—Mostofa Kamal—

Regardless of financial difficulties, industries must ensure salaries and bonuses for employees during Eid. This year, factory owners face a major challenge as they must pay two months’ wages (February-March) along with Eid bonuses. The Ministry of Labour and Employment and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) estimate that 50-60 factories may struggle to meet these obligations. Labour leaders, although aware of the financial constraints, remain firm in their demands, ensuring that bonuses, overtime dues, and Eid holidays are all settled by the 20th of Ramadan.

This crisis is most evident in the garment industry. Labour leaders argue that factory owners deliberately create artificial crises by holding workers hostage during festivals, despite having financial capacity. According to them, factory owners exploit the situation to secure additional government incentives. Workers, agitated by these concerns, are becoming increasingly vocal, even though many factories have shut down or significantly reduced production due to political instability. Regardless of circumstances, workers demand their wages and bonuses as a fundamental right, leaving factory owners in a desperate situation across various sectors, including garments and construction.

The demand for March salaries and Eid bonuses has led to increasing worker unrest. Employees insist on receiving their full salaries by the 20th of Ramadan and bonuses by the 25th. In areas like Gazipur, Savar, and Ashulia, workers have been protesting daily, often blocking roads and disrupting traffic. These demonstrations cause massive congestion, creating havoc for commuters. Law enforcement agencies are handling the situation with caution, avoiding forceful interventions to prevent further escalation. However, some groups are eager to see conflicts arise, but the government is unwilling to allow such disruptions.

Factory owners and investors are aware of the efforts to stir instability before Eid. They demand stricter government intervention, but the administration is hesitant to take a hard stance. The root issue is money—workers are protesting for their unpaid wages. The government and business community acknowledge that if payments are made, unrest will subside. As a result, businesses are requesting financial assistance from the government to cope with wage pressures. However, a significant portion of the government’s stimulus funds remains undistributed. The silence from government authorities has raised concerns among business owners, who also expect banks to provide support during this financial crisis.

Following the political transition, most industries have weakened, leading to reduced production. Government projects have also stalled, impacting the income of those directly or indirectly involved. Key industry players have fled the country due to political concerns, cutting off major financial flows. While the garment sector remains somewhat stable, it faces severe challenges in raw material imports and energy shortages. Although export orders have increased, some factories are delivering at a loss, creating liquidity shortages. The imbalance between export earnings and operational costs is severely impacting profitability.

Factories require workers and a stable energy supply. Despite raising gas prices from 11 to 30 taka per unit, the supply remains inadequate. While some dyeing factories have resorted to diesel as an alternative, it fails to meet the necessary standards. Fabric dyeing shortages have left sewing, finishing, knitting, and printing sections idle, forcing factories to pay wages without work. Additionally, India’s aggressive policies and anti-dumping duties on yarn have disrupted Bangladesh’s textile market. This Eid, approximately $1.5 billion worth of products will remain unsold in the domestic market due to Indian competition. With Indian manufacturers receiving 13-15% subsidies, Bangladeshi businesses have been forced to import 30% more Indian yarn, hurting local production. The jute industry is in an even worse state, struggling to pay its 200,000 workers regularly.

Ensuring industrial security is crucial for sustaining economic momentum, let alone attracting new investments. When existing investments are under threat, confidence erodes. Any country’s economic development depends on industrial growth and trade. Investment—whether private or state-led—is the driving force behind growth and prosperity. Currently, small, medium, and large businesses, heavily reliant on bank loans, are all facing difficulties. The entire economy is grappling with multiple challenges, with businesses at increased risk. The industrial, commercial, and investment sectors are losing their normal pace.

Business owners have long demanded lower interest rates, stable foreign exchange policies, and a reconsideration of VAT decisions to restore economic stability. The government’s failure to ensure uninterrupted gas and electricity supply has further exacerbated the crisis. Rising loan interest rates have increased operational costs, driving up product prices and reducing sales. Importers still struggle to open Letters of Credit (LCs), with many banks reluctant to facilitate trade. Strict regulations on setting up overseas offices are also discouraging expansion. Relaxing certain policies could encourage imports, exports, and investments while ensuring transparency in the financial sector. Strengthening the accountability of the central bank is another critical issue.

During a recent meeting with the National Board of Revenue (NBR) Chairman, representatives from the textile, garment, and plastic accessories industries expressed their grievances. They urged the government to ease trade barriers, reduce VAT and import duties, and eliminate customs harassment. In response, the NBR Chairman admitted that eradicating corruption is no easy task but advised businesses to refuse unfair demands from revenue officials. He encouraged them to expose corruption and even threatened to dismiss any NBR official caught taking bribes without an investigation. However, expecting businesses to monitor corruption is unrealistic. Investors want a secure and uninterrupted business environment, and they look to the state to guarantee their capital.

Without financial stability in industries and businesses, political stability and democracy suffer. Throughout history, this has been repeatedly proven. In the modern world, economics and democracy are like the two wheels of a bicycle—one cannot function without the other. If the economy is not business-friendly, politics will not be democratic. This is not just a Bangladeshi reality but a global truth. Given the fragile financial sector, the burden of repaying foreign loans, and a revenue deficit of Tk105,000 crore, the interim government is already facing enormous pressure. Additionally, Bangladesh’s geopolitical position in an unstable world further complicates matters.

The business community is actively analysing the situation, but within government and political circles, concerns are likely even greater. The increasing economic strain signals a serious challenge to the nation, its politics, and its democracy. Ensuring economic stability must be a priority before addressing other concerns.