Lawsuit Trade, Mob Terror and Extortion Stall Country’s Industry and Commerce

Staff Correspondent

The atmosphere of fear that has emerged in the country after the political change is deepening day by day. The country’s trade and investment sector is in deep crisis due to the government’s crackdown on businessmen, including cases filed against businessmen, mob terrorism, and extortion by some circles affiliated with the ruling party NCP.

Since the fall of the Awami League government on August 5, several business groups and industrial establishments have been subjected to harassment. Some are facing threats of false lawsuits, some are trying to extort money by force, and some are inciting workers to vandalize and set factories on fire. 16 factories of the Beximco Group have been closed and their assets looted, while the group has been destroyed by looting and setting factories on fire. The assets of the S Alam Group have also been looted. Many businessmen have closed their garment factories.

In such a terrifying situation, many businessmen have been forced to leave the country. As a result, on the one hand, investment is stagnating, and on the other hand, production is coming to a halt, which is a terrible sign for the economy.

Prominent businessman and former FBCCI president Abdul Awal Mintu clearly said, “Money alone is not enough; a safe and stable environment is needed for investment. In the absence of political instability and fair elections, there is no possibility of the private sector developing.”

Violence has recently erupted in the garment industrial zones of Gazipur, Ashulia, Narayanganj, and Chittagong, fueled by worker discontent.

According to BGMEA, more than four hundred factories were damaged in the August incident, many of which have been closed indefinitely.

An industrial owner expressed his anger and said, “My 30-year business ended overnight. I personally guarded the factory day after day, but it was not saved. There was a planned attack and arson.”

Various sources claim that some local leaders and allied groups of Dr. Yunus’s King’s Party, known as NCP, are trying to take advantage of this unrest and extort money from businessmen. If they do not pay the money or show political loyalty, they are being framed in false cases, or they are being threatened with attacks by inciting workers. Jamaat-BNP is also involved in this extortion and mob terrorism.

Supreme Court lawyer Shafiqul Islam Khan Sabuj said that since last August, a corrupt gang has been involved in the litigation business. They are intentionally filing cases against businessmen, which is posing a grave danger to the country’s economy.

New investment has virtually stopped due to panic and lack of confidence among businessmen. Private sector credit growth was only 6.52% in July, which is much lower than normal growth. LC for capital equipment imports fell by 25%. GDP growth in the 2024-25 fiscal year was only 3.97%, lower than the previous year. Private investment fell to 22.48% of GDP, from 23.51% in the previous year. The number of unemployed in the country increased to 2.73 million.

Analysts believe that restoring trust is the main challenge now.

Dr. Mustafa K. Mujeri, former Director General of Bangladesh Institute of Development Studies (BIDS), said, “There is no new investment, borrowing has decreased, and imports of raw materials are decreasing. All these are a reflection of lack of trust. It is impossible to overcome this situation without an elected government.”

BIIS Research Director Dr. Mahfuz Kabir said the government needs to show through its work that it wants to create a business-friendly environment. Otherwise, it will not be possible to revive the economy.

The interim government has made various assurances to restore the confidence of traders. In a meeting with the Trade Advisor, business leaders demanded a harassment-free environment and long-term policies. But according to traders, not just promises, but urgent implementation is needed.

BGMEA President Mahmud Hasan Khan said, “Many businessmen have been forced to leave the country due to false cases and insecurity. We have repeatedly told the government that if these are not resolved quickly, the private sector, including the garment sector, will collapse.”

The private sector is the main driving force of Bangladesh’s economy. But litigation, mob violence, and political extortion have created fear and uncertainty among businesspeople.

According to analysts, the country’s economic growth and employment recovery are not possible without an elected, accountable government, improved law and order, stability in policymaking, and a harassment-free business environment.