Economic Situation During BNP’s Time Compared to Other

1. Introduction

The Bangladesh Nationalist Party (BNP) is a major political party in Bangladesh. It was founded on September 1, 1978, by former President Ziaur Rahman. The party’s core idea revolves around “Bangladeshi nationalism,” and it’s aiming to unite people with a shared national identity. Later, the BNP risen as one of the two traditionally dominant parties in Bangladesh, along with its rival, the Awami League. 

BNP has emphasized as a strong focus on safeguarding Bangladesh’s national independence and territorial integrity, often advocating for a more independent foreign policy. The party was instrumental in re-establishing a multi-party democratic system in Bangladesh after periods of single-party rule. It has consistently advocated for free and fair elections as the primary mechanism for transferring political power. The party’s vision often highlights the importance of people’s participation in national development and aims to address issues of social and economic justice.

Bangladesh Nationalist Party (BNP), which held power during two critical periods, 1991–1996 and 2001–2006. These years witnessed attempts at economic reform, growing remittance flows, and early industrial growth, but were also marred by instability, corruption, and policy inconsistency. But todays Bangladesh stands at a different economic crossroad. With ambitious infrastructure projects, rising foreign investment, and diversified industrial development, the country is striving to position itself as a competitive emerging economy in South Asia. However, inflation, foreign reserve depletion, and governance concerns continue to test its resilience.

2.Birth and History of BNP (Bangladesh Nationalist Party)

The Bangladesh Nationalist Party (BNP) was officially founded on September 1, 1978, by then-President of Bangladesh, Ziaur Rahman. Its birth came at a time of political change in Bangladesh.

2.1.Before the BNP was Born

Before he launched the BNP, Ziaur Rahman had already begun gathering people who shared his ideas. In the early part of 1978, he helped set up a group called Jatiyatabadi Ganatantrik Dal (JaGoDal). This group was meant to bring together people who believed in a strong Bangladeshi identity and wanted to see the nation progress.

Then, in May 1978, Ziaur Rahman formed something called the “Jatiyatabadi Front,” which means “Nationalist Front.” This Front was like a team of different political people and smaller groups. Their main goal at that moment was to support Ziaur Rahman in the presidential election that happened in June 1978. He won that election, becoming the President.

2.2.The Official Beginning

After winning the presidency, Ziaur Rahman made the big announcement in Dhaka on September 1, 1978, the Bangladesh Nationalist Party (BNP) was now officially a political party. He wanted the BNP to be a party that welcomed all people, whether their political views were more to the right, left, or in the middle.

The main ideas behind the new BNP were simple:

• To bring everyone in Bangladesh together under a shared “Bangladeshi nationalism”  a feeling of being one nation.
• To help Bangladesh grow economically and become richer.
• To make sure that democracy, where people have a say in their government, was strong and active.

2.3.The BNP’s First Steps and Impact

The BNP quickly became a very important player in Bangladesh’s politics. Not long after it was formed, in February 1979, the party took part in its first national election and actually won. This meant they formed the government. This was a significant moment because it helped bring back a system where multiple political parties could openly participate in governing Bangladesh, after some periods where this wasn’t the case.

During the BNP’s early time in power, they made some important changes to how the country’s economy worked. They moved towards a system that encouraged private businesses and industries to grow, hoping to create more jobs and wealth.

However, after Ziaur Rahman was sadly assassinated in 1981, the party faced a big challenge. His wife, Begum Khaleda Zia, stepped up and took over the leadership in 1983. Under her guidance, the BNP played a very important role in the protests and movements that eventually brought back full democracy to Bangladesh in the late 1980s and early 1990s. This period really freeze the BNP’s place as one of the two main political powers in Bangladesh.

2.4.Background of Political Discontent

By the late 1980s, Bangladesh was under the military rule of President Hussain Muhammad Ershad, who had taken power in a bloodless coup in 1982. Over time, his authoritarian rule began to grow. Political freedoms were limited, elections were disputed, and economic inequality was extending. The opposition parties, including the Bangladesh Nationalist Party (BNP), the Awami League, and several groups, found common ground in the call for democratic reforms.

