ear to turn round signaling some positive developments in some indices of economy. But meanwhile at the outset of the new year there has been a jolt. In the beginning of the new year economy has been pushed backward almost as much as it had moved forward in one year. According to the information provided by Truck and Van Owners Association, in normal situation 60 thousand trucks and covered vans move across the country everyday. Five thousand trucks and covered vans carry goods between Dhaka and Chittagong daily. But now only four to five hundred trucks are running on that route under police escort for RMG export goods carrying. Police protection is not available for transportation of goods other than RMG. Moreover, police escort is not being given on routes other than Dhaka-Chittagong. Owners are bringing some trucks and vans in the streets with risks. Vehicles carrying goods are burning frequently. And being unable to supply their produces from small farmers in the villages up to big businessmen engaged in export-import are being affected. Small farmers of the northern districts are being affected for being unable to send their vegetables to the capital. Similarly, the exporters also cannot send their commodities to Chittagong port from the factories. Not only the export is being hampered, products cannot be sent to be doorsteps of the consumers from the industrial units set up on Dhaka, Chittagong, Gazipur, Mongla, Manikganj and other districts to meet the demand of 16 core of people. Similarly, trucks are unable to carry raw materials from land and seaports to the factories. On Thursday last, blockade supporters burnt down a truck carrying potatoes from Joypurhat. They also set ablaze three trucks carrying vegetables from Chapainawabganj. Vice president of RMG owners apex body BGMEA Shahidullah Azim stated that 125 trucks reached Chittagong from Dhaka with export items under police escort on Tuesday night. From Tuesday to Thursday, the export oriented RMG products were taken to Chittagong Port under police escort. Of the 1,470 vehicles, 720 went to Chittagong while 750 were Dhaka bound with raw materials. Hundreds of vehicles loaded with imported items are stuck in the land ports including Benapole. Abdul Jalil, deputy director (traffic) at Benapole, said nearly 350-400 goods laden Indian trucks come to the port every day. Same numbers of Bangladeshi vehicles carry the items to various parts of the country. The goods cannot be unloaded due to blockade. As a result, 36 godowns, 5 yards, 1 transshipment and 3 terminals are flooded with imported items. On the other hand, the factories are about to be closed for lack of raw materials. Transport owners alleged not only the businessmen but also the country’s overall economy is being affected by the blockade. A major portion of trucks and covert vans are engaged in carrying construction materials like brick, sand, rod and cement within a short distance. But due to opposition called programme, these cannot move halting the public and private infrastructure development. Abdul Motaleb, secretary general of Bangladesh Truck and Covert Van Transport Agency Association, said the total number of trucks and covert vans is 1 lakh in the country. Of those, 60,000 move across the country and 5,000 ply in Dhaka-Chittagong route every day. Currently, the vehicles carrying RMG products are making movement in Dhaka-Ctg route under police protection. Only 2,000 vehicles moved till Thursday. The Inspector General of Police has been requested to arrange such protection in every route across the country. Right now, the vehicle owners are giving some service at risk. The number of total vehicles in operation is not higher than 20,000. The vehicles carrying imported items from Teknaf land port will move towards Chittagong and Dhaka under police protection. It was decided at the meeting presided over by Chittagong Metropolitan Police (CMP) Commissioner. Despite the security arrangement, panic gripped the transport owners. They said 92 vehicles were torched during the opposition called blockade last year. Being set ablaze in Dhaka-Chittagong route, the vehicles are yet to be compensated. A data of Centre for Policy Dialogue (CPD) shows the political movement like hartal-blockade was enforced on 55 days out of 180 days from July 2013 to January 2014. The businessmen counted a loss worth Tk 49,000 crore. Only one year elapsed since normalcy restored to the country after January 5 polls of 2014. When the businessmen were trying to overcome the setback, they are hard hit by another blow of instant blockade. The catastrophe of the business sector can be evident by the magnitude of bankruptcy. Expert think the hartal and blockade of last year contributed to classified loan and debacle in investment. Although RMG sector started its journey in the current FY with profit, it is likely to stumble again. The foreign buyers may show their back at the behest of other competitive states. A statistics of Export Promotion Bureau (BAU) shows RMG export increased by only 0.77 percent in six months from July to December of the current FY. Slow progress in RMG export is identical with total export volume. In the first half of the current FY, export income increased by 1.56 percent. It is 4.42 percent lower than the estimated volume. BGMEA says political movement like hartal and blockade causes Tk 250 crore loss per day. In last year, the entrepreneurs suffered a loss to the tune of Tk 15,000 crore. Experts said, country’s politics did not make progress to keep pace with the advancement it witnessed in economic arena after its independence. For this it has become a political culture to gain political benefit by hostaging economic causes, though these two are not conflicting issues to each other. Through this there is no example