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Friday, August 26, 2011

Democracy in Bangladesh - the Role of ISI & their Military Regimes in Pakistan

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Alleged ISI-Spies: Photo collected from http://www.guardian.co.uk

As ISI, the military Intelligence of Pakistan, is serving their vital role in the region to unstable the politico-military situation for many reasons like below:


1)  Their main intention to concentrate the power of Pakistan in the hand of Pakistan army.



2)  They want to capitalize and use the sentiments of general people of Pakistan in favor of them (the Pakistan Army) to get legitimacy of their illegally seized power.



3)  They want to grab all money resources in favor of them by using fundamentalists to create anti-Indian attitude in Pakistan.



Since 1947 Indo-Pak relations had been stood on tense, misconducts and lack of faith. After the occupation of Kashmir (Azad Kashmir) by Pakistan army in October 1947, Raja Hari Singh sought Indian assistance and fled to India and signed the instrument of Accession, ceding Kashmir to India on October 26, 1947. Thus India-Pakistan fought their first battle after their birth from British rule over Kashmir (The Telegraph24 September 2001).



This scenario created another power center in Pakistan politics and that was the army of Pakistan. From then they started to dream to capture the power and after short time, the world observed the same. The army captured the power and mobilized the people’s sentiments to them. The army became the symbol of "hope" of the general people of Pakistan to capture the whole Kashmir. So, their game had been started to keep the power permanently in their hand. The ISI (the secret agency of Pakistan army) started their main operation to establish their plan accordingly by misguiding the peoples’ sentiment.



All military rulers of Pakistan, from Ayub Khan to Parvez Mosharraf, adopted the same policies during their ruling periods. But all military regimes of Pakistan had been supported by the USA governments directly. The world was divided then as the bi-polar systems. The main target of the USA was to resist communism and Soviet Supremacy in the region.



When Soviet Union invaded Afghanistan (from December 24, 1979 to February 15, 1989), the US government directly backed the Military regime of General Ziaul Haque to promote the anti-Soviet warfare in Afghanistan. For this reason, they (USA) provided financial supports, arms-ammunitions and training to the Afghan Mujahids (Islamic Soldiers) and Taliban jointly with Pakistan to make them capable to fight against the Soviets. In that time, Osma Bin Laden, a close ally of the then US Government, formed the 'AL-KAYEDA' with the direct cooperation of Pakistan's military government and the US government too. That efforts created another “Frankenstein” in the world to turmoil the democratic situations in the Muslim countries and India. Later on, those "Islamic soldiers" became the threat to the Western Countries too and shortly after the event of 9/11 of 2001 in the USA, the US Government enlisted those "Islamic Soldiers" as the "Islamic Terrorists" and declared them as the enemy of the humanity!



All Governments of Pakistan use those “Frankenstein” to achieve their targets in the region. They are using them in Afghanistan, in Kashmir, in India, even in Bangladesh too. The Harkat-ul Jihad Al-Islam (Huji), JMJB, JMB, Hijbut Tahrir - all are the products of ISI in Bangladesh with the close cooperation of BNP and Jamat-e-Islam of Bangladesh. The later one is the party of war criminals (Razakar / Al-Bador / Al-Shams) and their leaders actively participated in the massacre of 1971 along with the brutal Pakistan army.



To confirm the money-flow into Pakistan, the ISI controls the maximum part of the flow of money from Arab-states to their sponsored Islamic terrorist groups, like Harkatul Jihad, Lashkar-e-Toiyoba, Laskar-e-Zuncvi, Pakistan Taliban, even the Al-Kayeda too. ISI and their military regimes in Pakistan are arranging training, weapons, shelters, and all other logistic supports to those terrorist groups and they are controlling those terrorists over years after years in this way. Thus the terrorist activities of the "Islamic Terrorists" had been spread epidemically in the region. The Soviet invasion in Afghanistan ignited in this process, ISI and CIA jointly mobilized those terror groups in the name to protect Islam from the communists.

Now the current scenario is totally different. The USA is the invader to Afghanistan and Pakistan is their main ally in the war against the terrorism. But the hidden agenda of Pakistan military and ISI is totally different from their exposed one. Instead, they try to spread and keep continuing the terrorist war in Afghanistan and keep engaged the USA and NATO forces there to ensure the financial and instrumental supports from USA and NATO for long time. They sheltered Osama Bin Laden, the Al-Kayeda head, in their cantonment area years after years. They are secretly providing all out supports to Taliban to confine the USA and their NATO allies in Afghanistan. Recently the topmost military commander of USA, Chairman of the Joint Chiefs of Staff, Admiral Mike Mullen bluntly complained that the "virulent" Haqqani Network is a "veritable arms" of Pakistan's military-run ISI.


