Pressure grows on Dhaka with rising unemployment, projected GDP drop

Economists and industry insiders are concerned that the economy may face long-term instability without urgent reforms, according to a domestic news agency.

The World Bank’s ‘Bangladesh Development Update’ in April this year cautioned that by 2025, an additional 3 million people may fall into poverty, driven by weak investment and growing internal challenges.

Industrial Police data shows nearly 100 factories in Gazipur, Narayanganj-Narsingdi and Savar-Dhamrai have permanently shut down, leaving more than 60,000 unemployed. Cash flow continues to decline in factories still in operation, coupled with an energy crisis. Shortages in fuel supply relative to demand and limited bank financing are bringing uncertainty to the industrial sector.

Many investors from the Awami League regime are now either imprisoned or have gone into hiding or have fled the country.

When production drops, the economy suffers directly. Gas shortages have halved production in many factories. To address this, the Energy Division is planning to increase LNG imports.

But ignoring the domestic industry and relying on imports will deepen the crisis.

ALCHEMPro News Desk (DS)