This dissatisfaction was also deeply felt among students and intellectuals groups that historically played a vital role in Bangladesh’s political movements. University campuses, especially Dhaka University, became center of protest and discussion. The momentum began to build toward a nationwide movement for the restoration of democracy.

2.5.Role of Student Activists and the DUCSU Election(June 3, 1990)

Dhaka University, one of the biggest and most important universities in Bangladesh. It has a student body called the Dhaka University Central Students’ Union (DUCSU), which is like the student government. For a long time, there hadn’t been an election for DUCSU, but finally, one was held on June 3, 1990.

This election was a huge deal because it showed just how much students wanted change. The student group supported by the BNP, called Jatiotabadi Chatra Dal, won almost all the positions in the DUCSU election. The main leaders who were elected were Amanullah Aman and Khairul Kabir Khokon.

Their big win sent a clear message that students were fed up with the military-backed rule of General Ershad and were ready to fight for democracy. This new DUCSU team quickly became a very strong voice in organizing protests and rallies against the government.

The DUCSU leaders didn’t just work alone. They joined forces with other student groups from different political backgrounds to form a bigger group called the Sarbadaliya Chatra Oikya Parishad (All-Party Students’ Alliance Council). This brought many student groups together, putting aside their differences to focus on the common goal, getting rid of Ershad’s rule. The student movement soon transformed into a nationwide political pressure group.

2.6.Naziruddin Jehad: A Martyr of the Movement

On October 10, 1990, Naziruddin Jehad, a young student from Sirajganj, who was part of the Jatiotabadi Chatra Dal (the student wing of the BNP), was demonstrating in Dhaka. He was among many people protesting against General Ershad’s rule. During this protest, the police cracked down on the demonstrators, and tragically, Jehad was shot. He died from his injuries on that very day.

2.7.Academic Support and Teachers’ Movement

As student protests became very strong, teachers and professors, who are highly respected in society, decided it was time for them to get involved. At Dhaka University, there was a group of teachers known as the “White Panel.” This group was generally supportive of the BNP’s views and already held influential positions within the university’s administration. They publicly declared that they were joining the “all-out movement” against Ershad’s government. This was a really big step.

On November 29, 1990, these teachers made a very powerful announcement, they promised to resign from all their administrative jobs (deans, provosts, etc.) and to boycott classes unless democracy was brought back to Bangladesh.

2.8.Rising of Nationwide Protests(October to December, 1990)

Late 1990, the protests against General Ershad’s rule in Bangladesh became much bigger, more intense, and spread across the entire country. It was clear that people were losing their fear and were determined to see him go. From October to December 1990, the movement against Ershad really heated up. It was no longer just about students protesting; almost everyone got involved. The different political groups, who sometimes had their own disagreements, came together very strongly for this common cause. As BNP-led 7-Party Alliance (headed by Begum Khaleda Zia), Awami League-led 8-Party Alliance (though sometimes known as the 3-Party Alliance, led by Sheikh Hasina), 5-Party Leftist Alliance.

On November 28, 1990, things reached a critical point. The government had declared a state of emergency and put curfews in place to stop people from gathering. But the opposition forces and the public bravely ignored these orders. They came out in huge numbers, essentially taking control of large parts of Dhaka and other major cities.As the protests grew, there were often clashes between the protesters and the police or other security forces. These were dangerous times, and sadly, many people were hurt. Between November 27 and December 3, 1990, more than 50 people lost their lives in these confrontations, showing the high cost of the struggle for democracy.

2.9.The Fall of Ershad

After weeks of intense and widespread protests, strikes, and demonstrations across the country, General Hussain Muhammad Ershad finally had no choice but to give in. The situation on the streets, especially in Dhaka, was out of his control. People had bravely defied curfews and emergency orders, making it impossible for him to continue ruling.