Admiral Mullen also told the popular National Public Radio (NPR) that, "The ISI specifically has enough support for the Haqqanis in terms of financial support, logistic support and actually, sort of free passage in the safe haven and those links are part of what enable the Haqqanis to carry out their mission" (The Times of India, 29 September 2011).



To fulfill the conditions of army rule, General Parvez Musharaf secretly started the war (3rd war over Kashmir with India) in Kargil sector in May 1999 without any prior information to Pakistan Government and ousted the then Pakistan's Prime Minister Nawaz Sharif and captured the power in October 1999 (Wikipedia, Pervez_Musharraf).



For the same reason, they are trying to establish an anarchic situation in the whole region and to make India unrest with their many terrorist activities in Kashmir, in entire north eastern provinces of India (Assam, Tripura, Mizoram, Nagaland, Manipur, Arunachal Pradesh) and Bangladesh is also in their same game plan. They've engaged the Islamic terrorist groups to make unrest in that region and they are providing arms, ammunition, training and all other logistic supports to other insurgents groups of various Indian states, like ULFA (United Liberation Force of Assam). The rise of Islamic terrorist groups in Bangladesh is also being closely monitored and guided by the ISI of Pakistan. Some terrorists of Lashkar-e-Toiyoba have been caught in Bangladesh and they leak out their connection with ISI.

Lutfuzzaman Babor
One of the accused, in the inspection of 10-Trucks Arms Case

10-Trucks Arms: After seized

The ISI has tried to use Bangladesh since long ago against India by provoking insurgents in its North-Eastern provinces. The earlier government of Bangladesh (4 party alliance govt.) was their true ally and they jointly provided all out supports to ULFA (United Liberation Front of Assam). The 10-truck ammunition case of 2004 is an example in this sector. According to the topmost leaders of ULFA, ISI arranged arms and ammunition for them several times through Bangladesh.


Not only that the then Bangladesh Government of Khaleda Zia gave the ULFA places to setup their shelters and training camp in Bangladesh and ISI supplied all logistics supports to ULFA.


Maulana Abu Taher & Mufti Abdul Hanna: Top leaders of HUJI and accused of many terrorist attacks including grenade attack of 21 August, 2004
Mujahid (Jamat) & Tareq Zia (BNP): Both are the accused as plotters of the grenade attack of 21 August, 2004


In Bangladesh, ISI is promoting Islamic terrorist groups with close collaboration of Jamat-e-Islam and BNP. They made them stronger and stronger to achieve their target, to take revenge of the defeat of 1971 and to make Bangladesh unsuccessful in their journey from 1971. Bangladesh Nationalist Party (BNP) and Jamat-e-Islam of Bangladesh are the true allies of ISI in Bangladesh and ISI successfully used them here in Bangladesh to create anarchic situation.

It was widely spoken that pro-Pakistani wing of Bangladesh Army slaughtered Sheikh Mujibur Rahman and his family members on 15 August, 1975 with the close cooperation of ISI and CIA. Even they have given shelters some of those accused killers of 1975 in Pakistan.

On 21 August 2004,  a worst grenade attack had been carried out by the Islamic Terrorists Group (HUJI) with all out supports of the 4-Party Alliance Govt. of BNP-Jamat to kill Shiekh Hasina and all of her top leaders of Awami League (AL) in a single instance. After long investigation, it had been revealed the ISI connection with that attack, by using their terrorist groups: Harkatul-Jihad, Jamat-e-Islam, BNP - in Bangladesh side and ISI-sponsored Lashkar-e-Toiyoba in Pakistan side. One of the main plotters and supplier of grenades in that attack, Maulana Tajuddin had fled to Pakistan after the attack with the supports of BNP-led Alliance Government and DGFI of Bangladesh Army.


"Fugitive Maulana Tajuddin is a leader of Pakistan-based militant organisation 'Lashkar-e-Taiba (LeT)' and also brother of BNP's former deputy minister Abdus Salam Pintu, who is also detained in connection with the grenade attack case (The Daily Star, August 27, 2010).

