Political unrest pushing economy towards uncertainty: FBCCI

The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) has expressed concerns, stating that the ongoing political unrest is dangerously edging the national economy towards panic.

The current situation is causing significant disruptions in the supply chain, production, market prices, exports, and the service sector, said business leaders associated with the organisation.

During a discussion held on Tuesday, Mahbubul Alam, president of the FBCCI, appealed to political parties to refrain from engaging in any form of violent activities for the sake of the economy.

On Tuesday, the organisation convened a discussion involving business leaders from diverse sectors, economists, and former FBCCI leaders to address the current trade and economic situation. The event took place at FBCCI's Gulshan office in the capital.

FBCCI President Mahbubul Alam chaired the event, which focused on addressing issues including ongoing political violence, the dollar crisis, price inflation, control of luxury goods imports, bank loans, and foreign exchange reserves, said a press release.

During the discussion, leaders from different business organisations suggested that the FBCCI engage with the two main political parties, the Awami League and the BNP, urging them to refrain from activities that negatively impact economic activities. Simultaneously, a proposal has been put forth by business representatives to organise a nationwide peace rally with white flags.

Sources indicate that the FBCCI will review these proposals and host a press conference next week to articulate the traders' position on these matters.

FBCCI President Mahbubul Alam said the country has enjoyed a stable political and economic environment in recent years, crucial for the prosperity of business, trade, and the economy. However, the recent surge in violent political activities poses a significant risk to the nation's business, trade, and investment.

Additionally, deliberate attempts are underway to disrupt the readymade garment sector, he said.

He further mentioned that the wage commission has been reformed in response to the demands of workers and employees in the garment sector, following discussions with both parties. Nevertheless, there are ongoing efforts to sow chaos despite these positive measures.

Mahbubul Alam said that the Bangladesh Bank should play a more effective role in eliminating the dollar crisis and controlling inflation. He also urged the authorities concerned to ensure uninterrupted fuel supply to continue production in factories.

Former FBCCI President Kazi Akram Uddin Ahmed recommended coordinating a business solidarity rally, uniting all chambers and associations across the country to protest against the ongoing violent political activities. Another former president, Sheikh Fazle Fahim, urged the FBCCI to take proactive measures against the prevailing violent programmes.

Expressing his views, former FBCCI President Md Jasim Uddin suggested that, if required, the import rates of non-essential and luxury goods should be further decreased over the next six months to a year to ease the strain on the foreign reserve.

Commenting on the involvement of "external elements" in recent violent incidents in the garment sector, BGMEA President Faruque Hassan emphasised that authentic workers would never resort to setting fire to their factories.

MCCI President Saiful Islam noted that any form of disruption harms businesses as the country's economy has expanded. In light of this, he urged political parties to alter their approach to movements.

Executive President of BKMEA Md Hatem suggested that the FBCCI engage in discussions with political parties to discourage activities that adversely affect the economy.

Chairman of Policy Exchange Bangladesh Masrur Reaz suggested that the government should enhance the supply of foreign exchange, even if it requires taking loans. He also recommended swift policy decisions and their implementation, a departure from high growth expectations, and a focus on controlling inflation by reducing government expenditure.

During the meeting, other speakers included former Chief Secretary and FBCCI panel advisor Abdul Karim, Research Director of CPD Khondaker Golam Moazzem, Senior Vice President of FBCCI Amin Helali, Vice President Khairul Huda Chapal, and Shami Kaiser among others.