1970s in Bangladesh
The 1970s (pronounced "nineteen-seventies", commonly abbreviated as the "Seventies") was a decade of the Gregorian calendar that began on January 1, 1970, and ended on December 31, 1979. It was a very significant decade in the history of Bangladesh, because this is the decade in which Bangladesh emerged as a sovereign state. The decade began with a devastating cyclone that ravaged the southern part of the country. The next year the country went into Liberation war and achieved independence from Pakistan. The government of Sheikh Mujibur Rahman administered the newly formed country between 1972–1975, but their rule soon came to an end through a series of coups and counter coups in the later part of the decade. Economically the country struggled because of the war (1971) and famine (1974) throughout the decade and was highly dependent on foreign aids. Culturally, in this decade Bangladesh started to establish its own identity as an independent nation.
![](../I/m/BD70s_Montage.png)
Politics and National Life
Tension between the two factions of Pakistan
The 1970s started with Bangladesh as part of erstwhile Pakistan amid intense political tension between the two factions of the country - East (later Bangladesh) and the West (later Pakistan). The East Pakistanis observed that the West Pakistani establishment would swiftly depose any East Pakistanis elected Prime Minister of Pakistan, such as Khawaja Nazimuddin, Mohammad Ali Bogra, or Huseyn Shaheed Suhrawardy. Their suspicions were further aggravated by the military dictatorships of Ayub Khan (27 October 1958 – 25 March 1969) and Yahya Khan (25 March 1969 – 20 December 1971), both West Pakistanis. The situation reached a climax in 1970, when the Bangladesh Awami League, the largest East Pakistani political party, led by Sheikh Mujibur Rahman, won a landslide victory in the national elections. The party won 167 of the 169 seats allotted to East Pakistan, and thus a majority of the 313 seats in the National Assembly. This gave the Awami League the constitutional right to form a government. However, Zulfikar Ali Bhutto (a former Foreign Minister), the leader of the Pakistan Peoples Party, refused to allow Rahman to become the Prime Minister of Pakistan.[1] Instead, he proposed the idea of having two Prime Ministers, one for each wing. The proposal elicited outrage in the east wing, already chafing under the other constitutional innovation, the "One Unit scheme". Bhutto also refused to accept Rahman's Six Points. On 3 March 1971, the two leaders of the two wings along with the President General Yahya Khan met in Dacca to decide the fate of the country. After their discussions yielded no satisfactory results, Sheikh Mujibur Rahman called for a nationwide strike. Bhutto feared a civil war, therefore, he sent his trusted companion, Mubashir Hassan.[1] A message was conveyed, and Rahman decided to meet Bhutto.[1] Upon his arrival, Rahman met with Bhutto and both agreed to form a coalition government with Rahman as Premier and Bhutto as President.[1] However, the military was unaware of these developments, and Bhutto increased his pressure on Rahman to reach a decision.[1]
The talks proved unsuccessful, however, and on 1 March 1971, Pakistani President Yahya Khan indefinitely postponed the pending National Assembly session, precipitating massive civil disobedience in East Pakistan.[2]
On 2 March 1971, a group of students, led by A S M Abdur Rob, a student leader, raised the new (proposed) flag of Bangladesh under the direction of the Swadhin Bangla Nucleus. They demanded that Sheikh Mujibur Rahman declare the independence of Bangladesh immediately but Mujibur Rahman refused to agree to this demand. Rather, he decided that he would declare his next steps at a public meeting to be held on 7 March.
On 3 March, student leader, Shahjahan Siraj, read the 'Sadhinotar Ishtehar' (Declaration of independence) at Paltan Maidan in front of Bangabandhu Sheikh Mujib at a public gathering under the direction of the Swadhin Bangla Nucleus.[3]
On 7 March, there was a public gathering in Suhrawardy Udyan to hear updates on the ongoing movement from Bangabandhu Sheikh Mujib, the leader of the movement that time. Although he avoided directly referring to independence, as the talks were still underway, he warned his listeners to prepare for any imminent war.[3] The speech is considered a key moment in the war of liberation, and is remembered for the phrase,
- "Ebarer Shongram Amader Muktir Shongram, Ebarer Shongram Shadhinotar Shongram...."
- "Our struggle this time is a struggle for our freedom, our struggle this time is a struggle for our independence...."