It is also widely spoken that, ISI played a key-role in the election of 2001 to defeat AL by using their all instruments, money and propaganda and by using their hidden ally in the army and administration. After that election, BNP-led 4-Party Alliance formed the Government and started their ethnic cleansing and massacre on the supporters of AL country-wide just like the mass killing and massacre of 1971 and this is the spirit and mentality of the pro-Pakistani clique in Bangladesh!

Even the ISI has played a key role in the recent coup attempt of December 2011 - January 2012 in Bangladesh, they have tried to use Hizbut Tahreer and dissident Army persons against the ruling Government of Bangladesh, but failed. ISI jointly took the plan to overthrow the Government of Grand Alliance along with Hizbut Tahreer, Jamat-e-Islam and some killers of 15 August 1975 (26 January 2012, the Daily Janakantha). By this they are trying to stop the judgement of the war-criminals of Jamat-e-Islam and to save the rest killers of Bangabandhu Sheikh Mujibur Rahman.

So, it would not be immaturity to conclude that the ISI of Pakistan is so dangerous to the stability and democratic process in Bangladesh and totally harmful to the development process of Bangladesh.

Updated on 26 January 2012
All other pictures have been taken from the internet version of the Daily Star.



Monday, August 22, 2011

Bengali Literature and Culture of Bangladesh



A Rich Literary Heritage

Bangladesh, with the Indian state of West-Bengal, makes up the ethno-linguistic region of Bengal. The name 'Bangladesh' means 'the Country of Bengal' in the official Bengali language.

Bengali literature and culture reached at its highest pick during the nineteenth century. In that period, we got many famous poets, story-writers, critics, dramatists and novelists who made the Bengali language and literature too much rich and upheld the strong position in the world literature and culture. Rabindranath Tagor, Michael Modhusudan Datta, Bangkim Chandra Chattapadhya, Kazi Nazrul Islam, Sharat Chandra Chattapadhya, Bibhutibhushan Bandapaddya, Manik Bandapadhya were amongst the prominent and most powerful writers.

Bankim Chandra Chattapadhya
Bibhutibhushan Bandapadhya
Manik Bandapadhya
But its seeds had been sowed long before that century. Reflecting the long history of the region, Bangladesh has a literature and culture that encompasses elements both old and new, which Bangladesh shares with the Indian state of West Bengal. “Charyapada” was the earliest literary text in Bengali which was written in the 8th century.

The medieval Bengali literature was often either religious (e.g. Chandidas or Baru Chandidas), or adapted from other languages (e.g. Alaol). In Mughol’s era, many Muslim writers and poets (as well as many Hindu writers and poets too) emerged in Bengali literature. They enriched Bengali literature to a great extent.

Rabindranath Tagor
Kazi Narul Islam
Michael Modhusudan Datta

Rabindranath Tagor won the Nobel Prize on literature and introduced the Bengali literature to the world. He was a genius and he enriched all sectors of literature in Bengali (like: poetries, novels, small stories, lyrics and songs, articles, critics, etc.). After long time, he is still popular with his songs and all other writings among the Bengalis.

Another iconic figure in this sector is Kazi Nazrul Islam. He is mainly prominent and popular for his lyrics and songs. He was also known as the rebel poet of the Bengal due to his enormous contributions to the independence struggle against the then British rule in India.

Bangladesh also has a long tradition in folk literature, for example Maimansingha Gitika (collected folk literature of Bangladesh, collected and edited by Dr. Dinesh Chandra Sen), Thakurmar Jhuli (fairy tales) and stories related to Gopal Bhar. The most prominent writer and collector of fairy tales of Bengali literature is Dakshina Ranjan Mitra Mujumdar.

Sukumar Roy
Leela Mazumdar
Upendrakishor Roy Chowdhury

Bengali literature is also highly enriched with children’s and youth’s classics and rhymes with Sukumar Roy, Upapendra Kishor Roy Chowdhury, Leela Mazumdar, Abonindranath Thakur, etc. and their strong and enriched writings ensure the position of Bengali literature as world class.

Troilokkonath Mokhopadhya, Shaktipado Rajguru (Porshuram), Shibram Chakravarti are the famous for their humorous writings in Bengali.

