2020年2月7日星期五

Electricity sector in Bangladesh

The utility electricity sector in Bangladesh has one national grid with an installed capacity of 21,419 MW as of September 2019. The total installed capacity is 20,000 MW (combining solar power). Bangladesh's energy sector is booming. Recently Bangladesh started construction of the 2.4-gigawatt (GW) Rooppur Nuclear Power Plant expected to go into operation in 2023. According to the Bangladesh Power Development Board in July 2018, 90 percent of the population had access to electricity. However per capita energy consumption in Bangladesh is considered low.

Electricity is the major source of power for most of the country's economic activities. Bangladesh's total installed electricity generation capacity (including captive power) was 15,351 megawatts (MW) as of January 2017 and 20,000 megawatts in 2018.

The largest energy consumers in Bangladesh are industries and the residential sector, followed by the commercial and agricultural sectors.

As of 2015, 92% of the urban population and 67% of the rural population had access to electricity. An average of 77.9% of the population had access to electricity in Bangladesh. Bangladesh will need an estimated 34,000 MW of power by 2030 to sustain its economic growth of over 7 percent.

Problems in Bangladesh's electric power sector include high system losses, delays in completion of new plants, low plant efficiency, erratic power supply, electricity theft, blackouts, and shortages of funds for power plant maintenance. Overall, the country's generation plants have been unable to meet system demand over the past decade.

On 2 November 2014, electricity was restored after a day-long nationwide blackout. A transmission line from India had failed, which "led to a cascade of failures throughout the national power grid," and criticism of "old grid infrastructure and poor management." However, in a recent root-cause analysis report the investigating team has clarified that the fault was actually due to lack of coordination and poor health of transmission and distribution infrastructure that caused the blackout.

Sources of energy
The main source of energy used for generating electricity worldwide is fossil fuels, such as fossil fuels. Fuel includes oil, coal, natural gas, and so on. Hydropower is one of the most commonly used fuels. Also, many countries are using electricity to generate nuclear power. Electricity is produced in many countries by utilizing other sources of renewable energy such as wind energy, solar power or geothermal energy.

As of 2011, 79 natural gas wells were present in the 23 operational gas fields which produce over 2,000 million cubic feet (57 million cubic metres) per day of gas. It is well short of over 2,500 million cu ft (71 million m3) per day that is demanded, a number which is growing by around 7% each year. In fact, more than three-quarters of the nation's commercial energy demand is being met by natural gas. This influential sector caters for around 40% of the power plant feed-stock, 17% of industries, 15% captive power, 11% for domestic and household usage, another 11% for fertilizers, 5% in Compressed natural gas (CNG) activities and 1% for commercial and agricultural uses.

CNG is substituting more that US$0.8 billion worth of foreign exchange annually and is also used in most vehicles on the road. In addition to CNG, Liquefied Petroleum Gas (LPG) is also demanded at around 0.1 million tons. The nation furthermore demands 3.5 million tons of oil imports in addition to almost 2 million tons of diesel to feed oil-based power plants being planned and built all around the country. The additional petroleum and coal imports are causing a disruption in the GDP by as much as 2% annually. The new purchases are affecting improvement initiatives in other sectors causing reduced export earnings and curtailing employment opportunities. This massive failure in the energy sector is mostly attributed to prolonged negligence, inappropriate implementation, inefficiency and lack of planning. To make matters worse, natural gas reserves are expected to expire by 2020. The only coal mine of the country is in the development stage, the reserve of which is also expected to dry up anywhere from 75 to 80 years after the start of their operations.

Efforts to develop an open-pit coal mine in Phulbari, Dinajpur District, have met with large, violent protests in 2006 because of feared environmental effects, and six people were killed and hundreds injured. At the time, the government closed the project, for which it was working with Asia Energy (now Global Coal Resources). It was encouraged in December 2009 to re-open it by the United States ambassador in private communication. In October 2010 protesters make a week-long march from Phulbari to Dhaka against the mine; a coalition of other groups protested at a Global Coal Resources meeting in London.

Fossil fuel
Natural gas
With natural gas being made available in Bangladesh, it becomes the main fuel for generating electricity. At the end of the twentieth century, the decision was taken to reduce the dependence on natural gas for the production of electricity as the use of natural gas increased in the overall development of the country and the production of natural gas was less than demand. Particularly in Vision 20, " Power System Master Plan 20 " was released. It said that the country's main fuel source should be created and within 20 years the country's own management needs to meet 5% of the energy demand, of which 20% will be coal, 20% is natural gas and the remaining 5% is hydro and renewable energy. The following list of energy consumption shows the rate of decline in gas consumption.
Fuel consumption in power generation [4]
Fiscal yearGross production
Mr. K.O.G.
Gas basedBased on coalLiquid fuelBased on waterImport
25-525,61.5%5.22%1.5%1.5%-----------
25-520,235.25%1.5%1.5%2.5%-----------
25-535512.12%2.5%32.5%2.5%-----------
25-121181.5%2.22%1.5%2.22%-----------
212-61,2225.22%5.22%1.5%2.5%-----------
25-512,412.12%2.5%1.5%1.5%1.5%
25-58361.5%2.5%1.5%5.25%1.5%
25-512,41.5%5.22%25.5%1.5%5.22%

Coal
According to Power System Master Plan 20, coal has been adopted as the main fuel in Bangladesh's power sector. According to this plan, coal is estimated to target 5% of Bangladesh's total electricity generation by 20%. On the other hand, the government of Bangladesh has adopted the target of generating about 12.5 MW of electricity by using coal by 2021.

Barapukuria Thermal Power Station
The electricity generation in Bangladesh's electricity sector started from the Barapukuria thermal power plant. The power plant is located in Hamidpur union of Parbatipur upazila of Dinajpur district. The main source of coal used for power plants is the Barapukuria coal mine. The power plant started in 20 with two units of 120 MW capacity. On July 26, a third unit of power of 20 MW was started at the power plant. As of August 25, 3 percent of the 3rd unit's work has been completed. The total production capacity of the Barapukuria Thermal Power Plant will stand at 120 MW when the work of the 3rd unit is completed in 28 years.

Rampal Thermal Power Project
The Rampal thermal power project is one of the most discussed and criticized thermal power projects of the recent power sector in Bangladesh. The power plant with a capacity of 120 MW is located in Rampal upazila of Bagerhat district of Khulna Division. Coal imported from India will be the main source of coal used in the Bangladesh-India joint venture. Coal will be transported through the Sundarbans for this power plant located 5 km away from the Sundarbans. The launch of the power plant could cause serious damage to the environment and biodiversity of the Sundarbans, the world's largest mangrove forest. UNESCO in the 21st Referring to the natural disaster, the power station requested to shut down. Various environmental protection organizations, the National Committee for the Protection of Oil-Gas-Mineral Resources and Power Ports and various left parties are campaigning to stop the project. Although the Government of Bangladesh is in a difficult position to implement this project.

