Bangladesh Nationalist Party, the country's oldest political group, has urged supporters to boycott this week's elections after being barred from participation. The party warns the vote lacks credibility and predicts prolonged political unrest, raising concerns among foreign investors about stability in the $460 billion economy.

Analysts note the boycott could exacerbate tensions in a nation already grappling with inflation above 9% and dwindling foreign exchange reserves. The garment export sector, accounting for 85% of Bangladesh's overseas sales, faces particular vulnerability to political disruptions that might delay shipments or deter Western buyers.

Prime Minister Sheikh Hasina's government faces mounting pressure to address legitimacy concerns while maintaining economic momentum. Recent months saw Moody's downgrade Bangladesh's credit rating to junk status, with political instability cited as a key risk factor for Asia's seventh-most populous nation.