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Bangladesh RMG industry is again facing tough times with the subsequent COVID-19 upsurge

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rmg-hit-by-coronaIn Bangladesh, the RMG industry is again facing hard times with the second COVID-19 wave that influenced Europe and the United States. As BGMEA President Rubana Huq states, buyers delay new orders that may impact the amount of exports. In October, exports of clothing in Bangladesh showed a steep decline, while the clothing exports increased in August and September. In contrast to the respective duration of 2019, the purchasers have placed fewer job orders in November and December.

Some textile producers agreed not to export woven clothing during the first quarter of the year 2020–21 after the decline in clothing exports. The textile industry suffered losses in March-June 2020 because of the sale of clothing which had been slowing down because of the widespread shutdown.

The government unveiled a stimulus program to relieve the consequences of the economic slowdown. Earlier, the government provided the owners with 4% interest-rate loans at Tk 75 billion, allowing them to pay the salaries of the workers. Later, in response to the demand of the owners, Tk gave 30 billion. Nearly half of the funds offered were drawn by factory owners. The credit had a good influence during the crisis, said Professor Selim Raihan, executive director, Sanem. In order to help them make future decisions he ordered the government to set up an independent authority to examine the program.

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