comparison of pakistani and Bangladeshi culture

8/13/2019 comparison of pakistani and Bangladeshi culture

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Culture

Culture, comes from the Latin word cultura which means ‘to cultivate’. It generally refers to

patterns of human activity and the symbolic structures that give such activities significance and

importance. Cultural Anthropologists most commonly use the term"culture" to refer to the

universal human capacity and activities to classify, codify and communicate their experiences

symbolically. This capacity has long been taken as a defining feature of humans.

Culture can be defined as all the ways of life, arts, beliefs and institutions of a population that

are passed down from generation to generation. Culture has been called "the way of life for an

entire society." As such, it includes codes of manners, dress, language, religion, rituals, norms of

behavior such as law and morality, and systems of belief as well as the art. Culture is also

manifested in music, literature, lifestyle, painting and sculpture, theater and film and similar

things.

Culture of Pakistan

Pakistan has a wealthy cultural and ethnic background going back to Indus Valley Civilization, 2800

BC – 1800 BC. The society of Pakistan comprises of numerous diverse cultures from the

Punjabis and Sind his in the east to the tribal cultures of the easternmost of Pakistan's

provinces.

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To understand the culture of Pakistan properly, one must have a sound knowledge of Pakistan’s

history and geography. This is because the culture of Pakistan has been greatly influenced by

the surrounding cultures of India, Central Asia and the Middle East.

Geography of Pakistan:

Pakistan is situated in the western part of the Indian subcontinent, with Afghanistan and Iran on the

west, India on the east, and the Arabian Sea on the south. The name Pakistan is derived from

the Urdu words Pak (meaning pure) and Stan (meaning country). It is nearly twice the size of

California.

History of Pakistan In Relation To The Culture of Pakistan:

Pakistan in ancient times was a major cultural hub, the home of ancient civilizations, including the

Indus Valley Civilization, the foundation of Indian culture. Many cultural practices and

monuments have been inherited from the rule of many rulers of the region that have added

their cultural traditions to the region. One of the most influenced cultures being the Mughals.

The region of Pakistan has been invaded in the past, occupied and settled by many different people,

including Aryans, Greeks, White Huns, Arabs, Turks, Mongols and various Eurasian groups. And

indeed the region has

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formed a distinct cultural unit within the main cultural complex of South Asia from earlier

times.



There are differences in culture among the different ethnic groups in matters such as dress, food,

and religion, especially wherepre-Islamic customs differ from Islamic practices. The cultural

origins come from the civilizations of India and eastern Afghanistan, with significant influences

from Persia, Turkestan and Hellenistic Greece. However, it was the first part of the

subcontinent to receive the full impact of Islam. Hence, it has developed an identity of its own.

Ancient sites in Pakistan include Buddhist monuments, Hindu/Buddhist temples, Palaces and

Monuments built by Emperors, tombs, pleasure grounds and Anglo-Mogul mansions - some in a

state of dereliction which makes their former grandeur more emphatic. Sculpture is dominated

by Greco-Buddhist friezes, and crafts by ceramics, jewellery, silk goods and engraved woodwork

and metalwork.

Pakistani society is largely multilingual and multicultural. Though cultures within the country differ

to some extent, more similarities than differences can be found as most Pakistanis are of mainly

Aryan heritage. However, over 50 years of integration, a distinctive "Pakistani" culture has

sprung up especially in the urban areas.

Education is highly regarded by members of every socio-economic stratum. The traditional family

values are highly respected and considered sacred, although urban families have grown into a

nuclear family system, owing

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to the socio-economic constraints imposed by the traditional joint family system.

Dress:

Women wear brightly colored shalwar kameez with embroidery for special occasions such as

weddings while men often wear solid colored shalwar kameez, usually with a sherwani, a coat

that goes over the shalwar kameez.

http://en.wikipedia.org/wiki/Sherwani





Literature - Poetry:

The Urdu language has an old tradition of poetry and includes famous poets as Mirza Ghalib, Allama

Iqbal and Faiz Ahmad Faiz national Poet of Pakistan. Apart from Urdu poetry, Pakistani poetry

also has many blends of other languages. Balochi Poetry, Persian poetry, English poetry, Punjabi

poetry and Kashmiri poetry have all incorporated and have influenced the different kinds of

poetry in the region.

