In past year, over 500 factories closed, lakhs of jobs lost in B'desh, says Awami League

Dhaka, Aug 26 (IANS) Bangladesh's Awami League highlighted the series of factory shutdowns across the nation that have left thousands of workers jobless and mentioned that there has been a two-fold increase in defaulted loans in the banking sector.

Workers' protests have gripped Bangladesh since the ouster of the Sheikh Hasina-led Awami League government and after the Muhhamad Yunus-led interim government took helm, as many were forced to shut down the factories due to the economic crisis in the South Asian nation.

According to the Awami League, over the past year, more than 500 factories across the country have shut down, resulting in nearly 120,000 workers being pushed towards unemployment, and many, after desperate job hunts, were left with no choice but to return to their villages empty-handed.

"Over 500 factories closed. 1,20,000 jobs lost. $26.6 billion increase in defaulted loans in one year," the Awami League posted on X, adding that the series of "debts, delays, and indecision" in Bangladesh's financial system has led to the crisis.

It stressed that Bangladesh Bank, the nation's central bank, was expected to support struggling industries, but "slow decision-making" and "bureaucratic hurdles" have left entrepreneurs waiting for assistance.

Highlighting the crisis, the party noted that over 1,300 companies -- mostly in the textile, garment, and leather sectors -- have applied for loan rescheduling, while only 280 have received approval so far.

"Our cash flow is stuck. Production is slowing, workers are losing jobs, and suppliers are not being paid. At this rate, many businesses won't survive," said the Awami League.

It further asserted that the business leaders have warned that "if the pace doesn't change, it could take five years to process all applications."

Emphasising the deepening crisis, the Awami League claimed that the defaulted loans in the banking sector have increased over two-fold. It also mentioned that currently, over one out of every four taka lent by banks is in default.

The party quoted Selim Raihan, Executive Director of Dhaka-based South Asian Network on Economic Modelling (SANEM), who warned that the central bank must act faster to prevent the genuine borrowers from collapsing.

"Without timely support, many genuine borrowers will collapse. The central bank must act faster to protect industries and jobs," Raihan said.

Asserting that Bangladesh's garment and textile industry is the backbone of its economy, the Awami League cautioned that this backbone may begin to break unless urgent reforms and financial lifelines are introduced soon.

Earlier this month, hundreds of ready-made garment (RMG) workers staged a protest at the Dhaka–Mymensingh Highway in Gazipur district, blocking the roads and demanding the reopening of closed factories and immediate payment of their pending wages.

Every two weeks, workers have been blocking the road and protesting. They are demanding that the decision to close the factory adhere to proper procedures or that the closed garment factory be reopened.

They have stated that they will continue the protests until their demands are met, according to local media reports.

--IANS

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