As a complement to building a vibrant economy and achieving a sustainable growth, the government has been taking comprehensive package of measures for expansion of the industrial sector and consolidation of the industrial base for the last few years. 

Moving along the path of free market economy, almost all industries except defense have been made open to private sector. 

To accelerate the pace of industrialization, the process of approval of projects has been simplified. 

Identical provisions have been made in respect of Bank loans, tax holiday, duty concessions and extension of other facilities for setting up industrial projects without any discrimination between the local and foreign entrepreneurs. 

Apart from guarantee for full security of investment and arrangement for easy repatriation of dividends and invested capital, provision has also been made to grant permanent residence/citizenship to foreign entrepreneurs making large investments. 

The Privatization Board has been transformed into the Privatization Commission and strengthened further to expedite transfer of public sector industrial units as well as government shares in other industrial enterprises to the private sector. A good number of government-owned industrial units and government shares in other industrial enterprises have already been off-loaded to private hands. 

In order to rejuvenate the prospective sick industries, a Special Committee has been formed for identifying such industries and allowing remission of interest on loans taken by them. Based on recommendations of the committee, the government will pay 50% of the interest remission in the form of bonds to the concerned banks. 

A number of fresh measures has been taken during the year under report under the new industrial policy of 1999 for development and nourishment of industrial sector. 

With a view to creating funds for long term industrial finance, arrangement has been made for issuance of 5- year and 7-year government-guaranteed Industrial Development Bonds worth Tk.500 crores through the Agrani Bank, and 5-year Bangladesh Industrial Development Bonds worth $100 million through the Sonali Bank. 

For enabling financial institutions to provide long term industrial finance as well as strengthening the capital market of the country, a US$57.69 million Financial Institutions Development Project (FIDP) has been put in place during the year under report. Technical and financial assistance will be given to the financial institutions from this project in securitization of their loan/lease and issuance of their medium and long term debentures/bonds. 

Two new organizations, namely, the Infrastructure Facilitation Center and the Infrastructure Development Company Limited have been established to help development of industrial infrastructure in the country. 

Necessary law has been enacted for establishment of Private Export Processing Zones (PEPZ) in the country. Initiative has already been taken to set up four PEPZs, one each at Mongla, Ishwardi, Saidpur and Comilla. Besides, the process of establishment of 5 Industrial Parks and High-tech Parks in the country has been started. As a result of these measures, the potential for strengthening of the pace of industrialization in the country has been brightened. 

A total of 1,563 industrial projects involving a total investment outlay of Tk.17, 215 crores (1428 local and 135 joint venture/100% foreign) were registered during 1999-2000. 

The amount of investment during the year was 15.4 per cent higher than in the previous year. Alongside increased registration of industrial projects, the amount of industrial loans disbursed during the year also increased. Compared to the level in the preceding year, the amount of working capital finances and term loans disbursed in the industrial sector during 1999-2000 increased by 33.3% to Tk.12,309 crores (wthe previous year. Alongside increased registration of industrial projects, the amount of industrial loans disbursed during the year also increased. Compared to the level in the preceding year, the amount of working capital finances and term loans disbursed in the industrial sector during 1999-2000 increased by 33.3% to Tk.12,309 crores (working capital Tk.10,681.74 crores, and term loans Tk.1,627.26 crores). 

The Credit Guarantee Scheme which was introduced for encouraging expansion of employment creating and income generating small industries by mobilizing small entrepreneurial initiatives in the country remained in operation during the year under report. Credit covered by guarantee under the Scheme against loan given to investors in small industries stood at Tk.27.23 crores as on 30th June, 2000. Under the Khudra Uddyog Rin Karmosuchi (Small Initiatives Credit Scheme) introduced for self-employment of the voluntarily retired officers/staff, a total of Tk.4.92 crores were disbursed up to 30th June,2000 against which refinance provided by Bangladesh Bank stood at 3.69 crores.