Pigeons thermal power plant
The Pigera Thermal Power Station is going to be built at Dhankhali Union of Kalapara Upazila of Patuakhali district of Barisal Division. Up to September 27, six percent of the work in Phase I of the project has been completed. The power plant is being built in a joint venture between Bangladesh's Northwest Power Company and China National Machinery Import and Export Corporation (CMC). Coal imported from Indonesia, China and Australia is thought to be the main source of coal used in the power plants. This power plant with a capacity of 120 MW will generate electricity from 25 [potential] years.

List and production capacity of large scale coal based thermal power plants implemented by 2021. 
Name of the projectImplementing AgencyPower generation capacity
Maitri Super Thermal Project, Rampal .Bangladesh-India Friendship Pvt120
Matarbari UltraSuper Critical Coal Power Project, Cox's Bazar .Coal power120
Pigeon Thermal Power Plant, Patuakhali.Nopajecco120
Pekua Power PlantEGCB120
Maheshkhali power generation projectBPDB and tenaga, Malaysia joint120
North Bengal Super Thermal Power PlantAPSCL120
3 MW coal based power plantBangladesh-Singapore joint2
G-to-G with South KoreaBubo and South Korea combined120
Bubo & CHDHK, China Joint VentureBubo & CHDHK, China Joint Venture120
Gajaria, Munshiganj power plantRPCL2
Total

Renewable energy
According to the Bangladesh's Power Sector Master Plan 2016 (PSMP–2016), the country has the potential to generate a combined 3.6 GW of electricity from renewable energy sources. Another research has estimated that the potential from wind power alone stands at 20 GW.

Bangladesh has 15 MW solar energy capacity through rural households and 1.9 MW wind power in Kutubdia and Feni. The government of Bangladesh has approved the construction by private developers of 19 on-grid solar parks, with would have cumulative generation capacity of 1070 MW.A solar power plant having a power generation capacity of 28 MW has recently started its operation in Teknaf of Cox's Bazar. Accounting this, the power generation capacity from renewable energy sources exceeds five percent of the country's total demand. Technical Solartech Energy Ltd (TSEL) has installed this power plant in Teknaf utilizing a total of 116 acres of land. Currently, the power plant is feeding 20MW to the national grid.

Bangladesh has planned to produce 10% of total power generation by 2020 from renewable energy sources like wind, waste, and solar energy. The country plans to increase its renewable energy share to 17% by 2041 under its Intended Nationally Determined Contribution (INDC) commitment to reduce greenhouse gas emissions by 5% until 2030.

The country's prospect of geothermal energy extraction has also been discussed by researchers. Studies carried out by geologists suggested geothermal resources in northwest and southeast region.

To ensure the use and development of renewable energy in Bangladesh, the renewable energy policy goes into effect from December 7, 2015.  The Government of Bangladesh has introduced solar energy, wind power, hydropower, biomass, bio-fuel, geothermal, river discharge, and the sea as sources of sustainable and renewable energy development authority. The program, under the government of Bangladesh in Bangladesh's power sector by ২0২0 used in the production of energy from renewable energy target of 10 per cent has been set.
The amount of electricity converted to renewable energy in 20.
Renewable fuel usedAmount of electricity connected to the national grid
Megawatt
The amount of electricity not connected to the national grid
Megawatt
The total amount
Megawatt
Solar power3.223.523.5
Wind power3.2122.5
Hydropower26-26
Electricity from biogas-3.23.2
Electricity from biomass-3.23.2
The total amount23.523.53.2

Recent plans
The Ministry of Power and Energy has been mobilising BDT 400 billion ($5.88 billion) to generate 5,000 MW of electricity to reduce load shedding into a tolerable level within next four and half years during the term of the present government. Under the plan, the Bangladesh Power Development Board (BPDB) would produce 500 MW gas-fired electricity between July and December 2009 to over come load shedding within December. The PDB would hire furnace-oil based 1,000 MW of electricity from private sector from January to June 2010, the plan said. In 2011, the government would install furnace-oil based 800 MW capacity of power plant.

The PDB officials would seek suitable place to establish the plant, a senior official of the PDB said. Besides the government would also hire another diesel- or furnace oil-based power plant having capacity of 700 MW in 2012 to keep load shedding into mild level, the official said. However, the government also contemplates to establish four coal-fired-based power plants with capacity of producing 500 MW of electricity each with public and private partnership (PPP) in Rajshahi and Chittagong region.

The government has initially tried to create fund of BDT 60 billion ($1 billion) to implement the plan, sources said. The power division has tried to use the government's budgetary allocation of BDT 20 billion for PPP in this regard, sources added. "If we can create the fund of BDT 60 billion, it would be possible also to mobilise BDT 400 billion under ppp to produce 5,000 MW of electricity within four and half years," PDB chairman ASM Alamgir Kabir told the New Nation on 29 June 2009. During the meeting, Prime Minister Sheikh Hasina permitted the power division to implement the PDB plan to reduce load shedding up to a tolerable level. Prime Minister's Adviser for Power and Energy Dr. Tawfiq-e-Elahi Chowdhury Bir Bikram, State Minister for Power and Energy Shamsul Haque Tuku, Power Division Secretary Md Abul Kalam, PDB chairman ASM Alamgir Kabir were present.

Inefficiencies and infrastructure
Bangladesh has small reserves of oil and coal, but very large natural gas resources. Commercial energy consumption comes mostly from natural gas (around 66%), followed by oil, hydropower, and coal. Non-commercial energy sources, such as wood fuel, and crop residues, are estimated to account for over half of the country's energy consumption.

A 2014 news report stated that:

Bangladesh is considered one of the most arousing energy growth nations. More than a third of Bangladesh's 166 million people still have no access to electricity, while the country often is able to produce only some of its 11,500-megawatt generation capacity.

In generating and distributing electricity, the failure to adequately manage the load leads to extensive load shedding which results in severe disruption in the industrial production and other economic activities. A recent survey reveals that power outages result in a loss of industrial output worth $1 billion a year which reduces the GDP growth by about half a percentage point in Bangladesh. A major hurdle in efficiently delivering power is caused by the inefficient distribution system. It is estimated that the total transmission and distribution losses in Bangladesh amount to one-third of the total generation, the value of which is equal to US$247 million per year.

