Bangladesh’s economy will be in deep crisis unless a congenial environment and uninterrupted production are ensured in the export–oriented garment industry, the largest earner of export earnings of the country, said former president of Spain Bangladesh Chamber of Commerce and Industry Nuria Lopez while talking to this correspondent.

Corruption, nepotism, mismanagement and plundering of the state wealth plagued the economy of Bangladesh during the last several years that will stage back under the prudent leadership of Bangladesh's interim government Nobel Peace Laureate Professor Dr. Muhammad Yunus, said Nuria Lopez.

Nuria Lopez, a Spanish national who came to Bangladesh in the early 90s and set up the export –oriented garment industry in Gazipur, said the readymade garment industry (RMG) is the backbone of the economy generating some 4.00 million jobs directly and indirectly some 15 million jobs in the country.    

The readymade garment industry, the largest earner of export earnings of the country, is being targeted by miscreants and local and external evil elements, Nuria Lopez while talking to this correspondent.

This is not the right time to press demands of everyone in the readymade garment industry that is going through the lean period as the global economy, plagued by war and slowdown.  The export earning of the RMG sector posted slowed growth in the USA and EU markets, according to data of the Export Promotion Bureau (EPB).    

Just as the situation in Dhaka's Ashulia seemed to have stabilised after more than two consecutive weeks of labour unrest on various demands, the ready-made garment workers started fresh protests yesterday demanding an increase in minimum wages.

While workers in several factories in Ashulia have now demanded Tk25,000 as minimum wage, workers of some Gazipur factories also staged demonstrations and blockaded Dhaka-Mymensingh highway yesterday, demanding increased attendance bonus.

Union leaders said though they support the demand of increasing minimum wages, they oppose the route of protests the workers are taking. They also hinted that the movement by the workers might have been incited by an outside group.

However, the fresh protests came as a surprise for the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) as several demands by the workers had been accepted recently.

To control the situation, Labour and Employment Ministry Adviser Asif Mahmud Shojib Bhuyain sat with the workers' representative, and has scheduled a meeting with RMG exporters today in his secretariat office.

In Ashulia, ready-made garment workers from several factories located on both sides of the Bypail-Abdullahpur road in the Zirabo area of Ashulia halted work yesterday morning and gathered on their factory premises, chanting "twenty-five, twenty-five" to press for their demand of Tk25,000 as minimum wage.

Meanwhile, the interim government has a major task to ensure sound law and order situation as the past Awami League government transformed the country’s law enforcement agencies into ‘monsters’ over the last 15 years

The Bangladesh economy will suffer heavily provided the export-oriented garment industry, the largest earner of export earnings of the country, are being targeted by miscreants, said Nuria Lopez.

Some 4 million workers are employed in the sector and job creation will be challenging unless a conducive and sustainable environment are ensured in the RMG sector, she said.

Meanwhile, the Spanish entrepreneur has expressed his support to Bangladesh's interim government led by Nobel Peace Laureate Professor Dr. Muhammad Yunus.

She voiced his backing for Dr. Yunus, who faced decades of harassment by ousted Bangladesh Prime Minister Sheikh Hasina

Nuria Lopez believes that local and external elements, not workers, are trying to destabilize the industry that is the bread and butter of several million workers.

After former Prime Minister Sheikh Hasina quit power through a massive student movement on August 5, 2024, some political workers and miscreants vandalized dozens of industries in several parts of the country, leaving a negative signal to industrialists and entrepreneurs.

The interim government should ensure sound law and order situation and protect business establishments and businessmen to revive the economy, said leaders of the Japan Chamber of Commerce and Industry (JBCCI), International Chamber of Commerce, Bangladesh (ICCB), Bangladesh Garments Manufacturers and Exporters Association (BGMEA), Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) while talking to this correspondent.

The last ‘brutal dictator’ and her cohorts plundered millions of dollars out of the country during the last 15 years making ‘corruption’ a culture among a section of civil bureaucrats and creating an unhealthy competition in the society.

However, as the country is going through a transition period, smooth engagement and participation of the existing import and export houses in the country is also important to retain the economy on the right track, said Nuria Lopez.

The economy of Bangladesh has suffered a massive blow during the student movement on quota system in the government job during the period of July, 2024, said Nuria Lopez.