Bhola cyclone
The 1970 Bhola cyclone made landfall on the East Pakistan coastline during the evening of 12 November, around the same time as a local high tide,[4] killing an estimated 300,000 to 500,000 people. Though the exact death toll is not known, it is considered the deadliest tropical cyclone on record.[5] A week after the landfall, President Khan conceded that his government had made "slips" and "mistakes" in its handling of the relief efforts due to a lack of understanding of the magnitude of the disaster.[6]
A statement released by eleven political leaders in East Pakistan ten days after the cyclone hit charged the government with "gross neglect, callous and utter indifference". They also accused the president of playing down the magnitude of the problem in news coverage.[7] On 19 November, students held a march in Dacca protesting the slowness of the government's response.[8] Abdul Hamid Khan Bhashani addressed a rally of 50,000 people on 24 November, where he accused the president of inefficiency and demanded his resignation.
As the conflict between East and West Pakistan developed in March, the Dacca offices of the two government organisations directly involved in relief efforts were closed for at least two weeks, first by a general strike and then by a ban on government work in East Pakistan by the Awami League. With this increase in tension, foreign personnel were evacuated over fears of violence. Relief work continued in the field, but long-term planning was curtailed.[9] This conflict widened into the Bangladesh Liberation War in December and concluded with the creation of Bangladesh. This was one of the first times that a natural event helped trigger a civil war.[10]
Formal Declaration of Independence
![](../I/m/Bangladesh_1971_Liberation.jpg)
In the early hours of 26 March 1971, a military crackdown by the Pakistan army began. The Bangabandhu Sheikh Mujibur Rahman was arrested and the political leaders dispersed, mostly fleeing to neighbouring India where they organised a provisional government. Before being arrested by the Pakistani Army, Sheikh Mujibur Rahman passed a hand written note which contained the Bangladeshi Declaration of Independence. This note was widely circulated and transmitted by the then East Pakistan Rifles' wireless transmitter. The world press reports from late March 1971 also make sure that Bangladesh's declaration of independence by Bangabandhu was widely reported throughout the world. Bengali Army officer Major Ziaur Rahman captured the Kalurghat Radio Station[11][12] in Chittagong and read the declaration of independence of Bangladesh during the evening hours on 27 March.[13]
This is Swadhin Bangla Betar Kendra. I, Major Ziaur Rahman, at the direction of Bangobondhu Mujibur Rahman, hereby declare that the Independent People's Republic of Bangladesh has been established. At his direction, I have taken command as the temporary Head of the Republic. In the name of Sheikh Mujibur Rahman, I call upon all Bengalees to rise against the attack by the West Pakistani Army. We shall fight to the last to free our motherland. Victory is, by the Grace of Allah, ours. Joy Bangla.[14]
The Provisional Government of the People's Republic of Bangladesh was formed on 10 April in Meherpur (later renamed as Mujibnagar, a town adjacent to the Indian border). Sheikh Mujibur Rahman was announced to be the Head of the State. Tajuddin Ahmed became the Prime Minister, Syed Nazrul Islam became the acting President and Khondaker Mostaq Ahmed the Foreign Minister. There the war plan was sketched out with Bangladesh armed forces established and named "Muktifoujo". Later these forces were named "Muktibahini" (freedom fighters). M. A. G. Osmani was appointed as the Chief of the Armed Forces.
For military purposes, Bangladesh was divided into 11 sectors under 11 sector commanders. In addition to these sectors, later in the war, three special forces were formed: Z Force, S Force and K Force. These three forces' names were derived from the initial letters of the commander's name. The training and most of the arms and ammunitions were arranged by the Meherpur government which was supported by India. As fighting grew between the Pakistan Army and the Bengali Mukti Bahini, an estimated ten million Bengalis, mainly Hindus, sought refuge in the Indian states of Assam, Tripura and West Bengal.
The crisis in East Pakistan produced new strains in Pakistan's troubled relations with India. The two nations had fought a war in 1965, mainly in the west, but the pressure of millions of refugees escaping into India in autumn 1971, as well as Pakistani aggression, reignited Indian hostilities with Pakistan. Indian sympathies lay with East Pakistan, and on 3 December 1971, India intervened on the side of the Bangladeshis which led to a short, but violent, two-week war known as the Indo-Pakistani War of 1971.
