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Introduction In the recent past Bangladesh's macroeconomic performance has come to be increasingly dependent on the performance of her external sector. This is manifestly demonstrated by the shift in the relative importance of aid and trade in the economy of the country. In 1990 the country's earnings of the foreign exchange from export and remittance was 1.3 times that of the aid disbursed; by the year 2001 it was almost 5 times as high. Bangladesh's graduation from a predominantly aid recipient country to a predominantly trading country is one of the major achievements of the 1990s. The structural shift from primary to manufacturing exports, from resource-based to process based exportables and from the traditional jute-centric to the emergent RMG-centric export is remarkable by any standard. Over the same period the country had also to import an increasing amount of production and non-production related commodities. Increasing exports have allowed the country to...

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