In Bangladesh, the ongoing political unrest, characterized by road, rail, and waterway blockades initiated by the Bangladesh Nationalist Party (BNP) and its allies, is severely impacting the country’s fragile economy. The blockades have disrupted supply chains and significantly increased transportation costs. Vegetable trader Afsar Uddin, for example, has seen transport costs for his vegetable supply to Dhaka’s Karwan Bazar spike from 15,000 to 22,000 Bangladeshi takas, compelling him to raise prices.
Similarly, tailor Samrat Mia, who relies on daily earnings from his garment alterations business in Dhaka’s New Market, is witnessing a sharp decline in customers. The political crisis is hampering regular business activities, affecting small traders and daily wage earners.
The opposition parties are demanding the restoration of a caretaker government to oversee elections, alleging that free and fair elections are impossible under Prime Minister Sheikh Hasina’s regime. The Awami League, under Hasina’s leadership, has been in power since 2009, and their tenure has seen controversies around election boycotts and allegations of vote rigging.
The political deadlock is exacerbating the economic challenges for the general population. Rahul Amin, a travel agency executive, reports a tenfold increase in his daily commuting costs due to the scarcity of public transportation. The blockades, coupled with already high inflation, are straining the budgets of average Bangladeshis.
Abdur Rouf Talukder, the governor of Bangladesh’s central bank, acknowledged the economy’s dire state, noting the challenges in navigating these difficult times. The country’s balance-of-payments deficit rose to $2.8 billion, and the current-account deficit increased to $3.93 billion in the July-September quarter. Additionally, foreign currency reserves have dipped to $20.66 billion. Export earnings and remittance inflows, crucial economic drivers, have also seen declines.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) estimates that the ongoing political unrest is causing an economic loss of 65 billion takas ($588 million) per day. The situation poses significant risks to Bangladesh’s economy, already grappling with global economic pressures.
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