Music:

Pakistani music is represented by a wide variety of forms. It ranges from traditional styles (such

as Qawwali) to more modern forms that try to fuse traditional Pakistani music with western

music. Nusrat Fateh Ali Khan was internationally renowned for creating a form of music which

synchronized Qawwali with western music. Popular forms of music also prevail, the most

notable being Film music and Urdu and Punjabi Pop music. In addition to this are the diverse

traditions of folk music, as well as modern styles such as Rock.

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Drama and theatre:

These are very similar to stage plays in theatres. They are performed by many well-

known actors and actresses in the Lollywood industry. There are many types of themes that are

brought across with lots of humor. The themes that are bought across are from a huge range of

events that take place in ones life.

Sports:

The official and national sport of Pakistan is field hockey, although squash and cricket are also

very popular. The national cricket team has won the Cricket World Cup once (in 1992).



Cuisine:

The culinary art in Pakistan comprises a mix of Middle Eastern, Indian, Persian, and Turkish

cuisine that reflects the country's history as well as the variation of cooking practices from

across the surrounding regions. Urban centres of the country offer an amalgamation of recipes

from all parts of the country whereas food with specific local ingredients and tastes is available

in rural areas and villages. Besides the main dishes of curry with or without meat cooked in

vegetables or lentils, there are a number of provincial specialties such as karahi, biryani and

tikka which are served in various forms, flavours and tastes and are eaten alongside a variety of

breads such as naan, chappati and roti. There are also local forms of grilled meat or Kebabs,

desserts as well as hot and cold drinks.

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Festivals

Jashn-e-Baharan:

Jashn-e-Baharan also referred to as Basant is a pre-Islamic Punjabi festival that marks the coming of

spring. Celebrations in Pakistan are centered in Lahore and people from all over the country

and abroad come to the city for the annual festivities. Kite flying competitions take place all

over the city's rooftops during Basant. The fertile province of Punjab was intimately tied via its

agriculture to the different seasons of the year. The arrival of Spring was an important event for

all farmers and was welcomed with a celebration, hence the origins

of Jashn (celebration) Baharan (spring).

Norouz:

This festival is like Norouz of Iran, Afghanistan and Central Asia. In Northern Pakistan (Chitral,

Gilgit and Baltistan) Norouz is celebrated as a socio-religious festival. It is also celebrated with



much fervour in Balochistan and in the urban centres of Karachi and Lahore. The day coincides

with the Spring Equinox on March 21, but the celebration continues for weeks. In Baltistan, the

main feature of Norouz is gifting of coloured eggs to friends and polo matches. While in

Balochistan, the festival is marked with outdoor feasts, and the traditional jumping over a fire

to wash away sins and usher in a fresh start. The origins of this festival are pre- Islamic and date

back to when Pakistan was part of the Achaemenid/Persian empire for several thousand years.

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Independence Day:

On August 14, the people of Pakistan celebrate the day Pakistan gained its independence from

the British Raj for an independent state for Muslims. There are many celebrations all over the

country, the streets are full of joyful people singing and dancing. Concerts are held with many

pop and classical singers. Parades are held in the capital city (Islamabad). Many people

decorate their houses and fly the flag of Pakistan. At night, fireworks are used in many cities.

Many people pray for the country and think how proud they are to be Pakistanis.

Defense Day Parade:

September 6 is another patriotic day, when the Army of Pakistan is put on display for the

general public to show Pakistan arms. All Government officials attend the ceremony and

medals and recognitions are awarded to special people for their work. In March of 2007,

Pakistan Air Force (PAF) put on display the new joint manufactured Chinese-Pakistani aircraft

called the JF-17 Thunder.

Muharram (Ashura):

In Pakistan, the first ten days of Muharram are observed officially. The 10th of Muharram is

celebrated in the memory of Hussain, the grandson of Muhammad, who was killed, along with

72 family members, friends and followers during the Battle of Karbala.