On December 4, 1990, after all the unrest and with growing concern from other countries, President Ershad announced his resignation. This marked the end of nearly nine years of his military-backed rule, which began with a coup in 1982.

after his resignation, a special kind of government was formed. This was called a non-party caretaker government, and it was led by the Chief Justice of Bangladesh, Shahabuddin Ahmed. The main job of this temporary government was to make sure that the country could hold free and fair elections, without any interference from political parties.The events of 1990 are remembered as one of the most important people’s movements in Bangladesh’s history. It proved that when people unite and stand up for their rights, they can bring about big changes.

The BNP, which had played a central role in organizing the opposition against Ershad, gained huge momentum from this movement. Because of its strong position in the anti-autocracy movement, the BNP went on to win the general election held in 1991, and Begum Khaleda Zia became the Prime Minister of Bangladesh.

3.Begum Khaleda Zia as Prime Minister of Bangladesh

Begum Khaleda Zia became the Prime Minister of Bangladesh for the first time on March 20, 1991.

3.1.How was the face of Bangladesh at that time?

Bangladesh was coming out of nearly nine years of military-backed rule under General Hussain Muhammad Ershad. So, when Khaleda Zia took office after a free and fair election, it felt like a huge relief and a fresh start for democracy. People were excited to have a civilian, elected government again. The entire country shifted back to a parliamentary system from a presidential one, giving more power to the Prime Minister and Parliament.

Bangladesh was still a very poor country with many challenges like poverty, high unemployment, and a lack of proper infrastructure (roads, power, etc.). However, there was a new enthusiasm for economic growth. The global trend was towards more open economies, and Bangladesh was eager to follow suit. Education levels were low, especially for girls, and basic services like healthcare needed significant improvement. Natural disasters, like the devastating cyclone in 1991, also posed major challenges.

While the BNP and Awami League had united to remove Ershad, with democracy restored, their historic conflict quickly resurfaced. This meant that even in the new democratic era, political tension and protests from the opposition would continue to be a part of the landscape.

3.2.What did The BNP Government do?

One of the most important steps was passing the 12th Constitutional Amendment in August 1991. This officially changed Bangladesh’s government system from presidential to parliamentary, fulfilling a major demand of the anti-autocracy movement.

Education reforms was a key focus. The government made primary education free and compulsory for all children. They also made education free for girls up to the 10th grade and introduced stipends for female students, which significantly boosted girl’s enrollment and improved literacy rates. They also increased the education budget and established new universities like National University and Open University.

The government moved towards a more market-friendly economy. They introduced the Value Added Tax (VAT), brought in new laws for banks (like the Bank Company Act 1991 and Financial Institutions Act 1993), and set up a Privatization Board to encourage private investment. They also opened a new Export Processing Zone (EPZ) near Dhaka to attract foreign businesses. These steps aimed to modernize the economy and attract foreign investment.

Infrastructure development work began on major projects like the Jamuna Multipurpose Bridge, which was a huge undertaking to connect the eastern and western parts of the country. They allowed mayors of city corporations to be directly elected by voters, which was a move to make local governance more democratic.

Read more: Dr Mohammad Yunus: An eye of new Bangladesh

3.3.Could The Party Fulfill all The Hopes of The Country’s People?

The government certainly made significant progress in areas like education, particularly for girls, and in setting the stage for economic growth through liberalization policies. The return to parliamentary democracy itself was a massive achievement that resonated with the people’s aspirations.

However, Bangladesh continued to grapple with deep-seated problems like poverty, corruption, and maintaining law and order. Political stability remained a challenge, as the opposition (Awami League) frequently organized hartals (strikes) and protests, which often led to disruption and violence. This political conflict, while part of democracy, also hindered consistent progress.

4.Economic Situation During BNP’s Rule

The Bangladesh Nationalist Party (BNP) governed the country 1991–1996 and 2001–2006. During these years, Bangladesh saw some economic progress, but it also faced serious challenges in terms of attracting investment, managing inflation, and reducing corruption. Bangladesh was a low-income country facing many economic hurdles. The BNP aimed to transform the economy, moving it away from government control towards a system that encouraged private businesses and trade.

4.1.Economic Situation During BNP’s Rule: 1991-1996

•Foreign Direct Investment (FDI): FDI was still relatively low at this time. Bangladesh was just starting to open its doors to foreign investors after years of a more controlled economy. The government introduced policies like setting up Export Processing Zones (EPZs) to encourage foreign companies to come in, but the real boom in FDI would come later. It was a foundational period for attracting external investment.

