Businesses seek policy, energy support to obtain $100b RMG export
Staff Reporter :
Leaders from Sammilito Parishad, one of the two panels contesting the upcoming Bangladesh Garment Manufacturers and Exporters Association (BGMEA) elections, have called on the government to ensure a stable supply of power and energy, alongside robust policy support and investment in skills development, to drive the country’s ready-made garment (RMG) exports towards the $100 billion mark.
The appeal was made on 21 May during the launch of the Sammilito Parishad’s election manifesto at a hotel in Dhaka, ahead of the BGMEA polls scheduled for 28 May. The election will determine 35 directors to lead the nation’s apex RMG trade body for the 2025-2027 term.
Md Abul Kalam, owner of Chaiti Group and leader of the Sammilito Parishad, unveiled a 12-point manifesto outlining key priorities for the sector. The document highlighted persistent challenges, including power shortages, global economic volatility, and geopolitical tensions, which threaten the industry’s competitiveness.
“The RMG sector urgently requires government intervention to overcome existing obstacles and secure its long-term growth,” Kalam stated during the event.
Abdullah Hil Rakib, Managing Director of TEAM Group and another senior leader of the panel, emphasised the need to shift away from Bangladesh’s heavy dependence on cotton. He pointed out that man-made fibres dominate 76 percent of the global RMG market, yet account for only 16 percent of Bangladesh’s output-compared to 42 percent in China and 46 percent in Vietnam.
“To stay competitive in the global marketplace, we must transition to man-made fibre production,” Rakib said.
He also criticised the Bangladesh Association of Banks (BAB) for high lending rates, claiming the current banking model benefits both bankers and buyers at the cost of manufacturers. Rakib called for affordable financing options and more equitable pricing from international buyers.
Turning to global trade concerns, Rakib expressed alarm over the growing impact of tariff wars, particularly those led by the United States, warning that continued trade restrictions could significantly hinder the sector’s growth trajectory. Also addressing the event, former BGMEA president Faruk Hasan urged the government to delay Bangladesh’s graduation from Least Developed Country (LDC) status.
He proposed extending the transition period until 2031-2032, citing the current export and financial climate as justification.
“Extending the LDC transition would give Bangladesh vital time to strengthen its global trade position and safeguard its export competitiveness,” Hasan said.
The Sammilito Parishad’s manifesto also reiterated its commitment to sustainability, innovation, and greater market diversification to support the long-term vision of the country’s largest export-earning sector.