INDUSTRIAL SECTOR OF BANGLADESH: STATUS QUO OR RE-VISIONING?
Bangladesh Economic Update, February 2013
The present issue of the Bangladesh Economic Update focuses on current situation of industrial sector in Bangladesh. The industrial sector calls for attention for a number of major challenges in recent time the sector faces, besides long-running neglect of addressing the structural bottlenecks in the backdrop of policy makers’ apathy of having strong and active industrial policy and the paradigmatic swing in favour of trade liberalization and export orientation.
First, the rate of growth in industrial sector is increasing at a decreasing rate. The major causes attributed are reduction in investment demand owing to inadequacies of supply of utilities and infrastructural tailbacks, increased cost and reduced supply of investible capital due to contractionary monetary policies and rise in government borrowings, and short-supply of matching level of public investment in infrastructure as regards the size of the economy.