FDI was relatively low during this period, but it was growing from a very small base. In 1991, net FDI inflow was around US$1.39 million. By 1996, it increased to about US$13.53 million.

•Foreign Exchange Reserves: Foreign exchange reserves saw positive growth. The significant increase in exports, especially from the rapidly growing ready-made garment (RMG) sector.

Remittances by 1996, reserves were sufficient to cover several months of import bills, indicating improved financial health. At the end of FY1990-91 (when BNP came to power), reserves were around US$750 million. By April 1995, reserves reportedly reached US$3.4 billion. By October 1996, reserves were estimated at around US$2 billion, sufficient to cover about 3.5 months of imports. This was considered a healthy level for Bangladesh at that time, indicating improved financial stability.

•Inflation Rate: During 1991-1996 the inflation rate was generally kept under control and remained moderate. While there were some ups and downs, it typically around 5-6%. This stability helped maintain people’s purchasing power and encouraged economic activity. By source, the inflation rate in the mid-1990s often hovered around 4-6%. In 1991, inflation was high, around 8.9%. It dropped slightly by 1996, around 6.2%

•Corruption Ranking(Transparency International – CPI): The CPI started in 1995. In 1995, Bangladesh was ranked 4th (out of 41 countries) from the bottom, indicating a perception of high corruption. In 1996, Bangladesh’s perception of corruption remained poor.

4.2.Economic Situation During BNP’s Rule: 2001-2006

•Foreign Direct Investment (FDI): FDI saw a further increase compared to the 1990s. The government continued policies to attract foreign investment. Sectors like natural gas, telecommunications, and textiles started drawing more interest from foreign investors. While still not massive, the trend was upward, indicating growing confidence among some international businesses. FDI saw an overall increase compared to the previous decade, though it could be volatile year-on-year.

In 2001, net FDI inflow was around US$78.53 million. By 2006, it had grown significantly to around US$456.52 million. 2001-2004 saw average FDI inflows between US$200-600 million, with notable fluctuations. Towards the later part of the term (2005-2006), FDI figures generally showed an upward trend, indicating growing, though still modest, international interest.

•Foreign Exchange Reserves: Foreign exchange reserves continued to grow with some changeability. This period saw sustained growth in garment exports and a sharp increase in remittances from Bangladeshis working abroad, which significantly boosted the reserves.

At the end of FY2000-01, reserves were around US$1.88 billion. By the end of FY2005-06, foreign exchange reserves reached approximately US$3.5 billion. This continued growth was largely driven by robust garment exports and a sharp increase in remittances, which reached US$4.80 billion in FY2005-06.

•Inflation Rate: While still manageable for most of the period, it began to climb, exceeding the central bank’s targets at times. Factors like rising global commodity (oil) prices contributed to this increase.

While average inflation in FY2000-01 was around 1.94%, it gradually increased. By the end of FY2005-06, the average inflation rate was around 7.2%, indicating a noticeable rise in prices compared to the previous BNP term. This was influenced by both domestic factors and rising global commodity prices.

•Corruption Ranking(Transparency International – CPI): This period is unfortunately infamous for Bangladesh’s corruption perception. From 2001 to 2005, Bangladesh was ranked as the most corrupt country in the world for five consecutive years by Transparency International (CPI score of 1.2 to 1.7 out of 10, where 10 is very clean). This was a major international perception issue.

In 2006, Bangladesh saw a slight improvement in its score (2.0 out of 10) and was ranked 3rd from the bottom (out of 163 countries), tied with Chad, Democratic Republic of Congo, Sudan, and Guinea. Transparency International noted that this improvement was more due to other countries performing worse rather than a significant reduction in corruption in Bangladesh itself.

