Call for fixing politics to save economy

Economists and business leaders fear a slowdown in economic growth due to the showdown of political parties in the commercial hub of the capital ahead of the next generation election, urging them to pursue peaceful politics.

Awami League and Bangladesh Nationalist Party (BNP) held separate rallies at Nayapaltan and south gate of Baitul Mukarram National Mosque, close to Motijheel, the most significant commercial area in the capital, on Friday.

Although banks and financial institutions remain closed on Fridays and Saturdays, many retailers from across the country come to Gulistan on weekends to buy products from wholesale markets.

Due to the rallies, many areas, including Nayapaltan, Motijheel, Kakrail, Gulistan and Bijoynagar, came to a standstill. There was also a spillover effect in other parts of the city.

People opted not to go out if there was no emergency while many bus companies kept their vehicles off the streets fearing violence.

The economic analysts said political programmes should be organised outside the commercial areas to avoid possible disruption to the supply chain.

Economist and Fellow Chartered Accountant Dr Salim Uddin thinks the political parties should think about peaceful programmes to keep the growth of economy achieved over the years intact.

“In democratic countries, political parties increase the number and frequency of rallies ahead of the general election. We aren’t against this. However, we should think about holding rallies without causing public sufferings. Especially, the political parties should avoid commercial hub like Motijheel and the time schedule on weekdays to keep the wheels of economy moving,” Dr Salim, also chairman of Union Bank Ltd, said on Saturday. 

Business leaders expressed their concern over increasing political showdown in Dhaka, saying this may hurt the heart of the country’s economy.

President of India-Bangladesh Chamber of Commerce and Industry (IBCCI) Abdul Matlub Ahmad, also chairman of Nitol Niloy Group, said the political rallies get a momentum in every country ahead of general election.

“We want peaceful politics. The political leaders should think about the business community who keep the growth of economy from the front line. As political parties call their showdown ‘peace rally’, they should maintain peace. We believe Prime Minister Sheikh Hasina will keep the situation under control through her prudent leadership to ensure the growth of economy,” he said.

Former President of Dhaka Chamber of Commerce and Industry (DCCI) Shams Mahmud said the economy of Bangladesh is currently suffering from internal stress of inflationary pressure and reduced consumption which is affecting small industries.

“If the (political) situation worsens, there’s a fear that the apparel buyers will shift some orders for the winter and spring to other destinations. If that scenario plays out, it means those orders may not come to Bangladesh until next summer,” he said on Saturday. 

Mahmud, also chairman of the Standing Committee on Foreign Mission Cell at Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the garment and textile industries are suffering from reduced orders and higher cost of production which is having a double-edged negative effect on foreign reserves as well as financial sector of the country.

“Also because of disruption to the normal supply chain, prices of daily essentials may go up further if the situation persists. We hope the political parties will engage in dialogue in a peaceful manner keeping the country’s interest at heart for the sake of the common people of Bangladesh,” he said.