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Last updated: 22nd May 2016

Government and Policies


Bangladesh is a moderate, democratic and homogeneous country. It is a constitutional republic with a multi party parliamentary democracy. Elections are held on the basis of universal suffrage.


Government has initiated various supportive policy initiatives to promote socioeconomic development. The key features of the Government industrial policy are indicated here:

  • To expand the production base of the economy by accelerating the level of industrial investment.
  • To promote the private sector to lead the growth of industrial production and investment.
  • To focus the role of the government as the facilitator in creating an enabling environment for expanding private investment and sustained economic growth.
  • To permit public undertaking only in those industrial activities where public sector involvement is essential to facilitate the growth of the private sector and / or where there are over riding social concerns to be accommodated and private initiatives absent.
  • To attract foreign direct investment in both export and domestic market oriented industries to make up for the deficient domestic investment resources, and to acquire evolving technology and gain access to export markets.
  • To ensure rapid growth of industrial employment by encouraging investment in labor intensive manufacturing industries including investment in efficient small and cottage industries.
  • To generate female employment in higher skill categories through special emphasis on skill development.
  • To raise industrial productivity and to move progressively to higher value added products through skill and technology upgrading.
  • To enhance operational efficiency in all remaining public manufacturing enterprises through appropriate management restructuring and pursuit of market oriented policies. To diversify and rapidly increase export of manufactures.
  • To ensure a process of industrialization which is environmentally sound and consistent with the resource endowment of the economy.
  • To encourage balanced industrial development throughout the country by introducing suitable measures and incentives.
  • To effectively utilize the existing production capacity.
  • To coordinate all macroeconomic policies.
  • To develop indigenous technology and to expand production based on domestic raw materials and inputs.
  • To rehabilitate and support deserving sick industries.

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