Calling for industrial investment while preserving the very causes of economic decay is no less than a mockery. Bangladesh’s economy is faltering under the weight of structural neglect, with factories closing, unemployment rising, and investor confidence at an all-time low. Yet, officials continue to express optimism—detached from the ground reality.
The industrial sector, once a driver of growth, is now gasping. GDP growth dropped to 3.97% in FY 2024–25, down from 4.22% the previous year. Factory shutdowns are no longer occasional—they’re routine. Behind each closure lies a story of workers thrown into joblessness, unable to pay rent or support families.
The World Bank’s Bangladesh Development Update warns that up to three million people could fall below the poverty line in 2025. But the government’s narrative remains stubbornly upbeat. Finance Adviser Dr. Salehuddin Ahmed claims efforts are underway to accelerate trade and commerce. But if the economy isn’t in crisis, why the urgency?
Unasked—but understood—questions haunt boardrooms and factory floors. There was a chance to reform the economic structure. It was wasted. No resolution has been offered for factories shut under the former administration. No rehabilitation plans exist for the displaced workers. This isn’t merely mismanagement; it borders on cruelty.
The energy crisis is another wound, bleeding the economy dry. Costly LNG imports have hiked production costs, while the country’s own gas reserves dwindle. No new fields have been discovered, and daily extraction is declining. At the same time, the banking sector remains too weak to provide capital. Business owners are being squeezed from all sides.
These crises didn’t erupt overnight. They’re the result of long-standing misgovernance and policy inertia, now fully exposed since August 5. Yet, the government has not placed these problems on the front burner. No urgent incentives, no decisive restructuring, no serious attention to job loss.
The first step in solving a crisis is admitting there is one. But denial prevails. Officials blame factory mismanagement, while failing to implement oversight or policy corrections. This deflection does nothing to stop the collapse.
Political turmoil, student uprisings, and labor unrest in the past fiscal year crippled trade and investment. Law and order deteriorated. Energy shortages escalated. Interest rates climbed, while demand fell. The recent standoff within the National Board of Revenue (NBR) has further complicated fiscal stability—jeopardizing revenue collection.
Meanwhile, unemployment data tells a misleading story. According to ILO standards adopted by the BBS, anyone who works one hour in a week is not unemployed. So thousands selling coconuts or boiled eggs after failing to secure formal work aren’t counted in official statistics. But the crisis is real, and it’s growing.
About 61% of jobs are generated by private initiatives. Yet private investment has dropped to 22.48% of GDP in FY 2024–25, down from 23.51% the previous year. Government employment is just 3.8% of total jobs. Without trust-building and structural reforms, the investment environment will continue to deteriorate.
Even the remittance boost—the lone silver lining—cannot disguise the broader failure. IMF-mandated tax hikes and interest rate increases have burdened consumers and choked businesses. Inflation remains high. Competitiveness is eroding. Factory closures are now daily headlines, though many go unreported. Workers suffer in silence.
Without political stability and an end to mob violence, business confidence cannot recover. Denying the crisis or blaming others will not revive industries or put food on the table.
Sri Lanka, at its worst, didn’t attack its industries. It stabilized, held credible elections, and is on the path to recovery. In contrast, Bangladesh risks prolonged instability unless bold, honest, and inclusive economic measures are taken—now.
We need real reforms; a restructured energy policy, industrial incentives, capital access, labor protections, and political neutrality in business affairs. The government alone cannot rescue the economy. It requires partnership with the private sector, civil society, and, above all, honesty in diagnosis.
This is not just about numbers or investment metrics. It’s about people—factory owners in despair, youth locked out of the labor market, long-term unemployed graduates losing hope.
The warning signs are everywhere. The time to act was yesterday. But even now, meaningful change is possible—if the government is willing to step beyond rhetoric and face the truth.
Bd-pratidin English/ Jisan
