Al Amin :
Revitalizing the country’s economy by rejuvenating businesses will be a significant challenge for the newly formed government, experts say.
They note that tough economic conditions prevail due to various internal and external factors, particularly the recent student protests that forced former Prime Minister Sheikh Hasina to resign and flee the country.
The country is experiencing a sharp widening of its current account deficit, depreciation of the taka, and a decline in foreign exchange reserves. Additionally, the country’s economy faces an image crisis in international markets due to human rights violations by the previous government.
As a result, exporters in the country’s readymade garment (RMG) sector, which contributes 84 percent of export earnings, are at risk of losing buyers. The student protests have also exacerbated stagnant job growth in the private sector, leaving nearly 32 million young people unemployed.
Given these circumstances, experts believe the newly formed government must prioritize boosting the economy by rejuvenating businesses.
“The country’s economy must be revived despite various existing economic challenges, particularly in the financial and banking sectors,” said Saleh Uddin Ahmed, Adviser for the Ministries of Finance and Planning in the newly-formed interim government, on Friday.
“The pace and operations of our businesses have slowed down, and we face numerous challenges in the economy, especially in the banking and financial sectors. We will have to rejuvenate our economy,” he said.
Saleh Uddin, a former central bank governor, made these comments while speaking to reporters after the allocation of portfolios for the chief adviser and other advisers of the interim government. He also vowed to restore discipline in the banking, financial, and capital markets.
“Insha’Allah, we’ll try to fix all those sectors,” he said.
Factories and retail sales, disrupted due to the
student protests, are resuming operations across the country. Sector insiders report that at least 95 percent of RMG factories have reopened, and industrial hubs are expected to return to normal by next Saturday as the law and order situation improves.
Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told The New Nation, “Operations at the majority of the country’s factories have resumed, and I hope production at the factories will be in full swing from Saturday.”
“The interim government has already taken the oath, and law enforcement agencies will return to their duties, which will accelerate the restoration of law and order and boost the confidence of both manufacturers and workers,” he added.