Privatization programs got its virtual start in Bangladesh in the mid-seventies. The first round of privatization was put to work following the post independence thrust on economic growth. The second phase of privatization (or denationalization) took place in the first half of the 1980s and covered jute and textile mills owned originally by Bangladeshi citizens prior to independence.

The Revised Investment Policy designed in 1975 put much emphasis in the development of private sector providing enormous incentives to spur private investment. A Disinvestment Board was set up and a total of 247 SOEs were privatized in between 1975 to 1981. About 115 of SOEs, were divested through the office of the then Director General of Industries (DGI). The New Industrial Policy (NIP) of 1982 marked a major shift towards privatization where total of 125 SOEs got privatized under the NIP’ 1982.

The privatization programs gained gradual momentum and government made liberal Industrial Policy in 1991, where 42 enterprises were identified for privatization. On its further move, the number of enterprises was increased to 62 by adding 20 textile mills under the Asian Development Bank (ADB) sponsored Industrial Sector Program. In the meantime, the government created an Inter-Ministerial Committee on Privatization (ICOP) in the year 1991 to develop a privatization policy. In 1993 Privatization Board was setup and assigned with the responsibility of privatizing State Owned Enterprises identified by the Government. Subsequently, the Privatization Board was converted into a Commission delegating more administrative and financial authority to intensify the privatization program drive.