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Monday | October 05, 2026 | Dhaka

Over 150 factories shut in N’ganj in 3 years

 Staff Correspondent, N’ganj
 Published: 12:01 AM, 04 October 2026  Updated: 2:53 PM, 04 October 2026

More than 150 factories in Narayanganj have shut down over the past three years, leaving around 60,000 workers without jobs, according to industry sources.

The closures took place among more than 550 apparel and related industrial establishments in the district, as the sector faces growing pressure from gas and electricity shortages, rising production costs and labour-related problems.

According to Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem, 91 knitting factories, 56 garment factories and 13 printing factories have closed over the past three years.

Hatem and other industry leaders said uninterrupted gas and electricity supplies to Narayanganj’s industrial areas are essential to capitalising on growing international demand.

They also called for measures to ease the burden of bank loans, control production costs and maintain stable relations between workers and factory owners.

Around 260,000 workers were previously employed by these establishments, but the number has now fallen to about 200,000. More than 400 establishments are currently operating in the BSCIC Industrial Estate.

Gas and power shortages remain among the biggest challenges for industrial entrepreneurs. Low gas pressure has disrupted boiler operations and production at knitting, dyeing and printing factories, affecting businesses across the supply chain.

A BKMEA survey found that around 78 per cent of participating knitwear factories had been forced to partially suspend production at some point. Nearly 87 per cent reported shipment delays, while 90 per cent were affected by power shortages and around 75 per cent by gas shortages.

The energy crisis has forced many factories to rely on diesel-powered generators, increasing production costs. As manufacturers supply products to international buyers at pre-agreed prices, they cannot fully pass the additional costs on to buyers, resulting in losses for some entrepreneurs.

According to the survey, 55 per cent of participating factories said international buyers had cancelled or reduced their orders. Nearly 60 per cent had been forced to offer discounts, while around 59 per cent were at risk of defaulting on bank loans.

Despite these challenges, Bangladesh’s apparel exports continue to show growth. During July and August of the current fiscal year, garment exports to the United States rose by 11.42 per cent. In August, overall garment exports increased by 13.92 per cent, while knitwear exports rose by 14.88 per cent.