Blockade to deepen existing economic crisis

The Foreign Investors' Chamber of Commerce & Industry (FICCI) yesterday warned that violence and blockade will adversely impact the orders for exports and foreign currency inflows, thus deepening the existing economic challenges.

The caution comes as public mobility and economic activities have slowed amid the ongoing blockade enforced by the Bangladesh Nationalist Party and some other parties to realise their demand for the upcoming general election under a non-partisan government.

The current phase of blockades began yesterday after a pause on November 7. The parties observed blockades from October 31 to November 2 and enforced the programme again after the weekend.

The political crisis, which was also marked by violence, particularly arson attacks on vehicles, has disrupted the supply chain and hit the transport of goods, including industrial raw materials, export-bound and imported goods, consumer goods and farm produce, for more than a week, affecting the production of factories.

"The FICCI condemns violence and blockades, especially at a time when the country is facing economic headwinds along with sustained high inflation and foreign currency liquidity tightness," said its President Naser Ezaz Bijoy.

"Such actions are detrimental to the country's image and will adversely impact future order books of exporters and the foreign currency inflow and exacerbate the existing economic challenges."

He said they had already observed lower global demand for apparel and leather goods.

This will present international buyers the reasons to divert orders and reduce prices to adjust against the risk of the potential supply chain disruption, he said.

"It is not about politics because the consequences of the anarchy will be borne by the general people and entrepreneurs of Bangladesh. Anyone, who has minimum patriotism, should act responsibly to avoid the adverse consequences on the interest of Bangladesh."

At a national export award-giving ceremony yesterday, AK Azad, managing director of Ha-Meem Group, one of the leading exporters of apparel, also expressed concerns over the ongoing political unrest including hartals and blockades.

"It will hamper fresh domestic as well as foreign investments in the country."

At the event, Mahbubul Alam, president of the Federation of Bangladesh Chambers of Commerce and Industry, said due to the political unrest, the transport fare has increased by Tk 18,000 to Tk 36,000 on the Dhaka-Chattogram highway.

"This pressure falls on entrepreneurs. A country's economy is devastated by strikes and blockades. That is why we do not want any hartals and blockades in the country. We will have to come out of this culture."