Gas crisis shuts 300 factories, threatens exports earnings

More than 300 garment factories across Bangladesh have been forced to shut down due to the prolonged gas crisis, said Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

He also claimed that the country’s exports have already suffered losses of 40-50 percent due to disruptions in production, while European buyers are shifting export orders to neighbouring countries at a press conference held at the BKMEA office in Narayanganj on Saturday (August 22) .

He said more than 300 garment factories across the country had closed due to the gas shortage, while export orders were being diverted to neighbouring countries.

“We are deeply concerned about whether we will receive new export orders at all. We are unable to keep production running under the current circumstances,” he said.

“We are also not receiving any clear explanation from the government about how the crisis can be resolved. The government should brief us at least once a week.

Our exports have already been affected by 40-50 percent. That is the direct loss. The indirect loss is that buyers are taking their orders to neighbouring countries,” Hatem said.

Describing the current situation, he said gas shortages had persisted in various areas for about a month, forcing many factories to suspend production.

The Energy Ministry had assured businesses that the situation would improve after August 10. Although gas supplies improved slightly for two days, the situation has since deteriorated further, making it impossible for factories to maintain production.

He further said a major European buyer was considering cancelling a large order and shifting it to a neighbouring country.

“We are worried about whether we will be able to secure export orders in the coming days. Several orders are already being shifted because of the gas crisis. Our backs are against the wall. We urge the government to take immediate and effective measures,” he said.

At the press conference, business leaders placed six demands before the government to address the gas crisis.

Among their demands are allowing factories to pay their gas and electricity bills for June and July in instalments over the next 12 months and refraining from disconnecting utility connections if businesses fail to pay during this period.

They also called for a clear explanation from the government on how factories are expected to continue production amid the ongoing gas shortage.

The business leaders further demanded that the government hold weekly briefings to clarify its position on the gas crisis, suspend CNG supplies to public transport, disconnect illegal gas connections, and instruct the government and Bangladesh Bank to refrain from collecting loan instalments from businesses during the ongoing crisis.

BKMEA Executive President Fazle Ehsan Shamim, Vice President (Finance) Morshed Sarwar Sohel, former BGMEA president Kazi Monir, Senior Vice President Amal Poddar, Vice President Ashikur Rahman, Director Nazrul Islam Swapan and Director Mamunur Rashid, among other leaders of the organisation, were present at the press conference.