The country’s business sector has found no relief, even eight months after the fall of the previous fascist government. Businesspeople continue to face harassment and government service sectors remain unchanged.
Consequently, many industries have shut down, leaving numerous business owners in a state of fear. Moreover, small and medium enterprises (SMEs) continue to be neglected by the banking sector. This situation is hindering the restoration of a strong business environment.
Industry analysts believe that stagnation in the private sector, the country's main economic driver, has also created obstacles to overall economic recovery. However, reports indicate that the production sector has shown a positive trend since the setbacks of the July-August uprising. Exports have surpassed $28.96 billion over the past seven months.
Despite this, more than a hundred factories have shut down due to loan defaults, lack of cooperation from banks, political turmoil, and rising production costs. As a result, hundreds of thousands of workers have lost their jobs. By the end of December 2024, loan defaults had reached Tk 3.45 lakh crore, while the dollar exchange rate exceeded Tk 122.
According to the Bangladesh Bureau of Statistics, food inflation stood at 10.72 percent at the end of January. Private sector credit growth declined by 2.5 percentage points to 7.3 percent by the end of December 2024. During the July-September period of the current fiscal year, net foreign direct investment (FDI) amounted to $104 million. Private investment remains stagnant at 23-24 percent of GDP.
Commenting on the situation, former Director General of the Bangladesh Institute of Development Studies (BIDS), Mustafa K. Mujeri, told Bangladesh Pratidin that inflation, growth, and employment have remained unchanged.
"Overall, the economy is at a standstill, and there is no visible sign of progress. Even after six months, the problems persist," he said.
"Weak banks continue to operate in the same manner, and the banking sector is on the edge. Market management was a key factor in controlling inflation, but there have been no significant improvements," he added.
Meanwhile, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem stated that the expected business environment has not been established over the past eight months. However, he remains hopeful that the government will implement necessary reforms soon to restore normalcy.
"We are not considering new investments under these circumstances. Policy support from the central bank and other institutions is essential for businesses," he remarked.
Translated & edited by Fariha Nowshin Chinika
