The main driving force of Bangladesh’s economy is the private sector. Yet after the latest political shift, a series of lawsuits, vandalism, takeovers, and labor unrest have thrown industrial entrepreneurs into a severe crisis whose effects are visible everywhere.
Many businesspeople and entrepreneurs have been forced to leave the country, factories have been shut down, and those who have remained are discouraged from investing due to lawsuits and harassment.
This vacuum in the industrial sector must be filled; otherwise, the direct impact of reduced investment will be felt in employment. In reality, instead of new jobs, unemployment is rising.
Previously, more than four hundred garment factories were damaged in various acts of violence; mere vandalism and arson alone have caused losses of hundreds of crores of taka.
According to the Bangladesh Bureau of Statistics, the unemployment rate rose to 4.63 percent in the October–December quarter of the current fiscal year, bringing the number of unemployed to about 2.73 million. Private-sector credit growth has fallen below 7 percent—the lowest in 22 years. In addition, letters of credit have dropped by 25 percent.
Borrowing has also declined. Economists have made it clear that without a stable government, business confidence will not return and investment will not rise. As a result, GDP growth has already fallen to 3.97 percent. These figures indicate that the path to restoring the desired pace of the economy is still far off.
The shortage of gas and electricity is greatly intensifying this industrial downturn. All seven units of the Ghorashal thermal power plant in Narsingdi have been closed for three months, creating a shortage of 1,610 megawatts of electricity in the national grid.
Severe gas shortages in Dhaka and nearby districts have brought factories to a standstill. Production in the garment, ceramics, and cement sectors has dropped sharply because of gas shortages. Manufacturers are being forced to run generators for longer hours, causing costs to multiply.
Fertilizer factory production has also been disrupted; long lines have appeared at CNG filling stations, and rising transport costs are making everyday living expenses more difficult for ordinary consumers.
At the heart of this economic crisis lies a lack of confidence. Lawsuits and harassment have instilled fear and uncertainty among businesspeople. Entrepreneurs no longer dare to open new factories; many older establishments are being forced to close. Meanwhile, energy shortages are putting the brakes on industrial activity.
This threefold crisis of investment, production, and employment is delivering a severe blow to the economy. Businesspeople have already demanded that all forms of harassment-related cases be withdrawn, that they be allowed to operate smoothly, and that policy changes not be introduced abruptly.
Only through long-term stable policies and effective dialogue can confidence be restored. Alongside this, urgent action must be taken to resolve the gas crisis. Emergency LNG imports may provide a temporary solution, but unless a sustainable path is found, the crisis will deepen day by day.
Bangladesh’s economic strength lies in the expansion of industries and employment. Yet at present, lawsuits, the gas–electricity stalemate, and stagnation in investment are steadily eroding this strength. If confidence cannot be restored today, even tougher days await the economy.
The meaning of a country’s independence is economic freedom for its people, and the key to that freedom is employment. If employment opportunities shrink instead of expand, the state’s fundamental achievements will be at risk.
Therefore, ending widespread lawsuits and harassment, finding sustainable solutions to the energy sector, and creating a conducive investment climate are all urgently needed. Still, we believe patience has no alternative in this context as well.
