Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), says investors and the business community in Bangladesh are looking forward to the establishment of an elected administration. In a recent interview, Babu stressed the importance of stability and transparency in governance for investment and economic progress.
He acknowledged that the current interim Government, which came into power following last year’s July uprising and revolution, has implemented some positive reforms, particularly in banking, including measures to curb looting and mismanagement. However, he stressed that investor confidence remains linked to the election of a credible and elected Government.
He expressed hope that a fair and transparent election will be held soon, allowing the people to choose their Government and, consequently, improve the investment climate.
The BGMEA President highlighted ongoing challenges faced by the textile industry, including factory shutdowns. Currently, only about 3,000 of BGMEA’s over 7,000 member factories are actively exporting, with the rest facing issues due to inefficiency, natural calamities, political instability, and infrastructural problems such as port congestion and energy shortages. He cited energy shortages and inflation as key hurdles affecting production.
Babu also discussed the importance of bilateral relations with India, noting that cultural ties are strong, especially with West Bengal. However, he pointed out that political changes in either country can influence the nature of their relations, which sometimes fluctuate between cordiality and resentment. He emphasised the need for respectful and friendly diplomatic relations, as robust cooperation benefits both nations economically.
Regarding the political landscape, Babu mentioned that Muhammad Yunus, Bangladesh’s Chief Adviser of the interim Government, has indicated plans for national elections in early February next year. The political scene is currently dominated by Khaleda Zia’s Bangladesh Nationalist Party (BNP), which is the largest opposition, while Sheikh Hasina’s Awami League remains banned from participation. Sheikh Hasina, the former Prime Minister, is currently in self-imposed exile in India after her ousting in August last year, which followed a student-led uprising.
Babu concluded by reiterating the business community’s desire for an early, credible election, believing that the resulting stable Government will pave the way for improved investment prospects and economic recovery in Bangladesh.