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Milaad un Nabi:

Milaad un Nabi is a known religious festival which is celebrated in many parts of Pakistan. The

Milaad is the celebration for the birthday of the Islamic prophet Muhammad.

Chand Raat:

After an Islamic month of fasting, Ramadan, just the night before Eid comes, everyone gets

ready for Eid. In the night known as Chand Raat, girls put henna on their hands. Most people

have parties at their house. People go out for the last minute shopping for gifts and sweets that

will be given to friends and families. Even outside at the malls and the plazas, there are many

colourful lights. There are large crowds in the city center to celebrate the beginning of Eid.

Eid celebrations:

The two Eids, Eid ul-Fitr and Eid ul-Adha commemorate the passing of the month of fasting,

Ramadan, and the willingness of Ibrahim to sacrifice his son Ishmael for God. During these days

there are national holidays and many festivals and events take place to celebrate Eid. As

Pakistan is a Muslim state, there are three days off for all businesses and Government offices.

On the night before Eid, people search for the new moon to mark the end of Ramadan and

arrival of Eid ul-Fitr. The day starts with morning prayers, then returning home for a large

breakfast with family members. The day is spent visiting relatives and friends and sharing gifts

and sweets with9

everyone. During the evening people hit the town for some partying, going to restaurants or

relaxing in city parks.

On Eid ul-Fitr, money is given for charity and as gifts to young children.



Religion:

As can be seen from the festivals and from the symbolic flag of Pakistan, the majority (97% of

the population) residing in Pakistan follows the religion of Islam. Other religions such as

Christianity, Hinduism are common in only 3% of the population. Thus, Islam is the main

religion.

Ethnic Culture & Islam

Islam is a religion. But, to many Pakistanis, Islam is a culture because Pakistan was established

on the fundamental principles of Islam. The majority of Pakistani Muslims, however, confuse

between what is religion and what is culture. They take both as one and the same and, on many

an occasion, practice religion as if it was part of the Pakistani culture, or adopt some of the old

cultures thinking they are doing an Islamic thing.

Islam is very specific and explicit. Islam is the ultimate and everything else comes later.

Some Pakistanis were Hindus long before they became Muslims. They became Muslims not

through the influence of the Arabs, but through the influence of other Muslim merchants. That

is why our brand of Islam is the

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same as in India or Malay or Bengal and we find some differences when comparing our

practices to that of the Middle Eastern Muslims.

The nation at that time owed their loyalty to the Sultans. When the Sultans converted to Islam

the nation followed suit without any questions asked. They became Muslims due to the

tradition of loyalty to the Sultans rather than because they were committed to the religion. The



people were just doing what the Sultan asked. The old cultures and traditions were retained

and practiced side-by-side with Islam. Thus, the early Pakistani Muslims were one confused lot

of people and, to some extent, this confusion still remains.

In fact, you can still see aspects of Hindu culture in our so-called"Islamic" practices. Take the

lighting of lanterns on the last seven nights before the end of Ramadan. This is modeled after

the Hindu religious celebration of Deepavali, the festival of the lights.

Summary

Pakistani culture is the unique pattern of belief, ideas, values highly influenced by religion of

Islam. Islam in Pakistan set the code of ethics for the cultural life of Pakistan. Religious practices

of various faiths are an integral part of everyday life in society.

Political Environmental Risk:

Before the global recession took place, there was considerable amount of investment in

Pakistan as it had a liberal investment policy. However, nowadays the investment scenario has

drastically changed with Pakistan losing its attraction to foreign, as well as domestic investors,

due to the rising costs of doing business. There are a number of factors due to which investors

hesitate to invest in Pakistan, global recession being one of them. The other main reasons

consist of political instability, deteriorating law and order situation, high interest rates, and

frequent power and gas outages. The recent increase in power and gas tariffs is likely to put an

additional burden on the country’s industrial sector and squeeze the gross margins of

industries. The local manufacturers forecast more job losses over the next one year.

In Pakistan lack of capital is a major obstacle in the way of establishment of heavy industries.

