The Struggle of Bangladeshi Entrepreneurs Amid Rising Costs
**Summary:** Bangladeshi entrepreneurs have been facing challenges due to a dollar shortage and increased import costs, coupled with a depreciation of the taka. Electricity and gas tariffs have also risen, leading to higher expenses for businesses.
Summary: Bangladeshi entrepreneurs have been facing challenges due to a dollar shortage and increased import costs, coupled with a depreciation of the taka. Electricity and gas tariffs have also risen, leading to higher expenses for businesses.
For the past two and a half years, entrepreneurs in Bangladesh have been grappling with a series of obstacles that have made it increasingly difficult to operate their businesses. From a dollar shortage to a surge in import costs and the devaluation of the taka, the road has been rough.
The government's decision to raise electricity and gas tariffs has only added to the burden faced by businesses. With a goal to reduce the strain caused by state subsidies, these adjustments have led to a significant increase in energy bills for industries and businesses across the country.
In fact, the prices of electricity have been hiked in four phases since January of the previous year, resulting in a 21 percent surge in electricity costs for industrial consumers and small to medium enterprises. This has put additional pressure on businesses that were already struggling to stay afloat.
Despite efforts to combat the challenges posed by the dollar shortage, the taka has continued to lose its value against the US dollar. Over the span of two years, the depreciation has been a staggering 28 percent, as per data from the Bangladesh Bank.
Moreover, the tightening of the money supply by the central bank has led to an increase in interest rates on loans. This, in turn, has inflated the finance costs for businesses, making it even more challenging for entrepreneurs to manage their financial obligations.
As Mir Nasir Hossain, the managing director of Mir Akhter Hossain Ltd, aptly puts it, the repayment of loans has become a major issue for businesses. The rising finance costs have caught many entrepreneurs off guard, making it difficult for them to factor in these additional expenses when planning their projects.
Anwar-Ul Alam Chowdhury, president of the Bangladesh Chamber of Industries, echoes these sentiments, highlighting the impact of soaring electricity and gas bills on industries. The combination of rising costs and lower sales due to persistent inflation has created a precarious situation for domestic industries.
The ripple effects of these challenges are being felt across various sectors, from manufacturing to real estate. Entrepreneurs like Mohammed Amirul Haque of Premier Cement Mill PLC are concerned about the implications of higher interest rates on the cost of doing business and the ability to pass on these costs to consumers.
While the situation may seem dire for many businesses, Ahsan Khan Chowdhury, chairman and CEO of PRAN-RFL Group, emphasizes the importance of allowing demand and supply to regulate the market. Despite the pain caused by current circumstances, he believes that embracing the natural forces of the market is key to navigating through these challenging times.
In conclusion, the landscape for Bangladeshi entrepreneurs is fraught with obstacles, but resilience and adaptability will be crucial in overcoming these challenges and paving the way for a more sustainable future.
Hi, Ali Rahman in the house! From Chittagong, Bangladesh, I've been on a wild ride from Banskhali Bangabandhu High School to Govt. Alaol College and beyond, landing me at National University. Now, I'm here to dish out the lowdown on national issues and global news. Stick around for a fresh take on what's shaking up our world! Connect With Me