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Bangladesh Economy: News & Updates

It's now almost 43 years since independence. How come that ideology hasn't already materialised?

BD GDP/capita this year is nearly 1200 dollars.

Pakistan is at 1300 dollars this year.

BD GDP/capita is growing more than twice as fast as Pakistan - around 5% a year in BD and 2% in Pakistan and so in a few years BD will have higher living standards than Pakistan. India will take a bit longer but multi-ethnic states are no match for unitary states in economic development.
 
BD GDP/capita this year is nearly 1200 dollars.

Pakistan is at 1300 dollars this year.

BD GDP/capita is growing more than twice as fast as Pakistan - around 5% a year in BD and 2% in Pakistan and so in a few years BD will have higher living standards than Pakistan. India will take a bit longer but multi-ethnic states are no match for unitary states in economic development.

I shall repeat my earlier question:

"... It's now almost 43 years since independence. How come that ideology hasn't already materialised? ..."
 
World Bank forecasts 5.4% GDP growth rate | Priyo News

Even with Bangladesh economy suffering a loss of $1.4 billion due to the poll-related political turmoil it is still ahead of most countries in South Asia except Sri Lanka. The WB has projected India’s GDP growth at 4.8 percent, 3.8 percent for Nepal, 3.4 percent for Pakistan, and 7.4 percent for Sri Lanka.
Are you trying to score points here foolish boy?
Because we hope that Bangladesh crosses 7% GDP growth rate!
 
I shall repeat my earlier question:

"... It's now almost 43 years since independence. How come that ideology hasn't already materialised? ..."

Dude, what is your problem?

The passing will happen within a few years.

BD is at 1200 with Pakistan at 1300 dollars now. BD GDP/capita growth is at 5% a year and Pakistan at 2% a year.

BD suffered from very low growth in the 1970s and 1980s mainly due to the legacy of the Pakistan period. It needed a couple of decades in order to build up industry that allowed it to earn capital that is needed to propel the economy forward.

Are you trying to score points here foolish boy?
Because we hope that Bangladesh crosses 7% GDP growth rate!

Actually BD economy will grow slightly above 6% this financial according to the government.

Organisations like World Bank always underestimate the growth rate of BD.
 
Dude, what is your problem?

The passing will happen within a few years.

BD is at 1200 with Pakistan at 1300 dollars now. BD GDP/capita growth is at 5% a year and Pakistan at 2% a year. ...

My brother Bangladeshi in UK, look at this table. What do you see?

Pakistan-BangladeshGDP1972-2013-1.png


Source of the above data can be found here: List of countries by past and future GDP (nominal) - Wikipedia, the free encyclopedia

... BD suffered from very low growth in the 1970s and 1980s mainly due to the legacy of the Pakistan period. It needed a couple of decades in order to build up industry that allowed it to earn capital that is needed to propel the economy forward. ...

Which legacy are we talking about here exactly? Is that the legacy where Pakistan lost more than half of it's population after 1971, which meant losing more than half of it's workforce, lost 1/6 of it's territory, faced war and annexation from Afghanistan, nuclear threat from India, crippling sanctions from the United States, invasion from the Soviet Union, occupation of territory by India, more sanctions from the United States and finally facing NATO in Afghanistan.

Just look at the above table and look at the GDP for 1971 and 1972 for both countries. In the last 43 years, Bangladesh's GDP has only contracted for two years (1981 and 1982) while Pakistan's GDP has contracted at least six times (1997, 1998, 1999, 2001, 2002 and 2009).

Despite the sudden and huge population rise in Pakistan, Bangladesh has been unable to surpass us. What's your excuse?
 
@SUPARCO :

Pakistan population is approaching 200 million with BD at around 150 million.

You need to look at GDP/capita and not overall GDP now since there is no real equivalence in population.

BD is now 100 dollars behind Pakistan now and is sure to surpass in next few years.
Remember Pakistan was appreciably wealthier than BD in 1971.
 
@SUPARCO :

Pakistan population is approaching 200 million with BD at around 150 million.

You need to look at GDP/capita and not overall GDP now since there is no real equivalence in population.

BD is now 100 dollars behind Pakistan now and is sure to surpass in next few years.
Remember Pakistan was appreciably wealthier than BD in 1971.

table1.jpg


Source

Black economy more than half of formal: FBR study - thenews.com.pk
The Secret Strength of Pakistan's Economy - Businessweek

Considering the above reports which are in regards to the 2008-2009 financial year, if we apply the 36% unregistered economy to last year's Pakistani GDP ($238 billion) then our GDP for the financial year 2012-2013 stands at $320 billion. Divided that by the 184 million Pakistani population and you get the per capita rate of $1,759.
 
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@SUPARCO : Every country has a black economy.

Anyway, if only for balance of power reasons in South Asia, BD wants a strong Pakistan.

I happen to think that BD will surpass Pakistan this decade but Pakistan has a good chance of resurpassing BD next decade but it needs a sustained long-term focus on using its agricultural and other natural resources for economic growth.

Next decade, with rivalling China on economic might, Pakistan will have a wealthy ally to help it if it can make proper use of them.
 
MAFTA

Multilateral Agreement for a Free Trade Alliance


I propose formation of an economic block MAFTA composed of Pakistan, China, Afghanistan, Russia, Iran, Turkey, Bangla Desh, Sudan, Saudi Arabia, UAE, CARs, Brazil, Indonesia, Malaysia, Venezuella, Japan, Cuba, Bolivia, Ireland, Brunei Dar as Salam and Palestinian Authority for free trade without or reduced customs duties.

A MAFTA secretariat should be formed in Istanbul or Kuala Lumpur to coordinate all the activites.

