Tapan Chowdhury, former advisor to the caretaker government and CEO of Square Group, has emphasised on the urgent need for ensuring stability in Bangladesh's readymade garment sector as escalating unrest is driving away international buyers.
Speaking at a dialogue organised by the Economic Reporters Forum (ERF) on Wednesday, he said that ensuring a stable environment is imperative to safeguarding the industry and maintaining investor confidence.
The event, held at the ERF auditorium, was chaired by ERF President Refayet Ullah Mirdha and conducted by the organisation's General Secretary Abul Kashem.
Mr Chowdhury expressed concern that the ongoing labour unrest that has been persisting for nearly a month in the key apparel manufacturing hubs is prompting many foreign buyers to redirect their orders to other markets, notably Sri Lanka.
He noted that many of these buyers had previously relocated their orders from Sri Lanka to Bangladesh due to political instability there. However, the resurgence of similar issues in Bangladesh has led them to reverse their decision.
"Our company has also lost a significant number of work orders from major global brands, which are now sourcing from other countries to avoid the uncertainty here," he stated.
He added that the return of these brands is contingent upon the restoration of stability and a favorable business environment.
"The government must ensure stability in the sector through dialogue and effective management, as the consequences of a prolonged crisis could be devastating for the economy," Mr Chowdhury cautioned.
He emphasised that external forces could be influencing the unrest, which, combined with the sector's frequent use as a political tool, is exacerbating the situation.
He warned that such instability could jeopardise the livelihoods of the approximately 4.5 million workers directly employed in the industry, the majority of them are women, and undermine one of the country's most vital economic pillars.
Despite the challenging circumstances, Mr Chowdhury acknowledged some improvement in the law-and-order situation in recent months and expressed optimism that the ongoing efforts by the interim government would restore stability.
He cited recent government interventions that have started to rebuild confidence, and he remains hopeful that the sector will recover its competitive edge.
On broader industrial challenges, Mr Chowdhury cautioned that Bangladesh's transition from Least Developed Country (LDC) status to a developing nation could present additional hurdles if not managed carefully.
He urged the government to advocate for an extension of LDC trade benefits to mitigate the impact of losing preferential access to key markets, which could have severe implications for the apparel industry and other export sectors.
The CEO of Square Group also discussed the company's strategic plans, saying that while Square is considering listing more of its subsidiaries on the stock market, it is proceeding cautiously due to the complexities of managing multiple publicly traded entities.
Regarding the pharmaceutical sector, Mr Chowdhury pointed to delays in setting up production units in the Active Pharmaceuticals Ingredients (API) Park due to the absence of adequate utility connections, particularly gas.
Mr Chowdhury, also the Managing Director of Square Pharmaceuticals, shared his perspective on drug pricing, underscoring the stringent regulatory oversight involved in setting prices, especially for oncology medications, which remain high due to the cost of imported APIs.
Touching on governance and corruption, Mr Chowdhury expressed support for government actions against unscrupulous business practices.
He noted that tackling corruption and fostering transparency would be instrumental in creating a conducive environment for sustainable industrial growth.
In a broader commentary on the political landscape, he called on political leaders to demonstrate responsible conduct, warning that power is transient and must be exercised in the nation's best interest.
He concluded by expressing hope that the interim government, with its focus on reform and positive change, would be able to navigate these challenges successfully and restore the confidence of international stakeholders in Bangladesh's industrial potential.
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