The head of Dhaka Chamber of Commerce and Industry (DCCI) has proposed a wide-ranging dialogue among the political parties, business groups, and civil society organisations to try to resolve the political impasse over the upcoming national election.
“A consensus should be reached to avoid activities which are hampering our business and economy, said DCCI President Md Sameer Sattar in an interview with UNB this week. “This should be done immediately for the greater interest of the economy.”
The interview has been a part of a series the news agency has launched to understand how the election-related protests are hurting the economy.
Sameer said political unrest can affect an economy in many ways such as supply chain disruptions, decline in export earnings and higher cost of production.
Restoring economic activities in the aftermath of a hartal and blockade in Bangladesh requires a multi-pronged approach that addresses the immediate needs of affected businesses and workers, he said.
Sameer, a corporate lawyer, stressed rebuilding trust and confidence and promotion of long-term economic resilience.
“If we look at the features of Bangladesh's economy in recent years, we see that the country has faced some economic challenges due to the Covid-19 Pandemic and global unrest, particularly the Russia-Ukraine war,” he pointed out.
These incidents are causing disruptions in the global supply chain that makes difficult management of foreign exchange reserves, he said.
This in turn contributes to the rise in fuel prices, increases the cost of doing business leading to an inflationary pressure, said the DCCI chief.
Due to the ongoing opposition-sponsored blockades and hartals, he said, international trade is likely to decline, with limited transport movement disrupting the local supply chain. According to the Export Promotion Bureau (EPB) the export income for the first five months of the current fiscal is 9.31 per cent below the annual target of $60 billion, he said.
He explained how hartals and blockades affected the economy in 2013 and 2014.
In 2013, the Dhaka Chamber reported that such unrest caused a daily economic loss of Tk 1,600 crore. In 2014, daily loss was estimated at Tk 2,000 crore in a study by Centre for Policy Dialogue (CPD), a think tank.
Citing these studies DCCI chief Sameer said the current political unrest is not only jeopardizing the business environment but also impacting the standard of living.
This has been particularly affecting the marginalised population amid fear that the national economy may plunge into a state of uncertainty.
Sameer said Bangladesh's hartal-blockade culture has become a serious impediment to the country's economic progress.
This disruption may have ripple effects throughout the economy, affecting various industries, including manufacturing, agriculture, and trade, he opined.
The disruption of production and economic activities may lead to reduced productivity, job loss, and a weakened international market position. Ongoing hartals and blockades are hampering the export and import processes, he observed.
The decline in business activity due to hartals and blockades poses a significant threat, especially to Small and Medium-sized Enterprises (SMEs), he said.
“With 80 per cent share of the informal sector in our economy, including employment, the impact of hartals and blockades is likely to have adverse effects, potentially leading to an increase in poverty,” he warned.
