BGMEA Seeks Urgent Support As RMG Sector Faces Crisis
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to provide immediate financial assistance and policy support, warning that the country’s readymade garment (RMG) industry is facing a severe crisis amid global economic uncertainty and domestic challenges.
The demands were raised during an emergency meeting between BGMEA leaders and Finance Division Secretary Md Khayeruzzaman Majumder. The BGMEA delegation was led by Vice President Md Shihab Uddoza Chowdhury and included Vice Presidents Md Rejoan Selim and Mizanur Rahman, along with Director Faisal Samad.
Industry representatives said the sector is under intense pressure due to reduced global demand, rising production costs, and declining product prices. RMG export growth during the first seven months of FY26 declined by 2.43%, while exports in the October–December 2025 period fell by an average of 9.43% compared with the same period a year earlier.
BGMEA also highlighted the impact on manufacturing capacity, noting that around 400 garment factories have closed over the past year, with many more at risk, raising concerns about employment and broader economic stability.
Additional operational challenges are expected in February and March, when working days are likely to be reduced due to national elections, public holidays and Eid-ul-Fitr. According to BGMEA, factories may effectively operate for only about 35 days out of 60, even as wage obligations rise because of regular salaries, festival bonuses and advance payments.
The association warned that without timely banking support, many factories may struggle to meet wage and allowance commitments, potentially creating instability across the sector.
To ease the situation, BGMEA has requested the immediate settlement of pending cash assistance applications with lien banks and Bangladesh Bank to improve cash flow. It has also proposed the introduction of soft loans equivalent to six months’ wages, to be offered at low interest rates and on flexible terms, to help manufacturers pay salaries, allowances and festival bonuses during the election and post-election period.
BGMEA expressed hope that swift policy action and financial support would help stabilise the industry and prevent further factory closures while sustaining employment and export performance in one of Bangladesh’s most critical sectors.
