Political Instability and Crisis Hinder Bangladesh's Economic Progress

Synopsis

The political instability in Bangladesh has severely impacted its economy, with entrepreneurs facing rising borrowing costs, security issues, and disruptions in international trade. Urgent measures are needed to restore confidence among investors and ensure a stable environment for businesses to thrive.

Key Takeaways

Entrepreneurs are struggling with rising borrowing costs.
Gas supply uncertainty threatens manufacturing.
Law enforcement needs to address labor unrest.
Political stability can boost trade and investment.
Security issues have heightened concerns among businesses.

Dhaka, Feb 12 (NationPress) Both small and large entrepreneurs are facing escalating financial strain as increasing interest rates persistently elevate borrowing costs in Bangladesh.

Concerns regarding the stable supply of gas, essential for the manufacturing sector, continue to create uncertainty, according to a report from United News of Bangladesh.

A multitude of entrepreneurs highlighted the necessity for law enforcement agencies, particularly the Bangladesh police, to be proactive on the ground, especially in instances of blocked roads and labour unrest arising from minor disputes or rumors.

Abdul Awal Mintoo, the former President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), expressed to UNB that "Domestic and international trade will flourish once a political government takes office. The global business community demands firm guarantees from the government for investment, which only a political government can deliver."

The economy of Bangladesh is currently enduring significant challenges amid widespread unrest, which has been ongoing since August 2024. The business community is experiencing a severe liquidity crisis, resulting in numerous commercial and industrial enterprises shutting down. Entrepreneurs are struggling to import raw materials necessary for maintaining their operations.

A growing concern for security within the business community has prompted calls for the interim government to ensure a safe environment for all industries, particularly the readymade garments sector, which is Bangladesh's key export contributor. Several brutal attacks on business owners by criminals have been reported in recent months.

The ongoing political turmoil has significantly affected international trade, leading global retailers to seek alternative partners.

In the South Asian context, both Bangladesh and India are recognized as the largest trading partners, engaging in a vast exchange of goods and services. The persistent instability in Bangladesh has severely disrupted trade between the two nations. Experts warn that economic instability in Bangladesh will remain a pressing concern unless a secure environment is established for entrepreneurs, industries, and other business entities.