The Pakistani society is mostly consumer oriented so the savings rate is hardly 13 to 14 per

cent, which is very low. On the other hand, banks follow stern conditions and tiresome

procedures while advancing loans to consumers. Mostly bank loans are granted to affluent

persons while the smaller businessmen are dejected in a number of ways, for example, by

charging higher interest rates. Pakistan is perhaps one of the few countries in the Asian region



where the interest rates are very high. The country lags behind its neighbours in economic

development and exports due to high interest rates and energy crisis. As compared to the 12.5

per cent interest rate in Pakistan, India’s current interest rate is at 4.7 per cent, Japan 0.1 per

cent and China 5.31 per cent, thus one can clearly see the difference.

The State Bank of Pakistan (SBP)’s high policy rate has not only added to the rising business

costs, but has also enlarged the size of non- performing loans (NPS) to almost Rs13,448 million

(as recorded on 30th October 2009). The effect of the high interest rates resulted in losses for a

number of industrial units.

Terrorism is yet another reason causing huge losses to the industrialised and trading sectors.

The army is attacking the northwestern strongholds of the militants, who have responded with

suicide bombings in towns and cities. The marble industry in the Frontier province and the

tribal areas is severely hit by the ongoing militancy. All Pakistan Marble Mining Processing

Industry and Exporters Association (APMMPIEA) revealed that 300 marble units have closed

down and 250 more are on the verge of closure. The industry is said to have shed over 50,000

jobs already.

The rising political obstacles in the country are having a negative impact on the economy and

stock business. President Asif Ali Zardari is under criticism from opposition parties after the

Supreme Court struck down a reprieve that had protected the increasingly unpopular leader

and several of his political allies from corruption charges. The ambiguity regarding corruption

cases against some sitting ministers, advisors and members of parliament has created

uncertainty among the businessmen. Pakistan witnessed many obstacles since the February

18th polls that took place in the year 2008, including restoration of deposed Supreme Court

judges and the frequent clashes that occurred between the coalition government and former

President Pervez Musharraf. After Musharraf’s exit in August 2008, the differences between

Pakistan Peoples Party (PPP) and Pakistan Muslim League-Nawaz (PML-N), the two majorpolitical parties of the nation widened.

Under the IMF demand, the government decided to increase the power tariff by 18 per cent in

two phases this year, i.e. 12 per cent in January and six per cent in April. The move will bring the

already poor performing industries to suffer more. The high tariff and excessive power

shortages have enhanced the cost of doing business and badly affected the industrial

production and trading activities in the country. The country’s export oriented industry is

unable to ensure timely deliveries to its foreign buyers. The loss of export orders has now

become a routine, and a large number of importers from US and European Union countries

have switched their orders to other regional countries.

Cost of doing business in Pakistan has been increased further by poor infrastructure. Transportdepends on CNG and oil; both prices have recently risen to a higher level. Pakistan is producing

about 20 per cent of its oil requirement. But due to failing efforts to find new reserves and its

lavish consumption, this percentage seems to fall in the coming years.

The trivial viewpoint that a higher tax rate will generate more tax revenue holds not much logic

in the age of diversified business environment. Prevailing business tax rate of 35 per cent is

excessively high. A high tax rate essentially gives a way to tax evasion and contracts business



activities in the country. Tax exemption provided to the elite section of the society is unfair and

needs to be removed or scaled down.

In Pakistan, practices such as red tapism and the long awaited departmental procedures are big

barriers in doing business. Licenses, NICs, gas, electricity and water connections etc cannot be

achieved easily. The investors have to face the insulting behaviour of the bureaucrats. Red-

Tapism, corruption and malpractices have been successful in preventing easy entry of foreign

investors, and those succeeding, their effective participation in economic activities. In fact,

retaining investors has never been observed as an area deserving attention of the concerned

departments’ officials. Many hurdles have been linked with five broad groups ranging from

purchasing of land and site development to financial and executive regulations, along with

taxation related matters. Investors, who are able to start up their businesses in less than

eighteen months time period are considered ‘lucky’ and termed as ‘enterprising’ or having the

‘right’ connections. But, in any case they also have to live up with administrative procedures

taking up about fifteen per cent of their revenues.

