ABSTRACT
Industrial finance has always been a critical factor in the development of the modern sector of Bangladesh's economy. The overthrow of Sheikh Mujibur Rahman ended the doctrinaire approach to management of the Bangladesh economy. Twenty-three or the "vested" industrial enterprises had been returned by the Mujib regime. Another 31 were returned by the Zia Government between late 1975 and 1981. A total of 110 of the enterprises were privatized during the Zia period; so this sequence appears on schedule and reasonably accurate. The Revised Investment Policy of December 1975 represented a watershed in reorienting the economy toward more dependence on private sector activity. In dealing with the private sector, commercial banks have tended to go for quick returns in the trading sphere rather than longer-range returns in industrial development. Bangladesh launched its economic development program with an overextended public sector. One side effect of increased private sector activity is that the public sector began to feel the bite of competition.
