Recent economic and financial developments in Bangladesh were greatly marked by the massive floods. Although the floods were an important contributing factor, a continuing slump in world export prices—together with the entrenched weaknesses in the management of the government-owned Bangladesh Jute Mills Corporation—severely compressed profitability, undermined output performance, and increased the jute sector's overdue bank loans. In the energy and power sector, the government's reform efforts have focused on restoring the profitability of existing operations and encouraging private investment in power generation.
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