Bangladesh’s ongoing political crisis poses “serious threat” to fragile economy

Experts attribute the current economic collapse to the entrenched political elite oligarchy of Sheikh Hasina’s regime.

A nationwide road-rail-water blockade imposed by the main opposition Bangladesh National Party (BNP) and its allies has disrupted supply chains and greatly increased transport costs, with only a fraction of trucks and buses have been on the roads during the shutdown.

Political unrest in Bangladesh is crippling the country’s already shaky economy and hurting small traders like Uddin and Mia, as the opposition parties attempt to push Prime Minister Sheikh Hasina to quit ahead of a general election scheduled for January.

BNP and its allies have been demanding the restoration of a caretaker government system to oversee national elections.

Hasina’s party — the Awami League — has been in power since 2009, and the last two general elections of 2014 and 2018, respectively.

At a recent public forum, Abdur Rouf Talukder, the governor of Bangladesh’s central bank, admitted that the country’s economy has hit “rock bottom” and they are navigating “a very strenuous period”.

During the July-September quarter, Bangladesh’s balance-of-payments deficit – its import of commodities, capital, and services higher than its exports – increased to $2.8bn. At the same time, its current account deficit – which occurs when a nation sends more money abroad than it receives – increased to $3.93bn. According to central bank data, foreign currency reserves have fallen to a new low of $20.66bn.