Indicator	1991	1996	2001	2006
FDI (USD Million)	$1.7M	$250M	$354M	$792M
Foreign Exchange Reserves	$0.9B	$2.2B	$1.5B	$3.5B
Inflation Rate (%)	8.9%	6.2%	3.4%	7.0%
TI Corruption Ranking	—	4th worst (1995)	1st worst (2001–2005)	1st worst (2001–2005)

Table: Economic Indicators During BNP’s Rule

5.Current Economic Situation

Bangladesh’s economy in FY2024-2025 is navigating a challenging period, marked by efforts to stabilize its currency, control inflation, and attract more investment. Global economic uncertainties combined with domestic issues are main factors.

•Foreign Direct Investment (FDI):  The full fiscal year data isn’t complete (as it ends in June 2025), net FDI inflow saw a significant jump in the first quarter of 2025 (January-March), reaching approximately $864.63 million. This was a substantial increase (over 114%) compared to the same period in 2024.

2024, UNCTAD (UN Trade and Development) reported that net FDI in Bangladesh declined by 13.20% to $1.27 billion from $1.47 billion in 2023. According to government (BIDA), they received foreign investment proposals worth nearly $1 billion in the nine months leading up to March 2025, showing continued interest, but actual inflows vary.

•Foreign Exchange Reserves: Reserves have been a major focus of concern, though they’ve shown some recent stabilization. May 2025, the gross foreign exchange reserves stood at about $25.80 billion. According to the IMF’s more strict calculation method (BPM6), the usable reserves were around $20.54 billion in May 2025.

Reserves reached a peak of over $48 billion in 2021 and have since declined significantly due to high import costs and global economic shifts, but recent policies have aimed to stem the decline and foster recovery.

•Inflation Rate: The average inflation rate for the entire Fiscal Year 2024-2025 (July 2024 – June 2025) was reported at 10.03%. In May 2025 was 9.05%, a slight decrease from the previous month, but still high. Both food and non-food inflation have been elevated.

•Corruption Ranking (Transparency International – CPI): In the 2024 CPI, Bangladesh scored 23 out of 100, which is one point less than its 2023 score. It was ranked 151st out of 180 countries, dropping two places from its 2023 rank. This 2024 score is Bangladesh’s lowest since 2012, indicating a worsening perception.

Indicator	2024–2025
FDI (USD Billion)	~$3.5B
Foreign Exchange Reserves	~$19B
Inflation Rate	~7.5%
Corruption Index Rank	147 / 180 (TI CPI 2023)

5.1.Comparison of Economic Indicators

•Before Khaleda Zia Became Prime Minister

This was a very tough time for Bangladesh. The country was still recovering from a devastating war for independence. The government initially tried to control everything but it didn’t work well. There wasn’t much money, and things were disorganized. Later, under military leaders, they slowly started to let private businesses do more.

• Foreign Direct Investment (FDI): FDI almost nothing. Foreign companies barely put any money into Bangladesh. They were worried because the country was unstable and the government owned most big businesses. So, very few factories or big investments came from outside.
• GDP (Economy Size) Growth: GDP was very slow. The economy wasn’t growing much, often only a little bit each year, like 3-4%. It was mostly about farming, so bad weather could hurt the whole country’s income.
• Foreign Exchange Reserves: Foreign exchange reserves was critically low. Bangladesh had very little foreign money saved up. Sometimes, it only had enough to pay for a few days of imports. This meant it was hard to buy essential things like oil or machinery from other countries.
• Inflation Rate (Prices Going Up): Inflation rate was very high and wild. Prices for everyday goods shot up extremely fast in the 1970s, sometimes tripling or quadrupling in a year. In the 1980s, it calmed down a bit but was still often in double digits (like 10-15% a year), making life hard for people.
• Corruption Ranking: International groups like Transparency International didn’t have their “Corruption Ranking” yet. But people living in Bangladesh and experts knew that corruption (people in power misusing their position for money) was a big problem in government offices and businesses.
• Industry: Major industries were mostly jute and some textiles, largely owned by the government and often not doing well. The garment industry was just starting to appear in the 1980s, but it was tiny compared to what it would become.

•After Khaleda Zia Became Prime Minister

This was a time of big changes. Bangladesh became a democracy again, and the government pushed hard to open up the economy, letting private businesses lead the way.