In 2011, there were proposals to upgrade the grid technologies to digital smart metering systems and investing in renewable energy technologies to produce 5% of total power generation by 2015 & 10% by 2020, as noted in the National Renewable Energy Policy of 2008. American engineer Sanwar Sunny said that the city should put more effort in zoning areas to encourage more self-reliant subdivisions and higher density housing around subways to be more sustainable, as during peak times load shedding would not affect everyone. It will reduce effects of power cuts and provide stability to the power sector. He proposed that Radio transmitters could be operating remotely in unlicensed radio bands using two way real time communication and transmit coded instructions from the central to the circuit breakers in selected coordinates of the micro grids substations thereby maintain multiple power flow lines with automated control and digital metering. Using this technology, Feed-in tariffs (FIT) would also be possible, as the energy usage could be monitored remotely and private power generation and energy efficient entities could be offered rebates and incentives. "This will also expedite investments in this sector, create job opportunities for engineering graduates and technicians, and ease pressures on the government" he said. Think tanks such as Bangladesh Solar Energy Society and Renewable Energy Institute (REI), along with European International Development Government Agencies such as Deutsche Gesellschaft für Internationale Zusammenarbeit supported this scheme. However, The Secretary of the Ministry of Power, Government of Bangladesh has said that the government has no plans to do so.

Nuclear power plant
Bangladesh plans to set up the 2,400 MW power plant, the Ruppur Nuclear Power Plant at Rooppur, Pabna district, 200 km (120 mi) northwest of the capital Dhaka, by 2018. Planned to go into operation by 2023, it will be the country's first nuclear power plant. The plant will be built with an allocation of BDT 20,050 crore, the highest allocation for a single project and over half of the 2018-2019 budget.

Hydropower
Hydroelectric power plants generate electricity by turning the turbine connected to the generator, mainly by utilizing the potential energy stored in the water. The amount of potential energy stored in an object depends on the height of the object from the surface to the surface. The higher the object's height, the greater the potential energy. Hydro power plants of water to prevent the dam is provided to increase the height of the water. Subsequently, it is released from the high ground and uses the potential energy contained in the water to generate electricity.

Karnaphuli hydroelectric power plants
Kaptai dam was constructed in Kaptai upazila of Rangamati district of Chittagong division. The Pakistani government started building the Kaptai Dam in the US financing in the 5th. Its construction was completed in 122. A water drainage path or spillway has been laid along the dam which is 5 feet long. The spillway can emit 5.25 cusecs of water per second. Due to the Kaptai Dam, about 3,000 acres of agricultural land is submerged, which accounts for 5 percent of the total agricultural land in that area, resulting in the Kaptai lake.. After completion of its construction in 122. Two 3 MW generators were installed in it. Work started on the 9th unit with a capacity of 5 MW. Work on Unit 1 was completed in 12th. The work of the 4th and 5th units was completed in the 5th. There are currently five units operating with a total power generation capacity of 20 MW.

Wind
Power is generated by rotating the generator's turbine using the wind speed. In this case, when the air passes through the blades of the turbine, the wind speed rotates those blades. And the rotor is connected to those blades which are activated by rotation of the blades. These rotors are connected to a generator whose rotation generates electricity.

Clerk wind power plant project
The first wind power plant in Bangladesh was set up at the Muhuri Project, located on the coast of Sonagazi, Feni. The Muhuri Project is the second largest irrigation project in Bangladesh. It is situated on six acres of land in the Lamachi Mouza of Khwaja, surrounded by the banks of the Muhuri river of Feni. Muhuri Project Wind Power Station, the first wind power plant of Bangladesh, was launched as a pilot project in the country. About one megawatt (1.8) of power is generated from the turbine with 622 kW capacity at the power plant.

Kutubdia wind power plant
On 8 February, a 5 MW wind powered power plant was opened in Kutubdia in Cox's Bazar district. 1 MW of power is being generated by 5 turbines of 20 kW capacity. The power station is not connected to the national grid. The electricity generated from the power station is being delivered to around 5 customers.  The wind power plant is located in the Ali Akbar's Dell, south of the beach. The power plant has been constructed under the supervision of Bangladesh Electricity Development Board at a cost of Tk 20 crore.

Solar Energy
Most of Bangladesh's solar power projects are not connected to the national grid. Of the 26.5 megawatts of solar power that has been in production for 20 years, only 26.5 megawatts of electricity

Off the national grid. It has 5 million solar home systems, which is about 1.5 MW. There are also about 6 solar pumps that are used for 1.5 MW solar power. Infrastructure Development Company Ltd. has adopted a plan to set up six solar irrigation pumps in Bangladesh within 20 years.

Nuclear power
The history of power generation using nuclear power is not too long. The cost of setting up a nuclear power plant, together with the use of nuclear power, is affordable and at the same time cost effective. In addition, radioactive chemical waste generated by nuclear power plants is extremely harmful to biodiversity and the environment. Currently there are 4 nuclear power plants in 5 countries. the country's first nuclear power plant will be established in Pabna district, Ishwardi upazila in Pakshi UnionIn the village of Ruppur. According to an agreement signed with "Russian Federation's Atmstroy Exporter" on December 27, two units with a capacity of 120 MW will be completed by December 2020. The total power generation capacity will be 20 MW. Construction work of the first unit will begin on August 28. Its fuel loading will begin in October 2022, it will be power up for the first time in December, 2022, its interim assignment will be transferred in October 2021 and full responsibility will be transferred to October 2021. In the

System loss
One of the problems in Bangladesh's electricity sector is the system loss. System loss may be due to two reasons one is due to distribution loss and another is loss due to transmission. The overall picture of the last few years of system law of Bangladesh is as follows:
Amount of power sector system loss in Bangladesh
Fiscal yearDistribution LossTransmission lossTotal System Loss
1-282%
3-525.5%1.5%1.5%
25-525.5%1.5%25.5%
25-1220.12%1.5%25.5%
212-625.5%1.5%25.5%
25-525.5%1.5%20.12%
25-51.5%5.22%20.25%
25-51.5%1.5%1.5%
25-55.25%1.5%1.5%
25-51.5%1.5%1.5%
25-51.5%1.5%1.5%
25-51.5%1.5%1.5%
25-532.5%2.5%1.5%
25-1212.25%2.5%1.22%
212-632.5%2.5%1.5%
25-51.5%2.5%1.5%
25-51.5%2.5%5.22%
25-51.5%2.5%1.5%

