Leaders of Bangladesh’s ready-made garment (RMG) sector have urged the government to ensure uninterrupted gas and electricity supply to sustain industrial production, amid ongoing energy shortages.
A delegation from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by its President Mahmud Hasan Khan, met with the Honourable Minister for Power, Energy and Mineral Resources, Iqbal Hasan Mahmud, MP, and State Minister Anindya Islam Amit, MP, at the ministry today.
The delegation also included BGMEA First Vice President Salim Rahman and Vice President (Finance) Mijanur Rahman. Energy Secretary Mohammad Saiful Islam was present at the meeting.
During the discussion, BGMEA President Mahmud Hasan Khan highlighted that inadequate gas and electricity supply has reduced factory production capacity by approximately 25–30 percent. He noted that in key industrial zones such as Gazipur and Ashulia, frequent power outages combined with insufficient diesel supply for generators are severely disrupting production and shipment schedules.
He further pointed out that the ongoing energy crisis has driven up raw material costs and transportation expenses, thereby increasing overall production costs.
To address the situation, the BGMEA delegation put forward several key recommendations:
- Emergency fuel supply: Ensure rapid and priority diesel supply to garment factories from nearby filling stations under a special arrangement.
- Gas connectivity and equitable distribution: Provide urgent gas connections for small and medium-sized factories (with boiler capacity of 300–500 kg) and ensure fair gas distribution across all industrial zones surrounding Dhaka.
- Infrastructure development and automation: Expedite the installation of at least two additional Floating Storage and Regasification Units (FSRUs) and simplify the process of installing Electronic Volume Corrector (EVC) meters in industrial facilities.
- Reduction of duties and taxes: Withdraw import duties, VAT, and other taxes on imported fuel at both import and consumer levels to reduce production costs and ease the government’s subsidy burden.
To promote environmentally sustainable industrialization, BGMEA also proposed reducing the high import duties (currently ranging from 28.73% to 61.80%) on essential renewable energy equipment—such as solar panels, inverters, DC cables, and Battery Energy Storage Systems (BESS)—to 1%.
The Minister and State Minister listened attentively to the proposals and acknowledged the critical role of the RMG sector in the national economy. They assured the delegation that necessary steps would be taken to address the challenges and approved BGMEA’s proposed mechanism for facilitating emergency diesel supply from nearby filling stations.
