Muhammad Yunus: Businesses in Bangladesh on a Downward Spiral ! BGMEA President Highlights Investor Uncertainty Under Interim Government

Amid a delicate political climate in the country, the President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Mahmud Hasan Khan Babu, has voiced concerns about the prevailing investment environment. Speaking on the current economic and political situation, Babu acknowledged some commendable reforms by the interim government but stressed that long-term investor confidence hinges on political stability and a fully elected administration. 

#WATCH | Dhaka, Bangladesh | On the investment situation in Bangladesh, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Mahmud Hasan Khan Babu says, "By definition, this government is interim. Everybody knows, for the time being, they have come… pic.twitter.com/e6CLs7TAXi

— ANI (@ANI) June 14, 2025

“This government is, by definition, interim,” said Babu, referencing the administration that took charge following the July uprising and political unrest last year. “While the government has initiated reforms—particularly in banking, focusing on controlling looting and mismanagement—businesses are still in a wait-and-see mode.”

Banking Reforms Acknowledged, But Investment Paused

Babu praised the steps taken by the interim leadership to stabilize the banking sector. These include measures to improve financial governance and curb irregularities that have plagued the system in recent years. However, he made it clear that such moves, while welcome, are not enough to inspire fresh investments.

“In terms of investment, investors or businesses are waiting for the elected government,” he said. “We, business people, would like to have a permanent government... Based on their policies and actions, decisions on investments will follow.”

Political Stability Key to Economic Growth

The statement reflects broader sentiments within Bangladesh's business community, which remains cautious amid ongoing political uncertainty. While the garment sector—one of the country’s economic backbones—continues to push forward, entrepreneurs and investors are reportedly holding back expansion plans until a more stable political future is assured.

Analysts note that Bangladesh’s overall economic growth potential remains strong, but policy predictability and government legitimacy are critical factors for foreign and domestic investment.