Managing Director of Zalo Knitting Ltd, Nuria Lopez said that the employment generation in the economy is important as some 20 lakh youths are entering the job market every year. The RMG is the labour intensive industry and the highly densely populated country like Bangladesh can’t sustain generating thousands of jobs.

She said that the youth and students did their task by ousting the dictator ruler Sheikh Hasina Hasina, and now Professor Dr. Muhammad Yunus has got the responsibility of repairing the economy of Bangladesh.

Urging the stakeholders concerned to extend cooperation to the Nobel laureate to carry out necessary reforms, the economy will require several years to overcome the loss centering movement and violence and laid emphasis on normalcy to run business.

High economic disparity, corruption, nepotism, slow employment creation, Russia-Ukraine war, siphoning off state wealth out of the country by some corrupt persons have created a crisis in the economy, she said.

Meanwhile, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) recently called for enhanced security to keep their production units operational, as labour unrest is ongoing despite meeting workers' demand.

"We are demanding safety, and without it, the factories will suffer due to the labour unrest," said Abdullah Hil Rakib, BGMEA Senior Vice President, at a press conference at the BGMEA office in the city.

He said the unrest persists in the garment sector even after fulfilling the workers' 18-point demands, as certain groups are spreading rumours, taking advantage of the deteriorating law and order situation.

He urged the government to provide stronger security, as many are unable to operate their factories due to vandalism.

Meanwhile, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has thanked and expressed gratitude to the joint forces for providing full cooperation to maintain law and order situation in the Ready-made garment (RMG) industry.

"In the recent past, with the overall cooperation of the joint forces, the ongoing labor situation has improved considerably, making it possible to keep the factories open. Despite fulfilling the 18-point demands of the workers, unrest has been created in some factories due to unfair demands and rumours, but their number is very few. The members of the joint forces came and helped to solve the problems of the factories," said BGMEA acting President Abdullah Hil Rakib.

He said this while exchanging views with Bangladesh Army, Industrial Police, DGFI, NSI and BGB on the ongoing overall situation of the garment industry at BGMEA Complex in the city on Monday, said a press release today.

 Abdullah Hill Rakib presided over the meeting while Deputy Inspector General (DIG) of Industrial Police Head Office Sibgat Ullah, DIG operation of Industrial Police Md Ashrafuzzaman, and representatives of DGFI and law enforcement agencies, among others, were present on the occasion.

 Owners of the RMG industries informed that this anarchy is going on in the garment industry fueled by some parties.

They expressed their satisfaction for the cooperation of the joint forces in maintaining law and order in garment industry.

Meanwhile, the International Monetary Fund (IMF) has praised Bangladesh's measures, taken by the interim government, to overcome economic challenges due to the recent turbulence and major floods.

"In response to the challenging circumstances, the authorities' efforts to initiate adjustments, including continued monetary tightening and rationalizing non-priority capital spending are commendable," IMF Mission Chief for Bangladesh Chris Papageorgiou told BSS.

IMF mission team led by him visited Dhaka during September 24-30 to discuss recent developments and the authorities' reform priorities.

Papageorgiou said the timely formation of an interim government helped stabilize the political and security conditions, alongside a gradual return to normalcy in the economy.

"Nonetheless, economic activity has slowed markedly, while inflation remains at double-digit levels, owing to the recent turbulence and major floods. The deterioration in the balance of payments, reflecting outflows in trade credit, has put additional pressure on foreign exchange reserves," he mentioned.

However, what the government has taken to improve the economic issues is really praising, he added.

Meanwhile, the United States has lowered its travel advisory for Bangladesh from Level 4 to Level 3, urging its citizens to reconsider travel rather than avoiding it entirely. This adjustment signals a perceived reduction in immediate threats to US nationals.

The revised advisory was issued shortly before a US delegation's scheduled visit to Bangladesh.

The level was raised to 4, the highest level, when the US asked its nationals not to travel to Bangladesh amid student protests in July and August.

"Reconsider travel to Bangladesh due to civil unrest, crime, and terrorism. Some areas have increased risk," reads the latest travel advisory. In its country summary, the US said since the July 2024 "civil unrest, violent clashes" have largely ended, but conditions may change on short notice.