Pakistani capitulation and aftermath
On 16 December 1971, Lt. Gen A. A. K. Niazi, CO of Pakistan Army forces located in East Pakistan signed the Instrument of Surrender and the nation of Bangla Desh ("Country of Bengal") was finally established the following day. At the time of surrender only a few countries had provided diplomatic recognition to the new nation. Over 90,000 Pakistani troops surrendered to the Indian forces making it the largest surrender since World War II.[15][16] The new country changed its name to Bangladesh on 11 January 1972 and became a parliamentary democracy under a constitution. Shortly thereafter on 19 March Bangladesh signed a friendship treaty with India. Bangladesh sought admission in the UN with most voting in its favour, but China vetoed this as Pakistan was its key ally.[17] To ensure a smooth transition, in 1972 the Simla Agreement was signed between India and Pakistan. The treaty ensured that Pakistan recognised the independence of Bangladesh in exchange for the return of the Pakistani PoWs. India treated all the PoWs in strict accordance with the Geneva Convention, rule 1925.[18] It released more than 93,000 Pakistani PoWs in five months.[15]
Furthermore, as a gesture of goodwill, nearly 200 soldiers who were sought for war crimes by Bengalis were also pardoned by India.[19] The accord also gave back more than 13,000 km2 (5,019 sq mi) of land that Indian troops had seized in West Pakistan during the war, though India retained a few strategic areas;[20] most notably Kargil (which would in turn again be the focal point for a war between the two nations in 1999).
Sheikh Mujibur Rahman administration
Upon his release on 10 January 1972, Sheikh Mujibur Rahman briefly assumed the provisional presidency and later took office as the prime minister, heading all organs of government and decision-making.[21] The politicians elected in 1970 formed the provisional parliament of the new state. The Mukti Bahini and other militias amalgamated to form a new Bangladeshi army to which Indian forces transferred control on 17 March. The government faced serious challenges, which including the rehabilitation of millions of people displaced in 1971, organising the supply of food, health aids and other necessities. The effects of the 1970 cyclone had not worn off, and the state's economy had immensely deteriorated by the conflict.
Mujib helped Bangladesh enter into the United Nations and the Non-Aligned Movement. He travelled to the United States, the United Kingdom and other European nations to obtain humanitarian and developmental assistance for the nation. He signed a treaty of friendship with India, which pledged extensive economic and humanitarian assistance and began training Bangladesh's security forces and government personnel.[22] Mujib forged a close friendship with Indira Gandhi,[23] strongly praising India's decision to intercede, and professed admiration and friendship for India. Major efforts were launched to rehabilitate an estimated 10 million refugees. The economy began recovering and a famine was prevented. A constitution was proclaimed in 1973 and elections were held, which resulted in Mujib and his party gaining power with an absolute majority. He further outlined state programmes to expand primary education, sanitation, food, healthcare, water and electric supply across the country. A five-year plan released in 1973 focused state investments into agriculture, rural infrastructure and cottage industries.[24]
In 1974, Bangladesh experienced the deadliest famine ever, which killed around 1.5 million Bangladeshi people from hunger. The Bangladesh famine of 1974 is a major source of discontent against Mujib's government. Bangladeshi people feel ashamed, insulted and demoralised as a nation for this famine that was not due to a food crisis.
Left wing insurgency
At the height of Sheikh Mujib's power, left wing insurgents, organised by Jatiyo Samajtantrik Dal's armed wing Gonobahini fought against the government of Sheikh Mujibur Rahman, to establish a Marxist government.[25][26]
The government responded by forming the Jatiya Rakkhi Bahini[27] which began a campaign of brutal human rights abuses against the general populace, including the force became involved in numerous charges of human rights abuse including political killings,[28][29][30] shooting by death squads,[31] and rape.[30] Members of Jatiyo Rakkhi Bahini were granted immunity from prosecution and other legal proceedings.[32][33]
Bangladesh Krishak Sramik Awami League (BAKSAL)
According to Abdur Razzaq, the 1974 famine profoundly affected Mujib's views on governance,[34] while political unrest gave rise to increasing violence. During the famine, 70,000 people were reported as dead (Note: Reports vary). In response, he began increasing his powers. On 25 January 1975 Mujib declared a state of emergency and his political supporters approved a constitutional amendment banning all opposition political parties. Mujib assumed the presidency and was given extraordinary powers.[23][32] His political supporters amalgamated to form the only legalised political party, the Bangladesh Krishak Sramik Awami League, commonly known by its initials—BAKSAL. The party identified itself with the rural masses, farmers and labourers and took control of government machinery. It also launched major socialist programmes. Using government forces and a militia of supporters called the Jatiyo Rakkhi Bahini, Mujib clamped down on any opposition to him.[32][33] The militia known as RakhiBahini and police were accused of torturing suspects and political killings. While retaining support from many segments of the population, Mujib evoked anger amongst veterans of the liberation war for what was seen as a betrayal of the causes of democracy and civil rights.
