Shutdown, internet blackout cost Bangladesh economy over $10 bn: FICCI

29 Jul '24

2 min read

Shutdown, internet blackout cost Bangladesh economy over $10 bn: FICCI

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The recent curfew and internet blackout in Bangladesh due to a week of student unrest have significantly hit the domestic economy, with cumulative losses estimated to be over $10 billion, the Foreign Investors Chamber of Commerce & Industries has said.
FICCI stressed the need to resume full mobile data connectivity and faster release of goods from ports.

The recent curfew and internet blackout in Bangladesh due to a week of unrest arising out of protests against job quotas have significantly affected the domestic economy, with cumulative losses estimated to be over $10 billion, the Foreign Investors Chamber of Commerce & Industries (FICCI) has said.

FICCI president Zaved Akhtar recently met Salman F Rahman, prime minister's adviser on private industry and investment, with business leaders and stressed the need to resume full mobile data connectivity, saying it is critical for every sector.

"If we fail to prioritise the ease of doing business for our current investors, we will discourage potential investors from considering Bangladesh as a likely investment destination, especially when the investors are facing existential crises," he was quoted as saying by domestic media outlets.

Bangladesh has over 2,800 garment factories engaged in direct exports, that experienced production disruptions due to the quota reform protests since mid-July. Ahammed Ali Babu, director, marketing and merchandising, Blue Planet Group, told Fibre2Fashion that their factory remained closed for 2 days.

Tex Garment Zone, a major player in the apparel sector of Bangladesh, also had to suspend production due to the disruptions. Raihan Mahmud, the owner of the company, told F2F, “Two of our European customers have already cancelled several new orders because they couldn't communicate due to a lack of internet.”

Zaved, who is chairman and managing director of Unilever Bangladesh Ltd, also demanded faster release of goods from ports and shipments outwards.

Smoothening the authorised economic operator approval process will also help a lot in reducing port congestion and demurrage impact, FICCI added.

Fibre2Fashion News Desk (DS)

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