BGMEA seeks govt policy support to face challenges

Staff Reporter :
The entrepreneurs of the country’s apparel industry have sought government policy support to face challenges emerged from the Russia-Ukraine war.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan made the call at a meeting with Dr Md Khairuzzaman Mozumder, Secretary of the Finance Division, at the Ministry of Finance at the secretariat on Tuesday.

BGMEA Senior Vice-President SM Mannan (Kochi) and Vice President Rakibul Alam Chowdhury were present in the meeting.

The meeting revolved around pressing issues concerning the country’s ready-made garment industry, its potential, and the vision to sustain growth and development.

During the meeting, Faruque Hassan pointed to the profound impact of the Russia-Ukraine conflict on the global economy, which has presented a significant challenge for the readymade garment industry of the country.

The repercussions of the Russia-Ukraine war have led to severe inflation in the USA and EU countries and demand for apparel in key export markets like Europe and America has declined as consumers prioritize essential items such as food and fuel over clothing.

This has resulted in a decline in garment exports to the Europe and the USA, he said.

This decrease in garment exports, which constitutes over 84 per cent of Bangladesh’s total export earnings, has impacted the country’s foreign reserves, the BGMEA president added.

Recognising the magnitude of these challenges, Faruque Hassan emphasised the necessity for a government policy support to navigate these troubled times and maintain competitiveness in the global market.

He also underscored the industry’s increasing focus on diversifying into non-cotton products including man-made fiber (MMF) based garments, given their high demand globally, and urged the government to encourage and facilitate this shift through policy support.

Besides, he highlighted the industry’s commitment to environmental sustainability, including efforts in developing the capacity of recycling and promoting a circular economy.

He stressed the need for government support to advance recycling and circularity within the Bangladesh’s garment industry.

In addition to these concerns, the delegation called for easier and faster services from the banking sector for the RMG industry.