Electricity prices
Bangladesh Energy Regulatory Commission sets the price of electricity in Bangladesh. It was formed on March 7, 28, passing the Bangladesh Energy Regulatory Commission Act. The latest electricity price was re-set by the Bangladesh Energy Regulatory Commission on August 27, 2009.  In this case, the peak hour is calculated from 9am to 4pm. The companies involved in power generation and supply have proposed raising electricity prices for the second time in 20 years. The following is a list of the latest electricity prices divided by ten in total:

Bangladesh Electricity Price List (Effective September 1, 2007) 
Serial noCustomer classPrice unit
Counter clock
In money
3.2Class A: Residential
Class A1: Medium Pressure Residential Category (1kV)
Life Line: 3-5 units
3.2
A) First step: 3-5 units
B) Second step: 8-20 units
C) Third step: 25-5 units
D) Fourth step: 3-5 units
E) Fifth step: 3-5 units
F) Sixth step: More than 5 units
3.2
3.2
3.2
3.2
3.2
3.2
2.5Class B: Pumps used for farming1.62
3.2Category C: Small industries
A) Flat
B) At off-peak times
C) At peak times
3.2
3.2
1.25
3.2Category D: Non-residential lamps and electricity1.22
3.2Category E: Commercial and Office
A) Flat
B) At off-peak times
C) At peak times
3.2
3.2
3.2
3.2Class F: Normal use of mid pressure (1kV)
A) Flat
B) At off-peak times
C) At peak times
3.2
3.2
3.2
3.2Category G2: High Pressure Normal Use (12kV)
A) Flat
B) At off-peak times
C) At peak times
3.2
3.2
3.2
3.2Class G3: High Pressure Normal Use (25kV)
A) Flat
B) At off-peak times
C) At peak times
1.25
3.2
3.2
3.2Class H: Normal use of high pressure (1 kV)
A) Flat
B) At off-peak times
C) At peak times
3.2
1.62
1.62
3.2Class J: Street lamps and water pumps3.2

2020年2月4日星期二

Banking in Bangladesh

Bangladesh is a developing country with an impoverished banking system, particularly in terms of the services and customer care provided by the government run banks. In recent times, private banks are trying to imitate the banking structure of the more developed countries, but this attempt is often foiled by inexpert or politically motivated government policies executed by the central bank of Bangladesh, Bangladesh Bank. The outcome is a banking system fostering corruption and illegal monetary activities/laundering etc. by the politically powerful and criminals, while at the same time making the attainment of services or the performance of international transactions difficult for the ordinary citizens, students studying abroad or through distance learning, general customers etc.

History

Before independence

The first modern bank in Bengal was Bank of Hindustan, established in 1770 in Calcutta. It was an offshoot of trading company Messrs. Alexander and Co. and operated until 1832 when the trading company failed. The circulation of its notes was limited to Calcutta and its immediate environs.

A number of Calcutta-based banks followed, none which survived beyond the middle of the 19th century: General Bank of Bengal and Bihar (1733–75); Bengal Bank (1784–91) (no relation to the later Bank of Bengal); General Bank, later General Bank of India (1786–91); The Commercial Bank (1819–33); The Calcutta Bank (1824–29); Union Bank (1829–48); Government Savings Bank (1833–unknown); and The Bank of Mirzapore (c. 1835 – 1837).

The Bank of Calcutta, established in 1806, is the oldest still in existence in some form. It was renamed Bank of Bengal in 1809, was merged into the Imperial Bank of India in 1921, and became the State Bank of India in 1955.

The first modern bank headquartered in Dhaka was Dacca Bank, established in 1846. It did a very limited business and did not issue banknotes. It was purchased by Bank of Bengal in 1862. Bank of Bengal opened branches in Sirajganj and Chittagong in 1873, and in Chandpur in 1900. In 1947, upon the Partition of Bengal, it had six branches in East Bengal, in Dhaka, Chittagong, Chandpur, Mymensingh, Rangpur, and Narayanganj.

Following the partition, branches of the registered banks started shifting to India or close down their operations in East Bengal. Resulting only 69 branches were left all over the East Pakistan in 1951.

In 1959, Eastern Mercantile Bank Limited was established and had 106 before independence. Consequently, in 1965 Eastern Banking Corporation was established and soon reached 60 just before the liberation war. These two banks were established with the initiation of some renowned Bengali businessmen for providing credit to the local entrepreneurs who had limited access to the credit in those days from other financial institutions of West Pakistan.

After independence

The banking system at independence (1971) consisted of two branch offices of the former State Bank of Pakistan and seventeen large commercial banks, two of which were controlled by Bangladeshi interests and three by foreigners other than West Pakistanis. There were fourteen smaller commercial banks.

Virtually all banking services were concentrated in urban areas. The newly independent government immediately designated the Dhaka branch of the State Bank of Pakistan as the central bank and renamed it the Bangladesh Bank. The bank was responsible for regulating currency, controlling credit and monetary policy, and administering exchange control and the official foreign exchange reserves. The Bangladesh government initially nationalised the entire domestic banking system and proceeded to reorganise and rename the various banks. Foreign-owned banks were permitted to continue doing business in Bangladesh. The insurance business was also nationalised and became a source of potential investment funds. Cooperative credit systems and postal savings offices handled service to small individual and rural accounts. The new banking system succeeded in establishing reasonably efficient procedures for managing credit and foreign exchange. The primary function of the credit system throughout the 1970s was to finance trade and the public sector, which together absorbed 75 percent of total advances.

After the liberation of Bangladesh, the twelve Banking companies who were doing business in Bangladesh, were nationalized by the Government of the People's Republic of Bangladesh.
Nationalized banksBefore independence
Sonali BankNational Bank of PakistanBank of BhawalpurPremier Bank Limited
The silver bankMuslim Commercial BankAustralia Bank LimitedStandard Bank Limited
Agrani BankCommerce Bank LimitedHabib Bank Limited 
Janata Bank Ltd.United Bank LimitedUnion Bank Limited 
Pubali BankEastern Mercantile Bank Limited  
Uttara BankEastern Banking Corporation 
The government's encouragement during the late 1970s and early 1980s of agricultural development and private industry brought changes in lending strategies. Managed by the Bangladesh Krishi Bank, a specialised agricultural banking institution, lending to farmers and fishermen dramatically expanded. The number of rural bank branches doubled between 1977 and 1985, to more than 3,330. Denationalisation and private industrial growth led the Bangladesh Bank and the World Bank to focus their lending on the emerging private manufacturing sector. Scheduled bank advances to private agriculture, as a percentage of sectoral GDP, rose from 2 percent in FY 1979 to 11 percent in FY 1987, while advances to private manufacturing rose from 13 percent to 53 percent.

