Bangladesh’s garment industry, which contributes to 80% of the nation’s export revenue, is facing a massive decline due to continued unrest under the newly established caretaker government. Foreign media reports suggest that garment exports will decrease by 20% this year, as violence and instability persist in the country.
Around 60 garment factories have already closed due to protests by workers demanding higher wages, and investors are reportedly looking to relocate these factories to Africa or other regions. This industrial collapse threatens Bangladesh’s economic stability, especially as the country faces a severe shortage of foreign exchange.
In an effort to avoid bankruptcy, Bangladesh has requested an $8 billion loan from international institutions, including the International Monetary Fund (IMF). Without this financial support, the country faces a risk of defaulting on $3 billion in loan repayments.
Additionally, concerns over the unrest have led to panic buying, resulting in shortages of essential goods, including medicine, fuel, and food, in several areas. The ongoing instability continues to hinder Bangladesh’s economic recovery.
