Bangladesh's economy loses Tk 65b daily amid ongoing political unrest, experts warn

Economists and business leaders are calling for a sustainable and peaceful  environment in Bangladesh to help navigate the ongoing economic crisis.

Experts have highlighted that the country loses nearly Tk 65 billion per day due to hartals and blockades.

They also point to a combination of factors that have strained the economy over the past two years, including high inflation and interest rates, a shortage of US dollars, a high ratio of non-performing loans in the banking sector, and pressure from external debt repayments, reports UNB. 

Violent clashes over the quota reform protests by students have further deteriorated the law and order situation, leading to casualties and numerous injuries, they observed.

In addition, a shortage of gas and electricity, as well as high taxes and VAT, have impacted both consumers and businesses.

Mahbubul Alam, President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), emphasized the severe economic impact of unrest. “The economy is losing Tk 6,500 crores a day because of hartals and blockades,” he told UNB. “We repeatedly urge political parties, students, and the general public to avoid activities that cause financial loss and create public suffering.”

Eminent economist and distinguished fellow at the Centre for Policy Dialogue (CPD), Dr. Debapriya Bhattacharya commented on the multi-faceted crises facing Bangladesh’s economy. The student protests are fueling the economic crisis, and the country is experiencing a multi-dimensional image crisis, he said. The long-term effects of this unrest on people’s lives are significant and cannot be quantified in figures alone, he added.

The economist noted that international business groups and global buyers become wary during periods of instability, often redirecting their orders and investments to more stable regions. When a major global buyer shifts orders from a country, smaller buyers tend to follow, he added.

Noted economist Dr. Ahsan H. Mansur also stressed the need for a sustainable and peaceful environment to overcome the financial crisis. The right decisions from the country’s top leadership are required to resolve the unrest and restore Bangladesh’s image, he said.