Business leaders at a discussion on Monday called for immediate action from the interim government to revive Bangladesh's economy, which has been severely impacted by disruptions in business activities during recent months of unrest.
They attributed these disruptions to mismanagement in the banking sector and crises in power, energy and gas, leading to reduced opportunities for traders to boost the economy.
The discussion, titled “Crisis and Way of Transition in the RMG Sector in the Ongoing Situation,” was organised by the Bangladesh Garment Buying House Association (BGBA) at Pan Pacific Sonargaon Dhaka in the capital.
The leaders noted that factories were forced to close as unrest intensified, freight costs surged, containers became stagnant, and export-import delays became prevalent, further straining the economy.
Businesses emphasised that Bangladesh should postpone its planned graduation from Least Developed Country (LDC) status, citing concerns that earlier projections were based on inflated data.
They also stressed the need for improved factory security to ensure uninterrupted production, a transparent supply chain, and hassle-free port clearance processes.
At the event, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) former president Abdul Awal Mintoo served as the chief guest, while BGBA President Mohammad Mofazzal Hossain Pavel chaired the session.
Mintoo said, “Problems will escalate if we cannot identify their source. Society is divided into wealth creators and wealth acquirers. Wealth creators bring money into the country, while wealth acquirers launder it.
Over the past 15 years, no institution in Bangladesh has effectively supported entrepreneurial growth; large companies have hindered smaller enterprises. The central bank, rather than regulating, has facilitated theft. I see no light of hope emerging from this darkness.”
“However, I am committed to resolving these issues. I spoke with the home affairs adviser this morning and am arranging a meeting with the Bangladesh Bank governor and the finance adviser. We must address the fundamental problems first. Political stability is essential for economic stability,” he added.
Speakers said that ongoing instability disrupted the supply chain and backward linkages, rendering businesses unable to deliver ordered products. If these issues persist, new orders may not come, existing orders will face delays and the economy will pay the price.
Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell said, “We should narrow down our demands and focus on factory security, support for the banking sector and uninterrupted power and energy supply.”
Bangladesh Freight Forwarders Association (BAFFA) President Kabir Ahmed said, “Our freight costs increased fivefold, surpassing manufacturing costs. This issue needs immediate resolution.”
Export Promotion Bureau (EPB) Vice Chairman Md Anwar Hossain added, “We aim to address the business crises, particularly freight cost issues. Additionally, we must consider diversifying our RMG sector into man-made fibres and other potential areas.”
BGBA President Mohammad Mofazzal Hossain Pavel said, “Garment buying houses contribute nearly $12 billion to export orders in the readymade garments (RMG) industry. However, issues such as banking sector mismanagement and power and gas shortages hinder growth. Resolving these problems could enable us to export $100 billion in a year. Cooperation, rather than competition, is crucial for achieving this goal.”
