BD economy in doldrums, industry leaders, economists and common men deeply concerned
By Our Correspondent
Agartala, November 15, 2025
After more than a year of Yunus regime’s misrule and nationwide lawlessness, the troubletorn Bangladesh now stares at an impending economic crisis with spiralling inflation, rising cost of living , slide in government revenue and lack of investment in vital sectors. Sources from across the border said that Bangladesh’s economy is caught in a debilitating “waiting vortex” of stagnant investment, high inflation and weak business confidence, with experts saying only a credible and participatory election can restore stability and drive recovery.
The prevailing consensus across the business and policy landscape is that the economy is currently “breathing, but unable to walk” as it is paralysed by political uncertainty ahead of the general election expected next February.Business owners and entrepreneurs unanimously assert that new initiatives and investments are impossible without political stability and certainty.
Professor Rashed Al Mahmud Titumir of Dhaka University, Liakat Ali Bhuiyan, senior vice-president of the Real Estate and Housing Association of Bangladesh (REHAB), Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Anwar-ul-Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Industries (BCI), and former chief economist of Bangladesh Bank Dr Mustafa K Mujeri dwelt on this in conversation with the media, focussing on the current economic situation in Bangladesh.
The economy is sustained by political trust, and it is the government’s responsibility to restore that confidence, said economists, underscoring that without a stable political environment, the recovery process cannot begin.This sentiment is echoed by the country’s development partners. The International Monetary Fund (IMF) has reportedly linked the disbursement of the next tranche of its $4.7 billion loan to the formation of an elected government. Similarly, both domestic and foreign investors are reluctant to take risks, preferring instead to adopt a cautious “wait-and-see” stance.
What the economists and business leaders highlighted are the economic indicators that show the fragility of the economy. These are as follows: Private Sector Credit Growth: Loan growth to the private sector has dropped to around 6.5% – roughly half the normal rate — signalling a sharp contraction in new business activity and entrepreneurship.
Capital Machinery Imports: Imports of capital machinery, a key indicator of future industrial output, have declined by 25% casting a shadow over upcoming production and employment prospects.
Inflation and Savings: Inflation has been persistently high, hitting 8.36% in September 2025, hitting hard the purchasing power of ordinary citizens, with the sales of national savings certificates falling by over Tk6,000 crore, making it clear that many are being forced to liquidate their savings.
Foreign Investment: Foreign Direct Investment (FDI) fell by 22% in the first quarter of the current fiscal year, as international investors remain cautious – with some existing firms even scaling back their operations.
“Investment is now not just an economic question, but a question of social confidence,” one analyst observed, noting that political instability and deteriorating law and order are heavily discouraging entrepreneurs.
The experts said that unless the situation is reversed by the political leadrership by holding a valid and credible election leading to formation of stable government, the social cost of the crisis looming large will be unmanageable. In the event of the stagnation continuing the entire society will be adversely affected by price spiral, critical unemployment, dwindling foreign exchange reserve and resultant drop in investment that can create employment opportunities and inject buoyancy in the economy. But the political leadership is embroiled in unnecessary wrangling over petty issues in a situation where hostility with India is costing the country dear, sources added.
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