Extortion Explodes in Bangladesh One Year After Hasina

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Bangladesh | Planet & Commerce 

One year after the dramatic collapse of Sheikh Hasina’s long-standing Awami League government, Bangladesh is enduring a dangerous new normal—one marked by lawlessness, fragmented authority, and an unprecedented surge in extortion. The unelected interim regime led by Nobel laureate Muhammad Yunus, who assumed power following Hasina's resignation on August 5, 2024, now presides over a state that has devolved into disorder.

According to Nikkei Asia, what was once a tightly controlled, if unofficial, system of “political tolls” under the Awami League has fractured into a chaotic scramble for power. Political factions, militant student groups, and outright criminal syndicates now compete for dominance on the streets and in business sectors—fueled by an atmosphere of impunity and governmental inaction.

The consequences are catastrophic: a devastated investment climate, a price inflation spiral, and the visible collapse of law enforcement capacity. Businesses, both large and small, report being systematically extorted by various actors—some linked to political parties, others to criminal organizations previously thought to be defunct.

Builders, contractors, shop owners, and traders across Bangladesh describe an environment of relentless pressure and fear. The centralized “toll” system that once offered a degree of predictability has been replaced by a confusing and dangerous free-for-all, with competing factions extorting money at every layer of the supply chain. Indian Tourists have dropped drastically to a near zero level duer to insufficient security measures and lack of administrative control. Increasing cultural and social affinity towards Pakistan has often triggered hatred towards Indians and Hindus those who have been bearing the communal grunt in every unrest situation in last 50 years have also been victimized often in last one year. Disruption of Bangladeshi Businesses in Marquee Street in Kolkata , India and Visa curbs by Indian Government amid the political chaos have added to the row.

Dhaka police have reported an average of 70 extortion complaints per month in the first half of 2025—an astounding jump from just 22 monthly cases in 2021. Experts believe the actual figures may be much higher, as countless victims refrain from reporting incidents due to fear of reprisal or lack of faith in law enforcement. Rumoured death news of 13 Police Officers in mob attack in Dhaka and Khulna alone in last one week remained unreported in mainstream media houses.

Ironically, many of the very youth-led groups that spearheaded last year’s “anti-corruption” uprising against Hasina’s rule have now been implicated in extortion schemes themselves. One such group, Students Against Discrimination, is accused of coercing a former Awami League MP to pay Tk 50 million in bribes—a glaring example of idealism turned opportunism.

Meanwhile, elements aligned with the Bangladesh Nationalist Party (BNP) and Jamaat-e-Islami are allegedly involved in similar shakedowns. With the state’s security apparatus weakened, politically affiliated actors and rogue criminals have found new freedom to extract money from vulnerable sectors.

In addition to political factions, some of Bangladesh’s most feared underworld figures—once imprisoned or exiled—have re-emerged amid the governance vacuum. Names like Subrata Bain, Sanjidul Hassan Emon, and Abbas Ali (aka Killer Abbas) are again surfacing in investigative reports by The Daily Star, accused of orchestrating sophisticated extortion rackets across sectors ranging from school construction to local markets.

Business owners now operate in a state of permanent anxiety. Some contractors have reportedly abandoned multi-crore projects midway to avoid escalating threats or physical violence. In rural and urban areas alike, criminal networks are seizing control of small economic nodes and taxing them with impunity.

The cumulative economic effect of extortion is being felt by the entire population. With extorted bribes and “protection payments” factored into every level of the supply chain—from importers and distributors to retailers—the cost of basic goods has surged.

According to Bangladesh Bank, inflation hit 8.48% in June, but the 12-month rolling average remains above 10%, confirming a long-term inflationary trend. Finance adviser Salehuddin Ahmed has publicly acknowledged that extortion is playing a key role in this inflationary spiral by inflating transaction costs and discouraging formal business operations.

However, some economists urge caution. Rushad Faridi of the University of Dhaka argues that extortion’s impact, while real, is difficult to quantify due to a lack of data. Still, he concedes that price volatility in Bangladesh is “increasingly linked to informal economic disruptions” rather than just global supply pressures or fiscal policy failures.

Law enforcement authorities claim they are acting on complaints, but widespread perception suggests the police are either unable or unwilling to confront politically connected offenders. Many within the force lack proper resources or are reluctant to engage with groups shielded by political affiliations.

Lieutenant officers speaking anonymously to local outlets admit that pressure from above prevents decisive action. There is growing concern that unless police independence is restored, the current pattern will become institutionalized, effectively legitimizing extortion as a parallel governance structure.

Calls for systemic reform—from digitizing complaint systems to deploying special task forces—have been made but remain largely unimplemented under the Yunus-led regime, which many accuse of being passive or even complicit in the prevailing disorder.

As Bangladesh marks one year since the fall of Sheikh Hasina, it finds itself caught between the memory of a centralized but semi-stable past and a chaotic present under unelected rule. The promises of democratic transition and anti-corruption that animated the 2024 uprising have faded into a grim new reality where extortion is rampant, inflation is unchecked, and the rule of law is eroding rapidly.

The question now is not only how long the interim Yunus regime can survive this crisis, but whether any political force can restore order without reverting to the authoritarian control that once defined Hasina’s governance.

For Bangladesh’s business community—and for its 170 million citizens—the stakes could not be higher. The cost of doing business is rising, trust in institutions is collapsing, and the social fabric is wearing thin.

Without swift and decisive action to reassert central authority, restore police credibility, and protect both public and private interests, Bangladesh risks sliding further into the kind of economic and political instability that it has fought to avoid for decades.