Political risks in Bangladesh have intensified as a new set of violent clashes between police and state employees erupted in Dhaka days before a general election expected to restore an elected government.

Bangladesh has seen continuing political and communal violence after the August 2024 upheaval that drove former Prime Minister Sheikh Hasina from office and into exile. A caretaker administration led by Chief Adviser Muhammad Yunus is overseeing the vote, which investors view as pivotal for policy continuity and fiscal stability.

According to a report by NDTV, protesters from across the country gathered at Shaheed Minar and marched towards Jamuna, the chief adviser’s official residence, demanding swift publication and implementation of the Ninth National Pay Scale.

Demonstrators said wage revisions were essential to address rising living costs and safeguard purchasing power, signalling broader concerns over household incomes and public-sector morale. The grievance, although a long standing issue for state employees, has roots in the overall squalor in which the Bangladeshi people are forced to live in.

The situation has only worsened with shrinking national incomes as the global service industry has taken a hit after the introduction of large language models and associated AI models as well as the garment sector after tariffs by the US.

Bangladesh’s garment sector makes up the majority of the country’s exports and employment avenues. Police blocked access near Shahbagh after crowds breached barricades around late morning. Authorities used water cannons, tear gas and sound grenades to disperse the assembly, while uniformed troops were deployed to secure the area.

Several people were reported injured as confrontations intensified. A senior Dhaka police official questioned whether the mobilisation could disrupt the election, while officers later said they were working to stabilise law and order and engage protesters to relocate.

Public sector representatives warned that continued force could trigger an election boycott, underscoring risks to turnout and administrative functioning.

As of Feburary 6 2026, heavy security remained in place around Shahbagh and Jamuna. Global markets will watch whether negotiations emerge on pay implementation and whether unrest spills into broader labour actions.