Syed Waliullah (a powerful novelist), Zibanando Das (poet), Syed Mujtoba Ali (novelist & story-writer), Poet Shamsur Rahman were the legends for their writings.


 Dr. Muntasir Mamun


The most powerful writers of the current time of Bengali literature are (in Bangladesh part): Dr. Muntasir Mamun (critics, historian, article writer), Humayon Ahmed, Syed Shamsul Haque, Zafar Iqbal, Imdadul Haque Milon, Shahriar Kabir, Akhtaruzzaman Ilias, Selina Hossain, Manju Sarkar, Rahat Khan, Borhanuddin Khan Jahangir, etc. and (in West Bengal part): Sunil Gangopadhya, Samaresh Majumdar, Shirshendu Mukhopadhya, Sanjeev Chatyapadhya, Syed Mustafa Siraj, Budhadeb Bashu, Satyajit Ray, Leela Majumdar, etc.

The musical tradition of Bangladesh is lyrics-based (Baniprodhan), with minimal instrumental accompaniment. Tagor’s songs, Nazrul Gitee (songs), various folk songs (vatialy, vouaya, maromi, etc.) are the examples of Bengali music.

The Baul tradition is a unique heritage of Bengali folk music, like, Lalon's Songs (Lalon Geeti) and there are numerous other musical traditions in Bangladesh, varying from one region to region. Gombhira, Bhatiali, Bhawaiya are a few of the better-known musical forms. Another form of songs also have been prevailed in Bengali culture, Maromee (mystical songs or in a sense, those are the songs of prayers of praises of God), e.g. Hasson Rajar Gan (the songs of Hasson Raja).

Lalon Fakir
Baul (folk singer): a singer of Lalon's songs
Folk music of Bengal is often accompanied by the ektara, an instrument with only one string. Other instruments include the dotara, dhol, flute, and tabla. Bangladesh also has an active heritage in North Indian classical music.

Bangladeshi dance forms draw from folk traditions, especially those of the tribal groups, as well as the broader Indian dance tradition.

In nineteenth century, Bengali drama emerged as a strong force in Bengali literature too. Girish Chandra Ghosh was amongst the most prominent playwright, actor, director and producer of Bengali theatre. He was initiated into the theatrical world as a composer in popular Half-akhrai scored the music bands. Michael Modhusudan Datta also enriched the drama world by writing many dramas in Bengali. Afterwards Dizendralal Roy (D.L. Roy) brought forward this literature sector and put it on the stronghold.

Tareq Masud
Satyajit Ray
Goutam Ghosh
Bangladesh produces about 80 films a year. Mainstream Hindi films are also quite popular. The iconic film making figures are as: (in Bangladesh part) Tanvir Mokammel, Jahir Raihan, Tareq Masud and (in West Bengal part): Satyajit Ray, Mrinal Sen, Goutam Ghosh, etc

Around 200 daily newspapers are published in Bangladesh, along with more than 1800 periodicals. However, regular readership is low at just under 15% of the population. Bangladeshis listen to a variety of local and national radio programs from Bangladesh Betar, as well as four Private FM radio channels (Radio Foorti, ABC Radio, Radio Today, Radio Amar) popularity to the younger generation is growing rapidly at the important cities. Also, there is Bangla services of Radio from the BBC and Voice of America. The dominant television channel is the state-controlled Bangladesh Television, but in the last few years, privately owned channels have developed considerably.

The culinary tradition of Bangladesh has close relations to Indian and Middle Eastern cuisine as well as having its own unique traits. Rice and curry are traditional favorites. Bangladeshis make distinctive sweetmeats from milk products, some common ones being Roshogolla, chomchom and and kalojam.

Woman in Shari
Women in Salwar-Kameez
The sari (shaÅ—i) is by far the most widely worn dress by Bangladeshi women. Dhaka in particular is renowned for producing saris from exquisite Jamdani muslin. The salwar kameez (shaloar kamiz) is also quite popular, and in urban areas some women wear Western attire. Among men, Western attire is more widely adopted. Men also wear the kurta-paejama combination, often on religious occasions, and the lungi, a kind of long skirt.