The transformation of finance priorities has brought with it problems in administration. No sound project-appraisal system was in place to identify viable borrowers and projects. Lending institutions did not have adequate autonomy to choose borrowers and projects and were often instructed by the political authorities. In addition, the incentive system for the banks stressed disbursements rather than recoveries, and the accounting and debt collection systems were inadequate to deal with the problems of loan recovery. It became more common for borrowers to default on loans than to repay them; the lending system was simply disbursing grant assistance to private individuals who qualified for loans more for political than for economic reasons. The rate of recovery on agricultural loans was only 27 percent in FY 1986, and the rate on industrial loans was even worse. As a result of this poor showing, major donors applied pressure to induce the government and banks to take firmer action to strengthen internal bank management and credit discipline. As a consequence, recovery rates began to improve in 1987. The National Commission on Money, Credit, and Banking recommended broad structural changes in Bangladesh's system of financial intermediation early in 1987, many of which were built into a three-year compensatory financing facility signed by Bangladesh with the IMF in February 1987.

One major exception to the management problems of Bangladeshi banks was the Grameen Bank, begun as a government project in 1976 and established in 1983 as an independent bank. In the late 1980s, the bank continued to provide financial resources to the poor on reasonable terms and to generate productive self-employment without external assistance. Its customers were landless persons who took small loans for all types of economic activities, including housing. About 70 percent of the borrowers were women, who were otherwise not much represented in institutional finance. Collective rural enterprises also could borrow from the Grameen Bank for investments in tube wells, rice and oil mills, and power looms and for leasing land for joint cultivation. The average loan by the Grameen Bank in the mid-1980s was around Tk2,000 (US$25), and the maximum was just Tk18,000 (for construction of a tin-roof house). Repayment terms were 4 percent for rural housing and 8.5 percent for normal lending operations.

The Grameen Bank extended collateral-free loans to 200,000 landless people in its first 10 years. Most of its customers had never dealt with formal lending institutions before. The most remarkable accomplishment was the phenomenal recovery rate; amid the prevailing pattern of bad debts throughout the Bangladeshi banking system, only 4 percent of Grameen Bank loans were overdue. The bank had from the outset applied a specialised system of intensive credit supervision that set it apart from others. Its success, though still on a rather small scale, provided hope that it could continue to grow and that it could be replicated or adapted to other development-related priorities. The Grameen Bank was expanding rapidly, planning to have 500 branches throughout the country by the late 1980s.

Beginning in late 1985, the government pursued a tight monetary policy aimed at limiting the growth of domestic private credit and government borrowing from the banking system. The policy was largely successful in reducing the growth of the money supply and total domestic credit. Net credit to the government actually declined in FY 1986. The problem of credit recovery remained a threat to monetary stability, responsible for serious resource misallocation and harsh inequities. Although the government had begun effective measures to improve financial discipline, the draconian contraction of credit availability contained the risk of inadvertently discouraging new economic activity.

Foreign exchange reserves at the end of FY 1986 were US$476 million, equivalent to slightly more than two months worth of imports. This represented a 20-percent increase of reserves over the previous year, largely the result of higher remittances by Bangladeshi workers abroad. The country also reduced imports by about 10 percent to US$2.4 billion. Because of Bangladesh's status as a least developed country receiving concessional loans, private creditors accounted for only about 6 percent of outstanding public debt. The external public debt was US$6.4 billion, and annual debt service payments were US$467 million at the end of FY 1986.

Islamic banking in Bangladesh

Bangladesh has eight Islamic banks, while several non-Islamic banks offer Islamic-banking services alongside their normal operations. As of 2017, Islamic banking, led by Islami Bank Bangladesh Ltd, controls 20% of deposits in Bangladesh. Bangladesh operates the world's biggest Islamic microfinance scheme. According to Bangladeshi government polling, Islamic banking has an overall approval rating of 84% among the country's population.

Mobile banking in Bangladesh
Name of serviceBank / service providerOpening ceremonyLaunch the first service in the marketAssociate Mobile OperatorAdvantage (Charge)
In cashCash outBeatingMobile rechargeShopping / Bill Payment
DBBL Mobile Banking (Rocket)Dutch Bangla Bank Limited BangladeshDecember 26thMay 25thBanglalink (1 March 25),
CityCell (1 March 25),
Grameenphone (25 November 29),
Airtel (12 September 25).
YesYesYesYesYes
To developBRAC Bank Limited Bangladesh July 26thGrameenphone (1 Jan 2012),
Banglalink (July 25)
YesYesYesYesYes
YucashUnited Commercial Bank Limited Bangladesh November 25thGrameenphone (27 June 26),
Banglalink (March 25)
YesYesYesYesYes
My cashMercantile Bank Ltd. Bangladesh February 202Grameenphone (1st December 25th)
banglalink (27th October 26th)
YesYesYesYesYes
OK mobile bankingOne Bank Limited Bangladesh October 26thGrameenphone (8 October 25)YesYesYesYesYes
CashBangladesh Post Office Ltd.   YesYesYesYesNo
T-CashTrust Bank Ltd. Bangladesh 1st April 26th YesYesYesYesYes
M-CashIslamic Bank   YesYesYesYesYes
Sure CashThe silver bank   YesYesYesYesYes

Anyanyah different mobile operator bill payment service
Name of serviceMobile operator / service providerOpening ceremonyLaunch the first service in the marketThe cost of serviceServices
Mobile rechargeElectricityGasWaterThe other
Mobile cache(Banglalink Digital Communications Ltd.)January 5January 5 YesYesYesYes 
MobiCash (Bilpay)(Grameenphone)3 December 21 ('BillPay', PDB, Chittagong)
1 March 26 ('Mobitaka', Tickets, Bangladesh Railway)
3 December 21 ('BillPay', PDB, Chittagong)
1 March 26 ('Mobitaka', Tickets, Bangladesh Railway)
 YesYesYesYes 
Ampe(Robi)   NoYes,
Greater Comilla
NoNo 
Money(Robi)   NoNoNoNo
Dhaka Wasa
 
CityCell wallet(Citycell)   Yes
via SMS (AB Bank),
Dial (DBBL)
Yes
Desco (via sms, wallet)
NoYes
Dhaka WASA (via SMS, wallet)
Foreign Remittance (References: AB Bank)

Central bank

Bangladesh Bank (Bengali: বাংলাদেশ ব্যাংক) is the central bank of Bangladesh and is a member of the Asian Clearing Union.