• Foreign Direct Investment (FDI): It went from almost nothing to hundreds of millions of dollars by the mid-2000s. While this was a big jump for Bangladesh, it was still quite low compared to other countries. Most of it came in towards the latter part of this period.
• GDP Growth: The economy started growing faster, often around 5-6% each year. This was a significant improvement, and it meant people’s lives were slowly getting better.
• Foreign Exchange Reserves: Bangladesh started saving more foreign money, going from less than $1 billion to a few billion dollars by 2006. This made the country more stable and able to buy more imports.
• Inflation Rate: Prices still went up, but generally at a more controlled rate, often in the single digits or low double digits. It wasn’t as wild as the 1970s.
• Corruption Ranking: Bangladesh was unfortunately seen by Transparency International as the most corrupt country in the world for five years in a row (2001-2005). This gave Bangladesh a very bad image globally and scared off many potential investors.
• Industry: Garment industry became the KING. The Ready-Made Garment (RMG) sector exploded, becoming the main driver of the economy and its biggest export. Other industries like pharmaceuticals also started to grow significantly, making Bangladesh almost self-sufficient in medicines. Jute continued to decline. The focus was heavily on export-oriented factories.

•Recent Times (2024-2025)

Bangladesh is now a much bigger and more complex economy, pushing to become a middle-income country. It just went through a major political change in August 2024.

• Foreign Direct Investment (FDI): FDI is now measured in billions of dollars each year, a huge leap from the past. However, recent figures show it can go up and down a lot, and there’s a strong push for even more new, long-term investment.
• GDP Growth: For many years, GDP growth was very high (over 7% before the recent global slowdown). Now, it’s projected to be around 4-6%, still good, but facing challenges from within Bangladesh and around the world.
• Foreign Exchange Reserves: Reserves grew to a high of $48 billion in 2021. Now, they are around $20-26 billion (depending on how you count), which is still much higher than in past eras, but the country is working hard to bring them up further after high import bills.
• Inflation Rate: This is a major concern right now. Inflation has been high, often around 9-10%, making it difficult for ordinary people to afford daily necessities.
• Corruption Ranking: The latest report (for 2024, released early 2025) shows Bangladesh ranked 151st out of 180 countries, with a low score. This means corruption is still widely seen as a significant issue, even with the new government’s efforts to fight it.
• Industry: While garments are still number one, other industries like pharmaceuticals are now major exporters. There’s also good growth in light engineering, agro-processing, and a rapidly emerging IT and software sector. The country is also investing heavily in big projects like new ports and power plants to support this growth.

6.Industrial Development: Then and Now

Bangladesh’s industrial landscape has gone through a remarkable transformation. From a country heavily depends on farming, it has diversified its industries over decades.

6.1.BNP’s First Term (1991-1996): The Rise of Garments and Other Sectors

This period was all about moving away from a government-controlled economy and setting the stage for personal businesses to grow.

•Ready-Made Garments (RMG): RMG was the star industry. It experienced explosive growth. Before this, garments were small. But with new policies encouraging exports and opportunities from international trade agreements (like the Multi-Fibre Arrangement, MFA), factories boomed. This sector creations millions of jobs, especially for women, and became the country’s primary export earner. It was the driving force behind Bangladesh’s initial industrialization push.

•Jute Industry: Jute industry is a traditional industry inherited from before independence, heavily state-owned. It was generally in decline. It struggled with old machinery, high costs, and competition from synthetic fibers. The government tried privatization, but it was slow and often unsuccessful.

•Other Manufacturing: Other Manufacturing are still very small-scale such as food processing, leather (tanning), and some light engineering existed, but they were not major contributors to the economy or exports. Many were inward-looking, meaning they produced for the local market. The focus was on “liberalization” – reducing government control, tariffs (taxes on imports), and encouraging private local and foreign investment through things like Export Processing Zones (EPZs).

6.2.BNP’s Second Term (2001-2006): Garments, Pharma and Other sectors

Industrial growth continued, building on the foundations laid in the 1990s.

