SEC Annual Report,1997-98 

National Income

In the Fiscal Year (1997-98) the total Gross Domestic Product (GDP) was Taka 1,54,092 crore  (About US$ 34 Billion). The GDP Growth rate of 5.9% in FY 1996-97 and 5.6% in FY 1997-98 reflected consistent progress in our economy. 
 A buoyant 10.1% growth in large-scale industry in FY 1997-98 has contributed significantly. 

The Rate of Saving and Investment has been increased in the country. The present Rate of Internal Savings in GDP is about 8% which was 4% in 1990-91. The Rate of Investment in the GDP is 18% which was 12% in 1990-91.

Investment in the Private Sector has risen to 6% from 11% during the Fiscal Year (1997-98). Opportunities are also created for Local and Foreign Investment in the Private Sector.

In FY 1996-97 our export in terms of US$ was increased by 13.8% while the Export Growth in FY 1997-98 showed a significant growth of 16.81 Percent. The total Export Earning of FY 1997-98 was US$ 5.161 Billion higher than Export Earning of US$ 4,427 Million of 1996-97. Import Expenditure in fiscal 1996-97 was US$ 7,162 Million which was 4.1% more than Import Expenditure US$ 6,881 Million of the previous year.


The Government has taken followings important steps to attract foreign investment.:

  • liberalizing the Industrial Policy
  • Positive steps toward Private sector-led free market economy
  • Allowing 100% Foreign Direct Investment as well as Joint Venture both with Local Private Sponsor or with Public Sector
  • No prior approval or No Objection Certificate is required for setting up of a Joint Venture/100% Foreign Direct Investment
  • No permission is required for import of Free List items
  • Equal treatment of Capital and Dividend with the Local Investors
  • Availability of adequate Protection for Intellectual property rights including Patents, Design, Trade Marks and Copyrights
  • Tax Holiday for 5-7 years depending on Industry Location
  • Tax exemption on income of the Private Power Generation Company for 15 years from the date of commercial operation
  • Facilities for Repatriation of Invested Capital, Profit and Dividend 
  • Tax exemption on Royalties, Technical Know-how fees received by any Foreign Collaborator, Firm, Company and Expert
  • Six months Multiple Entry Visa for the Investors
  • Bangladeshi Taka made Convertible for international payments in the current account
  • Re-investment of Repatriable Dividend treated as New Investment
  • Working Capital Loan from local commercial banks will be allowed in addition to foreign capital
  • Citizenship by investing a minimum of US$ 500,000 or by transferring US$ 1,000,000 to any recognized Financial Institution (non repatriable) 
  • Permanent Resident ship 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
  • Export oriented industries are exempted from paying local taxes
  • Will enjoy facilities similar to those of  Foreign Investors.
  • 10%  Quota in Primary Shares (IPO).
  • Can maintain Foreign Currency deposits in the NFCD Account.