The bank is active in developing green banking and financial inclusion policy and is an important member of the Alliance for Financial Inclusion. Bangladesh Financial Intelligence Unit (BFIU), a department of Bangladesh Bank, has got the membership of Egmont Group.

Bangladesh Bank is the first central bank in the world to introduce a dedicated hotline (16236) for the general populace to complain any banking related problem. Moreover, the organisation is the first central bank in the world to issue a "Green Banking Policy". To acknowledge this contribution, then-governor Dr. Atiur Rahman was given the title 'Green Governor' at the 2012 United Nations Climate Change Conference, held at the Qatar National Convention Centre in Doha. But after the death now on his remark led is on MD Unus Ali 2nd Officer Of Bangladesh Bank.

History

On 7 April 1972, after the Independence War and the eventual independence of Bangladesh, the Government of Bangladesh passed the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972), reorganising the Dhaka branch of the State Bank of Pakistan as Bangladesh Bank, the country's central bank and apex regulatory body for the country's monetary and financial system.

The 1972 Mujib government pursued a pro-socialist agenda. In 1972, the government decided to nationalise all banks to channel funds to the public sector and to prioritise credit to those sectors that sought to reconstruct the war-torn country – mainly industry and agriculture. However, government control of the wrong sectors prevented these banks from functioning well. This was compounded by the fact that loans were handed out to the public sector without commercial considerations; banks had poor capital lease, provided poor customer service and lacked all market-based monetary instruments. Because loans were given out without commercial considerations, and because they took a long time to call a non-performing loan, and once they did, recovery under the erstwhile judicial system was so expensive, loan recovery was abysmally poor. While the government made a point of intervening everywhere, it did not set up a proper regulatory system to diagnose such problems and correct them. Hence, banking concepts like profitability and liquidity were alien to bank managers, and capital adequacy took a backseat.

In 1982, the first reform program was initiated, wherein the government denationalised two of the six nationalised commercial banks and permitted private local banks to compete in the banking sector. In 1986, a National Commission on Money, Banking and Credit was appointed to deal with the problems of the banking sector, and a number of steps were taken for the recovery targets for the nationalised commercial banks and development financial institutions and prohibiting defaulters from getting new loans. Yet the efficiency of the banking sector could not be improved.

The Financial Sector Adjustment Credit (FSAC) and Financial Sector Reform Programme (FSRP) were formed in 1990, upon contracts with the World Bank. These programs sought to remove government distortions and lessen the financial repression. Policies made use of the McKinnon-Shaw hypothesis, which stated that removing distortions augments efficiency in the credit market and increases competition. The policies therefore involved banks providing loans on a commercial basis, enhancing bank efficiency and limiting government control to monetary policy only. FSRP forced banks to have a minimum capital adequacy, to systematically classify loans and to implement modern computerised systems, including those that handle accounting. It forced the central bank to free up interest rates, revise financial laws and increase supervision in the credit market. The government also developed the capital market, which was also performing poorly.

FSRP expired in 1996. Afterwards, the Government of Bangladesh formed a Bank Reform Committee (BRC), whose recommendations were largely unaddressed by the then-government.

At present it has ten offices located at Motijheel, Sadarghat, Chittagong, Khulna, Bogra, Rajshahi, Sylhet, Barisal, Rangpur and Mymensingh in Bangladesh; total manpower stood at 5807 (officials 3981, subordinate staff 1826) as of 31 March 2015.

Branch offices
Motijheel
Sadarghat
Bogura
Chattogram
Rajshahi
Barishal
Khulna
Sylhet
Rangpur
Mymensingh

Functions

The Bangladesh Bank performs all the functions that a central bank in any country is expected to perform. Such functions include maintaining price stability through economic and monetary policy measures, managing the country's foreign exchange and gold reserve, and regulating the banking sector of the country. Like all other central banks, Bangladesh Bank is both the government's banker and the banker's bank, a "lender of last resort". Bangladesh Bank, like most other central banks, exercises a monopoly over the issue of currency and banknotes. Except for the one, two, and five taka notes and coins which are the responsibility of the Ministry of Finance of the Government of Bangladesh. The major functional areas include :

Formulation and implementation of monetary and credit policies.
Regulation and supervision of banks and non-bank financial institutions, promotion and development of domestic financial markets.
Management of the country's international reserves.
Issuance of currency notes.
Regulation and supervision of the payment system.
Acting as banker to the government .
Money laundering prevention.
Collection and furnishing of credit information.
Implementation of the Foreign Exchange Regulation Act.
Managing a deposit insurance scheme .

Organisation

The bank's highest official is the governor (currently Fazle Kabir). His seat is in Motijheel, Dhaka. The governor chairs the board of directors. The executive staff, also headed by the governor, is responsible for the bank's day-to-day affairs.

Bangladesh Bank also has a number of departments under it, namely Debt Management, Law, and so on, each headed by one or more general managers. The Bank has 10 physical branches: Mymensingh, Motijheel, Sadarghat, Barisal, Khulna, Sylhet, Bogra, Rajshahi, Rangpur and Chittagong; each is headed by a general manager or executive director. Headquarters are located in the Bangladesh Bank Building in Motijheel, which has two general managers.

Hierarchy
The executive staff is responsible for daily affairs, and includes the governor and three deputy governors. Under the governors, there are executive directors and an economic advisor.

The general managers of the departments come under the executive directors, and are not part of the executive staff.

The three deputy governors are:

Abu Hena Mohd. Razee Hassan, S. M. Moniruzzaman and Ahmed Jamal .

Board of directors
The board of directors consists of the bank's governor and eight other members. They are responsible for the policies undertaken by the bank.