•Ready-Made Garments (RMG): Continued to be the dominant force, growing rapidly year after year. Bangladesh fixed its position as a major global garment supplier. However, towards the end of this period, the upcoming end of the MFA quota system (in 2005) created concerns about future competitiveness. Factories started to invest a bit more in technology and efficiency to prepare for a more competitive global market.

•Pharmaceuticals: Pharmaceuticals industry began to emerge strongly as a promising sector. A supportive drug policy from the 1980s (Drug Ordinance of 1982) and the ability to produce generic medicines (copies of generic drugs) under international trade rules for least developed countries (LDCs), local companies grew rapidly. Because of it, Bangladesh became almost self-sufficient in meeting its domestic demand for medicines and started to explore export markets.

•Leather and Leather Goods: Showed some potential, mainly in tanning raw hides. However, it faced challenges with environmental compliance (pollution from tanneries) and producing finished, high-value leather products for export was still limited.

•Light Engineering: Light engineering is still a relatively small sector, mainly focused on producing spare parts for other industries, small agricultural tools, and consumer goods for the local market. It was characterized by many small workshops rather than large factories.

•IT/Software: Almost non-existent as a significant industry. The internet was just starting to become available, and there was no major focus on software development or IT services for export.

6.3.Industrial Development (2024-2025)

The industrial landscape of Bangladesh is far more diverse and complex now. While still driven by garments, other sectors have matured, and new ones are emerging, all while facing contemporary global and domestic challenges.

•Ready-Made Garments (RMG): RMG still the backbone of the economy, but facing intense competition and pressure. Bangladesh is the world’s second-largest garment exporter. The sector is now focused on, moving from basic clothes to more complex, higher-value garments, meeting stricter environmental and social standards from international buyers, exploring new types of fibers (man-made fibers) and products.

This sector also faces many type of challenges such as,  wage increases, global slowdown, dollar shortage, competition and so on.

•Pharmaceuticals: Bangladesh now meets around 97% of its domestic demand for medicines. It exports to over 100 countries, including developed markets. Companies are investing in research and development and aiming for more complex drug production.

Bangladesh benefits from patent waivers for LDCs on many drugs until 2033, giving it a unique advantage in producing generic medicines. The focus is now on producing Active Pharmaceutical Ingredients (APIs) locally to reduce import dependence. Already Renata Pharmaceutical is indeed producing Active Pharmaceutical Ingredients (APIs). While many Bangladeshi pharmaceutical companies still largely rely on importing APIs, some of the leading ones, including Renata, have invested in backward integration to produce their own APIs.

•Leather and Leather Goods: This sector has high potential but faces significant hurdles. The industry is struggling with environmental compliance, particularly the Central Effluent Treatment Plant (CETP) at Savar Tannery Industrial Estate, which isn’t fully operational to international standards. This prevents many tanneries from getting international certifications (like LWG – Leather Working Group), limiting exports to high-value markets (like Europe and USA).

•Light Engineering: This sector has grown substantially and is often called the “mother industry” because it supplies spare parts and machinery to almost all other industries (garments, agriculture, construction). It reduces the need for expensive imports and supports local manufacturing. It’s a key sector for job creation and for building local industrial capacity.

•Information Technology (IT) & IT-Enabled Services (ITES): A rapidly growing and promising sector. Bangladesh is pushing for “Digital Bangladesh.” This sector mainly focus on software development, freelancing, outsourcing (call centers, data entry), and emerging areas like FinTech (financial technology) and EdTech (education technology).

•Other Growing Industries: As the day goes Bangladesh is developing its all sectors, not only RMG or Pharmaceutical but also shipbuilding, agro-processing, ceramics, plastics, renewable energy and so on.

7.Governance and Corruption Impact: Then and Now

Governance means how a country is run. It’s about the rules, processes, and institutions (like government offices, courts, police) that make decisions, manage public money, provide services, and ensure fairness. Good governance means the country is run transparently, accountably, effectively, and with the rule of law, serving the best interests of its citizens.

And corruption means means misusing power or position to get personal benefits instead of helping the people. It usually happens when someone in a position of authority or responsibility, like a government officer, politician, or police uses their power not for the country or public, but for themselves or their close people.