Durga Puja: Hindu religious festival
Pohela Boishakh (Bengali new year observation)

The two Eids, Eid ul-Fitr and Eid ul-Adha are the largest festivals in the Islamic calendar. The day before Eid ul-Fitr is called Chad Rat (the night of the moon), often celebrated with firecrackers. Other Muslim holidays are also observed. Major Hindu festivals are Durga Puja, Kali puja and Saraswati Puja. Buddha Purnima, which marks the birth of Gautama Buddha, is one of the most important Buddhist festivals while Christmas, called Borodin (Great day) in Bangla is celebrated by the minority Christian population. The most important secular festival is Pohela Baishakh or Bengali New Year, the beginning of the Bengali calendar. Other festivities include Nobanno, Poush parbon (festival of Poush) and observance of national days like Shohid Dibosh.

Thursday, August 04, 2011

Potential Sectors for Investment in Bangladesh

Competitive Sector for Investment

a)   Garments & Textiles
b)   Spinning
c)   Frozen Foods
d)   Leather
e)   Electronics
f)    Agro-based Industry
g)   Information Technology
h)  Ceramics
i)    Light Engineering
j)    Steel
k)   Pharmaceuticals
l)    Shipbuilding

GARMENTS & TEXTILES:

The garments and textiles industry sector is the biggest export earner sector of Bangladesh with value of over US$12.347 billion of exports in 2008-2009. Our factories design and produce for the world’s leading brands and retailers, like: Reebok, GAP, Wal-Mart, Hudson Bay, Puma, etc. This rapidly growing sector of the Bangladeshi economy offers a unique competitive edge that supports profitable expansion into new strategic markets.

 

Key statistics of RMG* sector

Year
No. of garment factories
Employment (in million workers)
Export of RMG
(in million US$)
Total export of Bangladesh (in million US$)
% of RMG to total export
2005-06
4,220
2.2
7,900.80
10,526.16
75.08
2006-07
4,490
2.4
9,211.23
12,177.86
75.64
2007-08
4,743
2.8
10,699.80
14,110.80
75.83
2008-09
4,825
3.1
12,347.77
15,565.19
79.33

Sector Highlights

1) The Ready Made Garments industry experienced an export boom in the 1990s, because of the excellent negotiation with the U.S in 1984-85.
2) Cost and quality of products that are produced on time, reliably and very competitively with a highly skilled labor force.
3) 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.
4) Bangladesh is the best placed in the region for textiles and garments because of low-cost labor, preferential trade status and advantageous global market access.
5) Government incentives for the spinning and weaving industries include a 15% cash subsidy of the fabric cost to exporters sourcing fabrics locally.
6) 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.
7) A unique regional location for expansion into key Eastern and other markets.
8) Favored trading status with the EU and the USA.
9) Clusters of companies providing a local supplier base with real depth in skilled labor, training and technical development facilities.

The growing demands for yarn in the local market, comparatively low cost of doing business, lucrative incentive packages and a favorable investment policy regime are important reasons for investment in this sustainable sector.

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 4,000 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.

Main apparel items exported from Bangladesh (in million US$)

Year
Shirt
Trouser
Jacket
T-shirt
Sweater
2005-06
1,056.69
2,165.25
389.52
1,781.51
1,044.01
2006-07
943.44
2,201.32
1,005.06
2,208.90
1,248.09
2007-08
915.6
2,512.74
1,181.52
2,765.56
1,474.09
2008-09
1000.16
3,007.29
1,299.74
3,065.86
1,858.62
Source: Bangladesh Garment Manufacturers and Exporters Association (BGMEA)

Industry Outlook

Multi-Fibre Agreement (MFA) and Generalized System of Preferences (GSP) of the EU are the main factors 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 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.

Investment Opportunities and government support

RMG and textile sectors have enormous investment opportunities. The government of Bangladesh has created a highly favorable policy framework for investment in these sectors offering investors the following choices:

1)   Establishment of new textile / RMG mill in the private sector.
2)   Joint ventures with the existing textile / RMG mill.
3)   Acquisition of public sector textile mills that are being privatized.
4)   Indirect investment through financial services and / or leasing.

To meet up the local demands, backward linkage is a significant trading opportunity and is supported by a government backed incentive: 15% cash subsidy of the fabric cost to exporters sourcing fabrics locally.

 

The most beneficial public policy of introducing back to back LC* and bonded warehouse facilities provide a tremendous impetus to the export scenario in Bangladesh


SPINNING:

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.

