Living in chaos and utter vacuum

Bangladesh is currently going through a dangerous phase of chaos and vacuum in the wake of the ouster of the erstwhile prime minister Sheikh Hasina three days ago on allegations of misrule and rampant corruption.

Vital institutions, including the central bank, the secretariat, and the National Board of Revenue (NBR)—key regulatory authorities for the business and financial sectors — have remained very under-functional for the past few days.

The crisis has been deepened by a state of complete lawlessness, with no police presence to maintain order. This has led to significant disruptions in daily life and economic activities. For instance, banks struggle to refill cash at ATMs and branches, as private cash carrier agencies like G4S and Elite are unwilling to operate under such insecure conditions.

The paralysis of these essential services is causing widespread concern among citizens and businesses alike, as the lack of security and regulatory oversight threatens to destabilise the country's economy further.

Consider the case of the Bangladesh Bank, the country's central bank and economic custodian. On Wednesday, a group of agitated officials demanded the resignation of four deputy governors, an adviser, and the head of the Bangladesh Financial Intelligence Unit.

While they managed to force one deputy governor to resign, the bank's spokesman Mezbaul Haque clarified that these resignations would need to be processed by the interim government. Governor Abdur Rouf Talukder has not attended the office for the past three days.

Similarly, a group of officials at the National Board of Revenue (NBR) demonstrated inside their office, demanding the resignation of their chairman, Abu Hena Md Rahmatul Muneem, who has served in the position since January 2020.

Also, most secretaries in various ministries have refrained from attending their offices for the past three days, causing a complete halt in the Secretariat's operations.

"There is no discipline and we are feeling shaky in the absence of law enforcers," said Syed Mahbubur Rahman, managing director of Mutual Trust Bank. "We don't know where to go in case of an emergency."

As a result, banks are now determining how to manage their operations, a task usually directed by the central bank during emergencies such as strikes and demonstrations.

"We've instructed our officials not to come to office if they don't feel safe. If there is agitation near a branch, we've ordered it to be closed," he explained, detailing how the bank is operating during this time of crisis and insecurity.

The opening of Letters of Credit (LC) for imports and export shipments has also been seriously disrupted, according to bankers and port officials. "Any further delay may cause serious problems for businesses," said the treasury head of a private bank.

The Customs Department, a wing under the NBR, is not yet fully functional, hampering activities at the Chattogram Port, which handles around 90% of the country's external trade. "There is no problem inside the port. Delivery from the port will increase if the conditions on the roads improve," Omar Faruk, secretary of the Chittagong Port Authority, told The Business Standard on Wednesday.

He noted that they delivered 2,238 TEUs of import containers on Tuesday, and the number is expected to increase significantly today (Wednesday). Regarding the Customs Department's activities at the port, he mentioned that container handling was seriously disrupted on Tuesday due to the Customs' operational issues.

Meanwhile, business leaders voiced their grave concerns about the ongoing destructive activities targeting industrial and commercial establishments at a program organised by ICC Bangladesh on Wednesday. They demanded the safety and security of their business premises.

Md Mahbubur Rahman, president of ICC Bangladesh, urged army personnel to stop the destruction caused by miscreants. "Students are not involved in this. Some miscreants are causing havoc across the country. If we cannot stop them, the situation will worsen. We urge the army to intervene to stop this destruction," he said.

Tapan Chowdhury, managing director of Square Pharmaceuticals, said the volatility of the current situation and asked who is benefiting from the vandalism. "If a police station or a government office is burnt down, how will the next government run the state? We are very sad. These resources are built with taxpayers' money," he stated.

Some examples of lawlessness:

Residents in Mohammadpur experienced a night of panic on Tuesday. Reports of robbery and looting circulated, prompting mosque announcements urging residents to remain alert. Similarly, many residents in Mirpur, Uttara, and other areas have endured sleepless nights over the past few days in the absence of police in stations and on the streets.

A resident of Mirpur 10 reported not leaving his home, keeping his door locked out of fear of attacks by miscreants. Another resident from Uttara stopped commuting to his office in Farmgate after facing multiple checkpoints manned by unidentified individuals.

Instances of lawlessness abound, creating significant panic. On Tuesday, over 200 inmates escaped from Kashimpur Jail, a high-security facility. Similar incidents occurred in the jails of Satkhira, Sherpur, and Narsingdi districts recently.