Member
(14) Executive Chairman, Board of Investment Member
(15) Executive Chairman, BEPZA Member
(16) President, FBCCI Member
(17) President, NASCIB Member
(18) Chairperson, Women Entrepreneurs’ Association Member
(19) Additional Secretary, Ministry of Industries Member Secretary
The Committee will get together at least once every three months
19.9 The following sub-committee will submit to the Committee a report with specific
recommendations on the profitability and probable risks of industrial enterprises to
be set up and the scope and facilities of items produced in the local export market
so that suitable programs can be undertaken to set up industrial enterprises:
(1) Secretary, Ministry of Industries Member
(2) Secretary, Ministry of Commerce Member
(3) Chairman, National Board of Revenue Member
(4) Member (Industry), Planning Commission Member
(5) Secretary, Ministry of Textiles and Jute Member
(6) Executive Chairman, Board of Investment Member
(7) A Deputy Governor level representative from
Bangladesh Bank Member
(8) A Member level representative from
Privatization Commission Member
(9) Chairman, BSCIC Member
(10) President, FBCCI Member
(11) President, Bangladesh Chamber of Industry Member
(12) President, BGMEA Member
(13) President, BJMA Member
(14) President, BTMA Member
(15) President, NASCIB Member
(16) Chairperson, Women Entrepreneurs’ Association Member
(17) Joint Secretary (Autonomous Bodies),Ministry of Industries Member-Secretary
If necessary, new members can be co-opted in the committee.
244
Chapter 20
Annexes
Annex 1
Thrust Sectors
1. Agro-based and agro-processing industry
2. Textiles industry
3. Jute goods and jute-mixed goods
4. Readymade garment industry
5. Computer software and ICT goods
6. Electronic
7. Light engineering including automobiles
8. Pharmaceutical goods
9. Leather and Leather products
10. Ceramics
11. High fashion value added RMG
12. Artificial flower production
13. Frozen food
14. Integrated shrimp cultivation
15. Flower cultivation
16. Infrastructure
17. Jewellery and diamond cutting and polishing
18. Oil and gas
19. Silkworm and silk industry
20. Stuffed toys
21. Tourism industry
22. Basic chemicals/raw materials used in industries
23. Dye and chemicals used in textiles industry
24. Optical frame
25. Furniture
26. Luggage fashion-based goods
27. Cosmetics and toiletries
28. CR coil
29. Handicrafts
30. Stationery goods
31. Herbal medicines
32. Commercial plantation
33. Horticulture
245
Annex 2
In recent items, the boundaries of the industrial manufacturing sector have been
stretched to cover the transport (?) sector nationally important activities that include
many service sectors. For instance, agro-based and agro-processing industry;
fishing, fish processing and marketing; horticulture, flower cultivation and marketing;
food crops and oilseeds processing; and post-harvest processing of jute have been
brought within the industrial sector. Similarly, tourism industry, hotel management,
telecommunication, computer software and programming under ICT, e-commerce,
digital network and alliance are all considered service industries in the context of
today’s competitive world, Likewise, transport and communication, construction,
housing, furniture, forest industry, and cinema and DVD for entertainment are also
considered industries. Meanwhile, in the industrially developed world, the printing
presses, ginning and baling, construction business, photography, laboratory,
warehouse, cold storage and container services are currently being considered
service industries. Given this background, the list of service industries has been
drawn up as follows in the present Industrial Policy of Bangladesh:
Service industries
1. Hospitals and clinics
2. IT-based activities
3. Agro-based activities such as fishing, fish preservation and marketing
4. Telecommunication
5. Transport and Communication
6. Forestry and furniture
7. Construction industry and housing
8. Construction business
9. Entertainment
10. Photography
11. Hotel and tourism
12. Warehouse and container service
13. Printing and packaging
14. Ginning and baling
15. Laboratory
16. Cold storage
17. Horticulture, flower cultivation and flower marketing
18. Food crop and oilseed processing
19. Knowledge society with high quality merit and efficiency
Annex 3
Reserved industries
1. Arms and ammunition and other military equipment and machineries
2. Nuclear power
3. Security printing and minting
4. Afforestation and Mechanized Extraction with the boundary of reserved fores.
246
Anenx 4
Investment indicators
(1) Average rate of return method: The average production rate system is an important
indicator in project investment. In this system, production activities can be undertaken
after review and evaluation of average project production and average project costs.
Entrepreneurs can properly follow this indicator while investing their capitals.
(2) Payback method of investment: This method means an opportunity of obtaining
payback through an efficient use of the primarily invested money for a certain
period of time. By using this method, investors can ensure the return of their
primarily invested money on a short-term basis. Entrepreneurs can pursue this
indicator while investing thei1r money in the country.
(3) Discount payback method: This method means a return or profit by deducting the
present value of invested amount from that of the value of the amount to be
obtained in the future. By using this method investors can have an opportunity to
use their money in an efficient and profitable way. Entrepreneurs should consider
this investment indicator with importance while investing their capital in setting up
industrial enterprises.
(4) Internal rate of return method: The cost-benefit ratio is an important tactic in the
fruitful and effective evaluation and review of the establishment of industrial
enterprise and their efficient running and in determining how much the investment
flow is going favorable. the internal rate of return method is an investment method
which helps to obtain a forecast of the degree to which the invested amount is
being used in an efficient and profitable way by examination the cost-benefit ratio.
However, the even and uneven cash flow must be taken into account under the
internal rate of return method. This method is considered the most acceptable
method of all investment indicators.
5) Present value method: Each entrepreneur should carefully consider the profitability
index of his invested money while considering or implementing the present value
method because the higher the profitability index, the greater the return.
247
BO
BOI I Publication
Publications
Some important BOI publications are
Handbook and Guide

