Financial Development, Openness Relation and the Role of Financial Institutions: A Case of Pakistan

Hasanuzzaman1 and Kishore Kumer Basak2

Centre for Policy Dialogue (CPD), House 40/C, Road No. 11, Dhanmondi R/A, Dhaka – 1209



The world has undergone significant changes since 2008. This paper, by blending in a mix of primary and secondary sources of information, seeks to investigate and report on a number of political economy (institutional and market) factors affecting Bangladesh's business environment. The evaluation of these constraints is also relevant from other least developed countries' perspectives. The paper concludes that if Bangladesh (and other South Asian countries) are to remain competitive, both in their respective and foreign markets, they ought to get on with the task of addressing the factors undermining their business environment through building and improving developmental capacities, and thereby, facilitating realisation of the country’s full industrial potential.