Finance Adviser Salehuddin Ahmed has lamented that extortion has surged across the country since August 5, 2024 with the interim government failing to bring the situation under control.
Discussing with journalists at his office in the Ministry of Finance on Tuesday, September 30, Salehuddin said the issue could not be resolved without political commitment and an elected government.
"For example, if Tk 1 was extorted earlier, now Tk 1.5-Tk 2 is being taken. Since August 5, various groups have become involved in extortion, including those who were not previously engaged. Even members of business associations are involved," he explained.
He stressed that extortion was fuelling price hikes of essential goods, though tackling the problem did not fall within his ministry’s remit.
"The interim government is not following a ‘catch this person, catch that person’ approach," he remarked.
Despite the worsening situation, the adviser expressed cautious optimism, predicting that inflation would fall to 7 per cent by June next year.
Concerns over law and order had been raised earlier by the business community.
On May 21, leaders at a Dhaka Chamber of Commerce and Industry (DCCI) discussion warned that pervasive extortion had become an "intolerable burden" on their operations.
They voiced deep frustration that expectations of improved security following the change of government in August had not materialised.
Instead, they said, the climate for business had deteriorated, with a spike in extortion, theft, mugging, and hijacking of goods affecting enterprises of all sizes.
Meanwhile, a Power and Participation Research Centre (PPRC) study published on August 25 revealed how harassment has entrenched itself as a daily struggle for Bangladeshi households.
The report, ‘Nothing Works Without Money’: How Harassment Becomes Widespread Crisis for Families in Bangladesh, documented how harassment now cuts across essential services, workplaces, and public spaces exacting both economic and emotional costs.
The PPRC study differentiated harassment from corruption, emphasising that its impact is often underestimated.
"A bribe may be only Tk 10, but the week lost in delays and hassles costs much more," it had noted, pointing to the hidden financial and productivity losses families endure alongside recurring burdens such as disasters, health expenses, loan repayments, education costs, and legal battles.