The uphill battle to restore confidence among the business community is reportedly progressing slowly though the interim government led by Prof Muhammad Yunus completes its second month in office.
Businesspeople say they are still optimistic that the situation will improve soon.
According to a newspaper report, business expansion, foreign direct investment (FDI) and new local investment plans at the moment remain on hold.
As reported the interim government has inherited at least half a dozen business challenges, such as corruption, persistent high inflation, gas and power crises, dollar shortages and a sharp depreciation of the taka with dollars.
These challenges already translated into declining FDIs, slumping capital machinery and raw material imports.
Besides, widespread workers’ unrest, deteriorating law and order, arson, and the arrest of businesspeople added to the existing challenges.
In late August and early September, workers’ unrest erupted in major industrial belts, disrupting production lines that were already struggling to meet tight deadlines.
Experts and stakeholders say, the future of business and investment depends on the government’s restoration of law and order. Already the student movement in July and August impacted garment orders from Western buyers.
At the time of the movement and soon after the Sheikh Hasina government’s fall, timely shipment of export orders became very difficult.
Apart from exports, according to Bangladesh Bank data, the opening of letters of credit (LCs) for imports declined by 4.76 percent in July-August compared to the corresponding period last year.
As well, international clothing retailers and brands placed fewer work orders for the next seasons due mainly to the inability to contain labour unrest promptly.
Business insiders say, arrests of businessmen should be very targeted if anyone is found corrupt and arresting businessmen indiscriminately sends a negative message to the business and investment climate.
Those who have committed crimes should be brought to book, but there should not be unnecessary harassment of businesspeople.
This will unnecessarily hurt business confidence. Bangladesh remains the second largest garment supplier to the world after China.
We have no other alternative but to improve law and order, stop labour unrest and ensure gas and power supply uninterrupted to continue industrial production.
Otherwise, it will be an uphill task to retain our position as the second largest garment supplier to the world.
