Country runs risk of losing export orders

[Force_Recon]

Country runs risk of losing export orders
Exporters warn against persistent political unrest
Staff Correspondent

Bangladesh runs the risk of being identified as a 'politically unstable country' in the international market if the present political unrest persists, leading exporters of the country said yesterday.

They also fear that the country's rising export growth will dwindle significantly, as buyers have started shifting their orders to other competitor countries due to the persistent political unrest.

The exporters said they have been dogged by unrest one after another from both the industry workers and political parties since May this year, which have slowed down the overall export activity.

They are also facing difficulties in giving satisfactory answers to their buyers' queries about the unrest, the exporters said at a news conference organised by the Exporters of Bangladesh. Leading exporters from different sectors were present at the conference.


Urging political parties to keep the country's export oriented industry outside the ambit of all political programmes the exporters also demanded that the parties include such a guarantee in their election manifestos.

Describing his experience, Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said, "It was very difficult for me to give satisfactory answers to some leading German buyers' queries about the political unrest in Bangladesh."

Citing examples of two fairs in Germany this month, where Bangladesh participated, the BKMEA president said, "German buyers repeatedly asked one question, what is the political situation in Bangladesh, whether it is safe to place import orders here."

Hoque said according to a BKMEA internal research Bangladesh's apparel export reduced significantly in the month of October due to the labour unrest in May this year and it will reduce further due to the present political unrest.


"We may lose our edge in the world market, if we are identified by the buyers as a politically unstable country," he said adding, "If it happens, our main competitors like China, Vietnam, India, Colombia, and Pakistan will get the export orders that we usually get from the buyers."

"Frozen foods industry suffered a Tk 300 crore loss due to the political unrest," said Maqsudur Rahman, president of Bangladesh Frozen Foods Exporters Association (BFFEA).


He said frozen foods exporters collect fish from different areas of the country and then export them to other countries after processing. But during the recent unrest, the exporters failed to collect their raw materials on time.

"As a result, exporters had to cancel export orders of about Tk 300 crore during the period," he said.


"We were compelled to export our products by air due to unavailability of port services during the blockade, which resulted in a huge increase in cost," said Safiullah Chowdhury, president of Bangladesh Corrugated Carton and Accessories Manufacturers and Exporters Association.


He said, "We have no objection to political programmes, if those do not hamper export activities."

SM Fazlul Hoque, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), announced a four-point charter of demands to the government which include ensuring compensation to the country's export sector.

He said the government should compensate an export oriented industry if it becomes sick due to political unrest.


All ports and export-oriented vehicles should be kept outside of political programmes, and the government should release the cash incentives promised to the export sector in the budget of 2006-07, the charter of demands say.

Anwar Hossain, president of Bangladesh Jewellery Manufacturers and Exporters Association, MA Awal, president of Bangladesh Textile Mills Association (BTMA), Khandker Badrul Hassan, president of Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, and representatives of Bangladesh Handicrafts Manufacturers and Exporters Association were also present.

The Daily Star Web Edition Vol. 5 Num 888

Political uncertainty takes toll on Bangladesh's economy

Dhaka, Nov 21: The growth rate of Bangladesh's economy is expected to be down by at least half a percent - thanks to political uncertainty, blockade of ports and street violence.

National and international organizations, including the International Monetary Fund (IMF) and the Asian Development bank (ADB), have lowered the projected gross development product (GDP) from an impressive 6.5 percent to six.

"GDP growth is forecast to moderate to 6.0 per cent in FY 2007, mainly reflecting political uncertainty over investment and business decisions in the lead-up to the general elections in January 2007," the Asian Development Outlook 2006 said in a recent report quoted in the New Age.

"Moreover, the newly elected government will also probably require some time before embarking on substantive initiatives," it added.

Analysts say this is a recurring phenomenon in Bangladesh during the run-up to each election when the political situation gets volatile and economic activity is affected by protest rallies and violence.

Since a caretaker government took office three weeks ago to prepare for the polls, Bangladesh has witnessed a political stalemate, violence that has killed 18 people, street demonstrations and blockade of ports and industrial establishments.

"Domestically, continued political confrontation and associated disturbances could adversely affect economic activity," said the IMF in its country report made public last week.

"Political tensions continue to pose a potential risk to sound macroeconomic management and implementation of structural reforms,' the report said.

"Demonstrations, work stoppages, and a highly contentious political environment are likely to continue till January 2007 elections," it added.

It also said that rising power shortage and delayed decision on power sector reforms may also hamper growth prospects if not addressed.

"Externally, further increases in oil prices and intensified competition in world textile markets represent the major risks," it said.

The UK-based Economist Intelligence Unit, in its country projection, said that political uncertainly would slow down the growth rate to 6.2 per cent in current fiscal year from last year's 6.7 per cent.

"During election campaign, the long-standing rivalry between the two main parties - Bangladesh Nationalist Party and Awami League - may intensify," it said.

Bangladesh's prestigious research organisation, the Centre for Policy Dialogue, in its report on the Bangladesh economy said that the economic growth outlook for the fiscal year 2006-07 "seems to be a bit sober."

The Centre, in its report released in the first week of November, also said that economy would have to stabilise at lower equilibrium in the coming months hinting to the upcoming national elections as well as ongoing political instability.

Political uncertainty takes toll on Bangladesh's economy .:. NewKerala.Com, India News Channel

I hope the Great Sheikh Hasina comes in power and cleans up the mess she created.yes how evil the BNP-Jamaat are is not my headache.You should not keep the ports closed.

[Severus]

i bet indians r happy

[Force_Recon]

which proves they have a huge influence over the nation.and lots of RAW agents.
http://civillibertarian.blogspot.com...angladesh.html

[}|Serial_Killer|{]

may be you are 100 % right. but to be frank , i am really tired with "raw-love" . With great surprise, I watched , every time you open a thread, you bring that raw thing.

[Severus]

how exactly raw is involved in this ? by bribing the leaders so that they give more strikes ? ...

not possible ..

1. if a party girls too much hartal or oborodh , their support will gradually decrease. which is why awami league have called the hartal off in every occassion and tried to keep it as few day as possible.

2. if they dont get elected they dont get the chance to go to the power and enjoy the benifits of all out corruption ...


so i think RAW's bribes have little effects on this

[Force_Recon]

kind of off-topic:http://www.bangladeshinfo.com/news/n...ad_4&id=1&cat=

[Nneel]

Force recon..

for this i really dont need to read any news paper or bolg
my job is purely export oriented...
as personally my org. facing probs abt it...
we lost 1million US$'s order for next summer..export to europe
well..nothing we can do.....unless read there mail

[Force_Recon]

feel sorry for you and the export sector.

[SilensOfTheLambs]

hmmm..last month
Jc Penny & Wal*mart s represetative visited bangladesh....
they are verymuch wooried about current situation...
as i know few amount moved to vietnam

[dIsTiNG]

Ajke 21th december er hartal ta kono reason charai hoise amar mone hocche. President to key demand all accept kore nise. Er poreo why did we had to pay the price? AKhon amon jalaile AL ke keu charbena. AL should realize this.

My 200 th post