Shutdown cost the economy $10 billion: FICCI

The recent shutdown has significantly impacted Bangladesh's economy with over $10 billion and climbing in estimated losses, according to the Foreign Investors Chamber of Commerce & Industries (FICCI).

"Numerous existing investors are currently feeling uncertainty as they aim to resume regular operations, but challenges and inefficiencies of goods release, running operations and physical reach are driving up the cost of business," said FICCI President Zaved Akhtar.

FICCI's observation came against the backdrop of a week of upheaval due to the quota reform movement, subsequent imposition of a curfew and a five-day internet blackout.

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He made the comments in a submission to Salman F Rahman, the prime minister's adviser on private industry and investment, who met with business leaders at the Bangladesh Investment Development Authority in Dhaka today.

"If we fail to prioritise the ease of doing business for our current investors, we will discourage potential investors from considering Bangladesh as a likely investment destination, especially when the investors are facing existential crises."

The FICCI president said the investors are the most powerful advocates for attracting foreign direct investment. "There has never been a more important moment than now to protect their need," he said urging the authorities to address those.

He stressed the need to resume full mobile data connectivity, saying it is critical for fast-moving consumer goods, logistics, health insurance, banking, IT & technology companies, mobile companies, testing & inspection companies, energy & power, and others.

"Bringing full confidence back in safety and security to instil conviction with local and expatriate employees is critical," he said.

"Lifting of curfew and resumption of normal operations will be a critical enabler."

To reduce the cost of doing business, Zaved, also chairman and managing director of Unilever Bangladesh Ltd, demanded faster release of goods from ports and shipments outwards.

The FICCI urged to waive all demurrages for goods not released since July 18.

"Smoothening the Authorized Economic Operator approval process will help a lot in reducing port congestion & demurrage impact," it said.