Industrial security is highly important

FE Team | Published: September 01, 2024 21:17:08

Threat to security of factories and industries continues to dominate the minds of the business community dampening its enthusiasm to carry forward trade, investment and overall business activities. Although the law and order situation has improved somewhat compared to the peak of recent political upheaval, it remains fragile, unpredictable and foreboding. This instability together with flash floods, high inflation and extortion, has created a hostile business environment. Businesses across various sectors are grappling with declining sales and reduced demand. The construction industry, a major driver of the economy, has been particularly hard hit. Manufacturers are operating at reduced capacity, in order to avoid stockpiles of unsold goods.
The inflationary pressure that reached a 13-year high in July has particularly exacerbated the situation. Consumers are also tightening their belts. Amid all this, the prolonged security concerns are like adding salt to the wound. Not only does this jeopardise domestic industries and trade, but also deters foreign investors, sending a negative message to the global market. Of late, the leaders of the International Chamber of Commerce (ICC) Bangladesh met finance and commerce adviser Salehuddin Ahmed and urged the government to take swift and decisive measures to enhance industrial security and curb extortion. They said foreign buyers and investors are greatly concerned about the current law and order situation and it needs to be urgently improved.
Following the meeting, the adviser assured the business leaders of the government's commitment to ensure law and order and financial security. He said that the government would take necessary steps to protect factories and create a conducive environment for businesses to operate smoothly without fear. However, there have been at least two incidents of industrial fires, one at Gazi Tires factory in Narayanganj and the other at Pran Industrial Park in Narshingdi. The incident at Gazi Tires, a factory owned by former minister Golam Dastgir Gazi, was particularly demoralising. Following news of Gazi's arrest, hundreds of people stormed the factory, looted factory goods, and then set it on fire. The overall physical damage is estimated to be Tk1.5 billion, but the loss does not stop there. Its 4,000 workers dependent on their pay packages to feed and support their families are now unemployed and face an uncertain future.
The incident at Rupganj is far from being an isolated case. Similar attacks, looting, extortion, and intimidation have affected numerous other businesses. These incidents pose a significant threat to the country's industries, trade, and the livelihoods of countless millions. The impact of these incidents is proving highly unfriendly to businesses already struggling to maintain their tenuous footing in an increasingly precarious environment. Despite the bleakness of the current situation, however, there is a glimmer of hope for economic recovery as the government undertakes a series of reform measures to get the economy back on track. Businesses, too, are cautiously optimistic that once law and order is restored, the economy will rebound and improve. But if factories are damaged or are completely demolished, how will reform measures alone suffice? The government must play a crucial role in obviating the threat posed to businesses and industries.