Our country is being governed for the last 10 years by bankers with supreme authority and theytake measures which are only beneficial to the banking industry. The banking spread in the

country (highest in the world) is 7.8 per cent and needs to be cut down by two per cent atleast.

This will save us from the control of financial institutions like the IMF, World Bank and the Asian

Development Bank (ADB). The interest rate should be brought down to a single digit. The gross

domestic product (GDP) growth has declined due to an economic slowdown following the tight

monetary policy. The high interest rates is the main reason behind the fall in the country’s

industrial output. The downfall in auto, textile, electronic, petroleum, and other key sectors

adversely affected the performance of large scale manufacturing (LSM) in the country. We have

no competitive edge, as our exporters are facing a lot of difficulties due to high cost of

production. Cutting interest rates to a single digit will produce multiple benefits for the

economy, as it will lower the cost of doing business, give a strong boost to business andindustrial activities, provide easy credit and loaning facilities to trade and industry, promote

better investment and exports, and generate more tax revenue for the government. Sadly,

studies highlighting the major problems and suggesting corrective measures have been falling

on deaf ears.

Culture of Bangladesh:

The culture bears the identity of a the nation. Every free nation must have a culture. Our

Bangladeshi culture makes us different from the other nations. We have been cherishing this

culture for centuries. And through our these years this culture has mixed in our blood. There is

no way of resisting it. Erasing this culture is like erasing our own identity. We have to come

forward to protect our culture, after all its our duty to do so.



We have came a long way toward the modernization. And through out this path one thing has

always stayed with us and that is our culture. Yes, we Bangladeshis have a culture of thousand

years old. This culture has made us different from the others. There no other culture that can

be compared in case of its uniqueness.

The things that made our culture so unique and diversified are as follows-

The ‘Pohayla Baishak’

From the era of the Jamidars this old age tradition has been celebrated till today. It is

celebrated on the first day of the bangla year. During the time of the Jamidars, people came to

the Jamidar palace and gave this taxes and The Jamidars also greeted them with sweets and

entertained them. Now a day this tradition has become a celebration on this day boys and girls

come to the street wearing their traditional dress like panjabies and saries. Specially in Dhaka

every on this day a big ‘meala’ is arranged. People wait eagerly for this ‘Meala’. This is a day for

the business man, they close their previous accounts and open the new accounts. And they

decorate this business place with various things. When customers come they greet them and

entertain them with sweets. The celebration of new bangla year has also drawn many

foreigners. As long the Bangladesh live this age old tradition will be celebrated with joy and

festivity.

Jamdani:

an ancient fine muslin cloth with geometric or floral designs. Although jamdani usually means

sari, there are jamdani scarves, kurtas, turbans, skirts, handkerchiefs, screens and tablecloths as

well. In the 17th century, dresses were also made of jamdani fabric. Towards the end of the

Mughal Empire, a special type of jamdani cloth used to be made for the Nepalese regional dress

'ranga'.

Folk tales:

Folk tales may include fairy tales, called rupkatha or parikahini in Bangla. Although called 'fairy

tales', all such stories do not necessarily have fairies, but are stories of a prince's adventures

and his winning the hand of a beautiful princess or about the rewards bestowed on a kind girl

because of her humility, kindness, hard work etc. These stories contain accounts of magical

powers, divine help etc. In German, this type of tale is called 'marchen'. Books like Thakurmar

Jhuli, Thakurdadar Jhuli, Thandidir Thale etc, edited by dakshinaranjan mitra majumder, are

collections of fairy tales.

Riddles:

Riddles in the main, have a provocative beginning and some of

them, towards the end, even hint at prizes. They are mostly full of words that are solely

designed to perplex people. Brevity is what can make riddles wittier. They can be composedboth in prose and verse. Intellect, subtle observation, creativity, laughter, exercise of retentive

faculty, use of allegory, metaphor and simile, the sheer joy of solving problems and wit come

together in the making of riddles. Based on the subject-matter, folk riddles may further be

divided into: (1) riddles about mankind, god and goddess, such as a) man and his body parts, b)

famous people, c) the Puranic stories, and d) gods and goddesses; (2) riddles about nature, such

as a) trees and creepers and b) sky, stars and the nature; (3) related to household affairs, such



as a) relatives, b) food items, c) household utensils, d) behaviour and manner and e) rites and

rituals; (4) riddles about birds, animals and insects; (5) riddles about musical instruments; (6)

related to legends or famous stories; (7) riddles about arithmetic or numbers, and (8)

miscellaneous.

