The internet shutdown and subsequent curfew imposed to control violent conflict during the nationwide anti-quota movement have already resulted in a staggering $10 billion loss, according to the Foreign Investors' Chamber of Commerce & Industry, as it calls for lifting movement restrictions immediately to mitigate mounting economic losses.
Despite a gradual recovery with limited online and physical connectivity, the country is currently operating at best at 50 per cent of its economic potential, the investors mention in a position paper submitted to Prime Minister's Private Industry and Investment Adviser Salman F Rahman.
While meeting with the adviser at the Bangladesh Investment Development Authority (BIDA) office in Dhaka on Sunday, the Foreign Investors' Chamber of Commerce & Industry (FICCI) also called for taking up urgent recovery measures to recoup the losses.
Due to disrupted supply lines and operations, FICCI estimates that the pure play fast-moving consumer goods (FMCG) industry alone has experienced setbacks exceeding $100 million.
The chamber said the shutdown has had a detrimental impact on various sectors, including export-oriented industries, banking, insurance, logistics, infrastructure, telecom, e-commerce, freelancing, ride-hailing, software development and many micro, small, and medium enterprises (MSMEs) that depend on social commerce.
FICCI said businesses are contending with challenges related to releasing goods from ports and mounting demurrage charges due to the shutdown's inactivity, which is inflating operational costs.
The chamber reminded the importance of ease of doing business to support existing investors and attract potential foreign direct investment (FDI).
The position paper recommended some immediate and long-term measures to restore economic stability and investor confidence.
In the immediate term, FICCI called for fully restoring broadband connectivity to normal levels and resuming full mobile data connectivity.
The chamber said this is essential for sectors such as FMCG, logistics, health insurance, banking and IT to operate effectively. Besides, ensuring safety and security to reassure local and expatriate employees is crucial.
Moreover, safe and secure transportation is crucial to enhancing business productivity. Allowing wider mobility for employees using company IDs beyond curfew hours would significantly enhance productivity.
FICCI also recommended expediting the release of goods from ports and waiving demurrage charges for delays since July 18.
Simplifying the Authorized Economic Operator (AEO) approval process and exempting mandatory lab testing for regular imports from the same source would reduce delays and port congestion, noted the chamber.
It said establishing full testing facilities at Chittagong port would speed up imported finished goods clearance. Synchronising bank and customs house operations would ensure smooth material clearance.
In the longer term, FICCI underscored the broader impact of recent events on Bangladesh's reputation as a reliable investment destination.
The shutdown has set back the country's progress by at least a decade, similar to the adverse effects of the Rana Plaza disaster in 2013 and the 2016 terrorist attack. Rebuilding Bangladesh's image as a stable and resilient economy is crucial for restoring investor confidence and attracting FDI, the investors said.
FICCI also advocated for restoring international lenders' confidence. Recent socio-economic disruptions have led to a downgrade in the country's rating, negatively affecting lenders' risk appetite.
FICCI said swift and decisive action is necessary to mitigate the financial impact and rebuild the country's credibility as a robust investment destination.
FICCI and its members reiterated their unwavering support for Bangladesh's growth and progress, urging the government to implement immediate and long-term measures to ensure the country's economic recovery and sustainability.
[email protected]
