Bangladesh’s garment industry—the backbone of the national economy—is facing one of the most severe crises in its history. For five consecutive months, exports have declined, and key international markets are slipping away. At the center of this economic collapse lies the July Conspiracy of 2024, which overthrew an elected government through violence and political manipulation, leaving long-term damage across critical sectors.
Under the so-called interim government led by Muhammad Yunus, economic mismanagement and political instability have pushed Bangladesh’s largest export industry to the edge of collapse. Millions of garment workers and their families are now paying the price of decisions taken in July, when power was seized through bloodshed rather than democratic process.
Export Decline Signals a Deepening Crisis
Data from the Export Promotion Bureau reveals the scale of the disaster. Garment exports to Germany and France have fallen by more than 10 percent. In Eastern Europe, the losses are staggering: Croatia has seen a 77 percent drop, Romania 35 percent, and Slovakia nearly 23 percent. Overall, Bangladesh has lost garment export momentum in 26 countries, including major markets such as the United States, the United Kingdom, and the European Union.
Even non-traditional destinations—Russia, Turkey, Mexico, India, and Australia—are reducing orders. These figures are not abstract statistics; each percentage point represents factory closures, lost wages, and families pushed into insecurity.
The July Conspiracy and the Collapse of Investor Confidence
This decline is not an inevitable result of global slowdown. Competing garment exporters such as Vietnam, India, China, and Cambodia have not experienced losses at the same scale. Bangladesh’s problem is uniquely domestic, rooted in the political instability created by the July Conspiracy.
International buyers prioritize stability, continuity, and credibility. When an elected government is removed through riots, foreign funding, extremist backing, and military involvement, confidence evaporates. Images of street violence, factory arson, and political chaos following July 2024 have spread across global media, making Bangladesh appear unreliable as a sourcing destination.
Failure of Leadership Under the Interim Government
Since assuming power, Muhammad Yunus and his interim administration have failed to engage meaningfully with garment factory owners, exporters, or labor representatives. No coherent strategy has been introduced to address gas and electricity shortages, rising raw-material costs, banking paralysis, or the persistent dollar crisis.
Instead of economic recovery, the government has focused on political vendettas and suppressing dissent. The absence of policy clarity and institutional legitimacy has made it impossible to reassure foreign buyers or stabilize production cycles.
Why Global Factors Alone Do Not Explain the Decline
Some claim that reduced demand due to global economic conditions is responsible for the downturn. However, if that were the case, similar export collapses would be visible across competing economies. They are not. Bangladesh’s garment sector is suffering disproportionately because the July Conspiracy destroyed political order, replacing it with uncertainty and administrative paralysis.
When buyers cannot predict whether factories will remain operational or whether today’s government will exist tomorrow, they redirect orders elsewhere. This is precisely what is happening now.
Workers Pay the Ultimate Price
The human cost of this crisis is immense. Millions of garment workers now live under constant fear of job loss as factories shut down due to falling orders. Entire families dependent on garment wages face an uncertain future, while the interim government remains detached from their suffering.
Despite presenting himself as an economist, Yunus has demonstrated little understanding of large-scale industrial economics. Managing microcredit institutions is not the same as governing a national export-driven economy. The lack of foresight and empathy has worsened the crisis.
Political Stability Is the Only Path to Recovery
There is no economic solution without political legitimacy. Restoring stability requires a democratically elected government with a clear mandate. Only then can urgent measures be taken to revive gas and electricity supply, stabilize the banking sector, address the dollar shortage, and rebuild Bangladesh’s reputation among international buyers.
As long as an illegitimate authority born of the July Conspiracy remains in power, meaningful recovery is impossible.
Accountability for the July Conspiracy
The destruction of the garment industry is not merely an economic failure; it is the consequence of a political crime. Those responsible for the July Conspiracy—carried out with foreign money, extremist support, and military backing—must be held accountable. The workers who lost jobs, the families pushed into poverty, and the exporters who lost markets all deserve justice.
Bangladesh’s future cannot be secured under an administration that lacks democratic legitimacy and economic competence. History will remember who dismantled the country’s most vital industry—and the people will not forget.
