Bangladesh Garment Industry Sounds Alarm as BGMEA Urges Emergency Government Intervention
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Bangladesh’s readymade garment (RMG) sector, the backbone of the country’s export economy, is facing what industry leaders describe as a deepening and multi-layered crisis. In a high-level meeting with Finance Secretary Md Khairuzzaman Mozumder, a delegation from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) sought urgent policy and financial support to stabilise the industry.
Led by BGMEA Vice President Md Shihab Uddoja Chowdhury, the delegation highlighted how global economic uncertainty, subdued demand in key export markets, and intensifying domestic cost pressures are converging at a critical moment for manufacturers. According to BGMEA data, apparel export growth declined by 2.43 per cent during the first seven months of the current fiscal year, with a sharper contraction between October and December 2025, when growth fell by an average of 9.43 per cent year on year.
Factory Closures, Wage Burden and Shrinking Working Days
The slowdown has already had visible consequences on the ground. BGMEA representatives revealed that around 400 garment factories have shut down over the past year, driven by rising production costs, falling unit prices and declining export orders. They warned that many more units remain vulnerable if liquidity conditions do not improve soon.
Adding to the strain are operational disruptions expected in the coming months. February and March will see reduced effective working days due to the national election, public holidays and Eid-ul-Fitr, leaving factories with just 35 working days out of a possible 60. Despite lower output potential, manufacturers will face a heavy wage outflow in March, including:
- Regular monthly salaries
- Festival bonuses
- Advance wage payments
BGMEA cautioned that small and medium-sized factories are especially exposed, and prolonged financial stress could trigger industrial unrest with broader economic repercussions.
Calls for Immediate Relief and Policy Action
To prevent further deterioration, the association urged the government to move swiftly on targeted relief measures. Key demands placed before the finance secretary included:
- Fast-tracking disbursement of pending cash incentives through lien banks and Bangladesh Bank
- Soft or low-interest loans equivalent to six months’ wages to help factories meet salary and bonus obligations
- Enhanced banking support to protect employment and maintain industrial stability
The finance secretary assured the delegation that their concerns would be examined and that appropriate measures would be considered. Other BGMEA leaders present at the meeting included Vice Presidents Md Rezwan Selim and Mizanur Rahman (Finance), along with Director Faisal Samad.
As Bangladesh’s garment industry navigates one of its most testing phases in recent years, stakeholders warn that timely government intervention could make the difference between stabilisation and a deeper structural setback for a sector that employs millions and anchors the national economy.
12:57 PM, Feb 05
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