Alpana:

Alpana(Ritual Painting) is a kind of folk art and a spontaneous expression of the artistic

sensibility of people. It retains the past experience of the community and, at the same time, is

very much contemporary in feeling. It is mainly the womenfolk who have kept the art alive in

this part of the subcontinent. They retain connections with age-old traditions and at the same

time are bold enough to experiment with new forms and new colours. They are conscious of

the changing moods of the seasons and their creativity thus marks the changing cycle of the

year.

Pottery:

Pottery appeared in Bengal, in all probability, in or around 1500 BC. In an alluvial country likeBengal, fine clay is a distinctive geological feature. The ancient inhabitants of the region

exploited this natural resource for making numerous potteries. Archaeological sites, such as

pandu rajar dhibi, mahisdal, Bharatpur, Mangalkot, chandraketugarh, tamralipti, rajbadidanga,

Harinarayanpur and Bangarh of West Bengal and mahasthangarh, govinda bhita, bhasu vihara,

wari-bateshwar, Raja Harish Chandrer Badi, mainamati and paharpur of Bangladesh have

produced varieties potsherds/potteries, namely Black-and-red Ware, Northern Black Polished

Ware, Rouletted Ware, Amphorae, Black-slipped Ware, Knobbed Ware etc. While the potteries

from the Chalcolithic and the early historic sites have diagnostic characteristics, the early

medieval, medieval and late medieval potteries do not; since in later period metal and other

utensils replaced traditional potteries used as utensils and for everyday religious and other

household purposes. The main types of potteries are described below:

Folk games:

Folk games are divided into three groups based on the environment in which the games are

played: land, water and sky. Games played on land are known as games of land; those played

on water, such as swimming and boat-racing, are games of water; and flying kites or pigeons

are games of the sky. The one traditional water sports that is special in Bangladesh is the

traditional boat race. In every rainy season the boat men with their boat decorated with

traditional arts race in the water of the mighty river ‘Padma’

Gaye Halud:

(literally, turmeric-smeared body) an important part of the marriage rituals in Bangladesh, is abeautifying and blessing ceremony that has been observed since ancient times. Newlyweds are

believed to be vulnerable to misfortune and the evil eye. tuorder to give protection to the bride

and bridegroom. In Hindu society this ceremony is known as gatra haridra or adhivas and dates

back to Vedic times. Muslims refer to it as gaye halud, haldi kota, tilwayi, kud deoya, etc.

Though Muslims from Persia, Arabia, Turkestan brought with them their own marriage rituals,

they adapted many local customs and rituals including gaye halud.



We have been cherishing these cultural events for decades, but due to the cultural assault we

are about to loose these vital parts of our culture. In this jungle of high rise buildings small boys

and girls are rarely seen playing games . More over due to the presence of various dish

channels we are about to lose our own identity and some mobile companies are creating extra

problem. To day boys and girls can hardly say about our own history and glory. The way every

thing is going today on thing is sure that we will loose our valuable culture. It is the high timewe did some thing to protect the culture. We have to take every possible measures to stop this

cultural aggression. Our young generations have to made conscious about our own cultural

values.

In the end one thing should be remembered ‘No nation can survive with out its culture. And in

order to hold the future we have to have a strong grip of our culture.’ It is the moral duty of

every senior citizen to make our young generation aware of their own culture. But are we

there? Are we actually bothered about this things

Economic growth continues in Bangladesh, although at a slower pace, during the world

economic slowdown. Bangladesh has achieved steady economic growth at 5% or more per

year over the past decade. Its growth exceeded 6 percent in FY 2008, reached 5.9% in FY 2009,

and is expected to slow slightly to 5.5% in FY 2010, thanks primarily to sluggish exports and

private investment. However, more supportive external conditions are expected to lead to an

increase in growth to around 6% in FY 2011.The most important factors fostering economic

growth in Bangladesh have been its macroeconomic stability and outward orientation. Major

impediments to economic development have been weak government, political instability, a

weak banking system, and an unreliable power supply. Bangladesh continues to rank near the

bottom of Transparency International’s corruption perception index for 2009 (despite an

improvement over 2008). Interest rate spreads exceed regional averages, and water and power

outages significantly reduce total factor productivity in both agriculture and manufacturing.

