Businessmen are in difficult situation, economy in challenge

Talking to the businessmen, it is known that due to various reasons including the economic crisis, several companies of various domestic and foreign groups have decided to wind up their business in the last two months of August-September. Even if this situation continues, thousands of workers will lose their jobs. This will destabilize the industry. Which would be bad news for the economy.

After the political change on August 5, the law and order situation in the country deteriorated, labor unrest in industrial areas, extortion, arson and looting of many factories took place. Many factories were closed for this. Many businessmen and industrialists are afraid to go to factories due to adverse conditions. Due to earlier agitations, the entire month of July was spent in unrest. This instability for three consecutive months has had a negative impact on various indicators of the country’s economy. Production in many industries has fallen. Some businesses are closing down. No new investment is coming, no new employment is coming. Common people are disoriented due to high inflation among them. Economists and experts consider the improvement of the law and order situation to be a major factor in the transition from this situation. They say the interim government has to face three major challenges to get the economy moving. According to them, first of all, stability in law and order is needed in the country. Second, the supply of dollars must be increased. Thirdly, the market should be freed from extortion and syndicates.

Those concerned say that the interim government has reformed the economy as well as other sectors. Its positivity is evident. But it needs more time to get results. Mainly before the political change, global war and internal reasons increase the cost of production, decrease in product sales, high interest rate, labor dissatisfaction, shortage of raw materials in the industry due to dollar crisis have a negative impact on the country’s economy. After that, with the change in the political climate, the country’s economy was hit by a sudden flood.

However, the country’s PMI index in September is giving some hope. Compared to the previous month, the Bangladesh Purchasing Managers Index (PMI) increased by 6.2 points to reach 49.7. Investors look at the PMI index to understand the economic dynamics of the country. Generally, if the PMI index is 50 or above, the country’s economic dynamism is seen as positive.

The PMI index for the month of September was published yesterday on Tuesday. Metropolitan Chamber of Commerce (MCCI) and Policy Exchange Bangladesh (PEB) have been preparing this PMI index based on four main sectors of the economy. The sectors are agriculture, manufacturing, construction and services. Only the manufacturing sector returned to expansion in September. The remaining three sectors are still in contraction mode.

If you want to know about the whole issue, the former chief economist of the World Bank’s Dhaka Resident Mission. Zahid Hossain told our time that the economic woes will not end overnight. But the interim government has taken several steps, which need to be visible. He said, since taking charge, there has been unrest in various places. It took a long time to resolve these issues. Various initiatives have been taken to revive the economy. There have been some effects. Law and order has improved a lot, but stability is needed. People are still in fear of what will happen.

Zahid Hossain said that the overall inflation is not affecting the market. Extortion in the market and syndicates in the supply chain should be broken. Otherwise, the product price will not decrease. People will not be relieved. Apart from this, special attention should be paid to electricity and fuel. To sustain imports, the supply of dollars must increase. He said, now we have to help reduce the cost of production. Because during the previous government, a huge amount of money had to be paid on the table due to various political reasons. Now it will decrease. It is supposed to reduce the cost of production.

Mir Nasir Hossain, the former president of FBCCI, the top organization of businessmen, told our time that the country’s business and commerce is in a real sense of crisis. From coronavirus to Russia-Ukraine war, inability to import necessary due to dollar crisis, increase in interest rate, gas and electricity crisis, the business and trade situation is not going well. Then the industrial plant was closed for a few days during the student uprising. Due to lack of production, the product could not be supplied to the market. As a result, there was no income. Added to this is the increase in the interest of bank loans and salary of workers. All in all, maybe they couldn’t handle the pressure. Due to this, the factory has to be forced to close down. Many people will lose their jobs if the industries are closed. This will not be good news for the economy. However, he expressed hope for the improvement of the situation as the interim government is working as well as possible.

Mohiuddin Rubel, director of BGMEA, said that the environment in industrial areas has improved. Law and order has improved. But efforts need to be made to increase investment. If investment does not increase, there will be no employment.

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