Recent violence that erupted centring the quota reform movement has dealt a severe blow to the country’s economy, causing a loss of nearly Tk 84,000 crore in last seven days since July 18.
The shutdown of internet services, including high-speed 4G, severely disrupted internet-based mobile financial services, export-import, information technology and telecom, transportation and almost all other sectors caused losses of Tk 12,000 crore per day.
Countrywide mayhem also caused loss of lives and damage to properties, but business leaders and economists warn of long-term effects on several key economic sectors. The country's overall economic landscape has suffered a substantial hit.
Economists estimate that the economic losses caused by internet blackout and curfew have surpassed Tk 84,000 crore in the past week. Executive Director of Policy Research Institute (PRI) Ahsan H. Mansur said that the economy has lost around Tk 12,000 crore per day during this period.
The suspension of internet services has isolated the country from the global trade network. Not only factory production, but also import-export activities came to a halt. Exporters were struggling to take orders as shipment of export goods remained shut.
Customs clearance at Chattogram Port also came to a standstill, resulting in a revenue loss of approximately Tk 1,108 crore during five days since July 18.
According to the Chattogram Customs data, the port collected Tk 6,737 crore in revenue in June, averaging Tk 216.66 crore daily. In the five days from July 18 to July 22, the customs department lost approximately Tk 1,108 crore in revenue.
According to the authorities concerned, damage to disaster management building and BTV alone amounts for at least Tk 800 crore. Additionally, toll collection on the Padma Bridge decreased by Tk 2 crore daily, and Bangabandhu Bridge suffered a loss of about Tk 6.5 crore over the week.
The railway sector also faced significant losses. On July 19, miscreants attacked Kishoreganj Express in Narsingdi, and burned down three compartments. Several other trains were vandalised, with windows smashed and engines set on fire, causing a loss of Tk 22 crore.
In Chattogram’s Khatunganj market (the biggest wholesale market), sales plummeted by over 90 percent, resulting in daily losses exceeding Tk 1,000 crore. Internet shutdown and curfew on highway left Khatunganj traders idle.
The poultry sector incurred daily losses of Tk 100 crore, driving up the prices of broiler chickens and eggs in Dhaka markets. During the curfew, broiler chicken prices soared to Tk 200 per kg, and eggs to Tk 200 per dozen in some areas.
The steel industry incurred losses estimated at USD 137 million (over Tk 1,600 crore) over the five-day period. According to the Bangladesh Steel Manufacturers Association’s General Secretary Suman Chowdhury, as raw material clearance from ports was disrupted, this has affected our overall production.
The ceramics sector feared losing daily export orders worth USD 8 million, totalling over Tk 470 crore in five days. E-commerce businesses, especially those reliant on Facebook, faced daily losses of at least USD 5 million, accumulating to over Tk 294 crore in five days. The pharmaceutical sector also faced significant setbacks.
Call centers suffered substantial financial losses, with daily losses estimated at USD 3 million, amounting to over Tk 176 crore in five days.
President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Mannan Kochi said that the damage of the country’s international image is bigger than the financial loss.
Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem said amid the widespread vandalism our factory remain closed and our production halted totally.
The country's information technology sector is most affected due to lack of internet. Freelancers are affected starting from IT-sourcing companies. Exporters of IT products and services are also affected.
According to Bangladesh Association of Software and Information Services (BASIS), the daily loss of software companies in the information technology export sector has stood at Tk 500 crore.
Basis president Russell T Ahmed said about the statistics of the damage caused by the internet shutdown, “Due to the shutdown of the internet, only the member companies of BASIS who export IT have suffered a loss of Tk 80 crore per day. In total, they have lost about Tk 500 crore.”
“Apart from this, we have not yet received the full account of the loss of other information technology companies that are members of BASIS doing business in the local market. If you get them, you can roughly understand the amount of financial loss in the information technology sector,” he added.
Executive Director of the South Asian Network on Economic Modeling (SANEM) Selim Raihan raised concern about the long-term impact on foreign investment as the country is already struggling with economic challenges, the recent events could have far-reaching negative effects on foreign investment.
According to the World Bank, foreign investment in Bangladesh is less than 1.5 percent of GDP, compared to over 12 percent in the Maldives and more than 20 percent in Sri Lanka. The Bangladesh Bank reported that foreign investment in 2023 was USD 3.0 billion, down from USD 3.48 billion in 2022, a 16 percent decrease.
Raihan warned that foreign investment could plummet further if investors perceive a lack of political stability in our country.
The Internet Society, a US-based international organization that monitors Internet access in the world, said that the Internet was closed for a total of 5 days in Bangladesh from July 18 to July 23.