Assassination of Sheikh Mujibur Rahman and aftermath
On 15 August 1975, a group of junior army officers invaded the presidential residence with tanks and killed Mujib, his family and personal staff.[23] Only his daughters Sheikh Hasina Wajed and Sheikh Rehana, who were visiting West Germany, escaped. They were banned from returning to Bangladesh.[35] The coup was planned by disgruntled Awami League colleagues and military officers, which included Mujib's colleague and former confidanté Khondaker Mostaq Ahmad, who became his immediate successor. There was intense speculation in the media accusing the US Central Intelligence Agency of having instigated the plot.[36] Lawrence Lifschultz has alleged that the CIA was involved in the coup and assassination, basing his assumption on the then US ambassador in Dhaka Eugene Booster.[37]
Mujib's death plunged the nation into many years of political turmoil. The coup leaders were soon overthrown and a series of counter-coups and political assassinations paralysed the country.[32] Order was largely restored after a coup in 1977 gave control to the army chief Ziaur Rahman. Declaring himself President in 1978, Ziaur Rahman signed the Indemnity Ordinance, giving immunity from prosecution to the men who plotted[38] Mujib's assassination and overthrow.
Ziaur Rahman administration, 1975–81
Successive military coups resulted in the emergence of Army Chief of Staff General Ziaur Rahman ("Zia") as strongman. He pledged the army's support to the civilian government headed by President Chief Justice Sayem. Acting at Zia's behest, Sayem dissolved Parliament, promising fresh elections in 1977, and instituted martial law.[39]
Acting behind the scenes of the Martial Law Administration (MLA), Zia sought to invigorate government policy and administration. While continuing the ban on political parties, he sought to revitalise the demoralised bureaucracy, to begin new economic development programs, and to emphasise family planning. In November 1976, Zia became Chief Martial Law Administrator (CMLA) and assumed the presidency upon Sayem's retirement five months later, promising national elections in 1978.[39]
As President, Zia announced a 19-point program of economic reform and began dismantling the MLA. Keeping his promise to hold elections, Zia won a five-year term in June 1978 elections, with 76% of the vote. In November 1978, his government removed the remaining restrictions on political party activities in time for parliamentary elections in February 1979. These elections, which were contested by more than 30 parties, marked the culmination of Zia's transformation of Bangladesh's Government from the MLA to a democratically elected, constitutional one. The AL and the Bangladesh Nationalist Party (BNP), founded by Zia, emerged as the two major parties.[39]
Administrative Division
![](../I/m/Bangladesh_divisions_1971-1993.png)
In the 1970s, Bangladesh used to be administratively divided into 4 divisions, namely Dhaka, Chittagong, Khulna and Rajshahi which were further subdivided into a total of 17 districts (See List of districts of Bangladesh). After the independence, President's Order 7 issued in 1972 dissolved all the existing local government bodies and the names of the Union Council and District Council were changed to Union Panchayet and Zila Board, respectively. The Constitution of 1972 included specific provisions relating to the basic structure and functions of local bodies. Article 9 provided for the formation of local bodies at every administrative units to be composed of elected representatives of the areas concerned.[40] In 1976, the Local Government Ordinance (LGO) issued by the government of General Ziaur Rahman made provisions for the formation of three types of rural local government, Union Parishad, Thana Parishad and Zila Parishad. In 1978, Jamalpur was upgraded to a District.
Demographics
Based on World Development Indicators published by the World Bank[41] the population of Bangladesh grew from 63 million at the beginning of the decade to 79 million by the end. This signifies an annual population growth rate of 2.3%. Population density increased from 487 to 609 per sq. km.
The urban population was 7.6% of the total at the beginning, which ended up at 13.7%. Dhaka, the largest city, with a population of 1.4 million, accounted for 27.8% of the total urban population by 1979. United Nations World Population Prospects[41] show that the population growth rate was in increasing trend (from 2.5% per annum to 2.8%), despite reduction in fertility rate (births per woman) from 6.9 to 6.5. Life expectancy at birth increased from 47.5 years to 52.9 years with Child (0-5) mortality reducing from 224 per 1,000 births to 203. Age dependency ratio (% of working-age population) changed from 91.0% to 92.6% by the end of the decade.
