Businessmen and manufacturers across the country are apprehensive about falls in their business in the wake of the political deadlock centring on the formation of a non-partisan polls-time government.
According to data obtained from the Dhaka Chamber of Commerce and Industry (DCCI), each hartal day causes losses of around Tk16bn to the country’s businesses, and it is the ready-made garments (RMG) sector which suffers the most.
The RMG sector incurs losses of approximately Tk3.6bn per day while the government is deprived of Tk2.5bn.
The data also shows that Bangladesh’s GDP growth faces a 6.5% loss per annum due to unabated hartals.
On Friday, BNP and its allies called a 60-hour hartal to put pressure on the government to hold the next general elections under a non-partisan election-time government.
“Political deadlock or shutdown hampers exports and imports and creates a negative impact on prices of essentials because of supply chain disruptions,” said Kazi Akram Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
Hartals, aside from stopping production in factories, have a negative impact on the overall economy of the country, Akram said, adding that it also contributes to making day labourers lives miserable.
The business tycoon called upon political parties to shun the politics of confrontation and to solve the issue of polls-time government through a consensus considering the interest of the country and its people.
“For the sustainable development of Bangladesh, we need a stable political environment to do business, which would ultimately speed up the development process of the country,” he noted.
“The general strike or political stalemate casts a serious shadow over the RMG sector as it discourages foreign buyers from putting in new orders or expanding their businesses into Bangladesh’s RMG sector,” said BGMEA President Atiqul Islam.
He urged political parties to restore political stability and to reach a consensus to hold a free, fair and credible election.
Non-stop hartals bring untold suffering to apparel exporters as they cannot prepare shipments in time, he added.
“Political unrest is a threat to the attainment of economic growth and that’s why we need a permanent solution to the confrontational politics,” said Harun Ur Rashid, managing director of Sea Moss Knitwear Ltd.
Buyers are scared to place orders in Bangladesh due to political instability before elections, while apparel manufacturers are afraid of receiving new orders from buyers fearing disruption in supply chain, he added.
“Political parties should come forward with a consensus on holding a credible election to pave the way for smooth business activities,” said Abdus Salam Murshedy, president of the Exporters Association of Bangladesh.
Political violence never brought any good to the country in the past, he said.
Meanwhile, FBCCI and Bangladesh Insurance Association urged the opposition parties to call off their 60-hour hartal for the sake of the economy and keeping investments unhurt.
“We earnestly request the opposition to withdraw their proposed three-day hartal,” the apex trade body said in a statement.
Investment would be impeded and economic growth hindered if a favourable political environment did not prevail in the country, they said.
FBCCI hopes that a solution will emerge from the talks between the two main political party leaders.
The proposals made by Prime Minister Sheikh Hasina and opposition leader Khaleda Zia are an important step towards bringing a solution to the political crisis, said the statement.