Mobilization of public revenues will also remain a major challenge in the immediate future.

Economic growth in 2009 was positive despite the global economic crisis. Nevertheless, the

country’s battle against poverty is not progressing as rapidly as anticipated. The welfare impact

of the crisis is felt most by households employed outside agriculture and/or receiving

remittances from abroad. In addition, pressure from food price increases since 2008 continue

to affect household incomes. According to World Bank estimates, poverty levels in Bangladesh,

although still very high, declined from 2000 to 2005. The percentage of the population living inpoverty (less than $2 a day in purchasing power) fell from 85% to 81% while the percentage

living in severe poverty (less than $1.25 a day in purchasing power) declined from 58% to 51%.

Prior to the crisis, Bangladesh was on target to cut poverty by nearly 11 percentage points

between 2005 and 2010. With the impact of the crisis, the poverty rate is now projected to fall

by about 9 percentage points. This translates to around 2.4 million additional poor people in

2010 due to the crisis, according to the World Bank.



Growth is slowing in 2010, hampered by domestic supply-side constraints. The World Bank and

the IMF both maintain that lack of reliable power and gas supply is a major constraint on

businesses in Bangladesh. Total gas production declined in 2009, as have gas sales to the

power sector, resulting in frequent power cuts. Even businesses with their own power plants

have been disrupted due to the gas shortages. Industrial production in apparel, ceramics,

fabrics, steel, and particles are among the hardest hit. Within the apparel sector, knitwear is

especially vulnerable because spinning, dyeing, and finishing factories need uninterrupted gas

supply for full production. Industry trade associations report that irregular gas supply caused a

50% decline in textile production, and orders are going unfulfilled. Gas rationing measures

implemented at the end of January 2010 have resulted in factories being shut down one day

per week. Unless there is a significant easing of this energy bottleneck, firms are likely to

maximize production based on existing capital stock rather than fresh investment.The political

environment for economic growth is currently stable following the December 2008 election but

threats remain. The election returned the Awami League to power after two years of rule by a

transitional government. Provided that it retains the support of the military, the current

government is expected to remain in power and dominate policy making for the next several

years. The government faces no immediate challenge to its rule, but there are two potential

sources of political instability in 2010-11: namely an escalation in social unrest and a new

campaign of violence waged by militant groups.

Although the present regime is regarded as business-friendly, the business environment in

Bangladesh is mediocre at best and is continuing to decline. Bangladesh ranked 119

th

in theworld (out of 181 countries) on the Ease of Doing Business Index in the World Bank’s Doing

Business 2010. This marks the country’s second annual decline, dropping from 109th

in the

previous year. This means that other countries are reforming their business environments

faster than Bangladesh. Areas of particular weakness in the business environment of

Bangladesh are enforcing contracts (where Bangladesh ranks a dismal 180th

), registering

property (176th

), employing workers (124th

), and dealing with construction permits (118th

). Of

these, only employing workers experienced a positive change from the previous year.

According to Doing Business, enforcing a commercial contract in Bangladesh involves 41

procedures, takes nearly four years, and costs 63% of the claim. Registering property involves

eight procedures, takes 245 days, and costs 10% of the value of the property. On the other

hand, Bangladesh is outstanding in the area of protecting investors, where it ranks 20th

in the

world. For protecting investors, Bangladesh ranks close to mean OECD levels on indexes of

disclosure, director liability, and shareholder suits.



