For the sake of the economy, the government has to negotiate even if concessions are made

Many people participated in the rally to protest the killing of students and the subsequent arrests and cases related to the clashes surrounding the quota reform movement. The demonstration took place at the Central Shaheed Minar, as shown in the file photo.

Business leaders and industrialists are calling for a resolution to the ongoing agitation to protect the country’s economy and ensure factory operations continue. They are urging the government to consider offering concessions if necessary and demanding justice for those responsible for the deaths of unarmed individuals, asserting that while it may be late, there is still time to address these issues.

The economic situation was already challenging due to a dollar crisis and long-standing macroeconomic pressures. The recent quota reform movement, ongoing for nearly three weeks, has further strained conditions. Although the government has accepted the movement's primary demand, the unrest has resulted in 216 fatalities.

In response, Prime Minister Sheikh Hasina announced on Saturday that Gana Bhavan is open for discussions with quota activists, expressing a desire to resolve the conflict peacefully. However, the leaders of the anti-discrimination student movement have rejected this offer, insisting that resolution will come from continued street protests.

Mahbubul Alam, President of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI), emphasized the critical need for discussions to maintain the supply chain and keep export activities running. He noted that the economy was already in a difficult state before the movement began and called for a fair solution and accountability for the fatalities.

Ahsan Khan Chowdhury, Chairman and CEO of PRAN-RFL Group, expressed support for finding a compromise and stressed the importance of maintaining factory production to sustain economic activity. He remains optimistic that the situation will improve soon but expects government support to create a conducive environment for business.

The country’s foreign exchange reserves have been under pressure, decreasing by $1.3 billion to $2.49 billion in July, while expatriate income fell to $1.91 billion, the lowest in ten months. The agitation led to the shutdown of broadband and mobile internet, causing significant losses, particularly for the e-commerce sector, which suffered a Tk 1,700 crore loss.

Shams Mahmud, former president of the Dhaka Chamber, criticized the Bangladesh Bank for being disconnected from reality and warned of the difficulty in maintaining macroeconomic stability under current conditions. He expressed concern about business operations and worker safety amidst the unrest.

Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), argued that discussions should have happened earlier to avoid the damages caused by the internet shutdown. He stressed the need for a timely resolution to restore confidence among international buyers.

Abdullah Hill Rakib, Vice President of the BGMEA, criticized the government's handling of the quota reform movement, asserting that a fair and graceful solution was possible but not effectively managed. He called for the government to provide as much concession as possible to address public concerns and support a resolution through discussion.

Overall, there is a consensus among business leaders that while dialogue is essential, it should have been initiated earlier to prevent the extensive economic and social fallout experienced during the agitation.