The ant-graft drive by the interim government is likely to cause some ripples, albeit adversely, on the economy. Big business conglomerates, including the S. Alam Group and the Beximco Group, are caught in the crosshairs of this drive, with their owners facing charges of massive loan default and money laundering. This has left their enterprises, many of which are vital manufacturing units, in a precarious state. These influential industry leaders, who had strong affiliations with the previous Hasina administration, have either fled the country or been detained by law enforcement. The consequences for their companies are profound. Together, S. Alam and Beximco Groups play a pivotal role in the production of essential goods, including medicinal drugs, steel products, refined sugar, edible oils, textiles, and energy. These two conglomerates provide employment to approximately 100,000 workers, comprising both semi-skilled and skilled labourers. The broader implications of their disruption are enormous, as the ripple effects may extend across various industries and supply chains.
In addition to these two groups, owners of a dozen other relatively small and medium-sized companies face similar accusations and are grappling with various challenges. While some of these firms are attempting to continue operations, many are on the brink of closure, and others have already ceased production. As for the big ones, Beximco, for instance, has reportedly laid off 40,000 workers, equivalent to 57 per cent of its total workforce of 70,000. Simultaneously, key facilities of the S. Alam Group, including a power plant, sugar refinery, edible oil refinery, and hot and cold-rolled steel production units, have been shut down recently.
The fallout has been immediate and visible, with laid-off workers staging protests at factory gates across the country, including in the capital. The discontent among the workforce is likely to escalate as more units face potential closures, exacerbating an already fragile labour situation in the country. The cascading effects of such shutdowns are manifold. Beyond the loss of jobs, the economy risks substantial productivity declines, particularly in essential consumer goods such as sugar, edible oil, and medicines. This disruption poses a severe threat to the domestic supply chain, leading to shortages and potential price hike of essential commodities.
Addressing this situation is a top priority, though finding a viable solution remains a formidable challenge. The government must act swiftly to devise mechanisms to keep the industries going. These industries may now be facing various problems including running capital shortage or dearth of foreign exchange to procure raw materials and accessories. The government has to decide whether it should intervene, and if yes, in what capacity? Whatever the approach, the government must strike a delicate balance. On the one hand, it needs to uphold its commitment to combating corruption, and on the other, it must safeguard the economic stability of the nation. Failure to address the current crisis effectively could lead to prolonged economic instability, with adverse implications for employment, productivity, and the availability of essential goods. The stakes are high, and the decisions made in the days ahead will shape the trajectory of the nation's economic recovery and resilience.
