The Mineral Industry Of Other Areas Of The Far East And South Asia - Bangladesh

The mineral industry of Bangladesh was totally dominated by natural gas production and its downstream uses. A small amount of cement was produced, and clays were used locally for ceramics and construction materials. Nitrogenous fertilizer was produced from natural gas and a modest, scrap-based steel industry produced steel for local consumption. The country has been developing and using its abundant and inexpensive gas reserves as fast as practical. The population, however, was predominantly dependent on agriculture for its livelihood. The industrial sector accounted for 10% of the economy, and most of the industrial output was directly associated with agricultural products jute, tobacco, and textiles. Industrial expansion, even with the availability of gas, was severely constrained because of limited domestic demand, lack of skilled work force and management, poor infrastructure, and a low rate of domestic savings. To put greater emphasis on the industrial sector, the Government established a National Committee for Industrial Development in July. The Committee instituted policy reforms in the areas of trade and investment. One important step was to move from a positive import list to a negative list, thereby permitting imports of items not restricted or banned. The system for recovering and approving new domestic or foreign industrial investments was streamlined to expedite what had become a cumbersome, bureaucratic exercise. To encourage industrial development in areas away from the crowded urban centers, several economic incentives reportedly were adopted. These included a reduced tax rate on imported machinery, exemption of import license fees, a reasonable debt equity rate, and a 9-year income tax exemption period.2 In the trade sector, imports increased 12% in fiscal year (FY) 19843 mainly