Due to overall instability in the country, business activities have not picked up pace. Seven months after the fascist Sheikh Hasina's regime fell, the law and order situation has not normalized, and the political climate is still unstable.
The country is grappling with an economic crisis, and the financial sector has yet to recover. Although reforms are being made in the economy and business sectors, there are worries that trade volume this Eid could be noticeably lower due to these ongoing issues.
From street vendors to five-star mall retailers, everyone is noting a decrease in the flow of money among people. Moreover, the burden of expenses is much higher, and the political and economic situations remain unfavorable. As a result, shopping during this Eid is expected to be much lower than in previous years.
In this regard, Zahid Ahmed, the owner of the chain shop 'Race,' told Bangladesh Protidin, "People are facing uncertain times. The political situation is unstable, and there are concerns about law and order. With low incomes and many losing their jobs, shopping this year is expected to be significantly lower than in previous years."
According to the Purchasing Managers' Index (PMI) data jointly released by the Metropolitan Chamber of Commerce and Industry (MCCI) and the Policy Exchange of Bangladesh, business expansion in Bangladesh in February was slightly lower compared to January. The index considers four sectors for measurement.
Finance Adviser Dr Salehuddin Ahmed stated that the interim government is trying to bring momentum to business activities.
The Adviser said, "The economy is not in a completely bad state, but the reason for the downturn in business is that sources of income have reduced. Employment has also decreased. However, it is not on the verge of collapse. Efforts are being made to revive business activities. Recently, the Bangladesh Bank has been instructed to provide loans to small businesses in the SME sector."
The government's efforts to tackle the economic crisis have not been fully implemented yet. Since the fascist Sheikh Hasina’s departure in August, numerous industrial units have shut down, leading to job losses for thousands of workers. With limited new job opportunities, many have become unemployed.
Furthermore, delays in implementing financial sector reforms are causing setbacks. Many business owners continue to face difficulties and harassment while seeking services, and the ongoing dollar crisis remains unresolved. Consequently, there are still challenges in opening letters of credit (LCs), keeping the overall business environment at a worrying state.
Entrepreneurs have expressed that the prolonged political instability has created uncertainty in the industrial sector. This uncertainty has worsened with the upcoming national elections. Many are holding off on making new investments until the new government is formed. However, doubts about whether the elections will take place as scheduled, as voiced by the country's major political parties. This is having a negative impact on the industry and the overall economy.
Bd-pratidin English/ Afia