of gaining political benefit but economy has to bear adverse impacts. Awami League observed hartal and blockade against a move for making like-minded Chief Justice the Chief Adviser of the caretaker government in 2006. In this context an army-backed caretaker government was formed in 2007. For three years country experienced bad economic situation because there were no trade and investment at that time. People of small-income groups used to go to kitchen market with their last penny. For minimizing three years’ loss businessmen took time for four years from 2009 to 2012. But crisis was created again in 2013. Jamaat called hartals several times in protest against the arrest of accused of war crimes. They also called country-wide hartal as court declared Quader Molla’s verdict. In the same way BNP called hartal one after another demanding neutral caretaker government but they could not resist the last January 5 election which was held under the Awami League-led government. Country’s businessmen affected by the hartal and blockade organized anti-hartal meeting during the army-backed caretaker government. Businessmen led by leaders of FBCCI went to top leaders of Awami League and BNP for realizing their demand that political parties will not call hartal and blockade programmes. But political parties did not agree with them. Later the businessmen raised a demand to formulate law for restricting hartal. The then government did not take any initiative though many ministers including finance minister of AL AMA Muhith extended support with the proposal. FBCCI President Kazi Akram Uddin ahmed said, “Country’s businessmen incurred huge losses due to hartal and blockade of 2013. Most of the industrial plants of the country could not go into production due to lack of raw materials and they could not supply it to the markets. As a result country’s businessmen experienced a bad situation. Businessmen are trying to overcome the last one year’s losses. Country’s different economic indices have shown a positive picture at the end of 2014. Recently hartal and blockade has started again in the country. This situation is not acceptable.” He advised for resolving political crisis through dialogue instead of destructive political programmes. AK Azad, president of Bangladesh Chamber of Industries and Managing Director of Ha-Meem Group told this correspondent, “Industrialists as well as workers take the country ahead by working hard but politicians push it backward within short time through destructive political activities.” Dr AB Mirza Azizul Islam, former finance adviser of caretaker government said, “The business people could not regain their previous strength in last one year after the political turmoil in 2013. As a result investment did not rise to desired level. But the number of default loans has increased.”
Saturday, January 10, 2015
Economy suffers a jolt again before it could turn round:Daily Sun
ear to turn round signaling some positive developments in some indices of economy. But meanwhile at the outset of the new year there has been a jolt. In the beginning of the new year economy has been pushed backward almost as much as it had moved forward in one year. According to the information provided by Truck and Van Owners Association, in normal situation 60 thousand trucks and covered vans move across the country everyday. Five thousand trucks and covered vans carry goods between Dhaka and Chittagong daily. But now only four to five hundred trucks are running on that route under police escort for RMG export goods carrying. Police protection is not available for transportation of goods other than RMG. Moreover, police escort is not being given on routes other than Dhaka-Chittagong. Owners are bringing some trucks and vans in the streets with risks. Vehicles carrying goods are burning frequently. And being unable to supply their produces from small farmers in the villages up to big businessmen engaged in export-import are being affected. Small farmers of the northern districts are being affected for being unable to send their vegetables to the capital. Similarly, the exporters also cannot send their commodities to Chittagong port from the factories. Not only the export is being hampered, products cannot be sent to be doorsteps of the consumers from the industrial units set up on Dhaka, Chittagong, Gazipur, Mongla, Manikganj and other districts to meet the demand of 16 core of people. Similarly, trucks are unable to carry raw materials from land and seaports to the factories. On Thursday last, blockade supporters burnt down a truck carrying potatoes from Joypurhat. They also set ablaze three trucks carrying vegetables from Chapainawabganj. Vice president of RMG owners apex body BGMEA Shahidullah Azim stated that 125 trucks reached Chittagong from Dhaka with export items under police escort on Tuesday night. From Tuesday to Thursday, the export oriented RMG products were taken to Chittagong Port under police escort. Of the 1,470 vehicles, 720 went to Chittagong while 750 were Dhaka bound with raw materials. Hundreds of vehicles loaded with imported items are stuck in the land ports including Benapole. Abdul Jalil, deputy director (traffic) at Benapole, said nearly 350-400 goods laden Indian trucks come to the port every day. Same numbers of Bangladeshi vehicles carry the items to various parts of the country. The goods cannot be unloaded due to blockade. As a result, 36 godowns, 5 yards, 1 transshipment and 3 terminals are flooded with imported items. On the other hand, the factories are about to be closed for lack of raw materials. Transport owners alleged not only the businessmen but also the country’s overall economy is being affected by the blockade. A major portion of trucks and covert vans are engaged in carrying construction materials like