Bangladesh Faces Worst Economic Crisis in 40 Years: Shaugat Ali Sagor

Khabor Wala Desk

Published: 26th July 2025, 1:14 PM

Bangladesh Faces Worst Economic Crisis in 40 Years: Shaugat Ali Sagor

Shaugat Ali Sagor, Editor-in-Chief of the Canada-based Bengali news outlet Natun Desh, has stated that Bangladesh is currently facing its worst economic crisis in four decades. According to him, the widespread concern and anxiety prevailing across the country is neither baseless nor exaggerated—it is both justified and deeply rooted in reality.

Sagor made these remarks on Friday, 25 July, during a talk show on journalist and analyst Masud Kamal’s YouTube channel “Onno Moncho”.

Statements and Observations by Shaugat Ali Sagor:

Subject	Details
Leadership Awareness	Sagor questioned whether those leading the country are even concerned about the crisis.
Tariff Misinterpretation	“Some initially claimed Trump’s tariffs could bring opportunities. But opportunity doesn’t mean advantage unless we are prepared to seize it.”
Garment Sector Vulnerability	80% of exports are garment-based, employing 4 million people directly. Millions of livelihoods are now at stake.
Delayed Diplomacy	The third round of talks with the US is scheduled for 29 July, yet tariff decisions take effect on 1 August. Sagor criticised the last-minute response.
Lack of Coordination	Contradictory statements by commerce officials; no clarity on whether meetings are online or in person—showing unpreparedness.

Sectoral Impact: Garment Industry and Employment

Many garment factories have shut down over the past year.
Workers were laid off due to state intervention, police actions, or violence.
A World Bank report indicated that 2.7 million people have newly fallen into poverty.
Local estimates suggest the figure is closer to 5–6 million.
An estimated 1 million garment workers are at risk of losing their jobs.

“That translates to 1 million families being directly affected,” Sagor warned.

With investment weakening, exports shrinking, and the economy stagnating, Trump’s additional tariff threats could deliver what Sagor termed a “hammer blow” to Bangladesh’s already fragile economy.

Global Comparison: Vietnam vs. Bangladesh

Aspect	Vietnam	Bangladesh
Garment Share in US Market	Double that of Bangladesh	Lower share compared to Vietnam
Tariff Negotiations	High-level delegation engaged Trump directly	Uncertainty over delegation and negotiation leadership
Tariff Outcome	Successfully negotiated relief despite 16% duty	Facing potential tariffs of up to 50%
Response	Formal negotiation team formed involving think tanks, private sector, and lobbyists	Sent a security advisor without trade negotiation relevance

A Question of National Survival

Sagor strongly criticised the government’s indifferent attitude:

“We still haven’t officially named a negotiation team or clarified to the US who is representing our side. This lack of urgency reflects how unseriously the government is treating the matter.”

Referring to the statement by A K Azad, a leading exporter, who said, “I haven’t seen a situation like this in 40 years”, Sagor stressed that this is not merely a concern of the business community, but a crisis threatening the entire nation’s economic survival.

“This is about Bangladesh’s existence—not just numbers, but people’s lives and futures,” he concluded.