With economic distress mounting, diplomatic relations faltering, and public discontent rising, Muhammad Yunus’s tenure as Chief Adviser appears increasingly troubled
The situation in Bangladesh is growing increasingly unstable under the leadership of Chief Adviser Muhammad Yunus. From a crumbling garment sector to uneasy civil-military relations, signs of a deepening crisis are visible across key sectors. Investor confidence has plummeted amid a worsening law and order situation, foreign policy missteps have isolated the country diplomatically, and corruption allegations are raising serious questions about the government’s intent and credibility.
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Here are five major indicators that point to worsening conditions in the country:
GARMENT SECTOR IN DEEP CRISIS
Bangladesh’s vital garment industry is in turmoil. Since August 5, 2024, more than 140 garment factories have shut down, with 15 more closures reported this month alone. Over one lakh workers have lost their jobs, many without receiving pending wages or service benefits. The impact is particularly severe in Dhaka and surrounding industrial hubs: 103 factories in Dhaka, 70 in Gazipur, 23 in Narayanganj, and 41 in Savar-Ashulia have ceased operations. Even 15 factories linked to Beximco—reportedly close to the Awami League—have shut down. A combination of financial distress, declining purchase orders, and lack of political direction has left the industry teetering.
CIVIL-MILITARY TENSIONS ON THE RISE
There is growing friction between the military and the Yunus administration. Several Army officials have reportedly expressed frustration at the government’s repeated attempts to drag the military into political matters. The Army Chief remains firm on holding elections by December, signalling a possible institutional standoff. While the military has been tasked with handling the rising threat of militancy “sophistically,” the apparent disconnect between civilian and military leadership is adding to the country’s instability.
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INVESTOR CONFIDENCE PLUMMETS
Bangladesh’s worsening law and order situation—marked by looting, arson, murders, and militant activity—has severely shaken business confidence. Foreign investment has plunged by a staggering 71 per cent compared to the previous year. Businessmen have publicly voiced concern over the government’s failure to ensure safety or support economic recovery. The growing presence of extremist outfits like Hizb ut-Tahrir openly protesting in Dhaka has only deepened investor fears.
FLAILING FOREIGN POLICY
On the international front, Yunus appears increasingly isolated. Relations with the US have been strained since Donald Trump’s return to power, and Bangladesh’s pivot towards China and India has yielded limited results. Despite repeated attempts, Yunus has struggled to secure a meeting with Prime Minister Narendra Modi. His recent controversial comments on India’s Northeast states have further strained ties. Meanwhile, tensions with Russia over the Rooppur Nuclear Power Plant and rising concerns over China’s expanding footprint have left Bangladesh with few reliable diplomatic allies.
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MOUNTING CORRUPTION ALLEGATIONS
Allegations of corruption have surfaced against Yunus and several of his advisers. According to a report by Anjuman A Islam in Eurasia Review, multiple government advisers have been misusing official vehicles in violation of established norms. More controversially, Yunus has been accused of using his position to fast-track approvals for ventures linked to him and his associates. Within just two months of taking office, Grameen Bank received a five-year exemption from regulatory scrutiny, and Grameen Kalyan was granted tax relief amounting to BDT 666 crore, bypassing an earlier high court ruling. Even a private Grameen university received quick approval under his watch.
With economic distress mounting, diplomatic relations faltering, and public discontent rising, Yunus’s tenure as Chief Adviser appears increasingly troubled. The coming months may prove decisive for Bangladesh’s political and economic trajectory.