Further financial sector development is needed to allow Bangladesh to achieve its growth

potential. Bangladesh continues to lag behind that of comparator countries in the area of

financial sector development. While it’s true that the regulatory framework has been

strengthened, supervision has been enhanced, and steps have been taken to restructure and

privatize the large nationalized commercial banks, there is still a need to strengthen the

country’s crisis management and liquidity support frameworks. Potential vulnerabilities in thebanking sector include uneven loan classification, provisioning, and capital. Non-prudential

government intervention—such as interest rate ceilings, moral suasion, directed credit, and

explicit requirements to ease debt service for some sectors of the economy—increases risks,

reduces transparency, and creates inefficiencies. In addition, market discipline is affected by

inadequate information stemming from non-transparent accounting and reporting.

The FY 2011 budget is both expansionary and progressive, taxing the richer people with high

taxes on luxury items, while offering rural subsidies and poverty reduction programs. The new

budget will increase per capita budget expenditure from $90 in FY 2009 to $129 in FY 2011.The budget also aims to revive the declining trend of the Annual Development Program (ADP).

ADP as a percentage of total expenditure has been falling since FY 2005 when it was 36.9%. In

FY 2009 this stood at 21.7%, and plans are to increase this to 36.5% by FY 2015. The other

stated aims of the FY 2011 budget are to: continue efforts to mitigate the adverse lagged

impact of the global financial crisis; take advantage of the opportunities in view of global

economic recovery; and factor-in regional dimensions of development. Revenue collection in

the latest reported period increased by 17.1% relative to the same period last fiscal year, driven

by 26.1% growth in domestic indirect taxes and 19.3% growth in income tax collections. The

impressive growth in domestic-based taxes is due largely to improved ADP implementation,higher tax rates, broadening of tax base, and improved compliance.

The FY 2010 budget reverses the trend toward trade liberalization by raising some import

duties and lowering duties on imported raw materials, increasing effective protection. The

average protection rate was increased from 20.1% to 22.9%, mainly through wider imposition

of para-tariffs and the introduction of a 5% regulatory duty. Although customs duties have been

reduced on 865 items, the benefits are offset by wider application of a supplementary duty.

These measures favor domestic producers over consumers. They have received a positive

reaction from business interests, who welcome assistance with selling in the local market at a

time when overseas demand is weakening. However, they hurt exporters and will have a

negative impact on Bangladesh’s competitiveness in the longer run.

Inflation increased sharply in early 2010, driven by food and fuel prices. A shortfall in domestic

rice production, rising world food prices, and high food inflation in India were contributing

factors. Average annual inflation for FY 2010 is expected to reach 8%, up from 6.06% in FY 2009.

An incremental tightening of monetary policy, as announced in the Monetary Policy Statement



for the second half of FY 2010, could help dampen inflationary pressures, despite the significant

upward pressure related to world food prices and domestic production. In FY 2011, inflationary

pressures are expected to ease slightly due to more moderate expected increases in global

commodity prices and stable macroeconomic policy.

Worker remittances, while important to the Bangladeshi economy, are poised to decline,

according to the World Bank. Bangladesh is among the top ten remittance-receiving countries.

Workers from Bangladesh have taken advantage of the opportunities that globalization has

afforded for poor and unskilled workers to improve their lives and those of their families. These

remittances provide substantial benefits to their families in Bangladesh, and in fact were the

chief driver behind private consumption so far in FY2010. However, migration continued its

downward trend with 43.5 percent fewer workers finding employment abroad in FY10 (July-

Dec) compared to FY09. Moreover, a reported 72,000 migrant workers have returned home incalendar year 2009, which is one third more than in 2008. However, growth in public

consumption is likely to remain robust because of fuller implementation of the public sector

pay increase package, possible increase in energy and fertilizer subsidies, and further expansion

of safety net programs.

Bangladesh continues to face formidable natural challenges. With 90% of its landmass lying

less than ten meters above mean sea level, Bangladesh has repeatedly suffered horrendous

human and property losses from storms and flooding. In the longer run, global warmingthreatens to reduce its area by a sizable amount through a rising sea level. Beyond damaging or

destroying natural coastal defenses, sea level rise could disrupt local livelihoods and worsen

food insecurity. Bangladesh’s soil and groundwater could become increasingly saline, and

salinization will also drive warm water further inland. As a result, the threat posed by climate

change goes beyond the coastal areas to much of the country.

comparison of pakistani and Bangladeshi culture

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