Pakistan and Afghanistan in particular can benefit from adaptation of the advanced technologies from brotherly countries. An example is the recent Metro Bus project in various cities of Punjab with the help of Turkey.

Malaysia and Indonesia are rich in Palm oil and can meet the needs of member countries. Malaysia is also ahead in technology.

Pakistan is a big exporter of Textile and Leather goods.

Brazil is an important member of BRICS group and the biggest exporter in south America.

Saudi Arabia, Iran and Venezuela are major exporters of crude oil. Russia is also a big exporter of gas and can supply Pakistan through its purchased gas from Turkmenistan.

Japan is the technological giant of the East and is already helping Pakistan in various projects.

Cuba is known for its independent policy and is the leading voice of the leftist world and will help us in gaining more space and allies diplomatically. The Cuban doctors performed selflessly during the 2005 earthquake in Pakistan.

Republic of Ireland is known for its independent foreign policy on the European mainland as opposed to Britain which is always toeing the American line.

Iran has patched up its differences with America and is emerging on world stage as a mature power.

Turkey is leading the Muslim world in moderate thought, technology, foreign investment and outreach.
 
It recommended ensuring an institutional structure to sustain existing policy ahead of the general election expected to be held by the end of this year.
 
Garment orders on the rebound | Bangladesh records 18th year-on-year increase in last 19 months

Work orders from international buyers are picking up with the return of political stability in Bangladesh after the January 5 national elections, exporters said yesterday.
Garment makers aim to achieve the export growth target at the end of the year, given there are no further political upheavals.
Bangladesh, the second largest garment exporter after China, shipped knitwear items worth $7 billion and $7.18 billion of woven items, registering year-on-year growth of 18.13 percent and 17.32 percent in July-January, according to data from the Export Promotion Bureau.
The country shipped more than $2.24 billion of clothing overseas in January, 7.09 percent more than a year earlier. This advance marks the eighteenth year-on-year increase in the last nineteen months, buoyed by gains in exports of both woven and knitwear, data shows.
“There is no shortage of work orders in my factory. I will be able to achieve the targeted 10-15 percent export growth in 2014, compared with the previous year,” said David Hasanat, managing director of Viyellatex Group, a leading garment exporter.
“I could have executed more orders if I had more capacity in my factory. However, we have price pressure from the international retailers, even though our cost of production increased manifold last year.”
“We have proved ourselves to be resilient as we could ship goods on time, even amid political turmoil. This is part of the reason why retailers are placing more orders with us,” Hasanat said.
With Bangladesh tentatively on track to ship an unprecedented amount of clothing abroad in 2014, the country also may import record amounts of both textiles and cotton in response. Given that the country grows little cotton of its own, the local textile and apparel sector is almost entirely dependent on imports of the fibre to spin.
Cotton consumption in Bangladesh may rise 8.75 percent to 870,000 tonnes in fiscal 2014-15 with higher demand for garments, according to a report by Economist Intelligence Unit.
“In 2013, we achieved 18 percent export growth and I am expecting 34 percent this year, as our new units have already gone into production,” said MA Jabbar, managing director of DBL Group that makes clothes for H&M and Wal-Mart.
“Even during the political crisis, I had no problems with getting work orders, but I faced difficulties in shipping the goods as transportation came to a halt during that time.”

“The situation is definitely better now. I have booked plenty of orders for the next season,” said Momin Mondol, managing director of Mondol Group that exported $225 million of garments last year. Mondol expects his company's exports would grow at least 10 percent year-on-year.
“Facing higher demand from retailers, I am expanding my production capacity.”
“Our exports will be hampered due to inspection by the Accord and Alliance as many factories will have to stop work during inspections,” said Abdus Salam Murshedy, managing director of Envoy Group.
Bangladesh will face challenges in the European market as the trade bloc has awarded trade preferences to Pakistan too for the same products, Murshedy said.
Currently, Bangladesh enjoys zero-duty benefits from the EU under the generalised system of preferences scheme. Pakistan won the GSP status from the EU for 75 of its items, effective since January.
Retailers are not interested in increasing prices although the cost of production has increased due to a 77 percent wage hike, Murshedy added. Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association, said: “We want fair prices from the retailers as our costs of production have increased.”

ConocoPhillips expects 5-7 Tcf gas in 2 offshore blocks | 24 News | Financial Express :: Financial Newspaper of Bangladesh

US oil major ConocoPhillips expects a potential reserve of 5-7 trillion cubic feet (Tcf) natural gas at the two deep sea blocks-DS -08-10 and DS-08-11-where it conducted 2D seismic survey under production sharing contract (PSC) with theBangladesh government. “Conoco officials have informed me they are expecting 5-7 Tcf gas in the two deep sea blocks,” State Minister for Power Nasrul Hamid toldreporters on Wednesday at his ministry. A ConocoPhillips delegation recently met the State Minister and placed its request to the government on the price review issue, according to a news agency.
 
GDP growth to hover around 6.5pc
GDP growth to hover around 6.5pc | BB says in new monetary policy

Bangladesh Bank has forecast the country's economic growth will remain between 6.2 percent and 6.5 percent in the current fiscal year, though the government has set the growth target at 7.3 percent.
The central bank in its half-yearly monetary policy also aims to bring the inflation rate down to 6.5 percent, which the government says would be 6 percent.
The BB plans to keep the ceiling for private sector credit growth at 14

percent by December this year, against 15 percent in the same month last year.
The monetary policy is investment-friendly and a cautious stance was taken focusing on inflation, BB Governor Atiur Rahman said at a press conference yesterday.
Zahid Hussain, lead economist at the World Bank's Dhaka office, praised the BB stance, saying it has set monetary growth targets in line with realistic growth and inflation targets.
 

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