Bangladesh’s ready-made garment (RMG) and textile export sector is facing unprecedented uncertainty fueled by political instability, buyers’ declining confidence, and inconsistent government directives. Leading industry representatives warned that major international buyers are withdrawing or delaying orders due to the unstable environment
These concerns were shared at a views-exchange meeting held today at the Uttara Club, chaired by former BGMEA President Kazi Moniruzzaman. Leaders from BGMEA, BTMA, BGBA, BKMEA, and other manufacturing and export-oriented sectors participated in the discussion.
Key Concerns Raised by Industry Leaders
Political and Policy Instability Affecting Buyer Confidence
BGMEA President Mahmud Hasan Khan emphasized that forced LDC graduation without adequate preparation could hurt the sector. He stressed the need for a supportive, predictable, and stable policy environment during Bangladesh’s post-graduation phase. He called on the government to ensure a free and fair election, improve the law-and-order situation, include at least 10 industrialists in the next Parliament, and involve business leaders directly in future policy-making.
Comparative Disadvantage Against Regional Competitors
BTMA President Shawkot Aziz Russell expressed concerns that neighboring countries, especially India, are offering stronger support to their industrialists. He questioned the effectiveness of massive government funds injected into the banking sector, citing ongoing liquidity challenges faced by local industries. He also criticized the awarding of major national projects to foreign entities without sufficient scrutiny while local businesses continue to face policy neglect.
Need for Industry Representation in the Next Government
BGBA President Mohammad Pavel highlighted persistent challenges in security and policy instability. He said bureaucratic roadmaps alone cannot solve the crisis, and urged for direct representation of RMG leaders in the next elected government to ensure industry-focused solutions. He noted that buyers currently do not feel assured about placing orders in Bangladesh due to recent developments.
Severe Infrastructure Issues Impacting Exports
BGMEA Vice President(Finance) Mijanur Rahman pointed to inefficiencies at Chittagong Port and the recent airport fire, both of which have disrupted the garment supply chain and caused significant financial loss.
Declining Orders and Looming Industrial Crisis
In a presentation, Shovon Islam, Managing Director of Sparrow Group, stated that purchase orders have been declining continuously for the past four months, with no policy support from the government. He warned that the situation is now worse than during the COVID period, with many factories becoming loan-defaulters. He criticized the recent decision to allow trade unions with only 20 workers, saying it could destabilize the industry. He also noted that repeated fires including the international airport fire have damaged global buyer confidence, creating massive invisible losses for the sector. He demanded that the BGMEA President be given ministerial rank in the future government to ensure effective policy representation.
Financial and Employment Impact
Industry leaders revealed that in the past year:
⦁ 258 garment factories have shut down
⦁ Over 100,000 workers have lost their jobs
⦁ Failure to meet compliance standards is one of the key reasons behind factory closures
Business leaders warned that rising port charges, an unstable financial sector, and new labor rights investigation procedures could lead to further order cancellations.
BGAPMEA President AL Shahriar Ahmed requested the government’s policy Bangladeshi backward linkage industry y due to cargo fire impact. support to overcome the challenges.
Call for National-Level Action
Former BGMEA President Faruque Hassan stressed that buyers will increase orders only when there is a stable, elected government in place.
Presiding over the event, Kazi Moniruzzaman said: “Government sincerity is essential to shield businesses from losses. Without an elected government, a business-friendly environment is impossible.” Industry representatives unanimously urged the government to develop coordinated, long-term strategies to address the ongoing crisis and restore confidence among global buyers.
BGMEA former president Khandaker Rafiqul Islam, Chaity Group Managing Director Abul KalamBGMEA member Md. Kafil Uddin delivered speech.