1. Bangladesh Investment Handbook, 3rd Edition, May 2007 (English)
2. Bangladesh Investment Handbook, 2nd Edition, May 2004 (English)
3. Bangladesh Investment Handbook, November 2002 (English)
4. Investing in Bangladesh: A Guide to Opportunities, October 1999 (English)
Newsletter
1. Bangladesh Investment Review (Quarterly Newsletter of Board of Investment), Various Issues, 2003
and 2004 (English)
Investment Statistics
1. FDI in Bangladesh during 2004
2. FDI Inflow Survey 2: FDI in Bangladesh - January-June 2003, November 2003 (English)
3. Foreign Direct Investment in Bangladesh during 2002, March 2003, (English)
4. GCC Countries & Bangladesh: Investment and Trade Cooperation, May 2002, (English)
Miscellaneous
1. Utility Services and Environmental Clearance, January 2001, (English)
All the above publications are available online at www.boi.gov.bd /documents.html
Some Relevant Publication by UN and EC

1. An Investment Guide to Bangladesh - Opportunities and Conditions, August 2000 (English). Published
by United Nations. Available for downloading at www.unctad.org/en/pub/investguide.en.htm
2. Guidebook for European Investors in Bangladesh, August 2001 (English). Published by European
Commission, Asia Investment Facility. www.asia-invest.com
3. Guidebook for European Investors in Bangladesh, Sector Profiles, November 2001 (English).
Published by European Commission, Asia Investment Facility. www.asia-invest.com
248

Bangladesh Investment Hand Book 2007

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bangladesh Investment Hand Book 2007

Uploaded by

Copyright:

Available Formats

Ba ngla des h Inves tment

Printing & Design in Dhaka, Bangladesh by Dot Net Limited www.dotnet-bd.com

For detailed and further information:

Online version of this Handbook is available at www.boi.gov.bd/publications.htm

Executive Chairman’s Message

Md. Nazrul Islam, ndc

8. Important Contacts and Information Sources 146-176

III. Bangladesh Industrial Policy 2005 219

1 BOSNIA AND HERZEGO VINA

Frenc h BOLIVIA St. Helena (U .K.)

Falkland Islands (U .K.)

Map No. 4170 Rev. 4 UNITED NATIONS

Source : www.un.org (color scheme partially modified)

The boundaries and names shown and the designations used

*Dotted line represents approximately the Line of Control

**Appears without prejudice to the question of sovereignty.

C T I C A Department of Peacekeeping Operations

The boundaries and names shown and the designations used

0 200 400 600 km I N D I A N O C E A N

Source : www.un.org (color scheme partially modified)

890 900 910 920

JHENAIDAH FARIDPUR MUNSHIGANJ COMILLA

900 910 920

Source : www.un.org (color scheme partially modified)

THIS CHAPTER INCLUDES

Sectoral Distribution of Labor Force:

… poverty in the world

Telephone interview with Professor

d. History & Government

History : Recorded history traceable to the 4th century B.C.

Exchange Rate (Average) : US Dollar = Tk. 66.68

International Airports : Zia International Airport, Dhaka,

Government adopted a long term

Ensuring good governance and promoting socio-economic development are

Macro Economic Highlights

In Milion US$ 7603 10566

The Government continues to support the agricultural sector through a number of

Since 1991, Government has been pursuing a market-oriented industrial strategy. In

● Set up export processing zones for local and foreign investors;

● Incentives and different facilities for export oriented products;

● Industries based on indigenous resources or raw material;

● Quality enhancement, marketing and capacity building of existing industries; and

● Labor intensive, technology-oriented capital-intensive industries.

Banking and financial sector in Bangladesh is under intensive monitoring of the

Transport and Communication is a precondition of development. Realizing this fact,

2001 2002 2003 2004 2005 2006*

A sector-wise analysis of FDI inflow in 2005 demonstrates that FDI in Bangladesh

Western Europe 134.40 111.50 245.90 29.09% -

North America 58.10 84.40 142.50 16.86% -

Other Developed Economies 33.80 12.70 46.50 5.50% -

Developing Economies 225.60 139.80 365.40 43.23% -

Others 29.90 15.10 45.00 5.32% -

ADB 6.10 6.60 12.70 1.50% 15

Total 481.80 363.50 845.30 100.00% -

Local Investment Foreign/ JV Total Growth

1991-92 233 365 25 294 258 660 -

Crore Taka 18,370

Source: IIMC, BOI. * Provisional

Food & Allied

Source: IIMC, BOI. * Provisional

Source: Bangladesh Bank, Monthly Statistics Reports, 2006. * Provisional (Jul-Feb).

e. Growth in Manufacturing Sector

1992-96 1997-2001 2002 2003 2004 2005 2006*

Source: Bangladesh Economic Review 2006. * provisional.