brick, sand, rod and cement within a short distance. But due to opposition called programme, these cannot move halting the public and private infrastructure development. Abdul Motaleb, secretary general of Bangladesh Truck and Covert Van Transport Agency Association, said the total number of trucks and covert vans is 1 lakh in the country. Of those, 60,000 move across the country and 5,000 ply in Dhaka-Chittagong route every day. Currently, the vehicles carrying RMG products are making movement in Dhaka-Ctg route under police protection. Only 2,000 vehicles moved till Thursday. The Inspector General of Police has been requested to arrange such protection in every route across the country. Right now, the vehicle owners are giving some service at risk. The number of total vehicles in operation is not higher than 20,000. The vehicles carrying imported items from Teknaf land port will move towards Chittagong and Dhaka under police protection. It was decided at the meeting presided over by Chittagong Metropolitan Police (CMP) Commissioner. Despite the security arrangement, panic gripped the transport owners. They said 92 vehicles were torched during the opposition called blockade last year. Being set ablaze in Dhaka-Chittagong route, the vehicles are yet to be compensated. A data of Centre for Policy Dialogue (CPD) shows the political movement like hartal-blockade was enforced on 55 days out of 180 days from July 2013 to January 2014. The businessmen counted a loss worth Tk 49,000 crore. Only one year elapsed since normalcy restored to the country after January 5 polls of 2014. When the businessmen were trying to overcome the setback, they are hard hit by another blow of instant blockade. The catastrophe of the business sector can be evident by the magnitude of bankruptcy. Expert think the hartal and blockade of last year contributed to classified loan and debacle in investment. Although RMG sector started its journey in the current FY with profit, it is likely to stumble again. The foreign buyers may show their back at the behest of other competitive states. A statistics of Export Promotion Bureau (BAU) shows RMG export increased by only 0.77 percent in six months from July to December of the current FY. Slow progress in RMG export is identical with total export volume. In the first half of the current FY, export income increased by 1.56 percent. It is 4.42 percent lower than the estimated volume. BGMEA says political movement like hartal and blockade causes Tk 250 crore loss per day. In last year, the entrepreneurs suffered a loss to the tune of Tk 15,000 crore. Experts said, country’s politics did not make progress to keep pace with the advancement it witnessed in economic arena after its independence. For this it has become a political culture to gain political benefit by hostaging economic causes, though these two are not conflicting issues to each other. Through this there is no example of gaining political benefit but economy has to bear adverse impacts. Awami League observed hartal and blockade against a move for making like-minded Chief Justice the Chief Adviser of the caretaker government in 2006. In this context an army-backed caretaker government was formed in 2007. For three years country experienced bad economic situation because there were no trade and investment at that time. People of small-income groups used to go to kitchen market with their last penny. For minimizing three years’ loss businessmen took time for four years from 2009 to 2012. But crisis was created again in 2013. Jamaat called hartals several times in protest against the arrest of accused of war crimes. They also called country-wide hartal as court declared Quader Molla’s verdict. In the same way BNP called hartal one after another demanding neutral caretaker government but they could not resist the last January 5 election which was held under the Awami League-led government. Country’s businessmen affected by the hartal and blockade organized anti-hartal meeting during the army-backed caretaker government. Businessmen led by leaders of FBCCI went to top leaders of Awami League and BNP for realizing their demand that political parties will not call hartal and blockade programmes. But political parties did not agree with them. Later the businessmen raised a demand to formulate law for restricting hartal. The then government did not take any initiative though many ministers including finance minister of AL AMA Muhith extended support with the proposal. FBCCI President Kazi Akram Uddin ahmed said, “Country’s businessmen incurred huge losses due to hartal and blockade of 2013. Most of the industrial plants of the country could not go into production due to lack of raw materials and they could not supply it to the markets. As a result country’s businessmen experienced a bad situation. Businessmen are trying to overcome the last one year’s losses. Country’s different economic indices have shown a positive picture at the end of 2014. Recently hartal and blockade has started again in the country. This situation is not acceptable.” He advised for resolving political crisis through dialogue instead of destructive political programmes. AK Azad, president of Bangladesh Chamber of Industries and Managing Director of Ha-Meem Group told this correspondent, “Industrialists as well as workers take the country ahead by working hard but politicians push it backward within short time through destructive political activities.” Dr AB Mirza Azizul Islam, former finance adviser of caretaker government said, “The business people could not regain their previous strength in last one year after the political turmoil in 2013. As a result investment did not rise to desired level. But the number of default loans has increased.”
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