Is business recovering or retreating?

It has been a year since the streets of Dhaka and other cities erupted in protest, leading to the political shake-up now known as the July uprising, in the days that followed, a wave of hope swept across the country with the appointment of Dr. Muhammad Yunus as head of the interim government. Many believed real change was on the horizon, especially for the struggling economy. But one year later, the results for Bangladesh's business sector are far from clear. The impact has been, at best, a mixed bag.

Foreign investors pulled back sharply during the months of unrest. Foreign direct investment (FDI) dropped by over 70 per cent between July and September 2024 compared to the same period the last year. The workers and owners got worried about what would come next watching the sudden stop. But things started to change by early 2025. Foreign investment in the first few months more than doubled, compared to last year, bringing a sense of hope, though investors are still keeping a close eye on how things unfold.

Business sentiment remains divided. A recent survey showed that while many owners believe profits could rise if inflation slows and banking reforms continue, more than two-thirds are still fearful of political instability and weak law enforcement. Confidence in institutions like the army and judiciary has improved, but trust in the central bank and anti-corruption bodies has eroded.

Meanwhile, the government's restructuring of the National Board of Revenue sparked strikes and disrupted trade, highlighting that reform, while necessary, is never painless. Even readymade garment sector felt the impact. Big brands like H&M and Zara being worried of interruption in supplies temporarily moved their orders to other countries. Some have come back since, but the warning is clear: Bangladesh can't depend on cheap prices alone anymore.

The business world did not collapse after one year of uprising, but it didn't bounce back either. Real progress won't come from promises or headlines. Building confidence needs consistent effort, calmness, and guidance over time. The business community finds itself at a crossroads now. Hopeful indicator is that things are starting to improve, constant political concerns and deep-rooted problems continue to progress slowly. Businesses in Bangladesh may not be thriving yet, but they're holding their ground and slowly moving forward.

Miftahul Jannat Noushin

BBA (Marketing)

North South University

miftahuljannatnoushin@gmail.com