Economy
Labor Unrest Inflicts Tk5,000 Crore Loss on Industry, MCCI Reports
The Metropolitan Chamber of Commerce and Industry (MCCI) has estimated that nearly three weeks of nationwide labour unrest in multiple industries have resulted in a staggering loss of around Tk5,000 crore.
Farooq Ahmed, the Secretary General of MCCI, revealed this information during the release of the Purchasing Managers’ Index (PMI) at the MCCI office in Gulshan today. The event was attended by MCCI Director Tareque Md Ali and Hasnat Alam, Senior Manager of Policy Exchange.
The unrest, which has disrupted sectors such as garment manufacturing, has been marked by incidents of vandalism and arson. Despite most garment factories in Ashulia reopening, protests continued, forcing the closure of at least 30 factories.
Farooq explained that the labour unrest has intensified since the new interim government assumed power in August, spreading to industrial hubs like Narayanganj, Savar, and Ashulia. He noted that more than 100 factories have been either vandalized or set ablaze, resulting in the shutdown of nearly 200 factories. The financial loss estimate of Tk5,000 crore is based on discussions with factory owners, and Farooq suggested the actual figure could be even higher.
Additionally, he warned that non-workers are also participating in the protests, which could further escalate tensions. He called on the home affairs adviser and other authorities to step in to safeguard factories.
Farooq urged the government to act swiftly to stabilize the situation and called on factory owners to address the legitimate demands of workers to avoid further turmoil, which could hinder economic recovery.
Economic Indicators Show Slight Improvement but Remain Contractionary
While the interim government under Dr. Yunus, which took office on 8 August, initially brought brief stability, unrest and natural disasters soon dampened hopes of recovery.
MCCI reported a slight uptick in the PMI index in August, compared to July, but labour unrest and flooding in key districts prevented a stronger recovery. The economy remains in contraction, particularly in the industrial sector. According to MCCI, the August PMI showed a 6.6% increase, reaching 43.5 points. However, the previous month had seen a sharp decline, with the index dropping from 63.9 points in June to 36.9 in July.
Despite the slight recovery in August, the MCCI warned that if labour protests and other issues aren’t resolved soon, economic recovery could be delayed. The PMI readings for agriculture, manufacturing, construction, and services showed mixed trends, with some sectors improving while others struggled.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
