Businesses on Thursday said that the country鈥檚 business situation was gradually improving, but issues such as smooth logistics, banking services and security in industries needed to be addressed to ensure a full revival of economic activities after the recent disruptions.
They mentioned that while production in all factories had returned to normal, export shipments were still progressing slowly due to disruptions in productions caused by the nationwide student movement in July and August.
The quota reform movement, initially led by students, escalated into a mass uprising due to the government鈥檚 heavy-handed response. Consequently, Sheikh Hasina resigned as prime minister and left the country on August 5.
Bangladesh Chamber of Industries president Anwar-ul Alam Chowdhury Parvez said that business activities were gaining momentum, but challenges such as the availability of raw materials, ease of logistics and congestion at ports still persisted.
He said that stability in the banking sector was important for the businesses of manufacturing sector.
The surfacing of massive irregularities in banks would make global business partners worried about smooth business with Bangladesh, Parvez said.
Parvez claimed that several foreign banks had already expressed their reluctance to accept letters of credit from nine banks, including Islami Bank.
He said that the interim government had just taken over power and it would take time to normalise the business activities.
Businesses want all institutions, including banks, the National Board of Revenue and the judiciary, to function effectively.
The interim government has promised reforms in the institutions and hopefully it would bring a positive result for the economy of the country.
He said that global buyers were observing the situation and making delays in placing orders.
But many of them have confidence that the situation would improve in the country under the leadership of Muhammad Yunus, he said.
He also mentioned that the gas crisis remained a significant problem for the manufacturing sector, with most factories operating at 30-40 per cent less capacity.
Bangladesh Knitwear Manufacturers and Exporters Association Executive president Mohammad Hatem said that the business situation was gradually returning to normalcy.
However, the emergence of a new group attempting to establish control over industrial zones has become a source of concern for businesses, he said.
Hatem said that the unrest situation over the quota reform movement initially made the global buyers worried, but they were now confident as an interim government had been formed under the leadership of a global renowned personality Muhammad Yunus.
He also said that the export shipment was going slow as the production was disrupted due to the countrywide turmoil between July 16 and August 5.
Hatem said that it might take about a month for the situation to fully normalise.
Bangladesh Garment Manufacturers and Exporters Association vice-president Abdullah Hil Rakib said that factory operations had become normal and shipments were continuing, but congestions at the ports persisted.
He also said that factory owners were facing security threats, as a newly emerged group was attempting to gain control over the jhut business and engaging in extortion in the industrial zones.
鈥榃e have communicated our issues to the chief adviser of the interim government, who assured us that the government would take action to prevent security threats,鈥� Rakib said.