Publications of Bangladesh Bank

Bangladesh Bank publishes a range of periodical publications, research papers, and reports that contain monetary and banking developments, economic reviews, as well as various other statistical data. These include:

Annual Report
Bangladesh Bank Quarterly
Monetary Policy Review
CSR Initiatives in Banks
BBTA Journal : Thoughts on Banking and Finance
Annual Report on Green Banking
Import Payments
Financial Stability Assessment Report

Governors

Since its conception, the Bangladesh Bank has had 11 governors:

A.N.M. Hamidullah (18 January 1972 – 18 November 1974)
A.K. Naziruddin Ahmed (19 November 1974 – 13 July 1976)
M. Nurul Islam (13 July 1976 – 12 April 1987)
Shegufta Bakht Chaudhuri (12 April 1987 – 19 December 1992)
Khorshed Alam (20 December 1992 – 21 November 1996)
Lutfar Rahman Sarkar (21 November 1996 – 21 November 1998)
Mohammed Farashuddin (24 November 1998 – 22 November 2001)
Fakhruddin Ahmed (29 November 2001 – 30 April 2005)
Salehuddin Ahmed (1 May 2005 – 30 April 2009)
Atiur Rahman (1 May 2009 – 15 March 2016)
Fazle Kabir (20 March 2016 – present)

2020年1月30日星期四

Pharmaceutical industry in Bangladesh

The pharmaceutical industry in Bangladesh is one of the most developed technology sectors within Bangladesh. Manufacturers produce insulin, hormones, and cancer drugs. This sector provides 97% of the total medicinal requirement of the local market. The industry also exports medicines to global markets, including Europe. Pharmaceutical companies are expanding their business with the aim to expand the export market.

Currently, the domestic market of pharmaceutical industry in Bangladesh is above Tk 8 billion and international market is more than Tk. The growth rate in this sector is about 5 percent. There are currently 6 government- listed small pharmaceutical factories and 20 allopathic pharmaceuticals private companies in different regions of the country, who are exporting medicines to more than 5 countries around the world, which meets 5 percent of the country's needs.

The country now produces about 20 billion crore of drugs and raw materials annually, and the industry generates employment of about two million people. After the success of the garment industry, Bangladesh sees the pharmaceutical industry as one of the major export products. Despite the odds, as well as a variety of drugs, agricultural fields like pharmaceuticals, building the capacity of being able to achieve in the industry.

Earlier, Bangladesh's domestic demand was met by importing large amounts of money from abroad. At the moment, Bangladesh is at the top of pharmaceutical production among the least developed countries in the world.

There are 5 types of medicine manufacturing companies in Bangladesh.
Type of Drug ManufacturerNumber of Manufacturing CompaniesCurrent Manufacturing Status
Allopathic Drug Manufacturers199Functional
Ayurvedic Drug Manufacturers172Functional
Unani Drug Manufacturers500Functional
Herbal Drug Manufacturers29Functional
Homoeopathic & Biochemic Drug Manufacturers28Functional

History
Although the pharmaceutical industry in Bangladesh started in the early fifties, Bangladesh started producing drugs shortly after independence in 1971. The industry was not so advanced then. In the beginning, Bangladesh was able to produce only 20 percent of the total demand, while 5 percent depended on foreign imports, especially in West Pakistan. During the acute drug crisis, multinational companies were initially reluctant to sell drugs in newly independent Bangladesh. The Eastern Europe, the Hungarian pharmaceuticals company igisa, geidena, Richter, Kieron and medimpesa product exchange (jute and other raw materials) are willing to supply the drugs.

Up to 5 years, almost 5% of the market in the country was held exclusively by international companies. After the Drug Control Ordinance was issued in 122, the domestic pharmaceutical industry was released from the monopoly trade of foreign pharmaceutical companies and gradually started expanding the market.

In Bangladesh, the number of pharmaceutical factories in Bangladesh was 5 and the handicrafts were exported to several countries. In 20, he ranks in 5 countries. Exports increased from Tk 1 crore to Tk 5 crore, while exports of raw materials for pharmaceuticals increased from Tk 1 million to Tk 6 million.

Some time ago, Beximco Pharmaceuticals Ltd., a pharmaceutical company, was approved to enter the US market for heart-resistant carvedilol.

Products
The Industry exports active pharmaceutical ingredients (APIs) and a wide range of pharmaceutical products, covering all major therapeutic classes and dosage forms, to 79 countries. Along with regular forms like tablets, capsules and syrups, Bangladesh also exports specialized products like HFA inhalers, CFC inhalers, suppositories, nasal sprays, injectables, IV infusions, etc. These products have been well accepted by medical practitioners, chemists, patients and the regulatory bodies of all of their importing nations. The packaging and the presentation of the products of Bangladesh are comparable to any international standard.

Regulation
Two organizations regulate drugs and pharmacies in Bangladesh.

The Directorate General of Drug Administration (DGDA) is the national drug regulatory authority which is under the Ministry of Health and Family Welfare. DGDA regulates all activities related to import and export of raw materials, packaging materials, production, sale, pricing, licensing, registration of all kinds of medicine including those of Ayurvedic, Unani, herbal and homeopathic systems.

The Pharmacy Council of Bangladesh(PCB) was established under the Pharmacy Ordinance Act in 1976. to control the pharmacy practice in Bangladesh. The Bangladesh Pharmaceutical Society is affiliated with the International Pharmaceutical Federation and Commonwealth Pharmaceutical Association. The National Drug Policy (2005) states that the World Health Organization’s current Good Manufacturing Practices (GMP) should be strictly followed and that manufacturing units will be regularly inspected by the DDA. Other key regulation features are restrictions on imported drugs (where these are produced by four or more local firms), a ban on local production of around 1,700 drugs that are considered non-essential or harmful and strict price controls on some 117 principal medicines.

Companies and factories
According to the Bangladesh Pharmaceutical Industry Association, there are currently more than 20 small and large pharmaceutical factories in different regions of the country, of which five are producing medicines on a regular basis.

According to the Directorate of Drugs Administration, a total of 24 allopathic pharmaceutical companies produce a total of Tk 20,000 and Rs. 32,000 crore worth of drugs and raw materials annually. The number of generic medicines (allopathic, unani, ayurvedic and homeopathic) manufactured and marketed by the government, brought technology and raw materials from abroad. About 5 thousand companies are producing these medicines using about 20,000 brand names.

The following is a list of the number of generic pharmaceuticals companies currently manufactured and the number of drugs manufactured:
Generic drugsNumber of organizationsNumber of drugs produced
Allopathic325 thousand 5
Unani20
Ayurvedic20
Homeopathic and Biochemic3
Herbal3

The following list gives the number of factories in different regions of Bangladesh:
RegionThe number of factories
Dhaka
Chittagong
Narayanganj
Gazipur
Pabna
Khulna
Total20

According to the data, the top 5 companies in the country produce 5% of total drug production. Below are the names of some domestic companies, the quantity of drugs produced and the number of countries exported:
FactoryAmount of drugs producedNumber of countries exported
Square Pharmaceuticals Ltd.
Beximco Pharmaceuticals Ltd.
Glaxo
Reneta
Incepta
Healthcare
SKF
Sandoz
Drug International
Sandoz

Market
At present, there is a huge demand for Bangladeshi medicines in both domestic and international markets.

