Md Fazlur Rahman
To have a glimpse of the country's bleeding economy, look at Shohagh Paribahan.
The long-distance bus operator now runs buses between 7:00am and 3:00pm daily, meaning no bus can leave the capital after 3:00pm. Its night coach service has been suspended on government directives.
The company usually runs 15 luxury trips on the Dhaka-Chittagong route, but now it has come down to just two trips as passengers travel only if there is an emergency.
The occupancy in the economy class has almost halved. As a result, 160 out of its 200-strong fleet of buses have been lying idle since January 6 when the BNP-led alliance enforced an indefinite blockade.
Shohagh Paribahan is only one of the 250 inter-district bus operators who have been counting huge losses over the last two months.
The blockade coupled with intermittent strikes
is taking a huge toll on the economy which is facing its toughest test
in decades. Transportation and supply chain have been hit hard.
Prime Minister Sheikh Hasina last week informed parliament that the country incurred a loss of over Tk 1.20 lakh crore due to the blockade and hartals.
Several business chambers put the figure at Tk 2,500 crore in daily average economic loss. It has hit farm incomes, weakened buyers' confidence in Bangladesh and put the investors at bay.
The transport sector is the worst victim of the agitation programme as protesters particularly targeted the sector for defying their call. As a result, movement of buses, trucks and lorries remained thin over the last two months. Around 1,200 vehicles have been torched and vandalised during this period.
Faruk Talukder Sohel, president of Bangladesh Bus Truck Owners Association, said: “Only people with emergencies are travelling by buses or having their goods carried by lorries.”
Fearing arson attacks, most trucks and lorries have stayed off the highways. But those plying the highways charge higher fares for carrying goods, in some cases double the usual.
After a lull in last year, many businesses had planned to set up new units or expand their operations this year, but they have backed off due to the prolonged political stalemate, said Hossain Khaled, president of Dhaka Chamber of Commerce and Industry.
Foreign investors are also not coming to Bangladesh. It's a particular blow for the country's economy. This happened at a time when some investors are relocating their factories to other countries from China due to rising production costs there.
Garment exporters have warned that the fall in orders would be steep in March-April. A large number of foreign and local tourists have cancelled their tour plans, hurting the tourism sector.
The industrial sector, which accounts for 29 percent of the GDP, has been affected as transportation of raw materials, goods and products was disrupted.
Farmers could not sell their produce at fair prices. The supply of agriculture inputs such as diesel and fertiliser has been affected ahead of the boro season when the country produces more than half of its rice.
Small businessmen, roadside shop owners and day labourers are struggling to earn their livelihood. Many have been rendered jobless.
Zahid Hussain, lead economist at the World Bank office in Dhaka, said he thought the country's economic loss from the blockade and strikes would be between $1 billion and $2 billion, meaning it has already cost the country's GDP by 0.6 percent to 0.8 percent.
“This is the immediate cost of production loss due to the blockade and hartals, which we might be able to recover once normalcy returns. But we won't be able to recoup the loss of confidence of investors and buyers in Bangladesh,” he told The Daily Star yesterday.
The economist said the investment scenario was already constrained by structural obstacles such as poor infrastructure, inadequate land and shortage of energy. The blockade and strikes have worsened the scenario.
“Even if we overcome infrastructural problems, which might not happen overnight, the investors and buyers would hesitate to come here because they want long-term stability. So, we must return to normalcy as soon as possible for the sake of economy,” he mentioned.
International rating agency Fitch Ratings said renewed political tension and violence might negatively affect foreign investors' confidence in Bangladesh, raising risks to economic growth over the longer term.
The long-distance bus operator now runs buses between 7:00am and 3:00pm daily, meaning no bus can leave the capital after 3:00pm. Its night coach service has been suspended on government directives.
The company usually runs 15 luxury trips on the Dhaka-Chittagong route, but now it has come down to just two trips as passengers travel only if there is an emergency.
The occupancy in the economy class has almost halved. As a result, 160 out of its 200-strong fleet of buses have been lying idle since January 6 when the BNP-led alliance enforced an indefinite blockade.
Shohagh Paribahan is only one of the 250 inter-district bus operators who have been counting huge losses over the last two months.
Prime Minister Sheikh Hasina last week informed parliament that the country incurred a loss of over Tk 1.20 lakh crore due to the blockade and hartals.
Several business chambers put the figure at Tk 2,500 crore in daily average economic loss. It has hit farm incomes, weakened buyers' confidence in Bangladesh and put the investors at bay.
The transport sector is the worst victim of the agitation programme as protesters particularly targeted the sector for defying their call. As a result, movement of buses, trucks and lorries remained thin over the last two months. Around 1,200 vehicles have been torched and vandalised during this period.
Faruk Talukder Sohel, president of Bangladesh Bus Truck Owners Association, said: “Only people with emergencies are travelling by buses or having their goods carried by lorries.”
Fearing arson attacks, most trucks and lorries have stayed off the highways. But those plying the highways charge higher fares for carrying goods, in some cases double the usual.
After a lull in last year, many businesses had planned to set up new units or expand their operations this year, but they have backed off due to the prolonged political stalemate, said Hossain Khaled, president of Dhaka Chamber of Commerce and Industry.
Foreign investors are also not coming to Bangladesh. It's a particular blow for the country's economy. This happened at a time when some investors are relocating their factories to other countries from China due to rising production costs there.
Garment exporters have warned that the fall in orders would be steep in March-April. A large number of foreign and local tourists have cancelled their tour plans, hurting the tourism sector.
The industrial sector, which accounts for 29 percent of the GDP, has been affected as transportation of raw materials, goods and products was disrupted.
Farmers could not sell their produce at fair prices. The supply of agriculture inputs such as diesel and fertiliser has been affected ahead of the boro season when the country produces more than half of its rice.
Small businessmen, roadside shop owners and day labourers are struggling to earn their livelihood. Many have been rendered jobless.
Zahid Hussain, lead economist at the World Bank office in Dhaka, said he thought the country's economic loss from the blockade and strikes would be between $1 billion and $2 billion, meaning it has already cost the country's GDP by 0.6 percent to 0.8 percent.
“This is the immediate cost of production loss due to the blockade and hartals, which we might be able to recover once normalcy returns. But we won't be able to recoup the loss of confidence of investors and buyers in Bangladesh,” he told The Daily Star yesterday.
The economist said the investment scenario was already constrained by structural obstacles such as poor infrastructure, inadequate land and shortage of energy. The blockade and strikes have worsened the scenario.
“Even if we overcome infrastructural problems, which might not happen overnight, the investors and buyers would hesitate to come here because they want long-term stability. So, we must return to normalcy as soon as possible for the sake of economy,” he mentioned.
International rating agency Fitch Ratings said renewed political tension and violence might negatively affect foreign investors' confidence in Bangladesh, raising risks to economic growth over the longer term.
