It is crucial to restore confidence and trust: BSRM managing director

What kind of problems have you faced amid the crisis breaking out during the quota reform movement?

We encountered significant logistical challenges. Our sales and supply chains came to a complete halt. The internet, much like electricity and water, has become a fundamental necessity. As the economy has expanded, internet and network-based systems have been integrated into every area of operations.

For instance, logistics processes, such as determining delivery routes for sales, are automated. This also includes software from the National Board of Revenue for VAT invoices. How can we issue a VAT invoice without internet access? This is a basic yet essential task. Although the internet is back online, the slow speed prevents us from working efficiently.

What is the impact of the ongoing instability on production, sales and prices?

The instability has severely impacted production and sales. When the economy is unstable, product demand decreases, and sales suffer. We have no opportunity to reduce prices under these circumstances. It is crucial to restore confidence and trust, assuring everyone that business can be conducted, investments can be made, and that they will be safe.

Normalcy must be restored, and a business-friendly environment must be ensured. It is the responsibility of the government and administration to provide this assurance, but we currently lack this mechanism.

There has been increasing investment in the industrial sector, but many projects are now stalled. Without demand, products won't be produced or supplied, negatively impacting investments. Everyone has invested in the expectation of growth.

If the slowdown is temporary, it might not be a problem—perhaps the government will reduce funding for a year or two, and then things will improve. However, if the situation is prolonged, it will become a significant issue.

Curfew was in place during the movement. How was production affected?

Our factory had alternative arrangements, including housing for the workers, so we did not have to stop production entirely. However, without demand and supply, there is no profit in production. Consequently, we have already reduced production.

How is the ongoing instability in the country, in light of the Russia-Ukraine war and the dollar crisis affecting the industry?

The instability is significantly increasing costs across the board. Billions of taka have already been spent. With the curfew and holiday declarations, we need to account for overtime, which adds to our expenses. Additionally, we are incurring extra costs in the labour sector due to these disruptions.

What is your advice to the government on avoiding such unrest?

Inflation is a major challenge for the government, and it must be addressed economically. However, if there is increased pressure or contraction in the infrastructure sector, the economy will come under strain, leading to a slowdown.

There are errors in calculating export income, which are currently being corrected. This has a definite impact on GDP and per capita income. I suggest that corrections be made in these areas as well. When we compare our infrastructure with India and Pakistan, we see that we are far behind. How can our GDP rate be higher than theirs? There is clearly an issue here.

We should remain in the least developed country category for another 15 years. Otherwise, we risk losing all our benefits. We cannot afford to progress too quickly and lose these advantages. There's no point in indulging ourselves by inflating export figures.

We need to base our statistics on real facts. We have made significant progress—there is no doubt about that—but we still have a long way to go. Trade and industry can further advance the country's economy, but we must not proceed with incorrect information.