Fears of disruption in supply of essential goods during Ramadan.
Some of the country’s major institutions are facing a shortage of working capital, a dollar crisis, high prices, and a gas and electricity crisis. Added to this is the problem of opening letters of credit (LC). They are unable to import raw materials due to the inability to open LCs through some banks. Those concerned believe that if this continues, the supply of daily necessities may be disrupted in the coming Ramadan. They say that some banks, especially Islamic Sharia-based banks, are not cooperating in opening LCs. Due to which, production of all types of daily necessities and consumer goods including oil and sugar, construction materials including rod and cement, pharmaceuticals, ceramics, and large industries such as the textile sector are being disrupted.
Deshbandhu Group recently sent a letter to the higher levels of the government and the concerned authorities outlining the overall information regarding the inability to open LCs. Taking the matter into consideration a letter was also sent to the concerned banks from the Office of the Chief Advisor on December 3 last year with appropriate instructions.
Before that, a letter was also sent from the Ministry of Finance on October 28 last year. Finally, on December 5, Bangladesh Bank also sent another letter to the concerned banks with instructions in this regard. In view of this and in accordance with Bangladesh Bank’s Circular No. 16/2022, Deshbandhu Group wrote to each of the concerned banks to reschedule the group’s loans. However, the three banks – First Security Islami Bank PLC, Social Islami Bank PLC and Islami Bank Bangladesh PLC – did not reschedule the loans. Instead, they were shown as classified in the CIB report of Bangladesh Bank.
In this situation, Deshbandhu Group, one of the largest industrial families in the country, approached the High Court to resolve the matter. The High Court, considering the overall aspect and in view of the Bangladesh Bank’s letter, directed Deshbandhu Group to reschedule its loans and conduct business.
Meanwhile, on December 30, Bangladesh Bank wrote to the three mentioned Islamic banks to waive the interest of the Deshbandhu Group companies, regularize their bank accounts and conduct regular banking activities. In view of this letter, the group wrote to the concerned banks to take action; But so far, the banks have not done so.
This has made the employment of thousands of people uncertain and there is a fear of disruption in the supply system of daily necessities in the country. Due to the non-cooperation of banks in importing raw materials for the industry, production activities are being stopped. Even the workers are having to be paid on a staggered basis.
Former secretary and Executive Director (ED) of Deshbandhu Group Momtazul Islam said that the biggest challenge in the current political context of the country is to control the law and order situation. After that, bringing the prices of goods within the purchasing power of the people; but the implementation of that is hindering the country’s industrial sector, which is facing a four-pronged crisis. He said that several large industrial groups in the country have already reduced their production due to not being able to open LCs. Some are even being forced to close factories. Among them, some industrial groups based in Chittagong and Dhaka are one of them. The month of Ramadan is ahead, the demand for consumer goods in the country will double; but accordingly, the situation of opening LCs and goods shipments against it is not satisfactory.
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