1)   Plant materials: cotton, flax (to produce linen), hemp, raffia, yucca, coconut husk, ...;
2)   Animal materials: wool, goat (angora or cashmere goat), rabbit (angora), llama, alpaca, dog, camel, silk, ...;
3)   Synthetic materials: polyester, nylon, rayon, acetate, mylar...;
4)   Apart from the above, mineral materials like asbestos are also used, but not very often.

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. 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).

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 mill-share 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 (1 crore = 10 million). The survey found that about 92,172 people are working in the spinning sub-sector including only 85 foreign experts / technicians.

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.

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.

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.

The Government has been supporting the spinners providing lower tariff for machinery spares and raw materials, cash incentives, reduced tax rate, and low-cost funding etc.

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 demands 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.

FROZEN FOODS:

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.

Sector Highlights

Thriving in this sector are shrimp farming and fish production.

1)  Government is promoting semi-intensive shrimp farming.
2)  Fish and prawn exports registered a modest growth in the past decade.
3) Shrimp processing and export industry is largely dominated by the smaller unorganized sector.
4) Government has taken different initiatives of quality assurance of frozen foods in co-operation with exporters.
5) 15% cash incentive is given to shrimp export amount.

Exportable products


The private organization and the public sector corporation offer the following products for export:
*     Frozen shrimp & prawn
*     Frozen fish
*     Fresh & chilled fish
*     Frozen fillets & steaks of fish, sharks shells skates & rays
*     Shark fins & fish maws
*     Salted & dehydrated fish
*     Dry fish
*     Live crabs & tortoises
*     Fish meals & crushed
*     Value added shrimp & fish products

Industry Situation

Following a period of strong investment in technology, processes and regulation the frozen foods sector has flourished and earned itself an excellent reputation with trading partners.

Exporters have earned credibility and trustworthiness in the global market and are committed to maintaining a competitive advantage in product quality. Continuing investment in technology, marketing and quality remain at the forefront of the industries' strategy to meet the challenges of international trade in price, quality, time and service.

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 2.216 million metric tons of which 8.82 metric .tons were shrimp. At present, there are 868 fish hatcheries and farm of which 218,000 hectors of shrimp farm. This export-oriented industry includes the following sub-sectors, which need proper attention for augmentation of production, attain international standard quality and export earnings.

1)   Hatcheries
2)   Sustainable aqua-culture technology
3)   Feed-meals plants
4)   Processing unit for value-added products.
5)   Investment in frozen food sector with new technology and equipment has a vast potential for growth.

LEATHER:

Sector Highlights

1)   The labor-intensive leather industry is well suited to Bangladesh having low-cost and abundant labor.
2)   Bangladesh has a domestic supply of good quality raw material, as hides and skins are a by-product of large livestock industry.
3)   Adequate government support in the form of tax holidays, duty free imports of raw materials and machinery for export-oriented leather market
4)   The industry lacks domestic technology and expertise and local support industries such as chemicals are still under-developed.

Investment Incentive

1)   Present government is in the process of setting up of separate Leather Park relocating the existing industry sites to a well-organized place.
2)   Leather exporters have been given 15% Duty drawback of cash incentive.

Industry Situation

Bangladesh leather industry is dominated substantially by the domestic investment which is 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.

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.

ELECTRONICS:

Sector Highlights

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.
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.

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.

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.

AGRO-BASED INDUSTRY:

Sector Highlights


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 is unique to supply raw materials for the agro-based industry.

The abundance of natural resources available in Bangladesh supports a range of highly profitable investment opportunities in agribusiness. Over 90 varieties of vegetable are grown in Bangladesh, yet in this fertile land there is under utilization of the country’s agricultural capacity. This presents many opportunities for investors seeking to export agricultural products, or to meet the rapidly growing local demand.

Thriving in this sector are canned juices, fruits, vegetables, dairy and poultry. The country offers:
1)   Huge supply of raw materials exists for the agribusiness industry.
2)   A tropical climate for all year growing, a lot of fresh water, indeed a land interspersed with numerous rivers, available land with fertile soil.
3)   Government and NGOs have been conducting regular training programs to develop skilled manpower for agro-based industry.
4)   Wide range of biodiversity exists for different crops.
5)   Agricultural commodities have a comparatively higher value added than non-agricultural commodities.

Investment opportunities


There is a wide variety of investment opportunities including:
*     Cold storage facilities serving the supply chain, especially fresh produce for export.
*     Fresh produce production for local and export markets.
*     Production of fertilizers and cultivation of seeds.
*     Eco-friendly jute production, supported by jute technology development institutes.
*     Shrimp farming.
*     Halal foods.
*     Milk and dairy products.
*     High value-added foods for export, including herbs, spices, nuts and pulses.

