BGMEA seeks urgent policy, financial support to overcome RMG industry crisis
Business Desk :
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought urgent financial assistance along with policy support, citing that the country’s readymade garment (RMG) industry is in deep crisis due to global economic instability and various internal adversities.
BGMEA leaders raised these demands in an emergency meeting with Finance Division secretary Md Khayeruzzaman Majumder on Tuesday. The delegation led by vice president Md Shihab Uddoza Chowdhury included vice president Md Rejoan Selim, Mizanur Rahman, and director Faisal Samad.
At the meeting, BGMEA leaders said that the RMG industry is currently under extreme pressure due to the global recession, reduced purchase orders, increased production costs and falling product prices. The growth in RMG exports in the first seven months of the current FY26 has decreased by 2.43 percent.
In particular, in the three months from October to December 2025, export growth has decreased by an average of 9.43 percent compared to the same period in 2024. Due to these adversities, about 400 garment factories have closed in the past one year. In addition, many more factories are at risk of closure, which is worrisome for the labor market and the overall economy.
BGMEA leaders said that the number of working days will decrease significantly in February and March, focusing on the upcoming national elections, government holidays, and Eid-ul-Fitr. Although factories are practically open for only 35 days out of 60 days, factories will have to pay almost double the wages in March, including regular wages, Eid bonus and advance wages.
They expressed concern that if these institutions do not receive timely banking support, it will become difficult for them to pay workers’ wages and festival allowances and keep production running. This may create instability in the industry, which will have a negative impact on the overall economy.
In the meeting, BGMEA leaders demanded the immediate settlement of pending cash assistance applications in Lien Bank and Bangladesh Bank and release of funds. They expressed hope that this would improve the cash flow situation of the factories.
They also requested that a soft loan equivalent to six months’ salary be provided at low interest rates and on easy terms to ensure payment of salaries, allowances and bonuses to workers during Eid and the post election period.