A decade of strong economic growth helped Bangladesh reach lower middle-income status while sharply decreasing its poverty rate, a remarkable achievement. But like many countries in the world, such progress has come at considerable environmental cost.
The monetary cost to the Bangladeshi society of environmental degradation in urban areas, measured in terms of foregone labour output was equivalent to about one percent of the Gross Domestic Product (GDP) annually. If one takes into account the broader welfare impacts of mortality attributed to environmental risks, the economic cost is equivalent to 3.4 percent of the national GDP. Noncompliant industries and inadequate waste management of hazardous and nonhazardous materials are polluting the cities' air as well as surface and ground water. The study also indicated that many rivers around Dhaka are polluted.