Industry Incentives


The government encourages development of the agricultural sector through measures to increase crop sector productivity and production of non-crop agriculture. To achieve this, the government provides increased credit, and facilitates greater access to inputs and modern technology. Investments in agribusiness industries in Bangladesh are encouraged with the following support measures:

1)   The 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.

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% of total export amounting US$ 76.24 million.

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 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.

INFORMATION TECHNOLOGY:

Sector Highlights


1) To investigate the IT industry robustly, deregulation of the telephone has been decided and executed by mid 2003.
2) The extensive growth of mobile telephony resulted in significant opportunities.
3) The industry is at its introductory stage and has opportunity of capitalizing the potential.
4) Bangladesh has a well-educated, skilled, dedicated and growing IT workforce.
5) There is a fast growing domestic market and export demand.
6) Strong research assistance from the universities and research institutions are available.
7) Government is keen in establishing IT related infrastructure for the development of the industry.

Industry Incentive


1)  IT is declared as one of the thrust sector for development. A soft loan facility from the Equity and Entrepreneurship Fund is available.
2)  Tax holiday for Software and IT services companies.
3)  All other facilities and incentives applicable in general to a foreign investor.

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 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

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.

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, Sri Lanka, 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 100,000 voice circuits. 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 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.

CERAMICS:

Sector Highlight


1)   Global market of ceramic tableware is about US$ 10 billion.
2)   Bangladesh Ceramic tableware has a good reputation is the international market like North America and EU countries.
3)   Bangladesh has achieved technical expertise on ceramic tableware manufacturing.
4)   Historically, tableware industry is labor-intensive and Bangladesh has a skilled manpower in ceramic industry.
5)   Sanitary ware and insulator has also a domestic and international market demand.
6)   The clean gas reserve required for firing is a great competitive advantage for Bangladesh.

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.

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. The growing sanitary ware and insulator items have large domestic market. Besides, international market, both in terms of demand and access, is highly potential.

LIGHT ENGINEERING:

Sector Highlights


1) Bangladesh has about 40,000 small-scale light engineering enterprises spread over the country.
2) Current light engineering industry manufactures about 10,000 types of items for the local industry amounting an annual value of approximately US$ 120 million.
3) As the demand and usage of engineering and electronic goods increase, demands for light engineering products are also increasing.
4) Significant number of cottage industries engaged in production of simple electronic goods.
5) Government provides cash incentive facilities to exporters of value-added light engineering products.

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.

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.

STEEL:

Sector Highlights


1)  Iron has been a vital material in technology for well over three thousand years.
2) Usage of steel products in Bangladesh increased remarkably in 80s when this industry flourished due to relaxation/liberalization of country’s Industrial Policy.
3) 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.
4) Steel industry in Bangladesh has huge potential of growth in the coming years.

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 485,000 metric tons in 1999 from 100,000 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, galvanized sheets, metal products etc;

Galvanized sheets used in consumer durable industries and domestic applications including GP / CI sheets.

Recent implementation status Survey by BOI, revealed that annual installed capacity of 48 GP/CI sheet units registered with BOI are 674,000 MT and their average production was 470,000 MT.

According to statistics, on an average, about 514,000 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 266,000 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 951,000 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 correlated to the growth of investment in the industrial sector.

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 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.

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.

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.

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.

PHARMACEUTICALS:       

Sector Highlights


1)  Pharmaceutical products have huge demand both in local and overseas market.
2)  There are huge demand-supply gap in pharmaceutical products.
3) Bangladesh offers a good number of qualified, skilled pharmacists, bio-chemists, micro-biologists, and chemists for pharmaceutical industries.
4)  Government offers support for importing raw materials for production.
5) Present Government has taken initiatives to modernize, expand and attract foreign investment in pharmaceutical industries, and for this adopted national medicine policy (revised) 2005, which will help to adapt with the changing world under WTO/TRIPS

Outlook

Considering the overall demand, pharmaceuticals is one of the emerging sectors in Bangladesh. Government offers different incentives for importing raw materials pharmaceutical industries. This particular sector has huge potential of growth in the future. For sustainable return, pharmaceutical sector could be a rational choice.