Dhaka: The Engine of Bangladesh's Economy, Highlighting Stark Economic Disparity

The Dhaka district, as the primary economic hub of Bangladesh, presents an astounding picture of the country's overall economic activity. According to the Economic Position Index (EPI) released by the Dhaka Chamber of Commerce and Industry (DCCI), the average per capita income of people in the Dhaka district currently stands at $5,163 USD. This figure is nearly double the national average per capita income of $2,820 USD (based on the latest BBS data). These findings clearly illustrate the extent to which the country's economic activity is concentrated in Dhaka.These crucial economic statistics were presented at a discussion event on the preparation of the Economic Position Index (EPI), held at the DCCI office in Motijheel, Dhaka, on Saturday (October 25). The event, chaired by Dhaka Chamber President Taskin Ahmed, was attended by representatives from international organizations, economists, researchers, university teachers, and various government and non-government agencies.

Dhaka's Undisputed Dominance in GDP and Employment

AKM Asaduzzaman Patwari, Acting Secretary General of the Dhaka Chamber, presented the key paper at the discussion. He emphasized that a large portion of the nation's economic activities are conducted in the Dhaka district. The released data shows:

• Contribution to GDP: Dhaka district alone contributes 46 percent to the country's Gross Domestic Product (GDP). This means that nearly half of the country's economic growth is dependent on the city of Dhaka and its surrounding areas.

• Employment: 40 percent of the country's total employment originates from this district. This enormous volume of employment is a primary factor driving population pressure on the capital.

• Financial and Industrial Hub: Dhaka is not just the administrative centre but also a vital financial hub. Over 750 companies listed on the stock exchange have their headquarters located in the Dhaka district.

• Exports: Over 40 percent of the country's total product exports come from this district.

Asaduzzaman Patwari also mentioned that 32 percent of the country's urban population resides in the Dhaka district, accounting for 11.2 percent of the total national population. Dhaka is a highly industrialized district, which forms the basis of its immense economic activity.

BBS Data Context and Methodological Limitations

Although the Dhaka Chamber has published these significant statistics, questions regarding its methodological limitations were raised during the event. The DCCI stated that the per capita income for the Dhaka district was estimated based on the district-wise GDP data provided by the Bangladesh Bureau of Statistics (BBS) in 2011, while also considering factors like investment, consumption, expenditure, import, export, area, and population growth in the district.In contrast, the BBS released the latest national per capita income data in May, stating that the per capita income for the people of Bangladesh currently stands at $2,820 USD (for FY 2024–25), an all-time record. However, the BBS does not calculate per capita income at the divisional or district level. This absence of official disaggregated data necessitated the DCCI's estimation methodology. It is important to remember that per capita income is not an individual's sole income but is calculated by dividing the total national income by the total population.BBS data further shows fluctuations in per capita income in recent years, primarily due to the depreciation of the Taka and the rising exchange rate of the US Dollar. Given this context, despite the methodological limitations of the DCCI data, its release has brought the issue of economic disparity to the forefront and underscored the urgent need for regional economic development.