Reviving Loss-Making and Closed Factories

The industrial sector remains a cornerstone of Bangladesh’s economic development, playing a vital role in employment generation, production growth, and export expansion. In this context, the Prime Minister’s recent initiative to revive loss-making and closed industrial units is both timely and commendable.

A series of meetings with leading industrial groups underscores the seriousness and urgency of this effort.

At a recent meeting held on June 20, representatives from some of the country’s top business conglomerates—including Pran-RFL Group, Kazi Farms, Meghna Group, BRAC Enterprises, Square Food & Beverage, ACI, Akij Venture Group, as well as Walton, Runner, and TK Group—participated alongside representatives of several Japanese corporations and embassy officials.

This diverse participation signals both domestic confidence and international interest in Bangladesh’s industrial revival.

Addressing the meeting, the Prime Minister emphasized that the responsibility of an elected government is to remove obstacles and create pathways to overcome challenges.

Problems and constraints undoubtedly exist, but with collective effort, they can be addressed effectively.

Historically, East Bengal joined Pakistan with a relatively weak industrial
base compared to West Bengal.

Nevertheless, during the Pakistan era, a number of light industries emerged, particularly in Tejgaon and Tongi in Dhaka.

These included textiles, pharmaceuticals, soap, biscuits, and light engineering industries.

Hazaribagh developed as a leather processing hub, while multiple jute mills were established along the Buriganga and Shitalakshya rivers, especially in Narayanganj and Siddhirganj.

The Adamjee Jute Mills in Narayanganj once stood as the largest jute mill in Asia. A machine tools factory was also established in Joydebpur.

Chattogram, too, witnessed industrial growth, with heavy industries developing in areas such as Nasirabad, North Patenga, Faujdarhat, and Kalurghat.

The Chittagong Steel Mills in North Patenga gained particular prominence.

Meanwhile, Khulna’s Rupsha, Khalishpur, and Daulatpur became notable industrial zones, with Crescent Jute Mills among the largest.

In total, prior to 1971, the region had established a considerable industrial base comprising 72 jute mills, 15 textile mills, 11 sugar mills, a machine tools factory, two paper mills, a newsprint mill, and several light industries.

Had this trajectory of industrial development been sustained, Bangladesh today might have emerged as one of South Asia’s leading industrial economies.

However, the post-independence journey took a different turn. Beginning in 1972, the country embarked on a socialist-oriented path.

Abandoned industries, previously owned by non-Bengalis, were nationalized, placing their management in the hands of bureaucrats who often lacked the necessary experience.

While initial challenges were perhaps inevitable, a broader political push toward state control of banks, insurance, and industries further constrained private sector growth.

The absence of accountability, lack of efficiency, and weak labor-management practices contributed to the decline of many state-run enterprises.

The role of healthy trade unions was largely overlooked, and workers were often deprived of fair wages—factors that hindered sustainable industrial development.

In retrospect, had these abandoned factories been leased or transferred to capable entrepreneurs under favorable terms early on, the economy might have avoided the prolonged burden of losses.

Eventually, after political and economic shifts, Bangladesh adopted a more market-oriented approach, encouraging private investment and privatization. As a result, the private sector has grown significantly stronger.

Today, industries such as garments, pharmaceuticals, cement, ceramics, steel, and engineering play a pivotal role in the economy.

Several large business groups possess the capacity to revive closed factories, utilizing their existing infrastructure and land through long-term leases or acquisition.

The recent initiative, therefore, presents a renewed opportunity.

If implemented with transparency, efficiency, and strategic planning, it can unlock dormant industrial potential, generate employment, and accelerate economic growth.

The nation now looks forward to the successful realization of this promising initiative.