AK Azad, Chairman and Managing Director of Ha-Meem Group, has voiced deep concern over the current state of Bangladesh’s economy and banking sector. Speaking at the inaugural session of the Bangladesh Economic Conference 2025 on Saturday, 29 November, he warned that the ongoing slowdown in the industrial sector has already left approximately 1.4 million people unemployed.
“Every year, at least three million individuals enter the labour market,” Azad noted. “However, with insufficient job creation in the industrial sector, the majority of these new entrants struggle to find employment, driving unemployment rates sharply higher.”
Azad pointed to recent economic data to underline his warnings. According to the latest bulletin from Bangladesh Bank, the country’s GDP growth for the previous fiscal year was 4.22 per cent. However, preliminary estimates suggest that growth in the current fiscal year may decline to 3.97 per cent, reflecting mounting internal pressures on the economy.
He added that the challenges are not limited to the macroeconomic landscape. The banking sector, too, faces a precarious situation. Classified non-performing loans have risen to 24 per cent, although Azad believes the actual figure could be higher.
The private sector is particularly impacted by these conditions. Azad explained that the contractionary monetary policy adopted by Bangladesh Bank has pushed interest rates higher, directly affecting loan availability. “We are currently receiving loans at an interest rate of only six per cent, which is insufficient for industrial expansion,” he stated.
He also emphasised that industrialisation has slowed dramatically. A lack of new investment and industrial projects means that business and trade are failing to generate the economic momentum required for growth. Capital machinery imports, a key indicator of industrial activity, fell last year and have dropped a further 26 per cent in the current year compared with the previous year, highlighting the sector’s dire state.
Key Economic Indicators
| Indicator | Previous Fiscal Year | Current Fiscal Year (Estimate) |
|---|---|---|
| GDP Growth (%) | 4.22 | 3.97 |
| Unemployment (million) | – | 1.4 |
| Non-Performing Loans (%) | – | 24 |
| Capital Machinery Imports (Index) | 100 | 74 |
| Loan Interest Rate for Industry (%) | – | 6 |
Azad’s warnings underscore the urgent need for policies to stimulate industrial growth, increase job creation, and restore stability to the banking sector. Without prompt intervention, he cautioned, the economic pressures on Bangladesh’s workforce and private sector could intensify further, threatening long-term growth prospects.