Dhaka is the capital of Bangladesh and the principal city of Dhaka District. Dhaka is a Mega city and one of the major cities of the South Asia. Located on the banks of the Buriganga River, Dhaka, along with its metropolitan area, has a population of over 12 million, making it the largest city in Bangladesh.[1] With its colourful history, Dhaka is known as the 'City of Mosques' and for its famous fine Muslin cloth which has a great ethnic value. Under Mughal rule in the 17th century, the city was also known as Jahangir Nagar, and was both a provincial capital and a centre of the world-wide muslin trade. The modern city, however, was developed chiefly under British rule in the 19th century, and soon became the second-largest city in Bengal after Calcutta (presently Kolkata). With the partition of India in 1947, Dhaka became the administrative capital of East Pakistan, and later, in 1972, the capital of an independent Bangladesh. During the intervening period, the city witnessed widespread turmoil; this included many impositions of martial law, the declaration of Bangladesh's independence, military suppression, devastation during war, and natural calamities. Modern Dhaka is the centre of political, cultural and economic life in Bangladesh. Its urban infrastructure is the most developed in the country, it is nonetheless a fighting metropolitan city with challenges such as pollution, congestion, and lack of adequate services due to the rising population. In recent decades, Dhaka has seen modernisation of transport, communications and public works. The city is attracting large foreign investments and greater volumes of commerce and trade. It is also experiencing an increasing influx of people from across the nation. To fight rising traffic congestion and population rise in the capital city, the national government has implemented a policy for rapid urbanisation of surrounding areas and beyond by recent introduction of ten year tax on income holiday for new construction of all types of facilities and buildings outside Dhaka.

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