Staff Correspondent

Beximco, one of Bangladesh’s leading industrial conglomerates, is set to hold a press conference to demand the reopening of letter of credit, or LC, facilities, citing raw material shortages as the primary reason for factory closures.

The event is scheduled for Thursday at 11:30am at the Capital Market Journalist Forum, or CMJF, office in Dhaka’s Al Razi Complex.

The crisis within Beximco emerged after the fall of the Awami League government on Aug 5, following a student-led uprising.
Labour unrest has since gripped the group, leading to the shutdown of several units at the Beximco Industrial Park.

Salman F Rahman, vice-chairman of Beximco Group and a former private industry and investment advisor to ousted prime minister Sheikh Hasina, was arrested and sent to jail during the political upheaval.

Since then, the group’s entrepreneurs have largely operated in the shadows.

Tariqul Islam, an official from Beximco Limited's human resources and administration department, told bdnews24.com: “We are unable to open LCs with any bank due to account restrictions. We will appeal to the government to restore LC facilities, which is essential to reopening factories.”

He added, “If banking services are resumed, we can restart operations. We urge the government to allow us to open LCs.”

Beximco Limited has announced layoffs until Jan 30 but is pushing to reopen its factories sooner by resolving the LC issue.

Despite the challenges, Beximco Pharmaceuticals and Shinepukur Ceramics, both publicly listed, continue operations.

Beximco Pharmaceuticals is also listed on the London Stock Exchange.

Most directors of Beximco Group remain in hiding, and the company is grappling with a cash crunch as many of its bank accounts have been frozen.

The restrictions have left Beximco unable to secure funds or open LCs, exacerbating the crisis.

Workers at Beximco factories staged road blockades over unpaid wages, prompting the interim government to arrange three months’ worth of salaries.

Subsequently, an advisory committee was formed to address the future of Beximco's companies, considering the employment of 40,000 workers, law and order, and the economic impact.

The committee categorised Beximco’s businesses into three groups and decided to continue operations for the profitable ones.

On Jan 1, the Securities and Exchange Commission, or SEC, appointed 25 independent directors to each of Beximco's three listed companies.

Salman, a prominent businessman, co-founded Beximco in 1972 with his brother Ahmed Sohail F Rahman.

Over the years, the group expanded into diverse sectors, including pharmaceuticals, textiles, power, financial services, engineering, media, and hospitality.

Salman served as the president of the Federation of Bangladesh Chambers of Commerce and Industry, or FBCCI, in the mid-1990s.

A close confidant of Hasina, he was appointed as her private sector advisor in 2009 and later promoted to advisor on private industry and investment in 2019 with the rank of a minister.

He was also elected as an MP from Dhaka-1 in the last two national elections.

However, following the government's fall, questions loom over the future of over a dozen companies within the Beximco Group.