‘Precautionary measures important for economy amid Mid-East conflict’
Reza Mahmud
* Remittance inflows and international supply of goods is
disrupted, prices of essential commodities such as wheat, sugar, and edible oil will rise
* Bangladeshi policymakers should take precautionary steps, seek out alternative markets and long-term plans for overseas
employment
The ongoing armed conflict between Israel and Iran poses a severe threat to Bangladesh’s economy, warned business leaders.
They asked the government to take precautionary measures saying it is important for economy amid Mid-East conflict.
Business leaders said, immediately after the attack, there was a swift reaction in the global market. The price of Brent crude oil, the benchmark in the international market, surged by more than 10 percent to reach $75 per barrel. However, the price of Brent crude is still about 10 percent lower than it was a year ago. Three years ago, in 2022, following Russia’s invasion of Ukraine, Brent hit its highest price of $130 per barrel. Along with the rise in oil prices, there are also concerns that the prices of gas and liquefied natural gas may increase.
Besides, remittance earnings, air communications and such more economic activities were disrupted for the conflicts.
Eminent business leader and industrialist Sakif Shamim recently said about the FBCCI elections and the economic impact of the Israel-Iran conflict, he stated that this situation could destabilize not just a few sectors but the entire economy.
In such a scenario, Bangladeshi policymakers should take precautionary steps, seek out alternative markets and sources, and formulate long-term plans to generate employment for overseas workers. He also emphasized that businesspeople should strengthen their supply chains and be prepared for global instability. Avoiding such a war scenario is the best course of action for humanity, as its consequences would be catastrophic.
Sakif Shamim, Managing Director of Labaid Cancer Hospital & Super Specialty Center, warned that this war could trigger a global energy crisis. If the Strait of Hormuz, controlled by Iran, is closed, the global oil supply system could collapse, causing fuel prices to surge. This will negatively impact production and prices worldwide. Bangladesh, too, is not immune to this global crisis.
He noted that if the international supply of goods is disrupted, prices of essential commodities such as wheat, sugar, and edible oil will rise. Bangladesh imports a large portion of these items. As a result, if import prices go up, domestic inflation will rise, making the cost of living unbearable for ordinary people.
Announcing his candidacy for the post of Vice President in the upcoming FBCCI elections, Sakif Shamim pledged to do everything within his capacity for the welfare of the business community. He intends to work with businesses of all sizes and is seeking votes from FBCCI’s general body members.
Referring to the war, he added that military tensions between Israel and Iran have escalated significantly. This geopolitical conflict has sparked global concern due to fears that it could escalate into a third world war. Although Bangladesh may not be directly involved, the global economic ripple effects of this conflict will pose major challenges for developing countries like Bangladesh.