7.1.BNP’s First Term (1991-1996): Democratic Hopes and Emerging Challenges

After many years under military rule, the country became a democracy again. People hoped for a government that would be fair and work for them. However, right away, political parties started arguing a lot, and there were many protests that made it hard for the government to work smoothly.

Even though it was a new democratic start, corruption was a noticeable problem. When global groups like Transparency International (TI) started looking at corruption, Bangladesh was seen as a country where corruption was common. People often had to pay extra money to get basic things, like getting a passport or a school admission. Public money meant for roads, schools, or hospitals often went missing or was poorly used. People didn’t always trust that the government would do what was right.

7.2.BNP’s Second Rule (2001-2006): Corruption at Its Worst

The government and the opposition were often in conflict. There were strong worries that government departments (like the police or other offices) were being used for political reasons, not just for the public. This made it harder for things to be fair and balanced.

This time was particularly bad for Bangladesh. International groups like Transparency International said that Bangladesh was the most corrupt country in the world for five years in a row (2001-2005).It seemed to be a big problem in many parts of the government system. Many foreign companies didn’t want to invest in Bangladesh because they found too much bribery and unclear rules. Funds meant for development and public services were often stolen, leading to less progress for everyone. This situation became very difficult for ordinary citizens to get things without dealing with corruption.

7.3.Governance and Corruption(Current Period: 2024-2025)

The current situation is quite different because Bangladesh went through a big change in its government in August 2024. There’s a new, temporary government in charge that took over in August 2024. This happened after big public protests. The new government has promised to make things fairer, more open, and hold proper elections soon. They are talking about fixing government organizations, the courts, and how elections are run.

While there’s a lot of hope for better governance, big changes take time. The country is still figuring out how to move forward and make sure all parts of the government act fairly and without political bias.

There’s still a big problem even with the new government’s promises, international reports (the latest Transparency International report from early 2025 for the year 2024) still show that corruption is a major concern. Bangladesh is still ranked very low (151st out of 180 countries), meaning it’s seen as a place with a serious corruption problem. The new government has started taking action. They are trying to make the anti-corruption agency more active and stronger. Many cases are being opened against people accused of corruption from the past government.

Even now, corruption makes business hard both local and foreign companies from investing, as they face extra, unofficial costs. When businesses have to pay bribes, they often pass those costs on to regular people through higher prices for goods and services. People still find it hard to fully trust government services and leaders. Still now, money and resources meant for schools, hospitals, and infrastructure development get lost or misused.

8.Conclusion

Over the decades, Bangladesh’s economic journey has been shaped by many political and policy changes. The era of the Bangladesh Nationalist Party (BNP) — especially during 1991–1996 and 2001–2006 was a time of transition from military rule to democracy. While some steps were taken to encourage private investment and open the market, widespread corruption, political instability, and poor governance limited long-term progress.

This industry made millions of jobs and brought in a lot of money from exports. The country also started to save more foreign money, and prices didn’t go up too quickly. However, a big problem was corruption. It became a serious issue, especially in the early 2000s, where Bangladesh was even seen as one of the most corrupt countries. This made it harder for foreign companies to invest and slowed down progress. During BNP’s rule, essential economic indicators such as foreign direct investment (FDI), foreign reserves, inflation control, and transparency struggled to keep pace with regional standards.

In 2024-2025, Bangladesh is a much more developed country with many different industries. The garment industry is still very important, but now we also have strong medicine companies, growing small machinery factories, and a new, fast-growing tech and software sector. The country has built many big roads and bridges. While Bangladesh’s foreign money savings have gone down recently, they are starting to stabilize, and people working abroad are sending more money home.

Overall, this comparison shows that while Bangladesh has made visible improvements in many areas, systemic issues like governance quality and corruption must still be addressed seriously. Sustainable development will only be possible if future governments regardless of political party focus on transparency, justice, and inclusive economic policies that truly benefit all citizens.

Reference

Wikipedia
BNP
Daily Sun
South Asia Commons
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Dhaka University
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Council of Women World Leaders
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