Despite various economic reform efforts, business activities in Bangladesh have yet to regain momentum due to ongoing political and economic instability. With Eid-ul-Fitr approaching, traders fear a decline in sales, as consumer spending remains sluggish.
Even seven months after the fall of Sheikh Hasina’s regime, the law and order situation remains fragile, while the political landscape remains uncertain. Economic challenges, including a persistent financial crisis, employment slowdown, and liquidity issues, have further hampered trade.
From street vendors to high-end shopping malls, traders across the country report lower cash flow among consumers. Zahid Ahmed, owner of the chain store Rais, told Bangladesh Pratidin, “People are going through an uncertain time. Political instability, security concerns, and reduced income levels mean that Eid sales will likely be much lower this year.”
According to the Purchasing Managers’ Index (PMI), jointly published by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange of Bangladesh, business expansion slowed in February compared to January.
Government’s Efforts Yet to Show Impact: Financial Advisor Dr. Salehuddin Ahmed acknowledged the slowdown but insisted that the overall economy is not in crisis. He pointed out that limited income sources and declining employment opportunities have dampened economic activity. However, he noted that Bangladesh Bank has been instructed to facilitate SME loans to support struggling enterprises.
Meanwhile, initiatives taken by the interim government to revive the economy have yet to be implemented effectively. The closure of many industrial establishments after the fall of the Hasina government in August resulted in massive job losses. The dollar crisis continues, disrupting LC (Letter of Credit) openings and imports. Additionally, businesses still face bureaucratic harassment, adding further strain to the sector.
Investment Uncertainty Due to Political Climate: Entrepreneurs cite prolonged political instability as a key factor behind the downturn. The uncertainty surrounding the next national elections has left investors hesitant. Many await the formation of an elected government before making major investment decisions. However, with doubts over the election timeline, confidence in the economy remains weak, further delaying recovery and growth in the industrial sector.
With Eid sales expected to be lower than usual, business leaders warn that if stability is not restored soon, the economic slowdown could deepen, further affecting investment and employment opportunities.
