A recent study has revealed that overpopulation in Bangladesh is exerting severe pressure on the national economy. The uneven distribution of economic opportunities is a major concern, with 8% of jobs concentrated in Dhaka city and 40% located within the greater Dhaka region, which includes Gazipur and Narayanganj.
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Overpopulation In Bangladesh

Dhaka: A City Under Strain
The study indicates that 31.9% of Bangladesh’s urban population resides in Dhaka, whereas other major cities, each with more than a million inhabitants, collectively accommodate only 3.5% of the urban populace. Over the past decade, Dhaka’s population has surged by more than 50%.
This rapid urbanisation has led to an economic imbalance. In 2017, Bangladesh was failing to achieve its full economic potential due to the excessive concentration of resources and economic activities in Dhaka, leading to an 11% reduction in per capita income and GDP. By 2019, this issue resulted in an economic shortfall of approximately $35 billion.
Economic and Social Consequences
At present, Bangladesh loses an estimated 6-10% of its GDP annually due to Dhaka’s unsustainable growth—a considerable economic loss that highlights the authorities’ longstanding inaction in addressing the city’s population burden.
| Year | GDP Loss Due to Overpopulation in Dhaka |
|---|---|
| 2017 | 11% reduction in per capita GDP |
| 2019 | $35 billion economic shortfall |
| Present | 6-10% annual GDP loss |
Despite some progress in rural poverty alleviation—where the extreme poverty rate declined from 21.1% in 2010 to 14.9% in 2016—urban poverty has seen little improvement. Additionally, traffic congestion, exacerbated by excessive urban population density, accounts for a loss equivalent to 2.9% of the country’s GDP each year.
Impact on Living Standards and Environment
The consequences of Dhaka’s overpopulation extend beyond economic concerns. The city suffers from deteriorating living conditions, including severe air pollution, inadequate housing, and insufficient infrastructure. Traffic congestion has become unbearable, while public services such as healthcare, education, and sanitation are under immense pressure. Environmental degradation, including water pollution and deforestation, further exacerbates the challenges.

Decentralisation: A Sustainable Solution
The pressing need for decentralisation cannot be overstated. To alleviate Dhaka’s burden and ensure a balanced distribution of economic activities, the government must take proactive measures, such as:
- Relocating government agencies and offices outside Dhaka to encourage development in other urban centres.
- Investing in infrastructure and industrial growth in secondary cities to create employment opportunities.
- Strengthening local city authorities, enabling them to implement urban development initiatives without overreliance on central government directives.
- Improving nationwide transport networks to facilitate economic activity beyond Dhaka.
Public awareness and education regarding decentralisation policies are crucial. Without urgent intervention, Dhaka’s overpopulation crisis will continue to worsen, leading to further economic losses and declining living standards. Addressing this challenge now is imperative for ensuring a sustainable and prosperous future for Bangladesh.