Climate
Climate data for Bangladesh in 1970s | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Month | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Year |
Daily mean °C (°F) | 18.2 (64.8) |
20.4 (68.7) |
25.0 (77.0) |
27.5 (81.5) |
27.9 (82.2) |
27.9 (82.2) |
27.8 (82.0) |
27.9 (82.2) |
27.8 (82.0) |
26.9 (80.4) |
23.5 (74.3) |
19.2 (66.6) |
25.0 (77.0) |
Average precipitation mm (inches) | 6.0 (0.24) |
16.7 (0.66) |
38.2 (1.50) |
126.2 (4.97) |
261.6 (10.30) |
457.4 (18.01) |
516.0 (20.31) |
397.0 (15.63) |
330.5 (13.01) |
159.8 (6.29) |
40.8 (1.61) |
12.0 (0.47) |
2,362.2 (93) |
Source: Climatic Research Unit (CRU) of University of East Anglia (UEA)[42] |
Compared to prior decade the October and November became warmer by about 0.5 degree Celsius and February and May became cooler by similar magnitude. Thus overall temperature profile became more moderate. Average rainfall decreased for June by about 59mm and increased for September by about 69mm. Average annual rainfall increased by about 74mm.[42]
Economy
National Income and Balance of Payment
Bangladesh GDP was USD 26.4 billion in 1970, which grew to USD 28.4 billion in 1979 (in 2010 constant dollar) signifying a 0.7% annual growth. Agricultural Sector contributed to 54.6% of GDP in the beginning of the decade, which decreased to 52.5% by the end. During the same period contribution from the industrial sector increased from 8.7% to 15.7% and that of the service sector decreased from 36.7% to 31.9%.[41] Per capita GDP decreased from USD 406 to USD 358 (in 2010 constant dollar).
According to World Development Indicators published by the World Bank,[41] on 2010 constant dollar basis, Bangladesh used to export USD 0.9 billion (8.3% of GDP) worth of goods and services as of 1970, which grew at annual average rate of 3.3% to USD 1.2 billion (6.1% of GDP) in 1979. In contrast, by 1979 imports stood at USD 3.4 billion (15.8% of GDP). Over the decade, Foreign Direct Investment and Personal Remittances Receipt averaged 0.02% and 0.74% of GDP; while, total Reserve averaged at 13.4% of external debt and 2.4 month's coverage of import.
Gross National Income (at 2010 constant dollar) grew from USD 22.3 billion in 1973 to USD 28.4 billion in 1979. At the beginning of this period External Debt stock (of which concessional debt was 71.8%) comprised of 6.1% of Gross National Income (GNI) and External Debt Service burden was 0.1% of GNI. By the end of the decade, External Debt stock (of which concessional debt now was 80.3%) stood at 19.1% of GNI and External Debt Service burden was 1.3% of the same. During the same period Military expenditure increased from 0.6% to 0.9% of GNI.[41]
Agriculture
During this decade, crop production grew at an annual average rate of 0.9% driven by cereal production increase from 16.9 million metric tons to 19.7 million (implying annual growth of 1.5%) - enabled by improvement in cereal yield from 1666.2 kg per hectare to 1870.9 kg. At the same time, livestock production grew at annual 2.7% and fisheries production decreased at annual 0.6%. Altogether these contributed to overall food production increase by annualized rate of 1.2%.[41]
The catastrophic famine of 1974 led to the death of tens of thousands of people due to starvation caused by inadequate food production and the withholding of food shipments by the US government.[43]
Industrial and Service Sectors
Net value addition from industrial sector, which stood at USD 3.8 billion in 1970 (in 2010 constant USD), grew at average annual rate of 1.1% to USD 4.2 billion by 1979 (in the same constant USD basis).[41] Manufacturing sector contributed 62.1% of industrial value added in the beginning of this period and it gradually changed to 66.1% by the end. By 1979 manufacturers export accounted for 64.5% of total merchandise export while import supporting the manufacturing segment accounted for 55.2% of total merchandise import. In that year, textile and garments accounted for 37.0% of the value addition of the manufacturing sector.[41] In 1973-74 there were 1,427 industrial establishments in the country employing 0.31 million staffs. By 1979-80 the number of establishment grew to 3,006 and employment in the sector grew to 0.42 million.[44]
On the other hand, net value addition from the service sector amounting USD 14.2 billion in 1970, also grew at average annual rate of 1.3% and stood at USD 16.1 billion by 1979 (in 2010 constant USD).[41]
Some of the major business houses / enterprises that started journey in this decade include the Beximco, City Group, T K Group of Industries and BRAC in 1972, Jamuna Group and Milk Vita in 1974, Concord Group and Otobi in 1975, Meghna Group of Industries in 1976, Nasir Group in 1977, BRAC's business venture Aarong in 1978 and Rangs Group in 1979. In the public sector BTCL was established in 1971 followed by Petrobangla, Bangladesh Shipping Corporation and Biman Bangladesh Airlines in 1972, Bangladesh Petroleum Corporation in 1976 and Bangladesh Machine Tools Factory in 1979.
