At the time of independence in 1947, Bangladesh (erstwhile East Pakistan) had a large agricultural sector and a very small industrial sector. In 1949-50 the agricultural sector contributed about 65,3 per cent to GDP while the contribution of the manufac- turing sector to GDP was only 3.0 per cent [Alamgir and Berlage, 1974, p. 170]. Then the Pakistan govern- ment adopted industrialization as one of the main strategies of development. The first industrial policy of Pakistan was announced in 1948 stating the objec- tives and priorities of the industrial development. It was effective until the end of 1958 with modifications from time to time. Another industrial policy was issued in February 1959 which was effective throughout the pre-liberation period.