Time for economic restart

The new interim government that took over Thursday night is left with the tough task of bringing the economy back to normal through restoring public order and getting related organs back to business in full.

The economy had been limping even before, and it has almost stalled amid a series of events since the students' upsurge reached its peak and ousted the Awami League government on 5 August.

The new administration headed by Dr Muhammad Yunus swung into action soon after taking oath on Thursday night and most of newly-appointed advisers joined offices on the weekend yesterday in their efforts to put the government machinery back into functioning in full.

The Secretariat was busy with activities though it's the weekly holiday for government offices. A number of advisers, who were allocated portfolios on Friday, had their first office in the government's administrative hub.

"We do not want to let the economy come to a halt," Finance and Planning Adviser Salehuddin Ahmed told reporters at his office in the Secretariat.

He explained various reasons that slowed down the economy and said one of the major challenges for his government will be revitalising it as quickly as possible.

The ouster of the Awami League government by a massive students' upsurge on 5 August has led to a series of events— empty police stations, central bank without governor and his deputies, revenue chief under pressure from within to resign, banks not functioning fully and some banks undergoing fast restructuring in board and management.

The judiciary is also in jeopardy with the chief justice announcing resignation yesterday amid students' protest and lower court judges earlier shared their concern about safety in courts and residences.

All these developments have stalled the economy, which took a blow from internet blackout, curfew and transport disruption as students' protest kept boiling last month amid massive killings and injuries in law enforcers' atrocities.

Chattogram Port, the country's gateway for external trade, was yet to clear congestion of undelivered containers—a problem created by internet blackout and transport disruption due to protests and measures to contain those.

Dollar spiraled much beyond official rate, making import costlier again.

Supply chain disruption continued and retail sales fell as consumption slumped in the ongoing stalemate.

Export orders were falling, and industries were struggling with the energy and dollar crisis for long. The economy required a boost for a jumpstart. Now it is far from normal functioning as factories are extra cautious about running production.

Advisers, who spoke to the media after taking up new responsibilities, felt the urgency to ensure public security first to put life and economy back to its normal course.

Finance and Planning Adviser Ahmed, who is a former central bank governor, said that the interim government will need to address several issues such as weakened banking sector and inflationary pressures that are plaguing the economy.

He also pointed out that maintaining law and order is not the only priority; ensuring the smooth operation of banking and port activities is equally crucial.

Supplies to market improve

Retail prices started to fall from their peak amid supply disruption due to protests and subsequent violence. Supplies of imported goods from sea and land ports were normal, but sales in commodity wholesale and retail markets did not pick up due to slump in demand due to a loss of income and sense of insecurity in public life with police and civil administration not functioning.

Import-export activities at Benapole, the country's main land port with India, resumed on Saturday after three days' suspension since 5 August, said Rezaul Karim, director of the port.

Trade activities will resume in full swing from today, said customs officials and freight forwarders.

Import from India through Bhomra land port was normal, our correspondent said, quoting officials.

Supply of imported consumer goods from Chattogram Port to the local market through river routes was disrupted for five days due to attacks and vandalism at unloading points in Dhaka, Narayanganj and some other places during student protests and after the fall of the government.

Market supplies of essential commodities were disrupted as lighters delayed unloading and anchored in the rivers away from landing stations in fear of looting.

At least 50 ghats were vandalised on the bank of Shitalakshya river since 5 August, disrupting supplies of commodities to Dhaka, Narayanganj and some other districts. But the situation started improving from Saturday, said Nobi Alam, a leader of water transport workers' federation.

Port congestion continues

The country's largest export sector, readymade garments, put their factories in overdrive in extended hours and holidays to meet export deadlines and cover up losses caused by July events. A surge in production led to an increased flow of export goods, causing delay in handling at Chattogram Port and raising fear of missing supply deadlines.

Private depots in Chattogram are having export containers stockpiled due to congestion at the main seaport and increased supplies from factories, said Ruhul Amin Sikder, secretary general of Bangladesh Inland Container Depots Association, which operates 19 private depots. Until Saturday, 13,000 TEUs of export merchandise are stuck at their depots—double the volume they usually handle.

More than 3000 covered vans carrying export goods reached the depots on Saturday, up from less than a thousand vans that arrived a day before.

"We are not sure how long the additional pressure will continue," Amin said, suggesting that two additional container ships should be pressed into service to clear the backlog at the main seaport.

More than 80% of export containers, waiting or arriving, are of apparels.

"The situation can improve if more export containers than usual are loaded in outbound ships," said Syed Nazrul Islam, vice president of BGMEA, urging the port authorities to take urgent measures to clear export container backlog at port and depots.

The port yards are facing additional pressures of import cargoes as well. Due to disruption at customs activities, Chattogram Port yards saw a backlog of 44,000 import containers last week.

The port congestion is easing slowly and it may take 7 to 10 days more to become normal," said Chattogram Port Secretary Md Omar Faruque told The Business Standard.