Business owners and entrepreneurs in Bangladesh are facing what many describe as an "undeclared war"—with harassment, intimidation, and financial targeting on the rise. Major industrialists are seeing their bank accounts frozen, being summoned by the Anti-Corruption Commission (ACC), and, in some cases, facing mob attacks at their homes and company premises.

Extortion demands are being issued under threat of violence, while lawsuits linked to stock transactions are causing the value of shares—both corporate and individual—to plummet, adversely impacting general investors.

In an alarming escalation, some business figures are reportedly being implicated falsely in criminal cases, including murder. Entrepreneurs now find themselves in an atmosphere of fear and uncertainty. Industry insiders warn that if the situation persists, Bangladesh’s commerce and industrial sectors could face serious risk, exacerbating already rising unemployment and potentially increasing social unrest.

Following the July uprising, the economic environment had already weakened significantly. This decline has been further intensified by disruptions in land-based trade, increased tariffs on exports and remittances to the United States, and global economic pressure. Instead of protecting local industry, authorities are accused of facilitating foreign companies while undermining domestic businesses.

Business leaders argue that individuals who siphoned off money abroad under the pretext of trade during the Awami League government should face justice. Instead, those who invested locally, built factories, and created jobs for millions are now facing harassment. Such developments are pushing the economy toward serious danger.

Law and order concerns, extortion, and violent incidents involving mobs are discouraging entrepreneurs from new investment and industrial expansion.

At a roundtable hosted by the Dhaka Chamber of Commerce and Industry (DCCI) on Wednesday, business leaders expressed deep concern.

They noted that their hopes for improved law and order following the government transition in August have not materialised—conditions have, in fact, worsened. Rising extortion, theft, and goods looting are severely affecting both large and small businesses.

DCCI President Taskeen Ahmed outlined the grim business landscape: “The challenges facing businesses today are not just disincentivising investment—they’re forcing many entrepreneurs to lose confidence permanently.”

He added that economic indicators have trended downward since July. Numerous factories have closed, unemployment is rising, and both domestic and foreign investment has declined.

According to the Bangladesh Bureau of Statistics (BBS), the number of unemployed individuals has increased by 325,000 in the past year. The unemployment rate rose to 4.63% during the October–December quarter of the current fiscal year, with the total number of unemployed standing at 2.73 million.

Foreign Direct Investment (FDI) is also in decline, with worsening political instability, foreign currency shortages, and law and order issues driving investors away. Bangladesh Bank data shows that net FDI in the first nine months of the fiscal year amounted to just USD 861 million—down from USD 1.16 billion during the same period in 2023–24, a 26% drop. Domestic investment has also declined amid growing mistrust. Private-sector credit growth fell to 6.82% in February, down from 7.15% the previous month. Central bank data confirms that credit has been on a steady downward trend since the July uprising.

Dr M K Mujeri, former Chief Economist of Bangladesh Bank and former Director General of BIDS, commented: “The current environment is not at all conducive to business. Law and order issues, extortion, false lawsuits, and attacks on businesses have become frequent. These are not only damaging the economy but creating widespread social instability.”

He warned that if this continues, it could lead to an economic and social disaster.