Published: 12:38 AM, 03 November 2026 Last Update: 12:47 AM, 03 November 2026
Flawed Economy Drives Public Fear
People shop at a market. The new Bangladesh government has formally sought to defer the country's exit from "least developed country" status, citing factors such as macroeconomic stress. Photo: Nikki Asia
Stumbling Blocks:
- * Soaring inflation and banking sector failures
- * Public optimism is fading out
- * Prolonged crisis has troubled ease of doing business
- * Severe nosedive in local and foreign investments
- * Hiked energy prices and augmented electricity costs
- * Mob violence still persists
- * Factory closures and rising unemployment
Bangladesh is passing through one of the most catastrophic periods in its economic and political history. An atmosphere of mistrust, uncertainty and panic has spread across the country. Political confrontations, violence, retaliatory attacks, mob activities and a persistent deterioration in law and order have created an environment that is increasingly hostile to investment, industrial growth and economic stability. Unless the country changes direction immediately it may face a prolonged economic crisis with devastating consequences for millions of people.
The political transition following the assumption of power by the interim government led by Dr Muhammad Yunus on 8 August 2024 was expected to usher in democratic reforms, institutional accountability and economic stability. However, the country subsequently witnessed a disturbing series of violent incidents and social unrest. Historical sculptures and heritage sites were vandalized or demolished by extremist groups. Women were assaulted in public places by religious extremists. The offices of two leading newspapers, The Daily Star and Prothom Alo, were set on fire during mob attacks. Even court proceedings were reportedly obstructed by unruly groups. Such incidents have seriously undermined public confidence in the rule of law and the protection of fundamental rights.
Bangladesh Nationalist Party (BNP) won the general elections in February 2026 and took power with expectations of political stability and economic revival. Nevertheless, the overall business environment has not yet become sound and secure. Political retaliation, intimidation and allegations of misuse of state institutions continue to generate anxiety among entrepreneurs, professionals and ordinary citizens. A country cannot attract investment when its citizens remain uncertain about their personal safety and property rights.
Foreign direct investment (FDI) has declined enormously in the middle of political uncertainty and nosedive in investors' confidence. International investors generally seek predictable policies, efficient administration, reliable infrastructure and strong legal protection before committing substantial capital. Bangladesh urgently needs these conditions. Unfortunately, allegations of harassment of business leaders through state agencies and regulatory institutions have further deteriorated confidence in the investment climate. If entrepreneurs are subjected to intimidation rather than receiving institutional support their willingness to expand businesses and create employment will inevitably decline.
Inflation remains another major concern for the national economy. Rising prices of essential commodities have reduced the purchasing power of ordinary citizens. Higher petroleum prices, gas tariffs and electricity costs have increased production expenses and placed additional pressure on households with limited incomes. At the same time, increased taxation has created further difficulties for consumers and businesses. The government must recognize that excessive taxation during an economic slowdown can discourage investment, reduce consumption and weaken industrial competitiveness.
Industrial unrest is particularly alarming. Readymade garment (RMG) workers in Mirpur, Gazipur, Savar and Ashulia have been involved in confrontations with law enforcement agencies over demands for minimum monthly wages of Tk 30,000. Reports of factory closures and production disruptions have raised concerns among international buyers. Hundreds of factories have reportedly been shut down amid labour unrest and business uncertainty. Bangladesh's garment industry is the backbone of its export economy and provides employment to millions of workers. Any prolonged disruption could seriously damage the country's international reputation as a reliable sourcing destination.
Foreign buyers cannot be expected to maintain their orders indefinitely when factories face recurring disruptions and production schedules become uncertain. International competitors such as Vietnam, China, Thailand and other manufacturing destinations are constantly seeking opportunities to attract global brands. Bangladesh must therefore protect its competitive advantages through industrial peace, improved labour relations and dependable production facilities. Workers deserve fair wages and safe working conditions while factory owners need a secure environment in which to operate. Constructive dialogue between employers, workers and government authorities is the only sustainable way forward.
The situation is further complicated by allegations of extortion, bribery and administrative harassment. False criminal cases and questionable legal proceedings have reportedly created insecurity among ordinary citizens and professionals. Journalists, academics, cultural personalities, actors, actresses, authors and poets have also faced allegations that have raised concerns about freedom of expression and personal security. A democratic society cannot flourish when people are afraid to express opinions or pursue their professional activities without intimidation.
Economic recovery also requires a credible legal and institutional framework. Law enforcement agencies must operate impartially and regulatory institutions should not become instruments of political revenge. Every allegation of corruption or financial misconduct must be investigated through transparent legal procedures. Accountability is essential but selective prosecution, collective punishment and harassment cannot establish justice. The protection of private property and the right to conduct legitimate business activities must be guaranteed.
Bangladesh's economic challenges demand responsible leadership and a coordinated national response. The government should prioritize restoring law and order, controlling inflation, reducing unnecessary taxation and facilitating investment. It must also engage with business associations, labour organizations, economists and development experts to formulate realistic economic policies. Foreign investors need clear assurances that their investments will be protected regardless of political affiliations or changes in government.
Political parties must also recognize that national economic interests are more important than partisan victories. Revenge-driven politics will only deepen divisions and discourage domestic and international investment. National unity does not mean abandoning accountability. Rather it means respecting the law, rejecting mob violence and ensuring that differences are resolved through democratic and constitutional institutions.
Bangladesh has enormous economic potential. Its hardworking population, strategic geographical position, export-oriented industries and entrepreneurial spirit remain valuable national assets. However, these advantages cannot deliver prosperity without political stability, institutional integrity and social harmony.
The country stands at a critical crossroads. Restoring confidence among citizens, protecting entrepreneurs, ensuring workers' rights and rebuilding international credibility must become immediate national priorities. Bangladesh cannot afford another prolonged period of instability and economic uncertainty.
It is time for political leaders, government institutions, business communities and civil society to work together. The choice is between national reconstruction and continued decline. Bangladesh must abandon confrontation, reject vengeance and return to the path of economic progress. For the country's future generations and the millions whose livelihoods depend on a functioning economy the moment for decisive action has arrived. It is now or never for Bangladesh.
Badiur Rahman, former Chairman of National Board of Revenue (NBR) said that the present government has been in power for nine months but no remarkable step has been yet taken to stop corruption. Rather instances of abusing power by politicians and government officials are taking place every now and then, he further said.
Dr. Debapriya Bhattacharya, Distinguished Fellow of Center for Policy Dialogue (CPD) said that all political parties must pack hands in unity to drive Bangladesh forward. Issues like poor investment, political complications, violence, corruption, irregularities etcetera cannot be eradicated by the government alone. Everyone's role is vital, Dr. Debapriya Bhattacharya stated.
Former Inspector General of Police ((IGP) Abdul Quayum said that Police Department must do their job rising above all fears or favours. He urged all political parties to abstain from attempting to influence police personnel's working procedure.
Barrister Sara Hossain opined that protecting all citizens' rights and privileges is one of the most important things to do for establishing equal rights, good governance and socioeconomic justice.