Infrastructure
Transportation & Communication
![](../I/m/Balaka_cinema.jpg)
When Bangladesh achieved independence in 1971, it inherited 3,860 km of pucca roads,[45] 2858.73 km of railway tracks and 466 railway stations,[46] but most roads and connecting bridges were in shambles due to the ravage of the war. After the independence war-ravaged roads, culverts and bridges were reconstructed fast and some new bridges on the national highways were built. All the district headquarters were connected with the national highway network.[47] The construction of double line track between Dhaka-Tangi and Chittagong-Mirsharai started in 1960s. These lines were opened in phases during the 1960s and 1970s.[46]
At the time of independence, Bangladesh had 5 inland river ports at Dhaka, Narayanganj, Chandpur, Barisal and Khulna. In 1975 a new port was added at Patuakhali.[48] Air Transport also started to develop. As of 1973, there were 13,500 registered carrier departures worldwide which grew to 14,800 by 1979. During the same period number of passenger carried increased from 0.49 million to 0.62 million per annum.[41]
A UNDP funded Bangladesh Transportation Sector Study executed by World Bank in 1988 estimated that by 1975 the ground transport system of Bangladesh was already supporting 17 billion km of passenger commute and 2.6 billion km of freight transport. Road network accounted for 54% of the passengers and 35% of the freight whereas 30% of the passengers and 28% of the freight were transported using the rail network. The rest were using inland water transport.[49]
In the beginning of the decade there were 45,000 fixed telephone line subscription in the country - which increased to 89,000 by the end signifying 0.07 lines per 100 people.[41]
Energy
In 1973 per capital electric power consumption was 15.2 kWh, which increased to 21.0 kWh by 1979. During the same period per capita energy usage increased from 92.5 kg of oil equivalent to 99.4 kg and fossil fuel energy consumption increased from 24.2% to 29.4% of total.
In 1973 the electricity produced in the country was coming from hydroelectric sources: 23.6%, natural gas sources: 34.7% and oil sources: 41.7%. By 1979 the same distribution changed to - hydroelectric sources: 24.4%, natural gas sources: 45.6% and oil sources: 29.9%.[41]
Financial Services
At the time of independence the country inherited a very limited financial set-up consisting of 1130 branches of 12 commercial banks, the Dhaka Stock Exchange, several insurance companies established between 1958 and 1971, and the Samabaya (co-operative) Bank Ltd.[50]
Bangladesh Bank, the central bank of the country, was established in Dhaka as a body corporate vide the Bangladesh Bank Order, 1972 (P.O No. 127 of 1972). Bangladesh Bank started operating with all capital and liabilities of the Dhaka branch of State Bank of Pakistan.[51] The 12 banks which were inherited were soon nationalised and merged into six banks, naming them -Sonali, Agrani, Janata, Rupali, Pubali and Uttara. Later IFIC Bank was established as a private bank in 1976.[52]
The number of insurance companies that had business in East Pakistan was 75, of which 10 were locally incorporated ones. Following the independence of Bangladesh in 1971, both life and general insurance business in the country was nationalised under the Bangladesh Insurance (Nationalisation) Order 1972 except foreign insurance companies. Five corporations were established to absorb, own and control the businesses of the 75 existing insurance companies and these new corporations were Bangladesh Jatiya Bima Corporation, Karnafuli Bima Corporation, Tista Bima Corporation, Surma Jiban Bima Corporation and Rupsa Jiban Bima Corporation. These four corporations were in business from 1 January 1973 to 14 May 1973. Later they were gradually merged into two entities named Jiban Bima Corporation (for life insurance) and Sadharan Bima Corporation (for general insurance).[53]
The activity of Dhaka Stock Exchange remained suspended until 1976, when it renewed operations with nine listed companies having paid up capital of Tk 137.52 million. This, along with the establishment of the Investment Corporation of Bangladesh in the same year marked the launch of the country's capital market operations.[50]
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