Bangladesh’s Economy and Law Enforcement Strained: Garment Sector Faces Major Challenges

Last Updated: December 19, 2025

Overview of the Current Situation

Multiple garment factories in Gazipur, Savar, and Narayanganj—key manufacturing hubs in Bangladesh—have recently paused operations. This unsettling trend is directly tied to escalating economic challenges and deteriorating internal security, prompting urgent concerns over the future of Bangladesh’s export-driven economy.

Impact on the Garment Sector

The garment industry, a vital component of Bangladesh’s economic landscape, has reported significant disruptions. Factory management has cited worker safety concerns, transportation issues, and a worrying increase in insecurity as the main reasons for the temporary shutdowns. This situation raises alarms, particularly as the garment sector constitutes a substantial part of the country’s export economy.

Additionally, industrial units affiliated with the Bashundhara Group have either reduced their operational shifts or halted production altogether. The fear of sabotage and uncertainties regarding nighttime transport are leading businesses to operate at substantially reduced capacities, creating ripple effects throughout the economy.

Broader Economic Consequences

The repercussions of these factory closures extend beyond manufacturing. Fuel depots, transport companies, and cold storage facilities on the outskirts of Dhaka have ceased nighttime operations, citing security risks. This disruption exacerbates logistical bottlenecks, hampering the movement of goods and essential supplies throughout the nation.

Retail and Wholesale Trade Pressures

Shopping centers and wholesale markets in urban areas like Dhaka and Chattogram are also feeling the pressure. Early shutdowns have become common as business owners express rising concerns about vandalism, arson, and potential mob violence. Many report a sharp decline in foot traffic, further complicating an already challenging retail environment.

Challenges for Export-Oriented Enterprises

Small and medium businesses that focus on exporting leather goods, plastics, and light engineering products are halting shipments due to the uncertainty at local ports and acute labor shortages. Concerns are growing that prolonged disruptions could lead to canceled international orders, thereby damaging Bangladesh’s reputation as a reliable supplier.

Deteriorating Law and Order

Alongside the economic downturn, there are alarming trends in law enforcement and public safety. Reports indicate that the law and order situation has markedly declined, particularly after dark. Local assessments suggest that multiple political factions and extremist groups are exploiting this instability, filling the governance void left by insufficient law enforcement.

Exploitation by Extremist Groups

Sources indicate that Islamic militant organizations may be trying to leverage the current unrest to gain influence, heightening the sense of instability. Alarmingly, internal accounts from the army indicate a growing frustration among personnel, mirroring possible institutional stresses within the country.

Concerns about Police Effectiveness

Reports have surfaced that the police force is no longer operating as effectively as it once did, with allegations that government directives have restrained police responses to protests and civil unrest. Such inaction has reportedly emboldened disruptive factions, compounding the challenges to public safety and security.

Conclusion

The situation in Bangladesh is critical as economic activity continues to falter amidst worsening law enforcement and public safety concerns. The garment sector, foundational to the country’s export economy, is grappling with serious challenges that require immediate and comprehensive responses from stakeholders. The future of Bangladesh’s economic stability hangs in the balance, necessitating urgent attention to both security and operational challenges.

For further details on the implications for Bangladesh’s economy or insights into its current state, consider visiting Bangladesh Economic Overview and Analysis of Garment Industry Challenges.