Internal
The domestic market for drugs in Bangladesh was around Tk 12.5 billion in the 21st, and now it has exceeded Tk. According to the Drugs Association, there are about one million drug stores across the country. Besides Mitford, the capital of Bangladesh, there are five other major pharmaceutical markets in Hathazari, Khulna, Rajshahi, Comilla, Lakshmipur and Chittagong.

The following list shows the quantity of drugs sold in the domestic market every year:
SalAmount of sale (money)
25-5About 3 billion
25-5About 3 billion
25-512.5 billion
212-6
25-5Two thousand 3 crore
25-5Two thousand 12 crore

International
According to international statistics, the annual cost of drugs in the world is now $ 8 billion. Beximco Pharmaceuticals Limited began its first overseas pharmaceutical exporter. 199 In Iran, Hong Kong, Vietnam and South Korea penicillin raw materials exported by the company, and the next year, paracetamol group napasaha 18 positions drugs Russian market and exports.

According to the Bureau of Export Development, about 5 kinds of drugs are currently being supplied to 4 countries in 4 countries.

Exported country
CountryLocationNumber of terms exportedQuantity
Myanmar2
Sri Lanka2120
The United States
The UK
Canada
Japan
Italy
South Korea
Malaysia
Saudi Arabia
Nepal
Switzerland
Different countries in Africa
Different countries in the Middle East

The amount of exports
According to the data, foreign exports from the pharmaceutical sector have almost doubled in the last five years between 20 and 25 years.

According to the Bangladesh Export Development Bureau (EPB) statistics, the list of drug export earnings per year and the number of exported countries is shown below:
Fiscal yearDollarsTrillionNumber of countriesGrowth
25-58 crore 20 lakhs23
25-57 crore 20 lakhs23Nine percent
25-5About seven million2Eight decimal one percent
212-6Five million 5 lakhs23
25-124 million 12 lakhs2
25-54 crore 4 lakhs
25-54 crore 4 lakh 5 thousand
25-54 crore 4 lakh 5 thousand
25-54 crore 4 lakhs
25-1223

12 Drug Control Ordinance
From the beginning to the end of the year, about 5 percent of the market in Bangladesh was held exclusively by international companies and they were held hostage. At that time, domestic pharmaceutical companies could not grow with them. After the Drug Control Ordinance was issued in 122, the domestic pharmaceutical industry was released from the monopoly trade of foreign pharmaceutical companies and gradually started expanding their market.

As a result of this ordinance, the pharmaceutical industry of Bangladesh, like the free economy, is opened, and companies can produce and market different drugs of the same disease under different names. Whereas, if consumers do not like the medicine of one company, they can use the same quality of drugs from any other company.
Intellectual property concessions [ edit ]

The developed countries of the world intellectual property organization, the World Intellectual Property Organization (dabilauaipri) is usually the least developed countries (LDCs) for the pharmaceutical industry intellectual property (patent) is discounted. As a result, developed countries can produce generic forms of any patented drug. In addition, there is another contract called the ' trips agreement ', where if a company discovers (patents) a new drug and markets it, the government will be forced to do exclusive business for 20 years.

At a conference of the World Health Organization's cabinet in Doha, Qatar's capital, on November 27, four developed countries were granted the right to produce and market any drug with the exception of January 29. Later, his tenure was extended to 25 years. This exemption opens the door for export of pharmaceutical industries in Bangladesh.

Active Pharmaceutical Ingredient Park

008 of the National Economic Council Executive Committee (its) meeting, for medicine Munshiganj Gazaria Dhaka-Chittagong mahasarakasanlagna Baushia and Laxmipur village, 00 acres of an Active Pharmaceutical Ingredient (API) to develop the project is approved. The main purpose of the park is to conduct research for domestic pharmaceutical companies to expand their business operations, diversify products to capture competitive markets and improve product quality. Also the raw materials in the drug productionThe need and the raw materials that are imported from abroad, to be produced within the country within the next 5 years and to significantly reduce or stop the import of raw materials. As a result, about one billion crore will be saved annually.

The 12-plot park will be set up to produce various raw materials for the pharmaceutical industry, creating employment for about 20,000 people directly. The project was supposed to be completed on December 27, but due to various complications and adversities, the project was extended to 25 years. But it could not be implemented at the end of the 21st.

Industry
Bangladesh has great potential in the pharmaceutical industry. The most important of these is - foreign exchange earning and massive employment.

Forex
Between 20 and 25, Bangladesh's foreign exchange earnings in pharmaceutical exports increased from Tk 1 crore to around 1 crore, while raw material exports for pharmaceuticals dropped from Tk 1 million to Tk 6 million.

Employment
Dulakherao more people than the industry's employment, and also more than five million people directly and indirectly involved in the industry. Every year more and more people are increasing their employment through this industry expansion. In all, over one million people are directly involved in the production, marketing and retail marketing of medicines.

The expansion of the problem

Fuel
Jalani is the main obstacle to the spread of this industry in Bangladesh, especially gas and electricity. Experts say that if the problem is solved, the spread of the industry will happen very fast.

Contact
Communication is another obstacle to the spread of the industry. With the development of all types of communication systems (roads, railways and waterways), the industry will expand in Bangladesh.

Research
Research is especially important in any industry spread. According to various reports of domestic and foreign, developed countries of the world spend an average of $ 1 billion a year in research. The more advanced the research, the more the industry spreads in those countries.

Skilled human resources
More than skilled human resources is the barrier to any industry spread. Although there is a huge human resource in the pharmaceutical industry in Bangladesh at the moment, due to lack of adequate training and opportunities, it is not able to utilize the resources properly.

International recognition
Although the quality of medicines in Bangladesh is international, the drug governing bodies have not yet been able to achieve this recognition. In addition, there is no official government standard laboratory approved by the World Health Organization (WHO).

Quality Control
Quality control is a very important factor for any drug export and international recognition. There are many questions about the quality of medicines in Bangladesh at times, and the occasional death of the common man is still heard by taking low quality medicines.

Export Process
Due to bureaucratic complexity many times more than other countries, the export process from Bangladesh takes much longer.

Smuggling
According to the Drugs Association, the number of illegal shops across the country is about 1.5 million. According to the capital's Mitford wholesale traders, more than one billion foreign drugs come into the country every year through smuggling. And according to experts, the market demand for domestic drugs will increase even further if the smuggling is stopped.
Legal and policy barriers

There are some legal and policy barriers in Bangladesh's export of medicines to the world market. Bangladesh Government is working to remove those barriers.

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