We Need New Industrial Establishments, Not Closures

A newspaper report published yesterday reveals that 457 industrial establishments in the country have permanently shut down over the past two years.

As a result, more than one thousand workers have suddenly found themselves unemployed. This situation is an awful sign for our national economy.

Creating employment and reducing the unemployment rate in the hugely populated country like Bangladesh is one of the main responsibilities of the state.

For this, it is necessary to strengthen the economic base of the country and there is no alternative to establishing new industrial enterprises to improve the people’s standard of living. Allegedly, a variety of global and domestic crises are primarily responsible for the successive closure of these well-established factories.

Reportedly, a lack of orders in the international market, geopolitical instability, and rising raw material costs have pushed the country’s industrial sector to the brink of disaster.

Domestically, a prolonged energy crisis-particularly the shortage of gas and electricity-has emerged as a major obstacle to maintaining production.

Although we have long been calling for uninterrupted gas and electricity supplies, our pleas have fallen on deaf ears. Industrial enterprises are becoming increasingly ailing because the issue is not being accorded the priority it deserves.

Compounding this situation are the complexities surrounding bank loans, rampant instability and plunder within the banking sector, and the resulting severe financial distress faced by entrepreneurs.

To overcome this dire crisis, the government must take far-sighted, rational, and effective measures. The terms and conditions of the funds as announced by Bangladesh Bank for reviving closed and partially operational factories must be immediately reviewed and relaxed.

It is essential to arrange working capital or loans for small and medium-sized entrepreneurs at a 7 percent interest rate and on easy terms by resolving collateral-related complexities and temporarily relaxing the stringency of CIB reports. Uninterrupted gas and electricity supplies must be ensured in industrial zones so that production is not disrupted by energy shortages.

It is necessary to provide a special facility for loan rescheduling by lowering the down payment requirement for bank loans to a minimum level. The flow of work orders must be sustained by seeking new buyers in international markets and intensifying diplomatic efforts.

We believe that if the government immediately considers the reasonable demands and suggestions of entrepreneurs and provides effective financial and policy support, the closed factories could be revived.

Currently, there is immense potential in the country for industries such as glass, fertilizer, cement, paper, sugar, iron, steel, pharmaceuticals, and leather. What is required for this is the government’s goodwill and its proper implementation.